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Sodbury’s partnership interest. Saba I, slip op. at 38-
40.
• Brunswick’s payment of $750,000 to ABN over 3 years
(ostensibly for consulting services) that Brunswick charged
against its Accrued Disposition Costs reserve account
allocated to partnership activity. Saba I, slip op. at
39.
• The June 19, 1990 den Baas memorandum (pertaining to the
Otrabanda partnership) which stated in pertinent part:
although the loan spread will be 30 bps. the
transaction will yield 85 bps. over LIBOR
(the difference to be paid separately).
Total remuneration $600,000 excluding the
Trust fee. [Saba I, slip op. at 54.]
• Brunswick’s payment of $645,000 to Bartolo in December
1990, ostensibly to gain control of Otrabanda, but referred
to in Brunswick’s accounting records as a fee. Saba I,
slip op. at 71.
Petitioner contends that ABN did not expect a specified
return on the funds that it invested in the partnerships and
downplays the mention of “upfront fees” in den Baas’ February 15,
1990, memorandum. Petitioner suggests that den Baas was merely
conveying ABN’s hope “to earn a certain dollar amount of fees by
generating a relationship with Brunswick.” We reject
petitioner’s interpretation.
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