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Freedman was a longtime employee of Mallin and performed
administrative and office work for Mallin. During 1980, acting
upon Mallin’s advice, Freedman invested $2,500 to acquire
Jenrich. Mallin was instrumental in bringing about Jenrich’s and
Freedman’s involvement in the foregoing transaction. Mallin
advised Freedman to cause Jenrich to enter into that transaction
and the equipment leaseback from CAP (described below in step 3).
Mallin negotiated those transactions for Freedman with Jenrich
and CAP. Freedman discussed those transactions with Mallin, but
not with Klein, the managing general partner of CAP who rented
space in Mallin’s office. Freedman eventually disposed of her
interest in Jenrich for $5,000 during 2000 when she sold her
Jenrich stock to an associate of Mallin. Freedman received
$40,000 in compensation as an officer of Jenrich from 1993
through 2003.
3. Also on August 31, 1995, CAP leased back from Jenrich
the Shared and K-Mart equipment pursuant to the over lease
wraparound lease covering the existing K-Mart and Shared end-user
leases and the master lease for the K-Mart and Shared end-user
lease equipment. In exchange, CAP received the right to CFX
Financial’s master lease rental payments on that equipment. The
over lease agreement provided for lease periods of the K-Mart and
Shared end-user lease equipment that coincided with and ended at
the same times as the master lease for the K-Mart and Shared
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