- 16 -
D. Rockport Capital, Inc.
During the taxable years at issue and at all relevant times,
Mr. Ackerman conducted all his investment activities through a
wholly owned advisory company called Rockport Capital, Inc.
(Rockport Capital). Rockport Capital was a Delaware subchapter S
corporation. Mr. Lerner was an officer in Rockport Capital.
E. Rockport Advisors, Inc.
After Mr. Lerner retired from O’Melveny & Myers in 1996, Mr.
Ackerman asked Mr. Lerner to continue representing him. Mr.
Ackerman was interested in various investment opportunities that
were coming his way, and he often asked Mr. Lerner’s legal advice
about them. Initially, Mr. Lerner devoted about half his time to
Mr. Ackerman’s affairs. As a product of this representation, Mr.
Lerner formed Rockport Advisors, Inc. (Rockport Advisors), which
he owned. Rockport Capital and Rockport Advisors operated
together with respect to Mr. Ackerman’s investment activities,
including the transaction involving the Credit Lyonnais group.
F. Crown Capital Group
In early 1997, Mr. Lerner ceased using Rockport Advisors
with respect to Mr. Ackerman’s investments. Instead, Mr. Lerner
created a new firm, Crown Capital Group, Inc. (Crown Capital),
located in New York, to investigate and manage Mr. Ackerman’s
investments. Mr. Lerner owned 49 percent and Mr. Ackerman’s
nephew owned 51 percent of Crown Capital.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011