- 13 -
notes), bearing the following dates of execution and in the
following amounts:13
Sid to Sidal Al to Paulan
Date Paulan to Sid Paulan to Sid
6/30/97 $600,000 $600,000 $600,000 $600,000
12/18/97 1,000,000 1,000,000 1,000,000 1,000,000
10/31/98 464,000 464,000 464,000 464,000
4/20/99 125,000 125,000 125,000 125,000
11/12/99 262,500 262,500 262,500 262,500
1/31/00 100,000 100,000 100,000 100,000
3/31/00 250,000 250,000 250,000 250,000
10/31/00 200,000 200,000 200,000 200,000
The June 30, 1997, promissory notes predate the transaction
to which they relate; i.e., Paulan’s July 11, 1997, check to
Sidal for $1.2 million. Similarly, the April 20 and November 12,
1999, promissory notes predate the transactions to which they
relate; i.e., Paulan’s December 31 and November 17, 1999, checks
to Sidal for $250,000 and $525,000 respectively.14
13 Thus, for each alleged effective date, there were four
promissory notes (one each by Sid and Al to Paulan, and two by
Sidal, one each to Sid and Al) in matching amounts. With the
exception of the notes dated Dec. 18, 1997, which correspond to
the $1 million wire transfer payments, and the notes dated Oct.
31, 1998, each promissory note represents one-half of the amount
of a check from Paulan to Sidal. The notes dated Oct. 31, 1998,
each represent one-half of $928,000.
14 The Apr. 20 and Nov. 12, 1999, promissory notes bear
effective dates and amounts corresponding to Paulan’s borrowings
(continued...)
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