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maximum ownership interest amounts for that partner, then the
unsubscribed portion of the investment was available to other
partners desiring an increased investment. By investing and
taking part in a particular investment opportunity, the partners
were acting individually, and not as a law firm. They
and/or their families made such investments on their own behalf
and were not investing on the law firm’s behalf. Pursuant to
this practice, Kanter and the Bea Ritch trusts invested, during
the 1970s, in a number of investment opportunities that came to
the attention of Kanter and the law firm’s other partners.
On September 1, 1973, a number of Levenfeld/Kanter’s
partners joined in forming a partnership known as Oyster Bay
Associates (OBA). Statland Exh. 2; Statland, Baskes Transcr. on
5/27/87 (PM) (hereinafter Baskes Transcr.) at 6-13. OBA’s
partners included Levenfeld/Kanter partners, entities owned by
Levenfeld/Kanter partners, or members of their families. Id.
Each Levenfeld/Kanter partner or his family entity that became a
partner of OBA shared in the profits and losses of OBA in the
same percentage in which the partner shared in the profits and
losses of Levenfeld/Kanter in 1973. Baskes Transcr. at 12-13.
The partners contributed to OBA total capital of $100,000.
Statland Exh. 14. During 1974, OBA’s partners received
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