-61-
With respect to moneys TACI collected and held for its
clients, instead of having a separate bank account for each
client, at the suggestion of the bank where TACI did business,
a single bank account was opened, in TACI’s name, which served as
a common depository fund for all of TACI’s clients. That account
was known as the TACI Special E Account.38 TACI’s books and
records reflected each client’s balance of money in the account
and also reflected the deposits or withdrawals by each client
affecting that client’s balance in the account. TACI also
maintained at its bank another similar account known as the TACI
Special Account, which was also for the benefit of TACI’s
clients. This account was not used as an operating account for
TACI’s clients but rather was used to pool or aggregate idle
funds of TACI’s clients. The moneys in this account were
utilized generally to buy certificates of deposit because a
higher rate of return could be realized for TACI’s clients
through aggregating their funds to purchase larger-denomination
certificates of deposit. Funds from this account were also lent
to other TACI clients. Deposits to and withdrawals from the TACI
Special E Account and the TACI Special Account were posted to the
38 The bank insisted that TACI have a single bank account,
as opposed to hundreds of bank accounts for separate clients,
because this saved the bank considerable administrative expenses.
During this period, the bank did not charge account holders
banking fees either for checks deposited to their accounts or for
checks written on their accounts.
Page: Previous 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 NextLast modified: May 25, 2011