Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 419

                                                 -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.                                                           


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