Danford

MEMORANDUM OPINION

Plaintiff alleges that before the events here complained of, he was for 48 years employed by defendant Schwabacher and Company (Schwabacher) as a salesman and registered representative. He was also a customer of Schwabacher. He maintained a customer account with the firm and had deposited therein his cash and securities having an aggregate market value in excess of $1.5 million. Late in 1967, when Sehwabacher was in difficulties known to its partners but unknown to plaintiff, the principal partners induced plaintiff to invest $15,000 to become a general partner of the firm (with an interest of % of 1%) and to execute certain documents in connection therewith. Plaintiff alleges numerous misrepresentations and omissions of material fact, made with the intention to deceive and mislead plaintiff, all allegedly for the purpose of misappropriating and gaining control over plaintiff’s customer account, to permit such funds to be included in the reports of the available assets of the firm, and to subject those funds to the debts and liabilities of the firm.

The difficulties, which plaintiff alleges were concealed from him prior to his becoming a general partner,…