Rodrigues

From 1978 to 1991, Jess Rodrigues was the co-trustee of two employee benefit plans (the “Plans”) maintained by California Housing Securities, Inc. He was also an employee of the company and a participant in the Plans. The Plans, which have been terminated, were governed by ERISA.

In 1983, Rodrigues became one of the five partners in the Dublin Land Company (“DLC”). DLC acquired a large development property for approximately $2.5 million; DLC paid $500,000 down and signed a promissory note for' the remainder. Rodrigues paid ten percent of the downpayment personally, as well as ten percent of all note payments and property expenses thereafter. Another ten percent came from the Plans’ funds. Rodrigues contends that he invested in DLC both individually and on behalf of the Plans. DLC’s recorded Statement of Partnership, however, listed only Rodrigues and four other individuals, and did not indicate that the Plans owned any interest in the partnership or that Rodrigues was acting in any capacity other than as an individual. In fact, the Statement of Partnership recited: “The Partners named in this Statement are all of the Partners.” Although one of Rodrigues’ co-trustees recalls…