EFTA Document EFTA01386755

Case 1:18-cv-07580 Document 1 Filed 08/20/18 Page 9 of 26 35. By the late 1980s, TFC became insolvent as a result of the massive losses it had incurred over the years. According to Hoffenberg, Epstein then devised a new fraudulent scheme to raise capital for TFC - namely, by selling Promissory Notes. 36. From January 1988 through March 1992, TFC sold the Promissory Notes in private placements by means of six (6) separate private placement offering memoranda (the "TFC Promissory Notes").