Where did Patrick Lane's money come from to pay the Reids back their initial $400,000.00 investment?
Apparently it wasn't a cash sale (donation...whatever!). He and his wife allege they transferred the land to the LLC in return for an "informal" interest in the LLC.
But therein lies Reid's problem. On one hand he says it was an " informal" ownership agreement between friends. He hopes this explains away why he didn't disclose his interest in the company in his filings (not to mention his misreporting that he still owned the land). But when he took the $1.1 million dollar payoff, that rather diminishes the "informality", doesn't it? Seems to me that indicates a VERY specific understanding between friends as to what Reid's share was to be when the deal was completed.
Sorry, even Harry can't have it both ways.
Of course, the real question is whether the MediaCrats let him get away with it.
Another thing: the article says
Reid isn't listed anywhere on [the LLC's] corporate filings with Nevada, even though the land he sold accounted for three-quarters of the company's assets. Brown is listed as the company's manager. Reid's office said Nevada law didn't require Reid to be mentioned in the filings.Anyone intimately familiar with Nevada corporate law??? Does the law really not require the disclosure of a "partner" with a 75% claim on the proceeds from a sale of the firm's assets?