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KOESTER v. AMERICAN REPUBLIC INVESTMENTS, INC.

Nos. 92-3370, 92-3381.

11 F.3d 818 (1993)

James F. KOESTER; Robert Rives; Harry J. Nichols; Janice Spengel; Alexander Loeb; Thomas Zensen; Frank B. Green; Dr. Gerald Newport; Lawrence J. Siefel; Robert E. Perkinson; Dr. James R. Criscione; Dr. A. Sciortino; Eugene Fahrenkrog; Eugene Fahrenkrog, Jr.; Scott Kell; William Londoff; John Larsen; Spero Bourdoures; Fox, Goldblatt & Singer, P.C.; Noah Susman; Steve Gilmore; Robert Evans; Dr. Jacques Paul Schaerer; William Curren; Virginia Curren; Patricia Baxter; Lester A. Schamel; Dr. Alan Pierce; Bernie Plouch; Jerry Kopp; Donna J. Hill; Phillip Sweeney; Dr. Ronald Hertel; Joseph Straub; Dr. John Keethler, Plaintiffs-Appellees, v. AMERICAN REPUBLIC INVESTMENTS, INC.; American Resource Corporation, Inc.; Ronald Ruis; Tatco Investment Co., Defendants, G. Charles Cole; Sherman Mazur, also known as Masur, Defendants-Appellants.

United States Court of Appeals, Eighth Circuit.

Decided December 14, 1993.

Rehearing Denied January 21, 1994.

Attorney(s) appearing for the Case

Matthew Hale, Kansas City, MO, argued (George L. Fitzsimmon, St. Louis, MO, and David A. Welte and Matthew R. Hale, Kansas City, MO, on the brief), for defendant-appellant G. Charles Cole.

Timothy Nicholas Vujnich, St. Louis, MO, argued for defendant-appellant Sherman Mazur.

Mark Goodman, Clayton, MO, argued, for plaintiffs-appellees.

Before WOLLMAN and LOKEN, Circuit Judges, and BOGUE, Senior District Judge.

LOKEN, Circuit Judge.

This diversity case arose from the ashes of an all too common financial disaster. Plaintiffs are St. Louis professionals who invested some $9,000,000 in real estate limited partnerships in the late 1970's and early 1980's, primarily for tax sheltering purposes. In hindsight, the properties were wildly overpriced. The projects were eventually sold or foreclosed, leaving plaintiffs with large investment losses. They sued the general partners and...

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