fenbcrg replaced him as head of the Long Island office with Charles Chugerman ("Chugerman"), an associate of Hoffenberg at Towers. Thereafter, Chugerman supervised Love- less's accounts, and told Loveless that she should call Hoffenberg on any matter whenever she could not reach Chugemian or Rosoff.

reported to Hoffenberg, contrary to his affi- davit of January 4, 1994 which he had signed at Hoffenberg's request b. Stratford By November 1993, Chugerman had closed the DCC sales offices and terminated much of the sales force. Notwithstanding, remittances were not being made to the DCC clients, whic

ency. 35. Each of the above described transactions constituted waste of the Companies' assets and lacked any legitimate business purpose. Brater, Chugerman and Rosoff, acting on behalf of the Controlling Companies, failed to properly supervise the activities of Hoffenberg. Moreover, they neglige