Long Beach, NY, for Defendant-Appellee Richard Kahn. Kenneth M.H. Hoff, Matthias & Berg, Los Angeles, CA, for Defendants-Appellees Matthias & Berg, Jeffrey P. Berg, and Michael R. Matthias. JUDGES: Before: MINER, McLAUGHLIN and LEVAL, Circuit Judges. OPINION BY: MINER For internal use only CONFIDENTIAL - PUR