Daniel Tessler managed a venture capital fund called [[53rd Street Ventures]], Inc., which was formed around 1976 as an investment company. In about 1984, Tessler and his wife, [[Patricia Cloherty]], assumed management of 53rd Street Ventures through their investment management company, [[Tessler & Cloherty]], Inc. At that time, 53rd Street Ventures had a $100,000 investment in [[Inslaw Corporation|Inslaw]], representing less than 1% of the fund's total portfolio. This investment was made around 1982 under the supervision of [[Patricof and Company]], the previous managers, with [[Jonathan Ben Cnaan]] arranging the investment. The investment resulted in 53rd Street Ventures owning about 1.2% of [[INSLAW]]. [[Bill Hamilton]]'s affidavit claimed that in December 1984, shortly before Inslaw's Chapter 11 filing, Tessler came to Inslaw and attempted to induce the Hamiltons to turn over the voting rights of their controlling interest in Inslaw common stock. Hamilton alleged that Tessler stated neither 53rd Street Ventures nor [[Hambro Venture Capital]] would help Inslaw raise capital unless the Hamiltons surrendered their voting rights by the end of the business day. Hamilton's affidavit also suggested a relationship between [[Daniel Tessler]] and [[Alan Tessler]], a partner in a law firm representing [[Earl Brian]] and [[Hadron]], and that Daniel Tessler helped organize Hadron's efforts to "get" Inslaw.[^1] Daniel Tessler denied these allegations. He stated that he and Cloherty looked into the Inslaw investment after taking over management and determined that Inslaw had serious operating difficulties, was heavily in debt, and could not meet its production obligations. He met with Hamilton in late 1984, and while Hamilton asked about additional investment, Tessler denied ever trying to induce the Hamiltons to turn over their voting rights or giving them an ultimatum. He maintained that he only discussed control in the context of future investments, explaining that investors were unlikely to invest if the company continued to be managed by the same people who led it into financial difficulties. Tessler stated he does not know Earl Brian, [[Edwin Meese]], [[Dominic Laiti]], or [[Lowell Jensen]], and denied any discussions or communications with them or any DOJ officials regarding Inslaw's investment or his conversations with Hamilton. He also denied any dealings with Hadron, Simeon, or Biotech, and denied being related to Alan Tessler or having dealings with Shea and Gould. Tessler stated that to his knowledge, his wife, [[Patricia Cloherty]], had no knowledge of Earl Brian or any connection between Brian and Inslaw, and never claimed to "know all about" Brian's role in the Inslaw matter.[^1] ### Footnotes [^1]: U.S. Department of Justice. *Report of Special Counsel Nicholas J. Bua to the Attorney General of the United States Regarding the Allegations of Inslaw, Inc.* March 1993. (Hereafter, "Bua Report")