Jack J. Kramer - Page 9

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            identify expenditures made on behalf of one or another of the                                 
            entities that supported some aspect of Ben's boat racing.                                     
                  The most important of these entities was Fort Apache, Inc.                              
            (Fort Apache), through which Ben and petitioner developed a                                   
            marina.  They used Fort Apache to lease back the marina from                                  
            another entity known as Marina Bay Associates, ostensibly owned                               
            by Lyon and Michael Gilbert.  This partnership held legal title                               
            to the marina in order to dissociate its assets from Ben's name.                              
            In order to allow Ben to fund marina development while still                                  
            concealing his ownership role, Lyon used a funding scheme similar                             
            to that used for the card club.10  Petitioner, acting as Ben's                                
            agent, became the president and sole board member of Fort Apache,                             
            although without an independent ownership interest of his own.                                
                  Ben and petitioner wanted to use the marina to help them                                
            persuade Lamborghini Motor Co. to custom-build high-performance                               
            engines for the boats that Apache Boats, Inc., built for Ben to                               
            race.  Funds to purchase land for the marina came through                                     
            Allsworth's trust account.  Len-Ed Construction, Inc. (Len-Ed), a                             

            10Ben's attempts to conceal his ownership of the marina and                                   
            the card club destroyed his ability to later liquidate and                                    
            recover his interests.  None of the entities that legally owned                               
            the marina or the card club reflected Ben's ownership interest as                             
            initially arranged with Sam Gilbert.  The "safeguards" for Ben's                              
            interests that Sam Gilbert put into place included holding the                                
            resignation letters of the principals of Marina Bay Associates                                
            and LCP Associates.  But, as petitioner testified, the only real                              
            safeguard was Ben's trust in Sam Gilbert.  This meant that Ben                                
            had no recourse but to accept the consequences when the Gilberts                              
            reneged on their various arrangements with him.  The Gilberts had                             
            the upper hand until Federal agents seized the various assets,                                
            beginning with the marina in Aug. 1987.  See infra pp. 11-12.                                 



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