- 3 - Mark E. O'Leary, John J. Comeau, James M. Cascino, Jonathan P. Decatorsmith, James M. Klein, G. Roger Markley, and Pamela V. Gibson, for respondent. CONTENTS Issue 1. Whether Payments Made By the Five in the Prudential, Travelers, and Kanter Transactions During the Years at Issue Are Properly Taxable to Kanter, Ballard, and Lisle, and, if so, whether they are liable for the fraud additions to tax and penalty with respect to such income ..................... 25 FINDINGS OF FACT ...................... 25 I. Background ....................... 25 A. Petitioners' Residences and Principal Place of Business ..................... 25 B. Kanter ...................... 26 C. Ballard ...................... 28 D. Lisle ....................... 29 II. The Kanter Enterprise ................. 30 A. Overview ..................... 30 B. Investment Research Associates, Inc., and Its Subsidiaries ................... 34 1. IRA Stock .................. 34 2. IRA Stockholders ............... 35 a. Mildred Schott and Delores Keating ... 36 b. The Bea Ritch Trusts .......... 37 3. IRA Officers and Directors .......... 40 4. IRA Subsidiaries ............... 41 C. Holding Co. .................... 42 D. Administration Co. and Principal Services: The Banking Corporations ............... 43 E. The Other Lending Corporations .......... 46 1. HELO ..................... 47 2. Int'l Films ................. 48 III. Transactions Involving the Five ............ 48 A. The Weaver Arrangement: Hyatt Corp.'s Embarcadero Hotel Management Contract ............. 49 B. The Frey Arrangement: Condominium Conversions. .. 57 C. The Schaffel Arrangement: Real Estate Construction and Financing ................... 71 1. Schaffel/Prudential Transactions ....... 73 2. Schaffel/Travelers Transactions ....... 75 3. FPC Subventure Associates Partnership .... 77Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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