Investment Research Associates - Page 56




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          IV.  Flow of Money                                                          
          A.   Payments to IRA and Subsidiaries: The Prudential                       
          Transactions                                                                
          1.  Overview                                                                
               The payments related to the Prudential transactions paid by            
          the Five to IRA and its subsidiaries during the years 1977                  
          through 1989, were as follows:                                              
                                             Schnitzer                               
          Year      Hyatt1    Schaffel  Frey     PMS      Essex     Total             
          1977  $38,394                                         $38,394               
          1978  42,517                                          42,517                
          1979  119,719     $100,000             $303,088       522,807               
          1980                    244,920   $127,372   380,337  752,629               
          1981  90,070      361,525    105,764   534,696        1,092,055             
          1982       172,702      447,450    538,781   361,692   $86,212  1,606,837   
          1983       172,090       30,981    110,125   361,692   78,376753,264               
          1984       186,092                 103,500   361,692  133,238784,522               
          1985       206,790                 128,763   361,692  120,175817,420               
          1986       231,263                  361,692   80,466    673,421             
          1987       229,449                  361,692  120,698    711,839             
          1988       197,348                  361,692  117,563    676,603             
          1989        52,777                  840,423   51,727    944,927             
          Total  1,739,211  1,184,876 1,114,305 4,590,388  788,455$9,417,235            
          1Net Weaver's 30%.                                                          
               Prior to 1984, all payments related to the Prudential                  
          transactions were paid to IRA or one of its subsidiaries.  By               
          early 1982, Ballard and Lisle had left Prudential.  During 1982             
          Carlco, TMT, and BWK, Inc. were formed.  In 1983 the three                  
          corporations became part of IRA's consolidated group, KWJ Corp.             
          was liquidated, and the funds accumulated by Zeus were                      
          distributed to IRA.  In 1984, IRA distributed the funds that had            
          been accumulated from the Prudential transactions in the ratio of           
          45 percent to Carlco, 45 percent to TMT, and 10 percent to BWK,             
          Inc.  From 1984 through 1989, most payments related to the                  





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