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B. Flow of the Funds Paid By the Five Through IRA and Its
Subsidiaries to Kanter, Ballard, and Lisle
1. Overview
The payments from the Prudential transactions were
distributed by various means either directly to Ballard, Lisle,
and Kanter or indirectly through their family members or trusts
and other entities established for the benefit of their families.
Some distributions were recorded as receivables owed by the
person or entity receiving the distribution; others were recorded
as consulting fees or director's fees. Distributions from KWJ
Corp. and later KWJ partnership to Ballard's and Lisle's children
were treated as consulting fees.
In 1983, IRA began distributing the funds accumulated from
the Prudential transactions to Carlco, TMT, and BWK, Inc. Lisle
was given control over the funds in Carlco, Ballard was given
control over the funds in TMT, and Kanter was given control over
the funds in BWK, Inc. Lisle, Ballard, and Kanter treated the
funds as their own and used the funds for their personal benefit.
2. Payments from IRA, KWJ Corp., and KWJ Co. Partnership
a. 1982: IRA Payments to Ballard and Lisle
In 1982, Ballard received $12,500 from IRA as a "director's
fee". The check was dated in 1981 but cashed in 1982. On March
2, 1982, IRA paid Lisle $1,157.84.
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