Investment Research Associates - Page 84




                                       - 167 -                                        
         b.   Consulting Fees Paid to Ballard's and Lisle's Children                  
              Melinda Ballard and Karen Ballard Hart were Ballard's                   
         daughters.  Amy Albrecht was Lisle's daughter, and Thomas Lisle              
         was Lisle's son.  In 1982, KWJ Corp. (and later the KWJ                      
         partnership) began paying Thomas Lisle, Amy Albrecht, and Melinda            
         Ballard $1,000 each per month.30  In 1984, the KWJ partnership               
         began paying Karen Hart $1,000 each month.  The payments                     
         continued until at least 1989.  From 1982, KWJ Corp. and the KWJ             
         partnership paid the Lisle and Ballard children the following                
         amounts as consulting fees:31                                                
                      Lisle Children             Ballard Children                     
         Year    Thomas Lisle Amy Albrecht  Melinda Ballard Karen Hart                
         1982      $7,000       $7,000         $7,000            --                   
         1983      12,000       12,000         12,000            --                   
         1984      12,000       12,000         12,000         $2,000                  
         1985      12,000       11,000         12,000         12,000                  
         1986      12,000       13,000         12,000         12,000                  
         1987      12,000       12,000         12,000         12,000                  
         1988      12,000       12,000         12,000         12,000                  



          30                                                                          
               Thomas Lisle and Amy Albrecht admitted that they received              
          consulting fees from 1983 to 1989.  Melinda Ballard admitted that           
          she received the consulting fees from 1983 to 1988.  Karen Hart             
          admitted that she received the consulting fees from 1984 to 1989.           
          No one except the Lisle and Ballard children received consulting            
          fees from 1983 through 1989.  We conclude that the payments made            
          in 1982 were also made to Thomas Lisle, Amy Albrecht, and Melinda           
          Ballard.                                                                    
          31                                                                          
               Approximately $4,000 per month was paid to the Ballard and             
          Lisle children.  IRA made distributions to KWJ Corp. and KWJ                
          partnership that were also approximately $4,000 a month.  The               
          money distributed to KWJ Corp. and KWJ partnership was never                
          repaid during the years in question, and no interest was ever               
          paid on the amounts outstanding.                                            






Page:  Previous  157  158  159  160  161  162  163  164  165  166  167  168  169  170  171  172  173  174  175  176  Next

Last modified: May 25, 2011