Investment Research Associates - Page 127




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         continued to "lend" money in 1989 and again in 1990 to Lisle's                
         RWL Cinema Trust.                                                             
              Neither Ballard, Lisle nor their trusts paid any interest to             
         Int'l Films on the "loans" to them which were subsequently                    
         written off as worthless or sold for $1 by IRA.  There were no                
         notes or any other loan documentation evidencing the purported                
         loans to Ballard, Lisle, and their trusts.                                    
              On March 8, 1989, approximately 2 years after Int'l Films                
         transferred $1,120,889 of "receivables" to IRA, Int'l Films filed             
         for bankruptcy.  At the time of the bankruptcy filing,                        
         Gallenberger was the vice president of Int'l Films and owned 100              
         percent of its stock.  At the time of Int'l Films' bankruptcy,                
         Int'l Films owed debts to the following creditors:                            
              Creditors                    Reason                Amount                
              IRS                            1984 taxes          $5,500                
              Kanter                         Legal services      750                   
              Neal Gerber & Eisenberg        Legal services      550                   
              Personal Service Corp.         Services            700                   
              I&F Corp.                      Services            775                   
              Total                     $8,275                                         
              Question 15 of the Statement of Financial Affairs for Debtor             
         Engaged in Business attached to Int'l Films' Voluntary Petition               
         for Bankruptcy asked:                                                         
              Accounts and other receivables:                                          
              Have you assigned, either absolutely or as security,                     
              any of your accounts of other receivables during the                     
              year immediately preceding the filing of the original                    
              petition herein?  (If so, give names and addresses of                    
              assignees)?                                                              






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