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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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