Investment Research Associates - Page 145




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         Ritch Trust group).  See United States v.  Administration Co., 74             
         AFTR 2d 94-5252, 94-2 USTC par.50,479 (N.D. Ill. 1994).  On April             
         4, 1994, the District Court issued an order to show cause why the             
         Kanter-related entities should not be compelled to obey the four              
         summonses.                                                                    
              In connection with the instant cases, Gallenberger was                   
         served by respondent with a discovery subpoena to produce                     
         documents.  On May 18, 1994, Gallenberger appeared at the                     
         deposition without the requested documents.  At the deposition,               
         Gallenberger stated that she did not have the records because of              
         a 3-year retention policy.  Even under Gallenberger's alleged                 
         records retention policy, however, documents of an individual or              
         entity under audit were not destroyed until the audit was                     
         completed.                                                                    
              On the following day, May 19, 1994, a hearing was held in                
         the District Court on the Government's motion to enforce the                  
         administrative summonses.  At the hearing, Weisgal, who was                   
         served as the named trustee of the BK Childrens Trust, admitted               
         that, after he received the summons, some of the documents,                   
         including documents relating to the Kanters, had been turned over             
         to Administration Co. and that some had been discarded as part of             
         a 3-year record retention and discard policy.                                 
              Gallenberger, who had been served with summonses as                      
         president of Administration Co., Principal Services, and                      






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