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respect to the Embarcadero Hotel project and that, although Hyatt
Corp. had full-time tax counsel representing it, there were some
isolated tax questions with which he was involved. He testified
that, at that time, his office did not do anything but tax work
and he had no involvement with any other part of the project or
contract.
Kanter also claims that Weaver gave IRA 4 years to buy the
stock for two reasons: First, because Weaver needed the money,
and, second, because Hyatt was attempting to become privately
owned and Hyatt would not want to disclose the agreement. Kanter
claimed that the reason Hyatt would not want to disclose the
agreement was because others might expect similar fee-splitting
arrangements in negotiating for other projects.
Again, Kanter's explanation is implausible. If Weaver
needed the money, we do not think he would agree to put the sale
off for up to 4 years. Furthermore, Hyatt's contract with KWJ
Corp. already existed. Hyatt either had to disclose its contract
with KWJ Corp. in accordance with the securities laws or it did
not. We fail to see how the sale of the stock to IRA would
affect the disclosure requirement unless IRA was somehow
considered an interested party or an insider with respect to
Hyatt Corp. We think it more likely that Kanter did not want to
disclose the purchase to Hyatt Corp. or the Pritzkers. In fact,
Kanter did not disclose the purchase of the stock, the
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