- 239 -
to pay Zeus and made the payments because Kanter used his
influence with Ballard and Lisle, who in turn used their
positions of authority at Prudential to influence Prudential in
using Frey as the developer in the conversion of Prudential
properties into condominiums. The payments were accumulated in
Zeus (or distributed as loans) until 1983. In 1983, Zeus
distributed the funds to IRA. In 1984 IRA distributed the funds
to Carlco, TMT, and BWK, Inc., effectively distributing the funds
45 percent each to Ballard and Lisle and 10 percent to Kanter.
Frey paid Zeus $103,500 in 1984 and $128,763 in 1985 (totaling
$232,263). Although the money was accumulated in Zeus until it
purchased the preferred stock in Windy City in 1986, IRA
distributed $249,870 to the KWJ Co. partnership as "loans" from
1984 to 1989.
It is clear that the payments made by Frey to Zeus were for
services provided by Ballard, Lisle, and Kanter.
The second agreement (between Frey and Holding Co.) applied
to "capital contribution, profits and losses and Developers'
Fees" for all condominium conversions excluding the developers'
fees from Prudential projects that were covered by the agreement
with Zeus. The agreement could be terminated by either party
with 45 days' prior notice with the termination effective only
with respect to new condominium conversions. Although the second
agreement required Holding Co. to make capital contributions with
Page: Previous 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 NextLast modified: May 25, 2011