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asserted that the arrangement should continue because, in his
view, Travelers had replaced Prudential as the principal source
of the transactions because of the "very personnel" to whom
Schaffel had been introduced. It is clear that the reference to
personnel was to Ballard and Lisle.
After discussing the situation with Lisle, Schaffel agreed
to resume payments for fees earned on Travelers transactions.
Instead of paying IRA, however, Kanter had Schaffel send the
payments from Travelers transactions to Holding Co.
Ballard and Lisle knew that Kanter had an arrangement with
Schaffel to share in the fees Schaffel earned on certain business
deals, because they were present at the dinner meeting when
Kanter initially proposed and discussed the arrangement with
Schaffel. When Kanter and Schaffel had their dispute over
whether IRA was entitled to a share of Schaffel's fees on
business deals with Travelers, Lisle was concerned that a lawsuit
between the two might cause problems for Lisle with Travelers.
Lisle was concerned because he was involved with the arrangement
and benefited from it.
The payments from Schaffel for the Prudential transactions
were accumulated in IRA until the formation of Carlco, TMT, and
BWK, Inc. In 1984, IRA transferred funds to the three new
corporations in a 45-45-10 ratio, effectively transferring 45
percent to Lisle, 45 percent to Ballard, and 10 percent to
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