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additional property management business with Prudential. Thus,
although we find that Schnitzer sold the stock to IRA at a
bargain price for Kanter's influence, we cannot say that
Schnitzer intended the payments to repurchase the stock as
kickbacks to Ballard and Lisle.
The flow of the money, however, makes it clear that Kanter
agreed to share the money received from the transaction with
Ballard and Lisle in exchange for their assistance in giving more
Prudential business to Schnitzer-PMS. The increase in the
Prudential business greatly increased the pretax income and,
thus, the value of the Schnitzer-PMS stock. IRA, as with the
other transactions involving the Five, held for the benefit of
Ballard, Lisle, and Kanter the funds received from the repurchase
of its stock in Schnittzer-PMS, and distributed the funds to the
individuals through Carlco, TMT, and BWK, Inc.
5. The Eulich/Essex Arrangement
The final arrangement involved petitioners, Eulich, and
Connolly. Eulich was a real estate developer and had known
Ballard and Lisle since at least 1965. Eulich dealt with Ballard
and Lisle in connection with Prudential's financing his
development of real estate. Eulich and Kanter had also known
each other since the late 1960's or early 1970's and had had many
business dealings with each other. Eulich owned a hotel
management company called Eulich-Management. Connolly was an
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