Investment Research Associates - Page 181




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         6.   Conclusion                                                               
              At trial, all the witnesses associated with the Five                     
         explicitly denied that the payments described were "kickbacks" or             
         "payoffs" for Ballard and/or Lisle's help in steering business to             
         them.  Those witness did confirm, however, that they entered into             
         these arrangements in exchange for Kanter's influence in                      
         obtaining business.  Furthermore, it is clear from the record                 
         that Kanter, Ballard, and Lisle agreed to share and did share the             
         money from the Prudential transactions in a 45-45-10 split.                   
              Although some of the Prudential payments and transactions                
         were finalized after Ballard and Lisle left Prudential, the                   
         transactions began long before Ballard and Lisle left Prudential.             
         The payments had their genesis in transactions with which Ballard             
         and Lisle were both familiar and in which they were directly or               
         indirectly involved while they held executive positions with                  
         Prudential.  The transactions, even if occurring after Ballard                
         and Lisle left Prudential, were simply a continuation of what was             
         laid out and planned in earlier years.                                        
              Thus, we find that 70 percent of the payments from Hyatt to              
         KWJ Corp., all of the payments by Frey to Zeus, all of the                    
         payments from Schaffel connected with Prudential transactions and             
         made to IRA, the bargain element in the sale of the Schnitzer-PMS             
         stock to IRA, and all of the Essex distributions to IRA are                   
         attributable to services provided by Ballard, Lisle, and Kanter.              






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