Investment Research Associates - Page 222




                                       - 292 -                                         
              Eulich, Frey, Schnitzer, and Schaffel (members of the Five               
         who were involved in the transactions and who testified as                    
         witnesses in these cases) each confirmed that they entered into               
         the arrangements in exchange for Kanter's using his business                  
         connections and influence to direct business to them.  There is               
         no doubt that the payments were made for Kanter's services and,               
         therefore, are income to him.  The record clearly shows that out              
         of the payments made to IRA, Kanter agreed to pay (and did pay)               
         to each of Ballard and Lisle 45 percent of the payments related               
         to the Prudential transactions, and that he did not share any of              
         the payments unrelated to the Prudential transactions with                    
         Ballard and Lisle or anyone else.                                             
              Furthermore, the record establishes beyond any doubt that                
         Ballard and Lisle received the benefit of the payments related to             
         the Prudential transactions.  Some of those payments were                     
         distributed to them directly or indirectly through their family               
         members and their family trusts.  Some of the payments were                   
         distributed to Ballard and Lisle through various Kanter-created               
         "sham" entities and were recorded as loan receivables.  Others                
         were payments characterized as consulting fees made to their                  
         adult children by KWJ Corp. and KWJ Co. partnership.                          
              Kanter entities made the following "loans" to Ballard, his               
         family members, and entities established for the benefit of                   
         Ballard's family members:                                                     






Page:  Previous  282  283  284  285  286  287  288  289  290  291  292  293  294  295  296  297  298  299  300  301  Next

Last modified: May 25, 2011