Investment Research Associates - Page 239




                                       - 308 -                                         
         Five.  Respondent has also proven by clear and convincing                     
         evidence that Ballard intended to evade taxes known to be owing               
         on that income by conduct designed to conceal, mislead, or                    
         otherwise prevent the collection of such taxes.  There are                    
         several indicia of Ballard's fraud with intent to evade tax.                  
              Although Ballard's educational background is not in the                  
         record, he was a sophisticated and experienced businessman who                
         held high executive positions at Prudential, and later at Goldman             
         Sachs.  As such, he obviously understood and fully appreciated                
         his obligation to report income correctly and to pay taxes on                 
         that income.  Nevertheless, he disregarded this obligation by                 
         participating in various schemes to collect kickbacks from the                
         Five and misdirect income through Kanter's maze of entities.                  
              As our findings show, Ballard omitted income received from               
         transactions with the Five during the years 1978 through 1982,                
         1984, and 1987 through 1989 in the total amount of $3,054,093.                
         Additionally, for the years 1983, 1985, and 1986, years not                   
         before us here, he omitted $961,161.                                          
              Ballard used IRA and later TMT as a nominee to receive and               
         hold the kickback payments he received for his services.                      
              Ballard did not cooperate with respondent's agents at                    
         various stages of their investigation of his tax returns.  He                 
         withheld relevant documents and information involving                         
         transactions with the Five.                                                   






Page:  Previous  298  299  300  301  302  303  304  305  306  307  308  309  310  311  312  313  314  315  316  317  Next

Last modified: May 25, 2011