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Ballard discarded and permitted others, including Kanter,
Gallenberger, and Weisgal, to discard supporting income
documentation, an intentional act designed to conceal and evade
the reporting and payment of Federal income tax.
Ballard allowed Kanter to commingle his share of the
kickback moneys in the laundering mechanism Kanter used to
conceal its identity. Ballard’s use of the various Kanter sham
entities (including among others, IRA, TMT, KWJ Corp., KWJ Co.,
Essex, Zeus, Holding Co., Int’l Films, HELO, Administration Co.,
and Principal Services) made it difficult and sometimes
impossible to trace the cash-flow and is substantial evidence of
Ballard’s intent to evade tax. Commingling the kickbacks in the
accounts of the conduit entities, together with other unrelated
income, was a device to hide the kickbacks from Prudential and
the IRS, and is evidence of Ballard's fraud.
Ballard plainly attempted to disguise the source of the
kickback funds by funneling money in the roundabout method
through the conduit entities over a period of many years.
Ballard made the following misleading and false statements:
(1) He testified that at the dinner meeting where Kanter
introduced Schaffel to Ballard and Lisle, they only discussed
politics, football, and religion, and that no business was
discussed;
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