Investment Research Associates - Page 244




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         the area of Federal tax law.  For a number of years, he has been              
         a writer and contributor to the Journal of Taxation, a national               
         monthly publication devoted exclusively to Federal taxation.                  
         Kanter, as an experienced tax attorney, obviously understood and              
         fully appreciated his legal obligations to report income                      
         correctly and to pay taxes on that income.  Nevertheless, he                  
         disregarded these obligations by conceiving and carrying out                  
         various schemes to misdirect income.  Furthermore, he was or                  
         should have been aware that his Federal income tax liabilities                
         were substantially underreported for each of the years in issue.              
              Second, as we have previously found, Kanter reported                     
         adjusted gross losses on his Federal income tax returns for every             
         year from 1978 through 1989.  For 11 of those years he paid no                
         Federal income taxes, and only minimum tax of $1,671 in 1978.                 
         Kanter omitted income received from transactions with the Five                
         during the years 1978 through 1989 (except for 1985) in the total             
         amount of $3,422,469.  Even for 1985, a year not before us here,              
         he omitted $1,592,939.                                                        
              Third, Kanter created a complex laundering mechanism made up             
         of sham corporations and entities (including among others, IRA,               
         Carlco, TMT, BWK, Inc., KWJ Corp., KWJ Co., Essex, Zeus, Holding              
         Co., Int’l Films, HELO, Administration Co., and Principal                     
         Services) to receive, distribute, and conceal his income, as well             
         as Ballard’s and Lisle’s income.  Payments made for their                     






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