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for services rendered by Kanter. Kanter's signature on these
returns indicates that, under penalties of perjury, he believed
that these characterizations were true and correct.
Concerning his acquisition of the carried interest, Kanter
testified that he had invested moneys with Hyman Federman and
sustained a number of losses, and that he negotiated to receive
the carried interest as "a way to allow recoupment of losses that
I had sustained in earlier years from other investments" and that
an understanding was reached that he would receive that carried
interest "at some point in time after this trust was created and
not in conjunction with its initial creation." Kanter's
testimony pertaining to his acquisition of the carried interest
was not corroborated by any other witness. He introduced no
evidence to establish the losses he allegedly sustained. His
testimony is specifically contradicted by the Agreement and
Indemnification Agreement, which states on page 2 that "It is
understood that at the inception of the Trust an agreement was
reached that Kanter" would receive the carried interest.
Kanter testified that he always considered the carried
interest as "something independent of any trustee fee." This
statement is contradicted by the HCT fiduciary income tax return
for the taxable year ended February 28, 1980. On that return,
the deduction claimed for the carried interest payment from HCT
to Holding Co. was labeled "Fiduciary Fees". The return was
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