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entities and individuals that were recorded as loans receivable.
There were never any notes evidencing the loans, the loans were
never secured, and substantial amounts were written off as
worthless. We do not think that an independent trustee would
have permitted corporations in which the trust was either the
sole shareholder or the majority shareholder to have made such
"loans". A truly independent trustee of a valid trust (who often
also served as an officer or director of the corporations) could
not permit such transactions without breaching his fiduciary
duties to the trust and the corporations. If Weisgal had been
an independent trustee, we do not think that he would have risked
being held liable for such breach. The "loans" were made and
written off as part of Kanter's income diversion and laundering
scheme at Kanter’s behest. The corporations and trusts merely
served as part of the scheme.
Kanter's control over the administration of BRT is also
shown by the fact that BRT was a client of Administration Co.,
Administrative Enterprises, and Principal Services, which were
all entities controlled by Kanter.
Weisgal did not maintain the books and records of BRT. They
were maintained by Kanter, Administration Co., Administrative
Enterprises, or Principal Services. When respondent served a
subpoena on Weisgal for the books and records of BRT, no records
were produced. Although he was the named BRT trustee, Weisgal
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