Investment Research Associates - Page 373




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               Prior to August 1981, another Kanter entity, Computer                  
          Placement Services, had a $1,729,300 loan outstanding to Holding            
          Co.  In August 1981, $1,500,000 of the loan was converted to                
          Holding Co. class D preferred stock.  In 1983, the stockholder              
          equity of class D preferred stock was decreased by $1,499,999 and           
          the paid-in capital was increased by the same amount.                       
          D.   Administration Co. and Principal Services: The Banking                 
          Corporations                                                                
               The funds of the various Kanter entities (as well as the               
          funds of some of Kanter's associates) were commingled in accounts           
          held by Administration Co. and later the Principal Services                 
          Accounting Corp. (Principal Services), both of which were also              
          controlled by Kanter.                                                       
               Administration Co. was incorporated in the State of Delaware           
          on September 21, 1981, and was authorized to do business in the             
          State of Illinois.  Administration Co.'s offices were located               
          either at Kanter's law firm offices or in close proximity                   
          thereto.9                                                                   
               The sole shareholder of Administration Co. was the Pyramid             
          Trust.  Weisgal was trustee of the Pyramid Trust, and Meyers was            
          the sole beneficiary.                                                       



          9                                                                           
               Administration Co. was organized at the insistence of some             
          of the members of Kanter's law firm who complained that law firm            
          employees working under Kanter were performing extensive nonlegal           
          services for which the law firm was not being compensated.                  





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