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trustee of each of the Bea Ritch Trusts. Specifically, the
assets sold to Windy City were all of the other assets described
in the table above except the Rooney Pace bond, which was sold to
Mallin, and the Brajdas Corp. stock, which was sold to an
unrelated third party.
Mallin was a former law partner of Kanter's who served on
the board of directors of Cedilla. Mallin was extensively
involved in equipment sale/leaseback transactions involving IRA
and Cedilla. Those transactions are the subject of discussion in
Issue 22. As noted above, Mallin purchased the Rooney Pace bond.
For the most part, the assets at issue were reflected as
acquisitions by Kanter that were paid for out of Kanter's special
E account with Administration Co. As of December 31, 1986,
Kanter's special E account balance with Administration Co. was a
negative $79,283.
The Brajdas Corp. stock was purchased on April 20, 1987, for
$1,300 in the exercise of a warrant. Kanter sold the stock to an
unrelated party on May 29, 1987, for $1,780, realizing a gain of
$476. The record does not reflect the acquisition history of the
Flexible Computer stock, the Rooney Pace bond, or the Electronic
Missile stock.
The IHOG stock was held by the Nominee Corp., a corporation
which apparently held assets for the equitable and beneficial
interest of Kanter. It appears from the record that IHOG was not
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