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real properties and provided financing to other real estate
developers for various real estate projects around the country.
As stated previously, Kanter entered into arrangements
pursuant to which he would use his relationships with the
Pritzkers, Ballard, and Lisle to assist individuals and/or
entities in obtaining business opportunities or in raising
capital for business ventures. Some of these arrangements
involved payments by a group of individuals referred to by the
parties as "the Five". The Five include J.D. Weaver (Weaver),
Bruce Frey (Frey), William Schaffel (Schaffel), Kenneth Schnitzer
(Schnitzer), and John Eulich (Eulich).
A. The Weaver Arrangement: Hyatt Corp.'s Embarcadero Hotel
Management Contract
Hyatt Corp. manages hotels in the United States, Canada, and
the Caribbean. As indicated previously, members of the Pritzker
family control Hyatt Corp. Kanter has represented the Pritzkers
for years as their attorney.
The Houston Hyatt Hotel was co-owned by Prudential and
Tenneco Corp. (Tenneco) and managed by Hyatt Corp. Weaver was an
executive with Tenneco. From 1968 through 1972, Ballard and
Weaver were involved in the development of the Houston Hyatt
Hotel, and Ballard negotiated the hotel's management contract
with Hyatt Corp.
During the early 1970's, Prudential was also a participant
in a joint venture to develop and own the Embarcadero Hotel in
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