Investment Research Associates - Page 599




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          take over the Gateway Hotel's management and operation.  The new            
          management company was owned by Stanley Cox (Cox), an experienced           
          hotel manager Ostroff had known during Ostroff's prior employment           
          with Hilton Hotels.  At some point, Cox assigned John Connolly              
          (Connolly) to be the Gateway Hotel's on-site manager.                       
               Ostroff was extremely successful in turning around and                 
          substantially improving the Gateway Hotel's operating condition.            
          Prudential executives made significant use of the hotel                     
          facilities for meetings and entertainment and were very pleased             
          with the service that they and their guests received at the                 
          hotel.                                                                      
               Cox did not spend much of his own time in actually running             
          the Gateway Hotel.  Over the years, he had delegated more and               
          more duties in the hotel's operation to Connolly.  Connolly                 
          frequently interacted with Prudential executives, including                 
          Ballard and Lisle.  Sometime in 1978 or 1979, Connolly met Kanter           
          at the Gateway Hotel.                                                       
               In 1981, Connolly informed Ostroff that he was considering             
          leaving his position as on-site manager of the Gateway Hotel,               
          because he felt he was not being adequately compensated for his             
          services.  Ostroff attempted unsuccessfully to have Cox increase            
          Connolly's pay.  Ostroff and his superiors at Prudential,                   
          including Ballard, decided to terminate Prudential's management             








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