-7-
3. Failure To Address Respondent’s Flow-of-Funds
Argument ................... 232
4. Incomplete Discussion Regarding Loan
Arrangements ................. 232
5. Discussion Regarding Consulting Payments to
Ballard’s and Lisle’s Adult Children ..... 234
6. Manifestly Unreasonable Credibility
Determinations ................ 235
a. Testimony Offered by The Five ...... 235
b. Ballard’s Testimony Regarding the Hyatt
Transaction ............... 235
c. Kanter’s Testimony Regarding
Deconsolidation ............. 236
d. Kanter’s Testimony Regarding IRA ..... 237
e. Kanter’s, Ballard’s, and Lisle’s Denials 237
D. Summary of Kanter’s, Ballard’s and Lisle’s
Transactions With The Five ............ 238
1. An Overview .................. 238
2. The Hyatt Transaction ............. 244
3. Shaffel .................... 249
4. Frey ..................... 253
5. Schnitzer/PMS ................. 257
6. Eulich/Essex Partnership ........... 260
E. Flow-of-Funds Analysis .............. 267
1. Payments to IRA: 1977 Through 1983 ...... 268
2. Payments to IRA: 1984 Through 1989 ...... 269
3. IRA Loans to Kanter, Ballard, and Lisle .... 270
a. IRA Loans to Ballard and Ballard’s Trusts 270
b. IRA Loans to Lisle and Lisle’s Trusts .. 270
c. Sale of Grantor Trust Notes for $1 .... 271
d. IRA Loans to Kanter ........... 271
e. Additional Loans to Lisle’s Grantor Trust 272
f. Consulting Payments to Ballard’s and
Lisle’s Adult Children .......... 272
4. Payments to THC: 1981 to 1989 ........ 273
a. FPC Subventure Partnership ........ 274
b. THC Transfers to Kanter ......... 276
F. Kanter-Related Entities Were Shams ........ 276
1. IRA and THC .................. 276
2. Carlco, TMT, and BWK ............. 278
a. Diversification and Deconsolidation ... 278
b. Use and Enjoyment of Carlco’s, TMT’s,
and BWK’s Assets ............. 282
(i). Carlco ............. 282
(ii). TMT ............... 283
(iii). BWK ............... 287
G. Cracks in the Kanter Facade ............ 288
1. The Hyatt Transaction ............. 288
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011