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As discussed in detail below, between 1979 and 1983,
Schaffel shared with IRA fees from business deals with
Prudential. Some of the fees Schaffel and IRA shared were
Prudential deals that took place after Ballard and Lisle had left
Prudential.
a. Sale of IBM Building
Shortly after the dinner meeting described above, Schaffel
participated as a real estate broker in a transaction involving
Prudential’s purchase of IBM, Inc.’s headquarters building in
Lexington, Kentucky. Schaffel, Transcr. at 390. Transatlantic
Group, a real estate brokerage based in Germany, approached
Schaffel and inquired whether Prudential might be interested in
purchasing the property. Id. Schaffel then arranged a meeting
among himself, Transatlantic Group, and Ballard at Prudential’s
headquarters in Newark. Id. After the meeting with Ballard, the
matter was referred to Prudential’s field office in Kentucky for
closing on Prudential’s purchase of the property. Id. Schaffel
split the brokerage fee on the transaction with Transatlantic
and then split his share of the fee with Kanter. Id. at 390-391.
b. Torcon Transactions With Prudential
Prior to 1979, Schaffel rented office space from Benedict
Torcivia (Torcivia), the sole shareholder of Torcon, which was
then perhaps the largest general contracting company in New
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