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and corporate headquarters staff in 1974, PMS standardized its
reports on the Prudential commercial real properties that PMS
managed. By 1977, PMS had expanded its property management
operations to other cities around the country, including Atlanta,
Georgia; Los Angeles and San Francisco, California; Newark, New
Jersey; and Portland, Oregon.
Ballard introduced Schnitzer to Kanter at an Urban Land
Institute meeting in Hawaii in the mid 1970s. Schnitzer,
Transcr. at 2161-2164. In 1977, Schnitzer and Kanter discussed
Century’s possible sale of a 47.5-percent stock interest in PMS
to IRA. Kanter indicated that, through Kanter’s business
contacts, Kanter could obtain additional property management
business for PMS with other parties, including possibly with the
Pritzker family.62
In November 1977, Century sold a 47.5-percent stock interest
in PMS to IRA for $150,000. The sale was made subject to
Century’s right to apply PMS’s profits first to servicing the
$1.1 million debt Century had incurred to purchase PMS in 1974.
62 The statement in the STJ report referring to “Kanter
and/or IRA” is manifestly unreasonable. Schnitzer testified that
Kanter suggested he could obtain additional business for PMS.
Schnitzer, Transcr. at 2167. There is no credible evidence that
anyone other than Kanter provided additional business
opportunities for Schnitzer/PMS.
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