-128-
IRA paid $50,000 at closing and issued a promissory note to PMS
for the $100,000 balance. Exhs. 240, 241; Ross, Transcr. at
1200.
Schnitzer conferred with Ballard before agreeing to sell
PMS’s common stock to IRA. Schnitzer, Transcr. at 2166-2167.
Schnitzer was content to sell PMS common stock to IRA at a
bargain price in exchange for Kanter’s promise to attempt to use
his business contacts, including his relationship with the
Pritzker family, to obtain more real estate management contracts
for PMS. Schnitzer, Transcr. at 2167. Ross shared Schnitzer’s
view that PMS’s common stock was sold to IRA at a bargain price
in expectation that Kanter would use his many contacts to
generate business for PMS. Schnitzer, Transcr. at 2170-2171;
Ross, Transcr. at 1182, 1195, 1201.
Schnitzer and Ross were not relying on IRA, Schott, or
Weisgal to generate additional business opportunities for PMS.
Schnitzer and Ross were relying solely on Kanter to obtain
additional business opportunities for PMS. Ross, Transcr. at
1195, 1201.
During the period 1976 to 1979, PMS obtained a growing
number of management contracts from Prudential. Schnitzer,
Transcr. at 2173. During the period 1976 to 1979, approximately
40 percent of PMS’s revenue was derived from Prudential property
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