-166-
principal and interest), and (4) $623,867 from Eulich/Essex
Partnership, for a total of $4,608,734.87
After 1983, IRA reported as income only the payments from
Frey to IRA’s subsidiary Zeus and the payments from PMS. Exhs.
19-24 (Schedule 6252); Exh. 19, at 12; Exh. 20, at 16.
B. Distribution of the Funds Paid by The Five in Connection
With the Various Prudential Transactions to Kanter,
Ballard, Lisle, and Their Respective Family Members
This section is divided into three subsections. The first
subsection provides background regarding Carlco, TMT, and BWK.
The second subsection discusses the transfer of funds from IRA to
Carlco, TMT, and BWK. The third subsection discusses the
disposition of funds from Carlco, TMT, and BWK for the benefit of
Ballard, Lisle, Kanter, and their respective families.
1. Additional Details Regarding Management and Control of
Carlco, TMT, and BWK
a. Carlco
Lisle and members of his family were officers of Carlco with
signatory authority on its various accounts. Exh. 2030, at 35.88
There is no dispute that Lisle managed and controlled Carlco’s
investments. During 1984 through 1989, moneys from Carlco were
deposited in a brokerage account maintained at Goldman Sachs.
87 All payments from Schaffel during this period were
remitted to THC, as discussed infra pp. 207-208.
88 For a list of Carlco’s officers and directors for the
period in question, see app. 2 to this report.
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