Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 94

                                                -176-                                                   
            Despite the fact that IRA’s ledger entries showed that these                                
            checks were void, Lisle’s 1989 return reflected that he actually                            
            cashed the check.  Lisle reported the $22,619 on his individual                             
            tax return as income from the “KJW [sic] Company.”  Exh. 421,                               
            Statement 1.                                                                                
                  (ii).  Frey                                                                           
                  The $232,263 that BJF paid to Zeus during 1984 and 1985 was                           
            not transferred directly to IRA.  In 1986, Zeus apparently used                             
            these funds to purchase preferred stock in Windy City Corp.  Exh.                           
            9070.  Nevertheless, the amounts paid to Zeus roughly equaled the                           
            otherwise unaccounted-for loans in the aggregate amount of                                  
            $250,000 that IRA made to KWJ Partnership during the period 1984                            
            to 1989.  See app. 5 to this report.                                                        
                  (iii).  Schnitzer/PMS                                                                 
                  During the period 1984 to 1989, the $2,287,191 in                                     
            installment payments that IRA received from PMS was transferred                             
            to Carlco, TMT, and BWK in a 45/45/10 percent split and treated                             
            as capital contributions.91                                                                 
                  (iv).  Essex Partnership                                                              
                  From 1984 through 1989, Essex Partnership paid a total of                             
            $623,865 to IRA.  See Table 8 and accompanying citations of the                             


                  91  For a schedule listing the transfers of PMS installment                           
            payments from IRA to Carlco, TMT, and BWK, see app. 6 to this                               
            report.                                                                                     




Page:  Previous  166  167  168  169  170  171  172  173  174  175  176  177  178  179  180  181  182  183  184  185  Next

Last modified: May 25, 2011