-178-
to 1988.92 Notably, TMT reversed the consent dividends in 1989.
Exh. 98, at 9. As a result, Carlco’s and TMT’s capital accounts
at the end of 1989 both equaled $2,938,173.
3. The Disposition of Funds From Carlco, TMT, and BWK for
the Benefit of Ballard, Lisle, Kanter, and Their
Families
a. Ballard’s Use and Enjoyment of TMT’s Assets
(i). TMT’s Various Accounts
During the period 1984 to 1989, substantial portions of
TMT’s funds were invested in CDs (American National Bank
(Chicago) and Wells Fargo Bank (San Francisco)), savings and
money market accounts (Citizen Bank, Wells Fargo, TACI, and
Kemper Money Market), and a Goldman Sachs brokerage account.
Exhs. 92-98; Exh. 93, at 7; Exh. 94, at 5-9; Exh. 614, at 2; Exh.
95, at 2, 6; Exh. 9014; Exhs. 614-617. Ballard and his wife had
signatory authority over the Wells Fargo savings account.
Ballard, Transcr. at 223-224.
(ii). Loans From TMT to Ballard and Ballard Entities
Seabright Corp. was owned by the Mary Family Trust. Mary
Ballard, Transcr. at 2813-2815, 2823. The beneficiaries of the
Mary Family Trust were Mary Ballard and her three daughters. Id.
92 TMT recorded consent dividends of $105,202, $97,206,
$82,633, $31,960, and $65,093 (a total of $382,094) for 1984 to
1988, respectively. Exh. 93, at 11; Exh. 94, at 11; Exh. 98, at
9.
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