Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 105

                                                -186-                                                   
            personally involved in substantial farming operations                                       
            individually as well as in partnership form.  Family trusts                                 
            control two corporations which are similarly involved.”  Exh.                               
            9072.  At trial, Ballard testified that the family trusts                                   
            referred to in his disclosure statement to Goldman Sachs were the                           
            Bea Ritch Trusts, which purportedly owned IRA (and ostensibly                               
            TMT), and the two corporations he was referring to were TMT and                             
            Fairfield.  Ballard, Transcr. at 235-236.                                                   
            Ballard’s testimony on this point is inconsistent with his                                  
            earlier testimony and is not credible.  In particular, Ballard                              
            testified that, as of 1987, he owned Fairfield–-there is no                                 
            evidence that a trust owned Fairfield.  The family trusts and two                           
            corporations mentioned in Ballard’s disclosure statement were the                           
            Orient Trust (which owned TMT) and Mary Family Trust (which owned                           
            Seabright Corp.).                                                                           
                  On June 13, 1989, Goldman Sachs issued a memorandum                                   
            regarding “Outside Business Activities and Private Investment”                              
            reminding Goldman Sachs personnel of NYSE and NASD rules that                               
            required each general partner and employee to obtain prior                                  
            written approval with respect to outside business activities and                            
            private investments.  Exh. 5938, at 11.  In response to this                                
            reminder, on August 2, 1989, Ballard submitted to the Goldman                               
            Sachs compliance department a Request for Approval of Outside                               





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