-198-
at 2 (AJE 9); Exh. 1104. By the end of 1983, a transaction took
place between IRA and HELO which had the effect of (1) decreasing
IRA’s outstanding receivables due from HELO by $201,200, (Exh.
9006, at 2 (AJE 9); Exh. 26, at 23), and (2) increasing IRA loans
to Basking Ridge Trust and Summit Trusts by $201,200. Exh. 9006,
at 2 (AJE 9); Exh. 26, at 26. In short, IRA obtained HELO’s
receivables due from Basking Ridge Trust and Summit Trust. IRA’s
adjusting journal entry stated that the purpose of this
transaction was “to adjust for loans made to Basking Ridge and
Summit via HELO (remove HELO from middle).” Exh. 9006, at 2, l.
16. Simultaneously with this book entry transaction, Basking
Ridge Trust was credited with a payment of $10,300, leaving
$84,700 due on its loan, and Summit Trust was credited with a
payment of $10,100, leaving $96,100 due on its loan. Exh. 26, at
26. IRA then transferred to IFI the receivables due from Basking
Ridge Trust and Summit Trust for a receivable of $180,800 due
from IFI. Exh. 9006, at 5 (AJE 27).
Loans to Ballard, Lisle, and their grantor trusts were
either sold for $1 or written off as bad debts as described in
the following steps.
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