-222-
whether ownership changed from the initial issuance dates of the
stock certificates that Kanter produced.
When the trustees of Kanter’s family trusts, Baskes and
Weisgal, were asked to produce documents, they, likewise, failed
to do so, on the ground that they did not have the requested
information in their possession. Weisgal, Transcr. at 469-470;
Baskes, Transcr. at 574-578.
PSAC had a “policy” of refusing to turn documents over to
anyone other than their owner. Exh. 429; Exh. 9021, at 4;
Gallenberger, Transcr. at 2733-2734.
OPINION
A. The Parties’ Positions
Respondent determined that (1) Kanter, Ballard, and Lisle
earned the moneys The Five paid to IRA, THC, and other Kanter-
related entities during the years at issue; (2) Kanter later
directed and allocated much of that money to himself, Ballard,
and Lisle primarily through BWK (10 percent), TMT (45 percent),
and Carlco (45 percent), respectively; and (3) Kanter and Lisle
shared fees that Schaffel paid to THC on Travelers transactions
(with Lisle receiving a portion of his share through FPC
Subventure Partnership).
Respondent first contends that IRA, THC, Carlco, TMT, BWK,
and other Kanter-related entities were shams and/or nothing more
than the alter egos of Kanter, Ballard, and Lisle. In the
Page: Previous 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 NextLast modified: May 25, 2011