Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 154

                                                -230-                                                   
            included a discussion describing the kickback scheme as a matter                            
            that generally was known only to Kanter, Ballard, and Lisle.                                
            Respondent theorized that Ballard and Lisle agreed to steer                                 
            Prudential business to The Five (and Lisle agreed to steer                                  
            Travelers business to Schaffel) with the understanding that                                 
            Kanter would share with Ballard and Lisle any fees he was able to                           
            obtain from The Five.  In other words, respondent conceded that                             
            Schaffel, Frey, Schnitzer, and Eulich were not aware Ballard and                            
            Lisle were using their influence to steer business to them.  In                             
            respondent’s view, Schaffel, Frey, Schnitzer, and Eulich simply                             
            agreed to pay Kanter if he was successful in influencing his                                
            clients and other wealthy contacts in the real estate industry to                           
            generate business for them.  Having misconstrued respondent’s                               
            position, the STJ report repeatedly cites the testimony of                                  
            Schaffel, Frey, Schnitzer, and Eulich as compelling evidence in                             
            support of its conclusion that Kanter, Ballard, and Lisle did not                           
            engage in a kickback scheme.                                                                
                  We acknowledge the STJ report also credits Kanter and                                 
            Ballard’s testimony, and Lisle’s statement to IRS agents, that                              
            they were not engaged in a kickback scheme.  As we shall discuss                            
            in significant detail below, it was manifestly unreasonable to                              
            give any credence to this testimony.                                                        









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