-236- Ballard, or anyone else at Prudential. Ballard did not offer any explanation why A.N. Pritzker revealed the information to him. Finally, even assuming Ballard had such a conversation with A.N. Pritzker, indignation was the natural reaction any forthright Prudential executive would have had to the disclosure. Ballard’s indignation, however, was feigned. A critical examination of the flow of funds clearly and convincingly shows that Ballard earned and received a share of the Hyatt Corp. payments under the Hyatt/KWJ agreement after the payments passed through IRA, KWJ Partnership, and TMT. Ballard had unfettered use, enjoyment, and control over TMT’s funds, and he surely did not want to disclose his role in the Hyatt transaction to A.N. Pritzker. Thus, the recommended conclusion in the STJ report that Ballard’s testimony was sufficient to dispel the notion there was “collusion” among Ballard, Lisle, Kanter, and Weaver with regard to the payments that Hyatt Corp. remitted to KWJ Corp. was manifestly unreasonable. c. Kanter’s Testimony Regarding Deconsolidation The STJ report, at 81 note 35, treats as credible Kanter’s testimony that Carlco, TMT, and BWK were removed from IRA’s consolidated group for tax-reporting purposes because Kanter was concerned about the impact of Carlco’s investments in tax-exempt bonds on IRA’s interest deductions. While Kanter’s explanation may have seemed plausible with regard to Carlco, it didPage: Previous 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 Next
Last modified: May 25, 2011