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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 did
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