-238-
issue. As discussed in detail below, these credibility
determinations were manifestly unreasonable because there is
overwhelming objective evidence of record, particularly through a
critical evaluation of the flow of funds, which demonstrates that
with so-called capital contributions, loans that were never
repaid, and other payments to Kanter, Ballard, and Lisle and
their families, IRA transferred to Carlco and/or Lisle, TMT
and/or Ballard, and BWK and/or Kanter, in a roughly 45/45/10
percent split, all of the payments from The Five (and nothing
more). The flow-of-funds analysis also demonstrates that Kanter,
Ballard, and Lisle had unrestricted use and enjoyment of the
assets IRA transferred to BWK, TMT, and Carlco, and they treated
those assets as their own. Similarly, the flow-of-funds analysis
demonstrates that Kanter and Lisle shared the payments that The
Five made to THC.
D. Summary of Kanter’s, Ballard’s, and Lisle’s Transactions
With The Five
1. An Overview
The record in these cases presents an overwhelming amount of
testimony and documentary evidence in support of respondent’s
determinations that Kanter, Ballard, and Lisle earned income in
the form of the payments from The Five that were remitted to IRA,
THC, and their subsidiaries. Consistent with our findings of
fact as set forth above, and all the inferences that fairly may
be drawn from those facts, we conclude the statements in the STJ
Page: Previous 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 NextLast modified: May 25, 2011