-241-
national headquarters. Ballard later was a partner at Goldman
Sachs. Lisle later held the highest ranking executive position
within the real estate division at Travelers. Kanter, Ballard,
and Lisle fully understood and appreciated their obligations to
report income correctly and to pay taxes on that income. It was
a conflict of interest for Ballard or Lisle to have received
compensation in any way (directly or indirectly) with funds
Kanter received in connection with introductions he made to
Ballard or Lisle. Exh. 2030, at 31.
Kanter had many influential clients and business contacts
involved in commercial property management and major hotel
management businesses. Kanter represented the Pritzkers (the
founders of Hyatt Corp.) and had longstanding friendships with
Ballard and Lisle. Thus, Kanter marketed himself as more than
just an attorney to his clients and commercial real estate
professionals–-he offered additional services such as raising
capital and using his influential contacts to generate business.
In return for these services, Kanter demanded and routinely
received a percentage or share of the fees and profits that the
business opportunities generated for his business associates.
Beginning in the early to mid-1970s, Kanter, Ballard, and
Lisle concluded that, with Ballard’s and Lisle’s positions of
authority at Prudential, and Kanter acting as a broker/
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