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Ballard and Lisle and 10 percent to Kanter. Kanter’s smaller
share of the payments reflected the fact that Ballard and Lisle
really controlled the purse strings and Kanter’s role primarily
was to (1) set up fee-sharing arrangements with other
businessmen, and (2) structure entities and arrange the
accounting measures needed to disguise the true nature of the
payments, and (3) do his best to shelter the payments from
Federal income tax. Kanter and Lisle agreed to a similar
arrangement after Lisle moved on to Travelers.
In addition to his agreement with Ballard and Lisle, Kanter
arranged some transactions so that he could be compensated
separately through payments to THC. Kanter made such
arrangements with regard to transactions with Frey and Eulich.
The Hyatt transaction, the event that first brought Kanter,
Ballard, and Lisle together in the early 1970s, was carried out
in a slightly different fashion, as we shall explain in detail
below.
The Five received additional business as a result of
Kanter’s, Ballard’s, and Lisle’s efforts and compensated Kanter
(through payments to IRA, THC, and other Kanter-related
entities). IRA, THC, and the other Kanter-related entities did
not earn any of the amounts paid to them by The Five. IRA, THC,
and the other Kanter-related entities performed no services, and
they merely served as nominees or conduits to receive payments
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