-256- might make by participating as a limited partner in various Frey partnerships. The Frey-Zeus agreement reflected Frey’s recognition that Kanter’s influence in delivering several Prudential condominium projects in the summer and fall of 1981 was extremely valuable. At a time when investors were aggressively competing for properties to convert to condominiums and for capital to complete those conversions, Prudential provided a ready supply of such properties, and these projects did not require large infusions of capital. In 1984, Frey, Kanter, and others formed BJF Partnership to engage in condominium conversion projects. The BJF Partnership agreement included a list of assets that the partners contributed to the partnership. Among the listed items were two participation agreements--the Frey/THC agreement and the Frey/Zeus agreement dated October 21, 1981. Kanter, acting on behalf of THC, transferred to BJF Partnership rights to the Frey/Zeus agreement. Kanter, however, asserts that he neither owned nor controlled IRA or Zeus. Frey made payments to Zeus and THC. By directing Frey to make payments to Zeus on Prudential condominium conversion projects, Kanter, Ballard and Lisle attempted to assign income that they earned on those projects to Zeus. By directing Frey toPage: Previous 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 Next
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