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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 to
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