-258-
Schnitzer and Ross were not relying on IRA, Schott, or
Weisgal to generate additional business opportunities for PMS.
Schnitzer and Ross were relying solely on Kanter to obtain
additional business opportunities for PMS.
During the period 1976 to 1979, PMS expanded its portfolio
of management contracts, and its growth was attributable in large
measure to additional contracts from Prudential, which
represented approximately 40 percent of its revenue.
In late March 1979, Schnitzer informed Kanter that he was
disappointed with Kanter’s failure to deliver additional property
management business for PMS, and he wanted to buy back the PMS
stock held by IRA. Kanter made a counteroffer to purchase all of
the PMS stock that Schnitzer owned for $3.1 million. Ultimately,
Schnitzer agreed to pay IRA $3.1 for its PMS stock with payments
to be made in installments over 10 years. In February 1989, PMS
made an early, discounted final payment to PSAC, which
transferred the funds to IRA for distribution to Carlco, TMT, and
BWK.
Once again, although there is no direct evidence of an
agreement among Kanter, Ballard, and Lisle to share profits from
the PMS transaction, the surrounding circumstances strongly
support an inference that an agreement was in place. We begin
with the fact that Ballard and Lisle were aware that Schnitzer
was so anxious to expand PMS’s management business that he was
Page: Previous 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 NextLast modified: May 25, 2011