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Partnership agreement or the representation and marketing
agreements between MHM and Essex Partnership. Eulich could not
explain how Essex Partnership would serve as “liaison
intermediary between the owners and operators of hotel
properties”. There were no officers or employees at Essex
Partnership who could have engaged in consulting or acted as
liaisons.
Between 1982 and 1988, GHM paid $1,334,601 and MHM paid
$1,563,412 to Essex Partnership. During 1982 through 1989,
Essex Partnership distributed $788,452 to IRA and $645,099 to
THC.
On December 31, 1984, IRA transferred its Essex Partnership
interest to Carlco, TMT, and BWK. Carlco and TMT each received
an 11.75-percent partnership interest in Essex, while BWK
received a 2.6125-percent partnership interest in Essex. Essex
Partnership apparently was not informed of the transfer and
continued to make partnership distributions to IRA.
The record reflects that Connolly was little more than a
pawn with regard to Essex Partnership. Connolly knew very little
about GHM or Essex Partnership, and we infer from his testimony
that he was happy simply to receive a substantial salary for
ostensibly managing both the Gateway Hilton and the Midland
Hilton. In fact, MHM provided the necessary management support
services for all of the hotels in question. Kanter, Ballard, and
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