-267-
Lisle used Essex Partnership as a conduit to receive a portion of
the management fees paid to GHM on the Gateway Hilton and Midland
Hilton management contracts (through distributions to IRA), and
Kanter received a separate portion of those same management fees
(through distributions to THC). As discussed in the flow-of-
funds analysis below, the distributions that IRA received from
Essex Partnership were distributed to Carlco, TMT, and BWK.
Essex Partnership represented an effort by Kanter, Ballard, and
Lisle to assign to IRA and/or THC income that they earned.
E. Flow-of-Funds Analysis
The Court’s additional findings of fact regarding the flow
of funds from The Five to IRA and from IRA ultimately to Kanter,
Ballard, and Lisle are summarized in table 11. Table 11 shows
that with so-called capital contributions, loans that were never
repaid, and other payments to Kanter, Ballard, Lisle, and their
families, IRA transferred to Carlco and/or Lisle, TMT and/or
Ballard, and BWK and/or Kanter, in a roughly 45/45/10 percent
split, all of the payments from The Five (and nothing more). The
flow-of-funds analysis also demonstrates that Kanter, Ballard,
and Lisle had unrestricted use and enjoyment of the assets IRA
transferred to BWK, TMT, and Carlco, and they treated those
assets as their own.
The Court’s additional findings of fact regarding the flow
of funds from The Five to THC, and ultimately to Kanter and
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