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banking matters. The bookkeepers and administrators simply
followed Kanter’s instructions (which sometimes were conveyed
through Freeman, Weisgal, Meyers, and/or Gallenberger).
IRA’s officers and directors, including Freeman and Weisgal,
did not manage any business or provide any meaningful services to
The Five. Kanter disclosed that for several years Freeman had
been distracted by his own legal woes and did not manage IRA.
Weisgal recalled very little regarding any matters concerning
IRA’s operations and was not aware of anyone at IRA who provided
services to The Five.
Schaffel, Frey, Schnitzer, and Eulich uniformly testified
that they were looking to Kanter, and Kanter alone, to use his
influence with his wealthy and well-connected clients and
business contacts in an effort to generate additional business
opportunities for them. Kanter’s statements in his dealings and
negotiations with The Five are equally revealing that Kanter
would be providing the services and expected to be compensated
for those services. In the end, The Five entered into contracts
with and made payments to IRA, THC, and their subsidiaries only
because Kanter directed them to do so.
There is no evidence of any contract between IRA and Kanter,
nor is there any evidence that IRA controlled Kanter’s activities
in any way. To the contrary, Kanter orchestrated all business
matters concerning IRA or THC and their subsidiaries, and
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