-282-
nothing to shield Ballard and Lisle from oversight or second-
guessing by IRA’s officers.
In sum, IRA’s transfers to Carlco, TMT, and BWK represented
Lisle’s, Ballard’s, and Kanter’s shares of the payments derived
(and to be derived) from transactions with The Five. Further,
Carlco, TMT, and BWK were removed from IRA’s consolidated group
to reflect the reality that those corporations were owned and
controlled by Lisle, Ballard, and Kanter, respectively, and they
would each be responsible for their own taxes going forward.
b. Use and Enjoyment of Carlco’s, TMT’s, and BWK’s Assets
We do not credit Kanter’s explanations for the transfers to
Carlco, TMT, and BWK, and for the removal of those entities from
IRA’s consolidated group. The record shows that Lisle, Ballard,
and Kanter had unrestricted use and enjoyment of Carlco’s, TMT’s,
and BWK’s assets, respectively.
(i). Carlco
In April 1985, Lisle wrote a check for $3,000 against funds
in the Connecticut National Bank account to repay a loan that
TACI made to RWL Cinema Trust (one of Lisle’s grantor trusts).
The memo section of this check stated: “Payment on Loan”. In
short, Lisle used Carlco’s funds as his own to pay a debt of his
grantor trust.
In addition, Carlco owned a 45-percent partnership interest
in KWJ Partnership. IRA made substantial loans to KWJ
Page: Previous 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 NextLast modified: May 25, 2011