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purportedly arranged in December 1986 to repay the $160,000 loan
to Mary Ballard with Macy’s preferred stock, TMT’s accounting
records do not indicate that the $160,000 loan was ever repaid.
In 1986, TMT paid $100,000 for an asset described in TMT’s
general ledger as “LAND ST. FRANCIS COUNTY [ARKANSAS] 414.28
ACRE”.121 This asset was subsequently removed from TMT’s general
ledger, and adjusting journal entries indicated that an asset
identified as “Fairfield Planting Company” was transferred to
Ballard, and Ballard’s loans from TMT were increased by $100,000.
When Gallenberger was questioned about this transaction, she
could not recall the details and suggested Ballard should be
questioned on the matter. Ballard testified that (1) the
transaction involved his acquisition of stock in Fairfield
Planting Co., an S corporation involved in farm operations in
Arkansas; (2) he owed TMT approximately $200,000 on the
transaction; (3) TMT continued to receive “interest” on the deal;
(4) he owned two-sevenths of Fairfield; (5) the initial Fairfield
investment was $1,350,000, and the investment had increased in
value to approximately $2,350,000; and (6) the Fairfield
transaction was a good deal for TMT and a bad deal for him.
121 TMT’s general ledger also reflected a separate
transaction involving what appears to be another property in St.
Francis County identified as land ($424,800), along with a
building ($25,200) and building improvements ($10,925).
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