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that Kanter deposit the check “and issue appropriate checks to
the participants.” In using the word “participants”, Weaver was
referring to Kanter, Ballard, and Lisle.
Later, in August 1989, IRA issued checks for $22,618.80 each
to Ballard and Lisle. After the checks were issued to Ballard
and Lisle, IRA records reflected a transfer of $45,237 to KWJ
Partnership on August 8, 1989. Also on August 8 and 15, 1989,
IRA ledger entries reflected that the checks issued to Lisle and
Ballard, respectively, were void. Despite the fact that IRA’s
ledger entries stated that these checks were voided, Lisle’s 1989
return reflected that he actually cashed the check. Lisle
reported $22,619 on his return as income from the “KJW [sic]
Company.” The checks issued to Ballard and Lisle reflected that
Ballard and Lisle (as opposed to KWJ Partnership) earned shares
of all Hyatt Corp. payments to KWJ Corp.
2. Frey
An October 1983 letter from BJF, Inc., to Kanter remitted a
check made payable to Kanter. The letter stated that the check
represents “your 5% participation of our $300,000.00 incentive
fees received from Prudential for 50% of units closed at Calais,
Chatham and Valleybrook.” Although the check was later voided
and replaced with a check made payable to Zeus, the letter
reflected that it was Kanter (along with Ballard and Lisle), not
Zeus, who earned a share of Frey’s incentive fees.
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