-292-
already instructed PSAC to transfer the final payment in
appropriate shares to Carlco, TMT, and BWK.
5. Loans to Ballard
TACI’s June 30, 1984, trial balance ledger reflected that
loans had been made to Ballard, Seabright Trust, and Seabright
Corp. Although there is no indication whether these loans
originated from TACI, IRA, or some other Kanter-related entity,
subsequent accounting entries resulted in the transfer of these
loans to TMT. The transfer of these loans to TMT was not a
random event--the treatment of these loans reflected that Ballard
owned TMT’s assets, and, therefore, his loans were charged to
TMT.
6. Ballard’s Disclosures to Goldman Sachs
In October 1988, Ballard submitted to Goldman Sachs a
disclosure statement concerning his outside business
affiliations. Ballard’s disclosure stated: “I am personally
involved in substantial farming operations individually as well
as in partnership form. Family trusts control two corporations
which are similarly involved.” Ballard’s reference to “Family
trusts” was to Orient Trust (which owned TMT) and Mary Family
Trust (which owned Seabright Corp.). In this regard, it is worth
noting that Ballard reported as income substantial director’s
fees from Seabright Corp. during 1987 to 1989. Ballard’s
explanation at trial that the family trusts he was referring to
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