-304- from TMT to himself, his wife, Mary Ballard, and his daughter, Melinda Ballard, labeled as loans and stock investments. Most of these purported loans were not properly documented, and there was little evidence of any meaningful payments of principal or interest. We also infer from notations in TMT’s books and records that a so-called investment in Melinda Ballard’s company was prearranged to be written off as a worthless security the following year. Finally, Kanter received substantial transfers from TACI, labeled as loans, that appear to amount to nothing more than transfers of funds from THC to himself. G. False and Misleading Documents Kanter used false and misleading agreements with Schaffel and Frey to create the appearance that Frey’s agreements were with Zeus and THC as opposed to Kanter himself. Similarly, in the Eulich/Essex Partnership transaction Kanter used false and misleading representation and marketing agreements to create the appearance that the partnership would provide services for GHM and MHM when in fact MHM simply provided services for GHM. H. Failure To Cooperate During the Examination Process Kanter made it clear to IRS examination personnel from the beginning that he did not intend to cooperate and he would frame the issues for examination, not the IRS. We are also convinced Kanter directed Gallenberger (an officer of TACI and PSAC) and Weisgal (the trustee of the Bea Ritch Trusts) to withholdPage: Previous 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 Next
Last modified: May 25, 2011