-359-
Exh. 146, at 2 (AJE 8), provides an entry for $24,500 and states
“Commission Income Consulting Fees to reclass C/R from Equitable
Leasing on 9/21/82 & 1/25/83.” It appears this $24,500 entry
pertains to a $15,000 item from September 1982 combined with the
$9,500 item dated January 24, 1983. As previously discussed,
Zion was a subsidiary of THC during the year 1983.
THC’s accounting records related to these transactions are
inconsistent and contradictory. THC recorded about half of the
funds it received from Equitable Leasing as loans and the other
half as commissions. Exh. 146, at 2, 6 (AJE’s 8 and 32); Exh.
148, at 12 (listing loans of $8,000 and $302,000 on June 27 and
30, 1983, respectively). However, THC’s records also include an
adjusting journal entry for $310,000 (which probably includes the
$302,000 transferred to THC on June 30, 1983, and the $8,000
listed as a loan on June 27, 1983, see Exh. 148, at 12) and which
appears to read: “N/P-Equitable Leasing, Commission Income, to
reclassify funds from Eq. Leasing [date illegible].” Exh. 146,
at 11 (AJE 59).
Mallin paid commissions to Kanter (through payments to THC
and Zion) in exchange for Kanter’s assistance in recruiting
investors for his leasing transactions. Kanter, Transcr. at
4753; Mallin, Transcr. at 5213-5214.
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