-40-
personally represented. Kanter also served as a director on
several corporate and charitable organization boards.
Kanter has made many investments through numerous entities,
including corporations, partnerships, and family trusts. Some of
these family trusts are trusts the income of which is taxable to
Kanter pursuant to the grantor trust provisions of sections 671
through 678. A number of Kanter’s family trusts own substantial
stock interests in The Holding Co., Inc., a corporation that made
extensive investments during the years at issue.
Additionally, on occasion, Kanter and/or entities associated
with him have entered into certain arrangements with various
individuals, pursuant to which Kanter would use his business and
professional contacts to assist such individuals either in
obtaining potential business opportunities or in raising capital
for business ventures. In exchange for such assistance from
Kanter, these individuals agreed to share their profits or fees
payable to an entity or entities associated with Kanter.23
23 The STJ report incorrectly stated that entities Kanter
represented provided assistance to various individuals in
obtaining business opportunities or in raising capital. As
discussed in detail in the Court’s additional findings of fact,
infra pp. 51, n. 27 (Weisgal testimony), 91-107 (Frey), 107-124
(Schaffel), 124-131 (Schnitzer), and 131-152 (Eulich), there is
no evidence (1) anyone at any Kanter-related entity provided the
businessmen involved in the transactions in dispute (sometimes
referred to as The Five) with assistance in obtaining business
opportunities or in raising capital, or (2) any of these
businessmen were relying on anyone other than Kanter, in his
(continued...)
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