Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 413

                                                 -55-                                                   
            of Carlco’s, TMT’s, or BWK’s corporate minutes books, stock                                 
            ledgers, or stock registers after 1984.                                                     
                  During this period, Kanter recommended and proposed to                                
            Freeman (IRA’s president) and Weisgal (trustee of the Bea Ritch                             
            Trusts, which held 100 percent of IRA’s common stock) that                                  
            generally Carlco and TMT should each receive a 45-percent share                             
            of IRA’s available investment funds and that BWK should receive                             
            the remaining 10 percent of IRA’s available investment funds.                               
                  Kanter testified that the distribution of IRA’s funds to                              
            Carlco, TMT, and BWK in a 45/45/10 percent split represented (1)                            
            a “free-cashflow asset allocation” he and Freeman devised, and                              
            (2) an effort to diversify IRA’s investments.  Kanter, Transcr.                             
            at 3663-3666, 3690-3691, 3694-3695.  The diversification of                                 
            investments was to be achieved by having Lisle manage Carlco and                            
            invest principally in municipal bonds, Ballard manage TMT and                               
            invest principally in real estate, and Kanter manage BWK and make                           
            miscellaneous investments.  Id.; Ballard, Transcr. at 222.31                                
            Kanter, in fact, did not have time to manage BWK’s investments.                             
            Kanter, Transcr. at 3695.                                                                   


                  31  As shown in additional findings of fact regarding the                             
            flow of funds, see infra pp. 162, 187-188: (1) IRA did not                                  
            allocate all of its free cashflow to Carlco, TMT, and BWK during                            
            the period in question, and (2) in addition to real estate                                  
            investments, Ballard invested substantial amounts of TMT’s funds                            
            in cash and municipal bonds.                                                                




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