-74-
fraud is based upon payments made over several years from several
entities and/or individuals that have been collectively referred
to by respondent as The Five. The following narrative describes
The Five and the nature of their payments.
1. Hyatt Corp.’s Payment of a Share of Its Profits on the
Embarcadero Hotel’s Management Contract to KWJ Corp.
(STJ report at 33-37)
From 1968 through 1972, Ballard and J.D. Weaver (Weaver), an
executive with Tenneco Corp. (Tenneco) played instrumental roles
in their respective employers’ joint development of what would
become the Houston Hyatt Hotel. Weaver was president of
Tenneco’s real estate development subsidiary. Ballard, Transcr.
at 115. Ballard negotiated the Houston Hyatt Hotel’s management
contract with A.N. Pritzker of Hyatt Corp. A.N. Pritzker and his
sons had reputations as tough negotiators. Ballard, Transcr. at
125. Hyatt Corp. was awarded the management contract for the
Houston Hyatt Hotel no later than 1970. Ballard, Transcr. at
114-120, 126.41
Lisle also worked on the Houston Hyatt Hotel project for
Prudential. Friend, Transcr. at 767-768, 772-777. A.N. Pritzker
41 Hugo M. Friend, Jr. (Friend), a Hyatt Corp. vice
president, met Ballard and assisted Lisle and Tenneco
representatives in the selection of architects and contractors
for the Houston project during 1968 or 1969, a fact which
suggests that Hyatt Corp. was awarded the management contract for
the Houston Hyatt Hotel well before 1970. Friend, Transcr. at
750, 767-768, 773.
Page: Previous 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 NextLast modified: May 25, 2011