-87-
Exhs. 10, 4003. IRA’s share of the 1979 Hyatt Corp. payment
alone provided IRA with nearly the full $150,000 purchase price
for KWJ Corp. KWJ Corp.’s contract with Hyatt Corp. was worth
millions of dollars. Exh. 4003. By selling KWJ Corp. to IRA,
Weaver gave up 70 percent of his contract rights under the
Hyatt/KWJ agreement.
Neither Weaver nor Kanter immediately informed Hyatt Corp.
that IRA had purchased KWJ Corp. Handelsman, Transcr. at 1136-
1137. Consequently, Hyatt Corp. continued to send to Weaver
checks made payable to KWJ Corp. Handelsman, Transcr. at 1136-
1137; Stoga, Transcr. at 813. From 1977 through 1994, Hyatt
Corp. paid KWJ Corp. approximately $2.5 million pursuant to the
Hyatt/KWJ agreement. Exhs. 4003, 465, 466, 467, 378, 380, 381;
Stoga, Transcr. at 808-811; Handelsman, Transcr. at 1141, 1143-
1144. Weaver forwarded each of the Hyatt Corp. payments to
Kanter. Exhs. 4003, 373, 9103 (e.g., Weaver letters to Kanter
dated March 29, 1983, and March 12, 1984). Kanter then returned
30 percent of the Hyatt Corp. fees to Weaver, and IRA deducted
those payments as a commission expense. Exh. 10, at 16; Exh. 14,
at 7; Exh. 17, at 15-16; Exh. 18, at 20; Ex. 9103 (e.g., TACI
check to Weaver dated March 27, 1984).
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