Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 451

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            Frey and Kanter discussed Frey’s pressing need to raise capital                             
            for future condominium conversion projects.  At that time, a                                
            condominium conversion craze was occurring in a number of major                             
            metropolitan areas throughout the country, and Frey was faced                               
            with having to raise large amounts of capital to acquire and                                
            convert apartment building properties in which he and other                                 
            competing condominium converters were interested.  Although Frey                            
            generally could obtain financing from a bank for most of a                                  
            condominium conversion project’s cost, the bank typically would                             
            require Frey and other investors to have a substantial investment                           
            in the project.  Kanter indicated that he could help raise large                            
            portions of the capital that Frey needed for such condominium                               
            conversion projects.50  However, Kanter stated, in return for                               
            such assistance, he would have to receive a share of any                                    
            development and management fees that Frey earned from such                                  
            projects.                                                                                   
                  Kanter made it clear to Frey that he would bring additional                           
            investors and capital to Frey’s projects only if Frey agreed to                             


                  50  The STJ report included statements in this sentence and                           
            the next that “Kanter and/or entities associated with him” could                            
            provide assistance to Frey in raising capital.  As discussed in                             
            the text that follows, Frey was relying solely on Kanter to raise                           
            capital for his condominium conversion projects.  Frey, Transcr.                            
            at 666-674.  Aside from limited partner investments discussed                               
            below, there is no evidence that anyone acting on behalf of a                               
            Kanter-related entity, such as IRA or THC, provided any                                     
            assistance or services to Frey.                                                             




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