-94-
pay Kanter a share of the fees that Frey earned for a given
project. Kanter told Frey: “I want to be on the same basis as
you. Whatever fees you participate in, I don't want you to have
an edge; if I am going to bring capital in and add value to these
partnerships, I don't want anyone to have an edge and I want to
participate in those fees.” Frey, Transcr. at 671. Frey
acknowledged that Kanter “had a role of more than just a passive
investor. His role was bringing in capital into the venture.”
Frey, Transcr. at 668.
Beginning in 1979-80 with Frey’s second and third
condominium conversion projects known as Lakewood and 535 North
Michigan Ave., respectively, entities associated with Kanter
invested, as limited partners, in a number of Frey’s condominium
conversion projects. The entities associated with Kanter that
invested in these condominium projects included Zeus Ventures,
Inc. (Zeus), a subsidiary of IRA, and Zion Ventures, Inc. (Zion),
a subsidiary of THC. Following through on his oral agreement
with Frey, Kanter also brought other investors and capital to the
Lakewood and 535 North Michigan Ave. projects.51 Frey, Transcr.
at 663-674; Wold, Transcr. at 2880. Kanter brought in the Marmon
51 In November 1979, D.M. Interstate Management, Inc.,
entered into an agreement to manage the Lakewood condominium
property. Exh. 223, app. A, pt. II, item 11.
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