-96-
million. He also advised the Prudential executive that another
insurance company, Connecticut Mutual Life Insurance Co., would
be joining Frey in purchasing the property. Prudential had
already considered selling the apartment complex, and Frey’s $20
million offer for the property significantly exceeded the
property’s appraised market value.
The Prudential executive consulted with Ballard about Frey’s
offer. Ballard advised the executive that Prudential, acting on
the pension fund's behalf, should accept the offer, as Ballard
felt that Prudential’s refusal of such an offer might constitute
a breach of fiduciary duty as investment manager of the pension
fund.
In 1980, Prudential sold the Village of Kings Creek
apartment complex to a limited partnership Frey organized to
undertake conversion of the property to condominiums. Zeus and
Zion participated as limited partners in this partnership,
contributing $100,000 and $108,014, respectively, to the Village
of Kings Creek partnership. Exh. 5800. Kanter also brought in
another investor, First Illinois Enterprises, that made a
substantial investment in the project. Wold, Transcr. at 2854.
During the Village of Kings Creek conversion process,
Ballard visited the property “to see what was going on down
there”, and he met Wold. Ballard, Transcr. at 178. During this
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