-99-
Exhs. 221, 5814. Kanter received a share of development fees in
connection with each of the Prudential joint venture condominium
conversion projects listed above through checks made payable to
Zeus. Exh. 457; Wold, Transcr. at 2868-2870.
Kanter (through payments to Zeus) also received a share of
the fees Frey earned with respect to a Prudential condominium
project known as Galaxy Towers, a building that Lisle’s PIC
Realty had constructed. Exh. 457, at 2, 4, 8; Exh. 2030, at 25.
Although Prudential converted the Galaxy Towers to condominiums
on its own, Prudential hired Frey to serve as a consultant for
the conversion and to begin a marketing plan to sell the
condominiums. Frey, Transcr. at 684-685. In exchange for these
services, Frey’s company received consulting fees. Id. In
January 1982, Prudential and BJF, Inc., executed a consulting
agreement regarding the Galaxy Towers. Exh. 223, app. A, pt. II,
at 8, No. 22.
In the interim, on October 12, 1981, the existing agreement
that Frey had to share development and management fees with
Kanter was formalized in two separate written agreements.52 One
52 The statement in the STJ report that Frey agreed to
share his fees with “Kanter and/or entities associated with
Kanter” is manifestly unreasonable. Frey agreed to share fees
with Kanter, and Frey entered into the participation agreements
and remitted payments to Kanter-related entities only because
Kanter directed him to do so. Frey, Transcr. at 671-674.
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