- 7 -
agreements provided that the end-users would transfer to PI 100
percent of the recycled scrap in exchange for a payment from FMEC
Corp. based on the quality and amount of recycled scrap.
Like Clearwater, each of the Partnerships herein was formed
to lease Sentinel EPE recyclers from F & G Corp. and license
those recyclers to FMEC Corp. The transactions of the
Partnerships differ from the underlying transactions in the
Provizer case only as to (1) the number of machines sold, leased,
licensed, and sublicensed, and (2) the entity that leased the
machines from F & G Corp. and licensed them to FMEC Corp. In
1981 Plymouth and Scarborough each leased and licensed seven
Sentinel EPE recyclers. For convenience we refer to the series
of transactions among PI, ECI Corp., F & G Corp., each of the
Partnerships, FMEC Corp., and PI as the Partnership transactions.
In addition to the Partnership transactions, a number of other
limited partnerships entered into transactions similar to the
Partnership transactions, also involving Sentinel EPE recyclers
and Sentinel expanded polystyrene recyclers. We refer to these
collectively as the Plastics Recycling transactions.
With respect to each of the Partnerships, a private
placement memorandum was distributed to potential limited
partners. Appended to the offering memoranda were reports by F &
G's evaluators, Dr. Stanley M. Ulanoff (Ulanoff), a marketing
consultant, and Dr. Samuel Z. Burstein (Burstein), a mathematics
professor. The offering memoranda list significant business and
tax risk factors associated with investments in the Partnerships.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011