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The offering memoranda of SAB Reclamation and SAB Recycling
provide that SAB Management will receive general partner fees in
the respective amounts of $110,000 and $97,375 from those
partnerships. SAB Management received fees of approximately
$500,000 as the general partner of the SAB recycling
partnerships. In addition, Becker Co. prepared the partnership
returns and Forms K-1 for all of the SAB recycling partnerships
and received fees for those services.
The offering memoranda of SAB Reclamation and SAB Recycling
state that sales commissions and offeree representative fees will
be paid in amounts equal to 7.5 percent of each investment guided
to the partnerships and that SAB Management, as the general
partner of those partnerships, may retain as additional
compensation all amounts not so paid. However, neither Becker
nor SAB Management retained or received any sales commissions or
offeree representative fees. Instead, after the closing of each
SAB recycling partnership, Becker rebated to each investor whose
investment was not subject to a sales commission or offeree
representative fee an amount equal to 7.5 percent of such
investor's original investment.
The offering memoranda list significant business and tax
risk factors associated with investments in the Partnerships.
Specifically, the offering memoranda state: (1) There is a
substantial likelihood of audit by the Internal Revenue Service
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Last modified: May 25, 2011