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technical aspects of the energy-device transaction, such
reliance, considering petitioner's background and experience, did
not rise to the level of the duty of care standard that would be
reasonable in these circumstances. Petitioner has not shown that
Mr. Pecha, other than his background in chemistry, had any
specialized knowledge or technical qualifications necessary to
assess the effectiveness or economics of the energy device in
question. There is no indication that Mr. Pecha ever personally
observed the device or that he had conducted independent research
concerning it. Considering petitioner's level of education and
his limited understanding of the mechanics of the transaction,
his reliance on Mr. Pecha was not reasonable.
Petitioner also claims that the accountant, Mr. Shriver,
assured him that the energy-device transaction was a proper
investment. In this regard, petitioner also contends that Mr.
Shriver was an independent certified public accountant, so as not
to be connected with the promoters or to have a financial
interest in the sale of the investment. Petitioner's claim of
Mr. Shriver's independence is not supported in the record. To
the contrary, Professional's (a self-proclaimed promoter or
seller of tax shelters) brochure contains the following statement
about Mr. Shriver:
We arrange for a qualified tax specialist to be
available for consultation and to provide accounting
services to whatever extent you may need. By
appointment, an initial hour of time with David
Shriver, C.P.A.,is provided with your financial plan.
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