Donald N. and Rosemarie F. Merino - Page 7
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professor, were appended to the offering memorandum. Ulanoff
owns a 1.27-percent interest in Plymouth Equipment Associates and
a 4.37-percent interest in Taylor Recycling Associates. Burstein
owns a 2.605-percent interest in Empire Associates and a 5.82-
percent interest in Jefferson Recycling Associates. Like
Northeast, Plymouth Equipment Associates, Taylor Recycling
Associates, Empire Associates, and Jefferson Recycling Associates
are partnerships that leased Sentinel recyclers. Burstein also
was a client and business associate of Elliot I. Miller (Miller),
the corporate counsel to PI.
The Northeast offering memorandum states that the general
partner will receive fees from Northeast in the amount of
$25,000. The offering memorandum further states that the general
partner "may retain as additional compensation all amounts not
paid as sales commissions or offeree representative fees".
According to the offering memorandum, it was anticipated that 10
percent of the proceeds from the offering--$95,000--would be
allocated to the payment of sales commissions and offeree
representative fees. Roberts therefore was to receive a minimum
of $25,000 and up to $120,000 from Northeast.
The offering memorandum lists significant business and tax
risk factors associated with an investment in Northeast.
Specifically, the offering memorandum states: (1) There is a
substantial likelihood of audit by the Internal Revenue Service
(IRS), and the purchase price paid by F & G Corp. to ECI Corp.
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