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recycling, and both relied on information provided by PI and
other parties related to the transaction in providing their
reports. Both individuals were paid a fee each time their
reports were included as part of a private offering memorandum of
a plastics recycling partnership.
Burstein is a professor of mathematics at New York
University. Burstein's report concluded that the Sentinel EPE
recyclers were capable of continuous recycling. Ulanoff is a
professor of marketing at Baruch College and has written numerous
books on marketing subjects. His report covered the marketing
value and potential of the Sentinel EPE recyclers and expressed
the conclusion that the sale price paid by F&G Corp. for the
recyclers was fair and reasonable. Ulanoff's report stated that
his conclusions were based on his personal observation of the
Sentinel EPE recycler prototype during a visit to PI, discussions
with PI employees, the needs of the plastics industry, and his
analysis of the economic projection provided in the offering
memorandum.
The offering memorandum represented that the Sentinel EPE
recyclers were unique machines. However, they were not. Several
machines capable of densifying low-density materials were already
on the market in 1981. Other plastics recycling machines
available at that time ranged in price from $20,000 to $200,000,
including the Foremost "Densilator", the Nelmor/Weiss
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