Daniel L. and Ingrid N. Carroll - Page 18




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               Petitioner also has a J.D. degree.  While in law school,               
          petitioner was employed by a patent attorney and conducted                  
          numerous patent searches.                                                   
               Petitioner was an associate, and subsequently a partner, of            
          the law firm of Shea and Gould from 1966 until 1989.  Petitioner            
          wife (Mrs. Carroll) was not employed outside the home.                      
               Petitioner was introduced to Clearwater and its general                
          partner, Winer, by Mr. Hirschfield, a partner at Shea & Gould.              
          Petitioner read the offering memorandum and the reports contained           
          therein and discussed the investment with other partners at his             
          firm, including Alan Parker, the senior tax attorney at the firm,           
          who were investing, or considering investing, in the Plastics               
          Recycling Program.                                                          
               Petitioners had no knowledge concerning the plastics                   
          industry and/or plastics recycling.  Petitioners did not see a              
          Sentinel EPE recycler prior to their investment in Clearwater nor           
          did they do a patent search on the EPE recyclers.  Rather,                  
          petitioner was aware that the promoters had not applied for a               
          patent for the recyclers but concluded it was because they wanted           
          to keep their invention a trade secret.  Petitioner relied almost           
          exclusively on the Clearwater offering memorandum (and the                  
          reports of Burstein, Ulanoff and WMDI, contained therein) and               
          Petitioner’s assessment of those reports as accurate.  Petitioner           
          considered the caveats and warnings contained in the Clearwater             





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