Keith E. and Marilyn B. West - Page 8




                                        - 8 -                                         
          partnership’s business; (5) there was no established market for             
          the Sentinel EPS recyclers; (6) there were no assurances that               
          market prices for virgin resin would remain at then current                 
          prices per pound or that the recycled pellets would be as                   
          marketable as virgin pellets; and (7) certain potential conflicts           
          of interest existed.                                                        
               The offering memorandum contained a marketing opinion by               
          Stanley Ulanoff (Ulanoff) and a technical opinion by Samuel                 
          Burstein (Burstein).  Ulanoff owned a 4.37-percent interest in              
          Taylor Recycling Associates, which purported to lease four                  
          plastic recyclers, and Burstein owned a 5.82-percent interest in            
          Jefferson Recycling Associates, which also purported to lease               
          four plastic recyclers.  The offering memorandum disclosed that             
          Burstein was a client of PI’s corporate counsel.  The offering              
          memorandum also warned potential investors not to rely on the               
          statements and opinions contained in the memorandum, but to                 
          conduct an independent investigation.                                       
               The private offering memorandum also projected that in the             
          initial year of investment an investor contributing $50,000                 
          would receive investment tax credits and business energy credits            
          of $77,000 and tax deductions of $38,940.  The private offering             
          memorandum provided that an investor in Masters was required to             
          have an individual net worth and/or net worth with a spouse of              








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011