- 14 - did not read the entire opinion letter included in the offering memorandum. At trial petitioner could not recall the name of the equipment involved, the value of the equipment, or that the offering memorandum disclosed Miller's relationship with PI. Petitioner was invited to see the Sentinel EPE recycler but declined because he "wasn't disposed to do that." Petitioner testified that he had some conversations with Roberts after reviewing the offering memorandum, but he could not recall the particulars of those conversations. Petitioner could only surmise that because he proceeded with the investment, he must have received "answers that apparently satisfied" him. We find petitioner's purported reliance on Miller and Roberts was not reasonable, not in good faith, nor based upon full disclosure. The record does not show that either Miller or Roberts possessed any special qualifications or professional skills in the recycling or plastics industries. Miller was corporate counsel to PI and Roberts was general partner and a promoter of Hyannis. See Vojticek v. Commissioner, T.C. Memo. 1995-444, to the effect that advice from such persons "is better classified as sales promotion". Moreover, petitioner's testimony indicates that he relied more on his personal judgment or instincts in making the investment than any conversations he may have had with Miller and Roberts. A self-described risk taker and marketing person, petitioner testified that when he first heard of the plastics recycling transaction, "it struck a chord for whatever reason" and sounded like a viable idea. PetitionerPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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