Leon and Belle Atkind - Page 14

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            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.  Petitioner                            

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