Leon and Belle Atkind - Page 23

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            rejecting advice from such persons.  Neither Miller or Roberts                              
            knew anything about plastics or plastics recycling.  The                                    
            evaluators whose reports were appended to the offering memorandum                           
            each owned interests in partnerships which leased Sentinel EPE                              
            recyclers.  The offering memorandum contained numerous caveats,                             
            including the following:  NO OFFEREE SHOULD CONSIDER THE CONTENTS                           
            OF THIS MEMORANDUM *** AS *** EXPERT ADVICE.  EACH OFFEREE SHOULD                           
            CONSULT HIS OWN PROFESSIONAL ADVISERS.  Petitioner did not see a                            
            Sentinel EPE recycler prior to investing in Hyannis, and he                                 
            presented no evidence that he independently investigated the                                
                  Petitioner also contends that he did not know and could not                           
            know of any comparable product by which to compare prices because                           
            one did not exist.  In fact, there were at least four other                                 
            plastics recycling machines available during 1981, ranging in                               
            price from $20,000 to $200,000:  Foremost Densilator,                                       
            Nelmor/Weiss Densification System (Regenolux), Buss-Condux                                  
            Plastcompactor, and Cumberland Granulators.  See Provizer v.                                
            Commissioner, supra.  Moreover, petitioners stipulated that                                 
            information published prior to the plastics recycling                                       
            transactions indicated that several similar machines were already                           
            on the market.                                                                              
                  Petitioners did not have a reasonable basis for the adjusted                          
            bases or valuations claimed on their 1981 return with respect to                            
            their investment in Hyannis.  Accordingly, respondent properly                              
            found that petitioner's purported reliance on Miller, Roberts,                              

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