Robert H. Avellini - Page 9

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            in the amount of 10 percent of some investments he guided to                                
            Clearwater; however, he did not receive a fee directly from                                 
            Clearwater for the EI investments.  Efron was aware that Gordon                             
            received commissions from the sale of some units in recycling                               
            ventures.5  Gordon recommended investing in the Clearwater                                  
            offering to the investors in EI, as well as to some of Gordon's                             
            other clients.                                                                              
                  Petitioner attended the University of Maryland from 1971                              
            through 1975, at which time he was drafted into the National                                
            Football League by the Chicago Bears.  When he was drafted,                                 
            petitioner needed only 12 additional credit hours to earn his                               
            bachelor of science degree in business management.  In 1991, he                             
            returned to the University of Maryland and received his degree.                             
                  Petitioner does not have any education or work experience in                          
            plastics recycling or plastics materials.  He did not                                       

            5                                                                                           
                  The Clearwater offering memorandum states that the                                    
            partnership will pay sales commissions and fees to offering                                 
            representatives in an amount equal to 10 percent of the price                               
            paid by the investor represented by such person.  The offering                              
            memorandum further states that if such fees are not paid "they                              
            will either be retained by the general partner as additional                                
            compensation if permitted by applicable state law, or applied in                            
            reduction of the subscription price."  The Efron Investors'                                 
            Schedule K-1 for 1981 shows that EI paid full price, $350,000,                              
            for its seven units of Clearwater, so the 10-percent commission                             
            was not applied to reduce the subscription price.  Gordon                                   
            specifically stated that in the case of EI he did not directly                              
            receive the sales commission.  Efron expressed doubt that he                                
            individually had been an offeree representative in connection                               
            with Clearwater or any other transaction.  There are suggestions                            
            that the commission might have been paid to MFA or offeree                                  
            representatives of individual investors, but the record on this                             
            subject is inconclusive.                                                                    




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