- 9 -
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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