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Petitioners Berry usually sought professional advice before
making investments. Their advisers in 1981 were Greenstein and
his father, Charles Greenstein. The Greensteins provided
accounting services to petitioners Berry, prepared their tax
returns, and gave them investment advice from time to time.
Petitioners Berry learned of the Hyannis investment from
Greenstein and were provided a copy of the Hyannis offering
memorandum. Petitioners Berry owned property near Hyannis and
while there during the summer they visited a PI office. They
also looked at the manufacturing plant, but they did not go
inside or view a recycler. Petitioners Berry decided to invest
in Hyannis after Greenstein gave them a favorable report of his
visit to the plant. Petitioner Dorothy Berry provided the money
for this investment.
Petitioners Berry have no education or work experience in
plastics recycling or plastics materials. Petitioners Berry were
aware of Greenstein's background and knew that he was not an
expert in plastics recycling or plastics materials. Petitioners
Berry never saw a Sentinel EPE recycler or visited any end-user
locations.
Petitioners Pace also employed Greenstein and his father for
accounting services. Greenstein introduced the Hyannis
investment to petitioners Pace and provided them with a copy of
the offering memorandum. Petitioner Pace wanted verification
that the plant and machines existed before he would invest.
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