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Roberts or Grant was the general partner. Kravitz did not invest
in any of these real estate transactions.
Sometime in August 1981, Roberts informed Kravitz of the
Northeast transaction. Roberts was the general partner in a
number of limited partnerships, including Northeast, which leased
Sentinel EPE recyclers. Roberts also was a 9-percent shareholder
in F & G. Roberts explained the Northeast transaction and its
tax benefits to Kravitz. Kravitz knew that Roberts' background
was in banking, and Kravitz had no indication that Roberts had
any knowledge or experience in plastics, plastics recycling, or
machinery. Kravitz read the entire Northeast offering
memorandum. Roberts told Kravitz that he had visited PI, had
seen a recycler in operation, and believed Northeast was a good
investment.
Kravitz introduced Northeast to Cohn, Triemstra, and
Hechtman and told them of his discussions with Roberts. Kravitz
also discussed the Northeast offering memorandum with Garrapee,
who had experience with Roberts and Grant. Garrapee was a
certified public accountant (C.P.A.) and was responsible for the
financial aspects of the apartment complex projects, including
preparation of the financial reports as well as the pro forma
financial information included in the various offering memoranda.
Garrapee told Kravitz that he and his partners were going to
invest in Northeast. Kravitz did not know whether Garrapee had
any background in plastics or plastics recycling.
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Last modified: May 25, 2011