- 11 - Triemstra had no education or experience in the recycling or plastics fields. Triemstra did not investigate PI. He was unaware of the prevailing price of polyethylene pellets at the time, and he did not investigate the price of virgin pellets. Triemstra never saw a Sentinel EPE recycler or asked if he could see one. He never visited an end-user. Triemstra was unaware of any competing plastics recyclers and did not investigate the matter. Cohn learned about the Northeast transaction from Kravitz. Cohn was provided a copy of the Northeast offering memorandum and remembers having read the draft legal opinion and the reports of the evaluators included in the appendices thereto. Cohn concluded there were no comparable machines solely on the basis of his reading of the Northeast offering memorandum. Before investing in Northeast, Cohn contacted Alvin Shapiro (Shapiro), a C.P.A. who had prepared Cohn's tax returns for many years. Shapiro told Cohn that he was familiar with the type of transaction set out in the Northeast offering memorandum and that Cohn should be careful about the valuation of the Sentinel EPE recyclers. Shapiro considered valuation to be "the big problem" with that type of investment. Cohn had no background in plastics or plastics recycling. He knew none of the principals at PI and never investigated PI. Cohn never investigated the price of virgin pellets as compared with recycled pellets. He never read any periodicals about thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011