Paul L. and Doris J. Triemstra, et al. - Page 20

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          the financial projections in any way.  Kravitz accepted the                 
          evaluators' reports without question; he did not inquire as to              
          whether the evaluators were investors or had any conflict of                
          interest.  The tax risk factors detailed in the offering                    
          memorandum did not raise any "red flags" for Kravitz because, he            
          testified, he believed such caveats were insurance for the                  
          promoters against securities litigation.  While Kravitz knew the            
          tax credits depended on the value of the Sentinel EPE recyclers,            
          he testified that the fact that much of the purchase price was              
          represented by F & G's nonrecourse notes did not concern him.               
               Triemstra testified that the representations in the                    
          Northeast offering memorandum indicated to him that it was                  
          unnecessary to look beyond the offering memorandum.  Triemstra              
          understood that valuation of the Sentinel EPE recyclers was                 
          important for purposes of the investment and energy tax credits,            
          and he also recognized that the transaction was structured "to              
          fall within the strata of the tax benefits."  Triemstra accepted            
          the representations in the offering memorandum regarding the                
          Sentinel EPE recyclers and the reports of the evaluators.                   
          Triemstra ignored the cautionary language in the Northeast                  
          offering memorandum because, he testified, he had seen other                
          offering memoranda and they all contained such warnings and risk            
               As for Cohn, at trial he could not remember how thoroughly             
          he read the Northeast offering memorandum, but he did recall                

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