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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
alerts.
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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