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(1) The offering materials; (2) a tour of the PI facility in
Hyannis; (3) discussions with insiders to the transactions; (4)
Canno; and (5) his investigation of the reputation and background
of PI and persons involved in the transactions.
Despite his lack of knowledge regarding the product, the
target market, and the technical aspects at the heart of the
Plastics Recycling transactions, Becker did not hire an expert in
plastics materials or plastics recycling, or recommend that his
clients do so. The only independent person having any connection
with the plastics industry with whom Becker spoke was Canno.
Canno was a client of Becker Co., and was a part owner and the
production manager of Equitable Bag Co., a manufacturer of paper
and plastic bags. Becker spoke to Canno about the recyclers and
PI, but did not hire or pay him for any advice. Canno did not
visit the PI plant in Hyannis, see or test a Sentinel EPE
recycler, or see or test any of the output from a Sentinel EPE
recycler or the recycled resin pellets after they were further
processed by PI. According to Becker, Canno endorsed the
Partnership transactions after reviewing the offering materials.
Asked at trial if Canno had done any type of comparables
analysis, Becker replied, "I don't know what Mr. Canno did."
Becker visited the PI plant in Hyannis, toured the facility,
viewed a Sentinel EPE recycler in operation, and saw products
that were produced from recycled plastic. Becker claims that he
was told by PI personnel that the recycler was unique and that it
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