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The offering memoranda list significant business and tax
risk factors associated with investments in the Partnerships.
Specifically, the offering memoranda state: (1) There is a
substantial likelihood of audit by the Internal Revenue Service
(IRS) and the purchase price paid by F & G Corp. to ECI Corp.
probably will be challenged as being in excess of fair market
value; (2) the Partnerships have no prior operating history; (3)
the general partner has no prior experience in marketing
recycling or similar equipment; (4) the limited partners have no
control over the conduct of the Partnerships' business; (5) there
is no established market for the Sentinel EPE recyclers; (6)
there are no assurances that market prices for virgin resin will
remain at its current costs per pound or that the recycled
pellets will be as marketable as virgin pellets; and (7) certain
potential conflicts of interest exist.
C. Stuart Becker
Becker does not have an engineering background, and he is
not an expert in plastics materials or plastics recycling. He
received a B.S. degree in accounting from New York University in
1964 and an M.B.A. in taxation from New York University Graduate
School of Business Administration in 1973. He passed the
certified public accountancy test in 1967 and was the winner of
the gold medal, awarded for achieving the highest score on the
examination for that year. Since early 1966, Becker has
practiced as an accountant exclusively in the tax area. From
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