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d. Conclusion as to Petitioners' Alleged Reliance
on Becker and Miller
Petitioners in these cases are both very well educated and
highly accomplished, sophisticated businessmen. Within 15 years
after starting with Simon & Schuster, Snyder was in charge of all
aspects of the large publishing company as its chairman and chief
executive officer. He held that position for approximately 20
years. Snyder was involved in and responsible for approximately
75 acquisitions by Simon & Schuster involving sums up to $800
million. Busch was the president and publisher of Pocket Books,
the paperback division of Simon & Schuster. Certainly
petitioners possessed the intellect, skills, experience, and
resources to have the viability of the Plastics Recycling
transactions thoroughly investigated.
Petitioners claim that they relied upon Becker for the bona
fides and viability of the Partnership transactions. Yet
Becker's expertise was in taxation, not plastics materials or
plastics recycling, and his investigation and analysis of the
Plastics Recycling transactions reflected this circumstance.
Snyder knew Becker was not expert in plastics materials or
plastics recycling, and there is no indication in the records
that Busch believed otherwise. Moreover, Becker testified that
he was very careful not to mislead any of his clients regarding
the particulars of his investigation. As he put it: "I don't
recall saying to a client I did due diligence * * * [Rather,] I
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