Mark Friedman - Page 19

                                       - 19 -                                         
          else, whether any plastics recycling machines comparable to the             
          Sentinel machines already were available on the market.                     
               Feinstein has no education or experience in plastics                   
          materials or plastics recycling, and he was not under the                   
          impression that Hirshfield, Trost, or Ferraro had any education             
          or experience in the plastics industry.  He did not visit PI and            
          there is no indication in the record in docket No. 6302-89 that             
          Feinstein ever saw a Sentinel EPE recycler.  Feinstein did not              
          review any marketing plans or research the market for plastics              
          recyclers or recycled ground resin pellets.  He was unaware that            
          the Sentinel EPE recycler was incapable of recycling expanded               
          polyethylene by itself, and had to be used in connection with               
          grinders, extruders, and pelletizers.  Feinstein did not know how           
          many other partnerships would be leasing Sentinel recyclers.                
               Feinstein told Alter about Lauren and his comments about PI.           
          Alter knew that Lauren and Feinstein had not visited PI, or                 
          investigated whether competitive machines existed, or made a                
          judgment as to the value of a Sentinel EPE recycler.  He also               
          knew that neither Feinstein nor Lauren personally invested in a             
          Plastics Recycling transaction.  Alter accepted the fair market             
          value of the Sentinel EPE recycler as set out in the offering               
          memorandum.  He had "no competence to" confirm the value of the             
          machines or "to do any comparison", and he did not hire anyone to           







Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011