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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
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