Mark Friedman - Page 39

                                       - 39 -                                         
          investigate the plastics industry or the Sentinel EPE recycler.             
          Moreover, the accountant did not testify at the trial of                    
          Friedman's case, and the substance of his advice, if any, is not            
          clear from Friedman's testimony.  See Howard v. Commissioner, 931           
          F.2d 578, 582 (9th Cir. 1991), affg. T.C. Memo. 1988-531; Patin             
          v. Commissioner, 88 T.C. 1086, 1131 (1987), affd. without                   
          published opinion 865 F.2d 1264 (5th Cir. 1989), affd. without              
          published opinion sub nom. Hatheway v. Commissioner, 856 F.2d 186           
          (4th Cir. 1988), affd. sub nom. Skeen v. Commissioner, 864 F.2d             
          93 (9th Cir. 1989), affd. sub nom. Gomberg v. Commissioner, 868             
          F.2d 865 (6th Cir. 1989), rejecting claims to reliance on an                
          accountant under analogous circumstances.                                   
               Friedman recalled that approximately eight other partners at           
          Shea & Gould either invested in, or to some extent reviewed, the            
          Plastics Recycling transactions.  Of these, three were litigators           
          (Carroll, Ferraro, and Leon Gold), one specialized in bankruptcy            
          law (Hirshfield), two specialized in corporate and/or Federal               
          securities law (Arnold Jacobs and Thomas Constance), and one                
          specialized in taxation (Parker).  Friedman did not indicate the            
          area of practice of the other partner he mentioned, Trost.  Asked           
          if any of these partners were experts in the plastics industry,             
          Friedman replied:  "I don't believe any of them were, although I            
          believe that * * * Dan Carroll had an engineering background and            







Page:  Previous  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  Next

Last modified: May 25, 2011