Stuart A. and Harriet J. Gollin, et al. - Page 9

                                        - 9 -- 9 -                                        
          were recourse but that the recourse portion of the notes was only           
          due after the nonrecourse portion, 90 percent, was paid in full.            
               All of the monthly payments required among the entities in             
          the above transactions offset each other.  These transactions               
          were done simultaneously.  Although the recyclers were sold and             
          leased for the above amounts under the structure of simultaneous            
          transactions, the fair market value of a Sentinel EPE recycler in           
          1981 and 1982 was not in excess of $50,000.                                 
               PI allegedly sublicensed the recyclers to entities that                
          would use them to recycle plastic scrap.  The sublicense                    
          agreements provided that the end-users would transfer to PI 100             
          percent of the recycled scrap in exchange for a payment from FMEC           
          Corp. based on the quality and amount of recycled scrap.                    
               Like Clearwater, each of the Partnerships leased Sentinel              
          EPE recyclers from F & G Corp. and licensed those recyclers to              
          FMEC Corp.  The transactions of the Partnerships differ from the            
          underlying transactions in the Provizer case in the following               
          respects:  (1) The entity that leased the machines from F & G               
          Corp. and licensed them to FMEC Corp., and (2) the number of                
          machines sold, leased, licensed, and sublicensed.  SAB Recovery             
          and SAB Recycling each leased and licensed seven Sentinel EPE               
          recyclers.  SAB Reclamation was to lease and license eight                  
          recyclers, according to its offering memorandum, but the SAB                
          Reclamation partnership tax return for 1982 indicates that it               
          leased and licensed only four recyclers.                                    




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011