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each other since 1964 when Becker joined Touche, Ross, and they
stayed in touch after Becker left that firm. Becker and Gollin
first discussed the Plastics Recycling transactions at a social
occasion. Gollin asked Becker whether he had any interesting
investments, and Becker mentioned the SAB Recycling Partnerships.
Becker provided Gollin with a copy of the SAB Reclamation
offering memorandum and Gollin reviewed it. Gollin asked Becker
whether there really was a machine and whether it passed the
"kick-the-tire test" (that is, according to Gollin, whether
anyone looked at it, touched it, and felt it). Becker described
his visit to PI and other particulars of his investigation, such
as talking to Canno. In the end, Gollin relied on Becker's
judgment. According to Becker, Gollin said, "Tell me what you
think I should do." Gollin was very well acquainted with
Becker's background, and he knew that Becker did not have any
experience in recycling, plastics technology, or engineering.
Neither of the Gollins has any education or experience in
plastics materials or plastics recycling. They did not see a
Sentinel EPE recycler prior to investing in SAB Reclamation.
Gollin never asked to see the books and records of SAB
Reclamation. At the time he made his investment, Gollin knew
that there were no end-users lined up to use the machines.
Gollin stipulated that he does not know whether SAB Reclamation
had any assets. Gollin did not consult an independent expert in
plastics materials or plastics recycling. He relied exclusively
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