Stuart A. and Harriet J. Gollin, et al. - Page 28

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          Fredericks that he would be receiving commissions as general                
          partner,6 which also was disclosed in the SAB Recycling offering            
          memorandum.  Fredericks discussed the impact the investment would           
          have on his estimated tax and matters of that nature with Steele;           
          the two did not discuss the economics of the investment.  The               
          Fredericks do not have any education or experience in engineering           
          or plastics recycling.  Becker and Steele never said that they              
          were expert in engineering or plastics recycling, and Fredericks            
          never thought they had expertise on these subjects.  Fredericks             
          did not ask Becker on whom he relied in conducting his                      
          investigation or whether he consulted any independent experts               
          unrelated to SAB Recycling, the promoters, or F & G Corp.  He did           
          not ask Becker if he had any conflict of interest.  Fredericks              
          did not ask Becker how many machines would be placed by PI or if            
          there were any similar recyclers already on the market.  The                
          Fredericks did not see a Sentinel EPE or EPS Recycler prior to              
          their investment in SAB Recycling.  They did not know whether the           
          machines were unique at the time of their investment.  The                  
          Fredericks never made a profit in any year from their                       
          participation in SAB Recycling.                                             


          6    At trial, Becker was asked, "Did you advise Mr. Fredericks             
          that you would be receiving commissions as a general partner for            
          this investment?"  Becker answered, "Yes, I did."  However,                 
          Becker did refund 7.5 percent of Fredericks' investment, which              
          represented the offeree representative fee.                                 





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