- 50 -- 50 -
prognosis for royalty distributions; and that he did not monitor
his 1981 investment in SAB Recovery. Apparently based upon an
implicit understanding, Fishbach expected Hertan to do those
things. Yet it is not clear from the record in docket No. 19612-
90 how thoroughly Hertan reviewed the offering memoranda and
investigated the respective Partnership transactions.
Notwithstanding his purported ignorance of the performance of his
1981 investment in SAB Recovery, and the tax benefits associated
therewith, Fishbach invested in two more SAB Recycling
Partnerships in 1982.
At the time Fishbach invested in the respective SAB
Recycling Partnerships, he had been practicing law for nearly 20
years and was a named partner in a law firm with offices in
Manhattan and Long Island. Prior to 1981 he had invested in a
number of ventures through the firm, including the financing and
development of properties, construction of buildings, shopping
centers throughout the country, and the construction of a
television station. With respect to the Partnership
transactions, the essence of Fishbach's testimony is that he left
everything to Hertan, including monitoring the investments.
Fishbach did not pursue with Hertan any of the particulars of the
Plastics Recycling transactions or Hertan's purported
investigation of them. In light of his education and
professional and investment experience, we consider Fishbach's
Page: Previous 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 NextLast modified: May 25, 2011