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a mutual friend and attorney, Paul Green (Green), to help
structure an appropriate investment vehicle. Grelsamer had known
Green on a social basis since the late 1940's or early 1950's,
but had never before conducted business with him or employed his
services. Grelsamer, Morgan, and Green took the necessary steps
to ensure a minimum return on each oil drilling investment, even
if the price of oil went down.
Grelsamer learned of the Plastics Recycling transactions
from Green sometime in late 1981 or early 1982. Green introduced
him to Becker, who Grelsamer understood was an accountant and not
in the plastics business. Grelsamer's accountant at the time
confirmed that Becker had a good reputation as an accountant.
Becker gave Grelsamer a copy of the offering memorandum, which he
spent at least a few hours reading during several sittings.
Grelsamer thought the numbers "looked terribly good, maybe too
good." He presented his general, overall questions to Green and
his more specific questions to Becker.
Becker told Grelsamer about his visit to PI. Grelsamer
believed that Becker went to Hyannis to see that the recycler
existed and to get an impression of PI. He was under no
illusions as to the limits of Becker's ability to assess the
recyclers. According to Grelsamer, Becker "certainly was not an
engineer and * * * [his visit to PI] could not have meant too
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