Philippe and Nadine Grelsamer - Page 19

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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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