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Becker retained a law firm, Rabin & Silverman, to assist him in
organizing the SAB Recycling Partnerships. See Spears v.
Commissioner, T.C. Memo. 1996-341, to the effect that in
employing the law firm, Becker sought particularly to protect
himself against liability.
After the 1981 SAB Recycling Partnerships closed, Becker had
an accountant sent to PI to confirm, by serial number, that as of
December 31, 1981, the equipment that was leased to the 1981 SAB
Recycling Partnerships was indeed available for use. Becker
arranged for this verification, independent of PI, because he
understood that the investment tax and business energy credits
would not be available if the qualifying property was not
available for use.
Leicht also familiarized himself with the Plastics Recycling
transactions. Leicht has a B.A. degree in finance and accounting
from Penn State University, a J.D. from SUNY Buffalo, and an
LL.M. in taxation from New York University School of Law. Leicht
ran a mathematical check on the numbers contained in the offering
materials for Becker, but he did not test the underlying
assumptions upon which they were based. He also visited PI in
Hyannis and met with Miller and other insiders to the
transactions. Leicht never communicated an opinion as to the
value of the recyclers other than what was presented in the
offering memoranda. He has no education or expertise in plastics
materials or plastics recycling.
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