Leon M. and Mary K. Jaroff - Page 19

                                       - 19 -                                         
               Petitioner learned of the Plastics Recycling transactions              
          from Noel Tucker of Becker Co. in 1981.  Petitioner had been                
          referred to Becker Co. in 1980 by Richard Snyder (Snyder), who at           
          the time was the chief executive officer of Simon & Schuster,               
          Inc.  Petitioner and Snyder frequented the same fitness center              
          and often talked while exercising.  While "bemoaning * * * [his]            
          financial status" on one such occasion, petitioner told Snyder              
          that he "would love to increase" his income and that his "taxes             
          [were] all screwed up".  Snyder was a client of Becker Co. and he           
          recommended the firm to petitioner.  Petitioner contacted Becker,           
          who "almost immediately turned * * * [him] over to Noel Tucker."            
          Tucker serviced petitioner's account for approximately 1 year,              
          and then it was turned over to a new member of the firm, Harry              
          Shuffrin.                                                                   
               Tucker suggested the Plastics Recycling transactions to                
          petitioner in 1981 and provided him with a copy of the SAB                  
          Recovery offering memorandum.  Petitioner claims that he and his            
          wife Mary devoted several evenings to the offering memorandum and           
          "read it very carefully".  The "possibility of being audited" and           
          "a statement about there being some risk" concerned petitioner,             
          and he raised these concerns with Tucker.  According to                     
          petitioner, Tucker indicated that such warnings or caveats are              
          routine and that the venture was sound.  Petitioner recalled                
          believing that Tucker had not visited PI but that Becker had                
          visited PI several times, "often with experts in tow," and that             




Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011