- 38 -
supra; Goldman v. Commissioner, supra; Freytag v. Commissioner,
supra; Beck v. Commissioner, 85 T.C. 557 (1985); Lax v.
Commissioner, T.C. Memo. 1994-329, affd. without published
opinion 72 F.3d 123 (3d Cir. 1995); Sacks v. Commissioner, supra;
Steerman v. Commissioner, T.C. Memo. 1993-447; Rogers v.
Commissioner, T.C. Memo. 1990-619; see also the Plastics
Recycling cases cited supra note 8.
In the instant consolidated cases, petitioner maintains that
he reasonably relied upon Tucker as a qualified adviser on this
matter. Although petitioner testified that he did not discuss
the Plastics Recycling transactions with Becker, and he does not
argue that he relied on Becker, the substance of petitioner's
testimony is that he relied upon Tucker's representations about
what Becker had done to investigate the Plastics Recycling
transactions. Tucker did not testify at trial; Becker did.
b. Becker and Tucker
Becker had no education, special qualifications, or
professional skills in plastics engineering, plastics recycling,
or plastics materials. In evaluating the Plastics Recycling
transactions and organizing the SAB Recycling Partnerships,
Becker supposedly relied upon: (1) The offering materials; (2) a
tour of the PI facility in Hyannis; (3) discussions with insiders
to the transactions; (4) Canno; and (5) his investigation of the
reputation and background of PI and persons involved in the
transactions.
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