Leon M. and Mary K. Jaroff - Page 41

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          records."                                                                   
               Becker confirmed at trial that he relied on the offering               
          materials and discussions with PI personnel to establish the                
          value and purported uniqueness of the recyclers.  Becker                    
          testified that he relied upon the reports of Ulanoff and Burstein           
          contained in the offering materials, despite the fact that:  (1)            
          Ulanoff's report did not contain any hard data to                           
          support his opinion; (2) Ulanoff was not an economics or plastics           
          expert; (3) Becker did not know whether Burstein was an engineer;           
          and (4) Burstein was a client of Miller's and was not an                    
          independent expert.  In addition, Ulanoff and Burstein each owned           
          an interest in more than one partnership that owned Sentinel                
          recyclers as part of the Plastics Recycling Program.                        
               Becker explained at trial that in the course of his practice           
          when evaluating prospective investments for clients, he focuses             
          on the economics of the transaction and investigates whether                
          there is a need or market for the product or service.  With                 
          respect to the Partnership transactions, the records indicate               
          that Becker overlooked several red flags regarding the economic             
          viability and market for the Sentinel EPE recyclers.  The                   
          offering memoranda for the Partnership transactions warned that             
          there was no established market for the Sentinel EPE recyclers.             
          Becker never saw any marketing plans for selling the pellets or             
          leasing the recyclers.  He accepted representations by PI                   
          personnel that they would be marketing the recyclers to clients             




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