- 11 - The offering memoranda of SAB Reclamation and SAB Recycling provide that SAB Management will receive general partner fees in the respective amounts of $110,000 and $97,375 from those partnerships. SAB Management received fees of approximately $500,000 as the general partner of the SAB recycling partnerships. In addition, Becker Co. prepared the partnership returns and Forms K-1 for all of the SAB recycling partnerships and received fees for those services. The offering memoranda of SAB Reclamation and SAB Recycling state that sales commissions and offeree representative fees will be paid in amounts equal to 7.5 percent of each investment guided to the partnerships and that SAB Management, as the general partner of those partnerships, may retain as additional compensation all amounts not so paid. However, neither Becker nor SAB Management retained or received any sales commissions or offeree representative fees. Instead, after the closing of each SAB recycling partnership, Becker rebated to each investor whose investment was not subject to a sales commission or offeree representative fee an amount equal to 7.5 percent of such investor's original investment. The offering memoranda list significant business and tax risk factors associated with investments in the Partnerships. Specifically, the offering memoranda state: (1) There is a substantial likelihood of audit by the Internal Revenue ServicePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011