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Although investment counseling was related to his firm's
line of business, Becker did not consider himself in the business
of providing investment advice. Becker did not normally hire
other professionals for consultation or advice. In circumstances
where he believed there was a need for outside advice, he would
so advise the client. Between 30 and 40 of Becker's clients
invested in the Plastics Recycling partnerships.
Becker learned of the Plastics Recycling transactions when a
prospective client presented him with an offering memorandum
concerning the transactions in August or September 1981. Becker
reviewed the offering memorandum and spoke to Miller, one of the
key figures in the transactions and an acquaintance of Becker's.
Miller was a shareholder of F & G Corp. and, as noted, the
corporate counsel to PI. Thereafter, Becker recommended the
investment to the prospective client. Although the prospective
client did not invest in the Plastics Recycling transactions,
Becker became interested in the proposal and organized the SAB
recycling partnerships in order to make similar investments in
Sentinel EPE recyclers conveniently available to appropriate
clients.
In organizing the SAB recycling partnerships, Becker was not
allowed to change the format of the transactions or the purchase,
lease, or licensing prices of the Sentinel EPE recyclers. He was
allowed only to conduct a limited investigation of the proposed
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