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or plastics materials. Despite his lack of knowledge regarding
the product, the target market, and the technical aspects at the
heart of the Plastics Recycling transactions, Becker did not hire
an expert in plastics materials or plastics recycling, or
recommend that his clients do so. He retained the law firm Rabin
& Silverman to assist him with the legal aspects of organizing
the SAB recycling partnerships. In addition, one of the
partners, DiGiovanna, advised Becker with respect to his
disclosure obligations under the applicable securities laws.
Becker testified that DiGiovanna told him that he had
fulfilled the fiduciary responsibilities associated with his
position and function as a general partner. A specialist in
securities and corporate law, DiGiovanna testified that "Becker
wanted to be covered from the securities law standpoint in terms
of full disclosure." Digiovanna explained that the extent of his
advice encompassed compliance with securities laws. At trial
DiGiovanna could not recall specific discussions he had with
Becker or whether Becker or anyone else at Becker Co. visited PI.
DiGiovanna was not responsible for, and did not get, independent
verification of any of the representations in the offering
materials. He never visited PI or saw a Sentinel EPE recycler.
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