Jeffrey I. and Roberta H. Stone - Page 12

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          during the years at issue and they often discussed investment               
          opportunities with each other.  Each reviewed the offering                  
          materials for the Partnership transactions, and Omohundro,                  
          Frabotta, and Tomasetti together visited the PI plant in Hyannis,           
          Massachusetts.  At the PI plant, they saw a Sentinel EPE recycler           
          in operation and discussed the nature of the business with the              
          promoters of the partnerships and PI personnel.                             
               During Tomasetti's tour at PI, there was an inquiry about              
          the cost of the Sentinel EPE recycler but PI representatives                
          declined to discuss that subject because, as Tomasetti understood           
          it, the machine was proprietary in nature and had not been                  
          patented.  (Although PI claimed that its information was a trade            
          secret and that it never obtained patents on its machines, in               
          fact, PI had obtained numerous patents prior to the Partnership             
          transactions and had also applied for a trademark for the                   
          Sentinel EPE recyclers).  PI indicated that there was no other              
          comparable machine on the market and Tomasetti made no                      
          independent inquiries or investigation regarding the uniqueness             
          or value of the recycler.  Tomasetti read the reports of Ulanoff            
          and Burstein, but did not fully understand them and did not                 
          attach much weight to them.  No other members of Tomasetti's                
          accounting firm performed any due diligence or investigation of             

          It is not clear whether Finkle & Co. prepared the report for                
          Northeast or Roberts' consulting firm.                                      

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