Jeffrey I. and Roberta H. Stone - Page 13

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          the Partnership transactions.  An attorney representing one of              
          Tomasetti's client's supposedly did speak with some acquaintances           
          at PI.                                                                      
               Tomasetti did not attempt to market the Partnership                    
          transactions himself.  He thought they were very aggressive.  He            
          fully expected an IRS challenge "because of the obvious tax                 
          benefits in excess of the investment that were being achieved in            
          the first year".  Tomasetti understood that the tax benefits                
          stemmed from the purported value of the Sentinel EPE recyclers,             
          and he did not believe it was prudent to invest in the                      
          partnerships while relying upon the value of the recyclers as               
          represented in the offering materials.  Tomasetti believed that             
          before investing, an interested party should have a strong                  
          inclination that the Partnership transactions were economically             
          viable.  Tomasetti thought that a substantial value for the                 
          recyclers might be established in the future if the machines                
          performed well.                                                             
               Frabotta understood that Omohundro questioned a few Boston             
          area law firms about PI and was told nothing that gave him                  
          concern.  Frabotta did not pursue an independent investigation of           
          the value of the Sentinel EPE recycler, nor did he ask anyone               
          else to investigate it.  Frabotta discussed the value of the                
          recycler with Tomasetti and Omohundro only in passing.  Frabotta            
          did not verify the price of resin; he did not inquire whether               

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