- 17 - technical aspects of the energy-device transaction, such reliance, considering petitioner's background and experience, did not rise to the level of the duty of care standard that would be reasonable in these circumstances. Petitioner has not shown that Mr. Pecha, other than his background in chemistry, had any specialized knowledge or technical qualifications necessary to assess the effectiveness or economics of the energy device in question. There is no indication that Mr. Pecha ever personally observed the device or that he had conducted independent research concerning it. Considering petitioner's level of education and his limited understanding of the mechanics of the transaction, his reliance on Mr. Pecha was not reasonable. Petitioner also claims that the accountant, Mr. Shriver, assured him that the energy-device transaction was a proper investment. In this regard, petitioner also contends that Mr. Shriver was an independent certified public accountant, so as not to be connected with the promoters or to have a financial interest in the sale of the investment. Petitioner's claim of Mr. Shriver's independence is not supported in the record. To the contrary, Professional's (a self-proclaimed promoter or seller of tax shelters) brochure contains the following statement about Mr. Shriver: We arrange for a qualified tax specialist to be available for consultation and to provide accounting services to whatever extent you may need. By appointment, an initial hour of time with David Shriver, C.P.A.,is provided with your financial plan.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011