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Burstein also was a client and business associate of Elliot I.
Miller (Miller), the corporate counsel to PI.
The offering memoranda for Phoenix, Scarborough, SAB
Reclamation, and SAB Recycling state that the general partner
will receive fees from those partnerships in the respective
amounts of $40,000, $73,000, $110,000 and $97,375. SAB
Management received fees of approximately $500,000 as the general
partner of the SAB Recycling Partnerships. In addition, Becker
Co. prepared the partnership returns and Forms K-1 for all of the
SAB Recycling Partnerships and received fees for those services.
The offering memoranda also allocate a percentage of the
proceeds from each offering--7.5 percent in the case of SAB
Reclamation and SAB Recycling and 10 percent in the case of
Phoenix and Scarborough--to the payment of sales commissions and
offeree representative fees. In addition, the offering memoranda
provide that the respective general partners "may retain as
additional compensation all amounts not paid as sales commissions
or offeree representative fees." However, neither SAB Management
nor Becker retained or received any sales commissions or offeree
representative fees. Instead, after the closing of each SAB
Recycling Partnership, Becker rebated to each investor whose
investment was not subject to a sales commission or offeree
representative fee an amount equal to 7.5 percent of such
investor's original investment.
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Last modified: May 25, 2011