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The offering memoranda list significant business and tax
risk factors associated with investments in the Partnerships.
Specifically, the offering memoranda state: (1) There is a
substantial likelihood of audit by the Internal Revenue Service
(IRS) and the purchase price paid by F & G Corp. to ECI Corp.
probably will be challenged as being in excess of fair market
value; (2) the Partnerships have no prior operating history; (3)
the general partner has no prior experience in marketing
recycling or similar equipment; (4) the limited partners have no
control over the conduct of the Partnerships' business; (5) there
is no established market for the Sentinel EPE recyclers; (6)
there are no assurances that market prices for virgin resin will
remain at their current costs per pound or that the recycled
pellets will be as marketable as virgin pellets; and (7) certain
potential conflicts of interest exist.
C. Richard Roberts
Roberts is a businessman and the general partner in a number
of limited partnerships that leased and licensed Sentinel EPE
recyclers, including Phoenix and Scarborough. He also is a
9-percent shareholder in F & G Corp., the corporation that leased
the recyclers to Phoenix and Scarborough. From 1982 through
1985, Roberts maintained the following office address with
Raymond Grant (Grant), the sole owner and president of ECI Corp.:
Grant/Roberts
Investment Banking
Tax Sheltered Investments
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