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Leicht gave Sprague a copy of the Phoenix offering
memorandum, and he reviewed it over a couple of days. Sprague
was a complete stranger to the idea of plastics recycling and was
incapable of evaluating the technical or engineering details
associated with the investment. Thereafter, he discussed the
investment with Leicht, and Leicht described his visits to PI.
Becker stated that he too discussed the investment with Sprague
and disclosed the extent of his investigation; Sprague, however,
could not recall their conversation. Sprague did not otherwise
investigate the Plastics Recycling transactions; he relied
exclusively on the offering materials and Becker Co.
During this time, Sprague saw Blount on business occasions
and also lunched with him about once a month. At one such lunch,
the two were discussing investment opportunities when Blount
mentioned that he was going to receive additional compensation
income. Sprague suggested the Plastics Recycling transactions as
a potential investment and in general terms recounted the
information he had received from Leicht. He explained that as a
service to clients, Becker Co. screens such investments--not to
guarantee them--but to determine generally if the proposed
investments are something their clients should look into.
Sprague suggested that Blount contact Leicht or Becker, but
Blount never spoke to either of them. Blount simply reviewed the
offering memorandum for a few hours and gave it to his tax
preparer, Marilyn Gowin (Gowin). Gowin reviewed all supporting
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