- 23 - the Davids' claimed operating loss and credits related to SAB Recycling. David learned of the Plastics Recycling transactions and SAB Recycling from Becker in late 1981 or 1982. He first met Becker sometime in 1963 when David was general counsel for Perfect Photo Co. (PPC) and Becker did tax work for PPC on behalf of Touche, Ross & Co. From 1968 until 1984, Becker provided David with personal tax advice and performed tax accounting work for companies that David controlled. David spent 4 to 6 hours reviewing the offering memorandum for SAB Recycling and thereafter he discussed the investment with Becker. Becker described his investigation of the Plastics Recycling transaction to David in detail. David has no education or experience in plastics materials or plastics recycling, and he knew that Becker was not an expert in the plastics industry. He did not discuss the investment with anyone who was knowledgeable or expert in the plastics industry. He never viewed a recycler or independently investigated PI. David did not investigate whether there was a market for recycled pellets or independently verify any of the representations in the offering memorandum. He simply reviewed the SAB Recycling offering memorandum and discussed the proposed investment with Becker.Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: May 25, 2011