Bruce and Lois Zenkel, et al. - Page 49

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          Blount also gave a copy of the offering memorandum to his tax               
          return preparer, Gowin.  Mr. Zenkel spoke to Becker; both he and            
          Mrs. Zenkel spoke to Steele.                                                
               Blount learned about the Plastics Recycling transactions               
          from Sprague.  Sprague suggested the Plastics Recycling                     
          transactions to Blount as an investment option after Blount                 
          mentioned that he was going to receive additional compensation              
          income.  Sprague recalled introducing the investment to Blount in           
          the following manner:  "[I]f you're looking for investments, you            
          might contact Stephen Leicht or Stuart Becker, because I * * *              
          understand that they, as a service to clients, do screen numerous           
          such investments, not to guarantee them but to just generally               
          determine if they believe they would be suitable for referring *            
          * * to their clients to take a look at."  (Emphasis added.)                 
          Sprague then went on to describe the Plastics Recycling                     
          information he had received from Leicht and Becker "in a general            
          way."                                                                       
               Blount never spoke to Becker or Leicht.  He simply reviewed            
          the offering memorandum, spoke with Sprague, and furnished the              
          offering memorandum to his tax return preparer.  Sprague is not             
          an expert in plastics materials or plastics recycling and could             
          not evaluate the technical or engineering details of the Phoenix            
          transaction.  He testified that in 1981 he "was a complete                  
          stranger to this notion of reprocessing plastics and recycling."            






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