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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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