Robert Gottsegen - Page 9

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               1.   Petitioner's Purchase of the Sentinel EPE Recycler                
               Shortly after the organizational meeting, petitioner viewed            
          a prototype Sentinel EPE recycler.  At the time, none of the                
          plastics-related companies in which petitioner was actively                 
          involved generated expanded polyethylene scrap.                             
               Bambara told petitioner that Sentinel EPE recyclers were               
          unique because no other machine could recycle expanded                      
          polyethylene.  Petitioner allegedly contacted manufacturers of              
          plastics-processing equipment and inquired whether such                     
          manufacturers possessed equipment that could successfully recycle           
          expanded polyethylene.  According to petitioner, the                        
          manufacturers "had all sorts of reservations and no * * * firm              
          assertions."  Also, petitioner allegedly "looked around the                 
          industry [and] didn't see any machine" successfully recycling               
          expanded polyethylene.                                                      
               At Miller's direction, petitioner retained Stanley Ulanoff             
          (Ulanoff) and Samuel Burstein (Burstein) to issue marketing and             
          technical opinions, respectively, regarding the Sentinel EPE                
          recycler.  Petitioner did not think that he needed Ulanoff's and            
          Burstein's opinions in order to make an informed decision                   
          regarding the Sentinel EPE recycler.  In this regard, petitioner            
          testified:                                                                  
               I hired * * * [Ulanoff and Burstein] because I was told                
               to hire them.  I really didn't need them to tell me                    
               what the machine could do and the what -- the profit I                 
               could make. * * *  Elliot Miller told me this is the                   
               way you do it.  I did it.                                              




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