Robert Gottsegen - Page 37

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          purchasing his Sentinel EPS recyclers.  Further, we fail to                 
          understand how petitioner could have carefully considered a legal           
          opinion dated December 1, 1982, when all of the operative                   
          transactions regarding his purchase of the Sentinel EPS recyclers           
          occurred on that same date.                                                 
               In any event, even if petitioner did rely on either Ulanoff,           
          Burstein, WMDI, or Boylan & Evans in purchasing his recyclers,              
          that reliance would not have been reasonable.  Although                     
          petitioner is an educated individual and accomplished business              
          executive with extensive knowledge of, and experience in, the               
          plastics industry, none of petitioner's supposed advisers had any           
          education or work experience in plastics materials or plastics              
          recycling.  Neither petitioner nor his advisers consulted any               
          independent experts to help them analyze or assess the recyclers.           
          Thus, we think that any reliance petitioner might have placed on            
          any of his supposed advisers was not reasonable.                            
               Petitioner suggests that his personal knowledge of, and                
          expertise in, the plastics industry made it reasonable for him to           
          research, investigate, and purchase Sentinel recyclers without              
          seeking independent expert advice.  Indeed, petitioner was more             
          capable of assessing the economic value of the recyclers than his           
          supposed advisers because of his knowledge about the plastics               
          industry and, in particular, his experience in pricing plastics             
          processing machinery.  Experience and knowledge alone, however,             
          do not make petitioner's actions reasonable.  For petitioner's              




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