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did not know that the Sentinel EPE recycler did not recycle
plastic by itself, but had to be used in connection with other
machines. Alter did not review any plastics industry trade
journals for competing recyclers or otherwise inquire as to
whether there were any comparable machines already on the market.
Alter told certain of his clients that he was investing in a
Plastics Recycling transaction and that the investment was open
to them as well. He informed them that he and other members of
Shea & Gould thought that the investment seemed sound. Feinstein
and Alter met with these clients and explained the investment.
Alter did not advise his clients to read an offering memorandum,
but one was available for them to read. He did not suggest that
they consult with any plastics experts. A number of Alter's
clients, as well as Alter, invested in a Plastics Recycling
transaction in 1981. Alter's knowledge of PI was limited to the
information in the offering materials, what he learned at
meetings with his partners at Shea & Gould, and what Feinstein
told him. The warnings and caveats in the offering memoranda did
not concern him. Alter knew that Feinstein did not have any
expertise in plastics materials or plastics recycling.
D. Petitioners and Their Introduction to the Partnership
Transactions
Petitioners in these cases do not have any education or work
experience in plastics recycling or plastics materials. They did
not read the offering materials distributed by the Partnerships
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