Robert D. and Patricia K. Kaliban, et al. - Page 16

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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                                 
                  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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