- 21 -
explained that he believed that if Alter and other members of
Shea & Gould were investing in a Plastics Recycling transaction,
then he should too.
3. Karl and Marjorie Weber
Petitioners Karl and Marjorie Weber resided in Fort Meyers,
Florida, when their petition was filed. Both of the Webers died
prior to the trial of their case. The executor of their estates,
Alter, testified on their behalf.
Each Weber earned a college degree. Karl became a
successful voice-over performer and a member of the board of
directors of the Screen Actors Guild, and Marjorie managed their
finances. They met Alter in approximately 1969 or 1970 and
retained his firm to prepare their tax returns and provide other
tax services. Feinstein handled their tax matters and met with
the Webers approximately four times a year. Alter represented
the Webers in some real estate transactions, and Feinstein on
occasion reviewed investments that had been suggested to them by
others. Prior to 1981, Alter and the Webers both invested in a
successful nursing home venture. On their joint 1981 Federal
Income tax return, the Webers reported gross income from wages,
interest, dividends, and capital gains in excess of $221,000.
The Webers acquired a 1.547-percent interest in Clearwater
for $12,500 in 1981.9 As a result of their investment in
9 The parties stipulated that the Webers owned a one-quarter
(continued...)
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