Robert D. and Patricia K. Kaliban, et al. - Page 36

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            were interested they could participate as well."  (Emphasis                               
            added.)  Alter reiterated this point on cross-examination in the                          
            following exchange:                                                                       
                  Q  Did you suggest that your clients consult with                                   
                  others who were plastics experts?                                                   
                  A  No.  I told them that I was investing and that it                                
                  seemed like a sound investment to me, and if they were                              
                  interested they could participate as well.                                          
                  Q  Did you recommend the investment?                                                
                  A  To the extent that I just stated.                                                
            Feinstein recalled Alter's presentation of the transactions as                            
            follows:  "It is my recollection and based on how I was and he                            
            was with clients, that it was a possible investment.  He thought                          
            it would work for them and would work as an investment with no--                          
            no pressure at all.  * * *  Most certainly not pressure."  With                           
            respect to what Feinstein himself advised petitioners, Feinstein                          
            could not recall if he was asked for a recommendation, and could                          
            only venture that "I probably would have said that it's--it's a                           
            type of situation".13                                                                     
                  Petitioners maintain that they reasonably inferred that                             
            Alter's personal decision to invest was a tacit recommendation of                         
            the Plastics Recycling transactions, particularly given his                               
            history of rejecting tax shelters that had been suggested to them                         

            13    In answers to interrogatories, incorporated into a                                  
            stipulation, petitioner Zimmer indicated that in his view Alter                           
            and Feinstein had recommended the Plastics Recycling investment                           
            to him.  The testimony of Alter and Feinstein clarifies this                              
            limited and qualified stipulation.                                                        

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