John Sann and Marianne Sann, et al. - Page 15

                                       - 15 -                                         
          employed by the U.S. Treasury Department in the Office of Tax               
          Legislative Counsel, and then as a full-time member of the                  
          faculty of the NYU Law School and editor in chief of the Tax Law            
          Review.  Over the years, Maxfield and Taggart exchanged                     
          information concerning investment opportunities that they                   
          considered interesting.  Taggart owned a 6.66-percent interest in           
          a second-tier Plastics Recycling partnership.  Maxfield did not             
          consider Taggart to be an expert in engineering or plastics                 
               Maxfield estimates that in 1981 he spent 50 to 75 or more              
          hours investigating the Plastics Recycling transactions.  His               
          investigation involved reading the offering memorandum and                  
          questioning Roberts and Taggart.  Scheduling conflicts prevented            
          him from visiting PI until 1982.  However, another attorney at              
          Sann & Howe, Roger Wible (Wible), visited PI in 1981 and reported           
          his observations to Maxfield.  Maxfield was told by Roberts and             
          persons at PI that competitive machines were not as efficient as            
          the Sentinel EPE recycler and that the owners of the other                  
          machines had trouble placing them with end-users.                           
               Maxfield was concerned with various aspects of the Plastics            
          Recycling transactions, such as how Roberts, as a promoter, would           
          profit from the transactions.  In Maxfield's experience,                    
          oftentimes promoters of tax advantaged investments were highly              
          compensated regardless of the success of the investment.                    
          Maxfield understood from Roberts that the source of Roberts'                

Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011