John Sann and Marianne Sann, et al. - Page 17

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               "One of the fundamental questions" Maxfield had about the              
          Plastics Recycling transactions was whether the Sentinel EPE                
          recycler was overpriced.  Notwithstanding his concern, Maxfield             
          did not consult an independent expert about the machines.                   
          Instead, he relied upon the reports of F & G Corp.'s evaluators,            
          Burstein and Ulanoff, as confirmation of the machine's purported            
          value.  Maxfield did not know that Burstein and Ulanoff were                
          investors in the Plastics Recycling transactions.  He never spoke           
          to them and did not ask Roberts or Taggart whether Burstein and             
          Ulanoff were investors.  At a meeting held at Sann & Howe to                
          discuss the investment, Maxfield mentioned that hiring an                   
          independent expert or appraiser was an option for confirming the            
          value of the machine.  As Maxfield recalled:                                
               I mentioned that specifically, it was [a] possibility,                 
               and they--somebody said, well, who?  And I said I                      
               frankly don't know, and I also don't know what the                     
               charge would be, I have no idea.                                       
                         *         *         *                                        
               I don't believe any of the people at Sann & Howe                       
               actually hired another expert, but I said that's a                     
          Maxfield also told the members of Sann & Howe that he considered            
          the relationship between the value of the recycled pellets and              
          the price of oil to be a negative aspect of the investment.  As             
          he acknowledged, "I had no training to decide which way the price           
          of oil was going to go and therefore--so on."                               
               Maxfield never represented to anyone at Sann & Howe that he            
          was an expert in plastics recycling or engineering.  In addition,           

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