- 54 -
careful to preface his recollections by cautioning: "Remember *
* * I'm not a scientist" and "recognizing I'm not an engineer".
Maxfield testified that he spent approximately 50 to 75 or
more hours investigating the Plastics Recycling transactions.
His investigation consisted of reading the offering materials and
speaking with Roberts and Taggart in 1981, and visiting PI's
plant in Hyannis in 1982. He did not consider Taggart to be an
expert in plastics recycling or plastics engineering. Two of
Maxfield's principal concerns with respect to the Partnership
transactions were (1) "what was in it for the promoter", Roberts,
and (2) whether the Partnerships were "paying a fair price" for
the machines.
To learn "what was in it for the promoter", Maxfield spoke
to the promoter, Roberts. Maxfield was concerned about Roberts'
compensation and commitment to the Partnerships because in other
tax shelters he had seen, the promoter sometimes made a
substantial profit regardless of the success of the partnership.
Roberts explained to Maxfield that the source of his profits, as
the promoter, would be from the operation of the partnerships.
Maxfield concluded from his investigation of this issue that "the
general partner had a real economic incentive to make these
things work if he was going to ever sell any more of--of these
things." In contrast, Sann understood that "the real operation,
the real work would be done in * * * Hyannis by PI", not Roberts.
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