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Recycling Associates, Empire Associates, and Jefferson Recycling
Associates are partnerships that leased Sentinel recyclers.
Burstein also was a client and business associate of Elliot I.
Miller (Miller), the corporate counsel to PI.
The Plymouth offering memorandum states that the general
partner will receive fees from Plymouth in the amount of $37,500.
According to the offering memorandum, 10 percent of the proceeds
from the offering--$97,500--was allocated to the payment of sales
commissions and offeree representative fees. The offering
memorandum further provides that the general partner "may retain
as additional compensation all amounts not paid as sales
commissions or offeree representative fees". Roberts therefore
was to receive a minimum of $37,500 and up to $135,000 from
Plymouth.
The offering memorandum lists significant business and tax
risk factors associated with an investment in Plymouth.
Specifically, the offering memorandum states: (1) There is a
substantial likelihood of audit by the Internal Revenue Service
(IRS) and the purchase price paid by F & G Corp. to ECI Corp.
probably will be challenged as being in excess of fair market
value; (2) Plymouth has no prior operating history; (3) the
general partner has no prior experience in marketing recycling or
similar equipment; (4) the limited partners have no control over
the conduct of Plymouth's business; (5) there is no established
market for the Sentinel EPE recyclers; (6) there are no
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Last modified: May 25, 2011