David and Shirley Singer - Page 16

                                       - 16 -                                         
          does the machine breakdown because I don't have a great technical           
          background."  He understood from the end-users that the machine             
          was functioning perfectly well.                                             
               Bach did not consult an independent appraiser with respect             
          to the value of the Sentinel EPE recycler, but instead relied               
          upon the representations in the Plymouth offering memorandum.  As           
          Bach recalled:  "I believe that I saw * * * an independent                  
          appraisal stating how they got to the value of the machine based            
          upon the production, the income the pellets would bring, the                
          royalties, et cetera."  Bach did not investigate the market for             
          recycled resin pellets.  Nor did he contact the F & G Corp.                 
          evaluators or inquire if either of them had an interest in the              
          Plastics Recycling transactions.  Bach concluded that the author            
          of the appraisal--whose name he could not recall--was independent           
          based on what he read in the offering memorandum.3                          
               After returning from Hyannis, Bach related his observations            
          to Bramnick.  Bach recalled speaking to petitioner only by                  
          telephone.  Bach could not recall the substance of his                      
          communication to petitioner or for how long they spoke.  He                 
          characterized petitioner as "basically only an annual tax                   
          account" and explained that he "didn't see * * * [petitioner] on            
          a regular basis".  With respect to Plymouth, Bach "spoke mostly             


          3    The reports by the F & G Corp. evaluators, Ulanoff and                 
          Burstein, are the only reports appended to the offering                     
          memorandum that assess the Sentinel EPE recycler in any respect.            




Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011