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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.
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