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could elaborate on Gardino's technical background, however, Bach
replied: "No. All I know is that * * * he was the head of the
syndicate department and used to pass on all offerings that came
into * * * his place of business, * * * and even though he wasn't
an engineer, he had an engineering background." Bach did not
know what type of degree Gardino earned in college or whether he
had any experience in plastics recycling. Gardino did not
testify at the trial of this case.
Bach acknowledged that he was not qualified to assess the
value of the Sentinel EPE recycler. He did not consult an
independent appraiser or anyone with expertise in plastics
materials or plastics recycling. Bach relied upon the Plymouth
offering memorandum for the value of the machine. He recalled
reading "an independent appraisal stating how they got to the
value of the machine based upon the production, the income the
pellets would bring". However, Bach did not investigate the
market for recycled resin pellets. Nor did he contact Ulanoff or
Burstein, or inquire whether they had an interest in the Plastics
Recycling transactions. He concluded that the author of the
appraisal was independent based solely on the offering
memorandum. In fact, Ulanoff and Burstein each invested in
several Plastics Recycling partnerships, and as the offering
memorandum disclosed, Burstein was a client and business
associate of the corporate counsel to PI, Miller.
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