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$200,000 and a reasonable expectation of income in the current
year in excess of $200,000. Additionally, the Davenport offering
stated that there was a high degree of risk with the offering.
The offering declared that an investment in Davenport:
should be considered only by persons who have a
substantial net worth and substantial present and
anticipated income and who can afford to lose all of
their cash investment in the Partnership and to utilize
or lose all or a substantial portion of the anticipated
tax benefits flowing from such investment.
C. Samuel L. Winer
In addition to being the general partner of Davenport, Winer
was the general partner of Stevens, Hamilton, Masters, Dickinson,
Pompano, and Whitman Recycling Associates. These were TEFRA
partnerships which purported to lease Sentinel EPS recyclers and
were substantially identical to Davenport. Also, Winer was the
general partner of two non-TEFRA partnerships which purportedly
leased Sentinel polyethylene (EPE) recyclers, Clearwater and Poly
Reclamation Associates. Although Winer was involved in marketing
the partnerships of which he was a general partner, he did not
participate in structuring the Plastics Recycling transactions.
Winer was also a part owner of two Sentinel recyclers.
Winer does not have an engineering background, and he is not
an expert in plastics material or plastics recycling. The
Davenport offering indicated that since 1977, Winer had been
employed as an independent financial consultant and investment
banker and that he had experience in the securities industry.
Winer testified at the evidentiary hearing that in 1986 he was a
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