- 11 - pellets; and (7) certain potential conflicts of interest existed. In addition, the private offering memorandum included a provision stating: The offer and sale of units is being made in reliance upon exemptions from registration under Federal and state securities laws. However, neither the Securities and Exchange Commission nor any other Federal or state government agency or self-regulatory body has approved or disapproved the securities offered hereby or passed upon the accuracy or adequacy of this memorandum. The private offering memorandum for Clearwater also stated that each limited partner should have a minimum net worth (exclusive of his principal home, furnishings, and automobiles) in the amount of $200,000 per limited partnership unit. In addition, each partner was required to have enough income during 1981 to place the limited partner in at least the 50-percent income tax bracket. The private offering memorandum also stated that the projected tax benefits for the initial year of investment for an investor contributing $50,000 would be investment and energy tax credits in the aggregate amount of $86,328, plus partnership loss deductions in the amount of $39,399. Reports by Samuel Z. Burstein (Burstein) and Stanley Ulanoff (Ulanoff), the "F&G evaluators", were included in the private offering memorandum. As indicated in their reports, neither Burstein nor Ulanoff was an expert in plastics or plasticsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011