- 9 - documents for the Partnerships. Taggert owned a 6.66-percent interest in a second-tier Plastics Recycling partnership. Robert Gottsegen (Gottsegen) was a businessman active in the plastics industry and a long-time business associate of Bambara. C. The Private Offering Memoranda Plymouth and Taylor each distributed to potential limited partners a private placement memorandum. Each offering memorandum listed significant business and tax risk factors associated with an investment in the particular partnership. Specifically, each offering memorandum stated: (1) There was a substantial likelihood of audit by the Internal Revenue Service (IRS), and the purchase price paid by F&G to ECI probably would be challenged as being in excess of fair market value; (2) the partnership had no prior operating history; (3) the general partner had no prior experience in marketing recycling or similar equipment; (4) the limited partners would have no control over the conduct of the partnership's business; (5) there was no established market for the Sentinel recyclers; (6) there were no assurances that market prices for virgin resin would remain at their current costs per pound or that the recycled pellets would be as marketable as virgin pellets; and (7) certain potential conflicts of interest existed. The private offering memorandum for Plymouth stated that the projected tax benefits for the initial year of investment for an investor contributing $50,000 would be investment credits andPage: 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