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petitioner's independent research in this regard was limited to a
very short visit to a local library and a review of certain
articles regarding the so-called oil crisis. As already
mentioned, a marketing professor should have realized that in
order to identify comparable recyclers and to determine the value
of the Sentinel recyclers, he would need to investigate the
matter further. It appears that petitioner relied much more on
the representations made by the promoters, such as Taggert and
Bambara, than he did on any independent research.
At this point we are reminded that petitioner prepared
marketing opinion reports on both the EPE and the EPS recyclers
to promote the Plastics Recycling leasing programs. Petitioner
represented to potential investors that he had conducted a
detailed independent investigation of the matter and that he
thought investment in the Plastics Recycling programs would be
profitable. In light of this fact, petitioner's limited
investigation of the alleged uniqueness of the Sentinel recyclers
and petitioner's allegation regarding the anticipated
profitability of the Plastics Recycling programs appear even less
reasonable.
6(...continued)
packaging and plastic industries and editors of plastics trade
journals." Based on the record developed at trial, however, we
are not satisfied that petitioner made such independent inquiry.
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