Bernice M. and Stanley M. Ulanoff - Page 27




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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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