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In December 1982, at or about the time he invested in
Dickinson, petitioner also invested $50,000 in a business known
as Real Estate Financial Corp.
Petitioner was introduced to Dickinson in November 1982 by
Herbert Krickstein (Krickstein), a friend and medical colleague,
and Fred Gordon (Gordon), an attorney, while on a golf vacation
in Florida. At the time, Gordon was Krickstein’s attorney;
Gordon was also actively engaged in selling interests in
partnerships such as Dickinson and was the “Fred Gordon, Esq.”
who was identified in the Dickinson offering memorandum as
“Special Counsel to the General Partner”. Gordon never
represented that he had any specialized knowledge about plastics
recycling.
After his return from Florida, petitioner received a letter
from Gordon dated November 30, 1982, enclosing a copy of the
offering memorandum. Petitioner “browsed” through portions of
the offering memorandum, but he did not read it. Rather, he
consulted with Philip Nusholtz (Nusholtz), an attorney with whom
he had a long-standing professional relationship and whose
judgment he respected and whose advice he valued.8 Nusholtz also
did not read the offering memorandum; however, he advised
petitioner not to invest in any promotion marketed by Gordon but
8 Philip Nusholtz was the father of petitioners’ counsel
Neal Nusholtz.
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