Norman H. Fawson and Mary Jane B. Fawson - Page 13

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          in the research and development of jojoba.  In contrast, the                
          offering, which petitioner testified he read, characterized Mr.             
          Kellen as having no experience in the research and development of           
               Petitioner seemingly contends that his experience with                 
          farming and his reading about jojoba gave him confidence in the             
          viability of his investment in the partnership, yet he presented            
          no evidence that he actually applied any of his knowledge through           
          an investigation of the partnership.  If anything, petitioner’s             
          knowledge should have prompted him to inquire into the                      
          operational aspects of the partnership and into the nature of the           
          “research” U.S. Agri was to conduct under the terms of the R&D              
          agreement.  The record provides no evidence that petitioner ever            
          visited the jojoba plantation or inquired into U.S. Agri’s                  
          ability to conduct research.  If petitioner had investigated the            
          nature of the purported research U.S. Agri was to conduct, he               
          likely would have discovered that it amounted to nothing more               
          than farming activity.  With petitioner’s farming background and            
          his professed interest in jojoba, we find it difficult to believe           
          he would have relied solely on the promoter’s investigation if he           
          viewed the partnership as a long-term investment.5                          
               Petitioners’ contention that they were not negligent in                

               5  We note that petitioner went to Israel to investigate               
          drip irrigation for his own apple orchard.                                  

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