- 4 -
SAB purported to lease four recyclers manufactured by PI. The
prospectus stated that the projected tax benefits for a $50,000
investor were investment and energy tax credits in the amount of
$81,529 and tax deductions in the amount of $38,768 in the year
of the investment.
In reading the prospectus petitioner noticed that Samuel Z.
Burstein2 had written a favorable analysis of the recyclers
manufactured by PI. Petitioner had known Mr. Burstein in college
and considered him to have “a fabulous reputation.” Petitioner,
however, did not contact Mr. Burstein.
Petitioner has no knowledge concerning the plastics
industry and/or plastics recycling. Petitioner never saw one of
the recyclers and did not understand how the machinery worked.
He essentially relied on Mr. Sullivan, but, as far as petitioner
knew, Mr. Sullivan had no knowledge of how the process worked.
Petitioner also relied on John Masak (Mr. Masak), but Mr. Masak
had no experience in plastics recycling. In reading the
prospectus, petitioner noticed that PI had no experience in
manufacturing and operating plastics recyclers. When there was
no financial return from the partnership, petitioner never
contacted the general partner to find out why the investment did
not generate the profits projected in the prospectus. Even
2 In the transcript, this name is spelled Bernstein; in the
prospectus, however, the name is spelled Burstein.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011