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employees by Benson’s profit-sharing trust, of which Keith was a
trustee, was a fund sponsored by Connecticut General.
Sometime during 1982, Keith met with Mejia to review his
income and retirement goals. During this meeting, Mejia
recommended investing in Hamilton Recycling Associates
(Hamilton). Keith contends that he was impressed by Hamilton
because Hamilton offered solutions to the United States’ energy
shortage and waste disposal problems. Keith also noted that
Benson received and used products for packaging similar to the
so-called peanuts produced by the recyclers. Keith further
asserts that Mejia represented that Hamilton was a Cigna-
researched investment. Keith did not review any Cigna materials
promoting Hamilton, nor did he make any independent inquiries as
to whether Hamilton was a Cigna-researched investment.
Keith contends that Mejia told him that he had traveled to
New York and met with Hamilton’s accountants. Keith also
contends that Mejia told him that he had traveled to a site where
a recycler was being used and had brought back some of the
peanuts the machine produced. Mejia did not testify at the
trial.
Keith received a copy of Hamilton’s offering memorandum and
spent 3 or 4 hours reviewing it. In reviewing the memorandum,
Keith noted and relied upon Ulanoff’s marketing report and
Burstein’s technical opinion, even though he was aware that the
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Last modified: May 25, 2011