Keith E. and Marilyn B. West - Page 21




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          offering memorandum.  In effect, the advice provided by Grande              
          and Maki did not suggest anything beyond the view that, if the              
          facts and circumstances proved to be as represented by Mejia and            
          in the offering memorandum, then the tax benefits described in              
          the offering memorandum should be allowed.  Keith and Warren did            
          not rely upon Grande or Maki with regard to Masters’ nontax                 
          business aspects.                                                           
               Accordingly, petitioners, Grande, and Maki solely relied               
          upon the offering materials and Mejia’s representations with                
          regard to the recyclers’ value and Masters’ economic viability.             
          The offering memorandum contained reports by Ulanoff and                    
          Burstein.  Petitioners, Grande, and Maki never investigated                 
          whether Ulanoff or Burstein had an interest in plastics recycling           
          transactions.  In fact, Ulanoff and Burstein each invested in               
          plastics recycling partnerships.  The offering memorandum also              
          disclosed that Burstein was a client and business associate of              
          PI’s corporate counsel.  Moreover, the offering memorandum                  
          specifically warned potential investors not to rely on the                  
          statements or opinions contained in it.  Lastly, as a broker,               
          Mejia clearly had a financial interest in selling the partnership           
          interests to petitioners.  In this transaction, Mejia was engaged           
          in a selling function rather than an advisory function, and                 
          petitioners, as experienced businessmen and educated persons,               








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