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investors to "consult their own counsel as to all matters
concerning this investment." The offering was replete with
statements, including the cover page statement that "THIS
OFFERING INVOLVES A HIGH DEGREE OF RISK", warning of tax risks
involved with the investment and the highly speculative nature of
the commercial viability of the jojoba plant. The offering
contained inconsistent information, such as the statement on page
9 that the general partner "has limited experience in dealing in
Jojoba beans and is mainly relying on the R & D Contractor to
develop technology and plant cultivars over the term of the R & D
Agreement", contrasted with the statement on page 34 that the
general partner "pioneered the development of the Blythe Airport
as an alfalfa ranch and jojoba farming in Desert Center" and was
"familiar with the development of jojoba, citrus, vineyards,
alfalfa and asparagus." Such inconsistencies should have raised
a healthy suspicion in the mind of a reasonable and ordinarily
prudent investor, even one lacking any legal, tax, or
agricultural background. However, petitioners did not carefully
read the offering, nor did they make any effort to have the
investment explained to them prior to committing to invest some
$65,000 in Blythe II.
The Court is mindful that the Court of Appeals for the Ninth
Circuit (Ninth Circuit), the court to which an appeal in this
case would lie, has held that experience and involvement of the
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