Oreland A. and Lucille S. Thornsjo - Page 19




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               Prior to 1982, Furlong did not make many investments.  In              
          1981 at Schluter’s suggestion, he did invest in a partnership               
          called Jacobs and Stewart that was building office buildings.               
          Furlong considered this investment unsuccessful.  His 1979 tax              
          return also reflects an investment in Glenaire Apartments and in            
          several investments described as “Gas and Go Ten-Ten Truck Stop”            
          and “Schmidt and Furlong Gas and Go”.  Sometime during 1982,                
          Schluter told Furlong about Hamilton while they were playing                
          golf.  Subsequently, Schluter and Furlong discussed Hamilton a              
          number of times, generally during their golfing afternoons, and             
          as a result of these discussions, Furlong paid $25,000 for his              
          partnership interest in Hamilton.                                           
               Furlong does not have any education or work experience in              
          the plastics recycling or plastics industries.  Moreover, Furlong           
          did not personally review Hamilton’s offering memorandum or                 
          investigate Hamilton before becoming a participant in the                   
          partnership.  Instead, Furlong relied upon Schluter’s advice                
          about Hamilton.  Furlong also contends that Schluter never told             
          him that he had questions regarding Hamilton’s valuation of the             
          recyclers.  Furthermore, Furlong asserts that he invested in                
          Hamilton for additional income for his retirement because Furlong           
          Oil did not have a pension plan.  However, Furlong also testified           
          that he knew that Hamilton was a tax shelter.  Schluter told                
          Furlong that Hamilton was a tax shelter; Furlong knew what a tax            






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