- 6 - be as marketable as virgin pellets; and (6) certain potential conflicts of interest existed. The disclosure of potential conflicts of interest in the offering memorandum made clear that the parties involved in the partnership transactions had ongoing business relationships and that many of the individuals involved had interests in more than one entity involved in the transactions. The memorandum revealed that: (1) Richard Roberts (Roberts), the general partner of Foam was a 9-percent shareholder of F&G; (2) the executive vice president of PI was a 9.1-percent shareholder of F&G; (3) Elliot Miller (Miller), general counsel for PI, was a 9.1-percent shareholder of F&G; and (4) Miller was the attorney for Samuel Burstein, one of the F&G evaluators, and Miller also represented Roberts in connection with certain tax and other matters, F&G in corporate matters, and other individuals involved in the transactions in a variety of matters. The absence of independent representation was also stressed in the offering memorandum: Prospective purchasers have not been independently represented in connection with the structuring or conduct of the Offering. Each prospective purchaser is urged to seek independent advice and counsel before making an investment in the Partnership. The offering memorandum prominently touted the anticipated tax benefits for a limited partner in the initial year of investment:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011