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3. Miller
Petitioner also contends that he reasonably relied on
Miller. Most of petitioner’s interaction with Miller was
indirect and through his partner Lewin. When first approached by
Lewin, in response to the offering memorandum for SAB Resource,
Miller was supportive of the investment. With regard to the
value of the recyclers, Miller was supportive of the expert
reports by Ulanoff and Burstein. The memorandum disclosed that
Miller was a 9.1-percent shareholder of F&G, was corporate
counsel to PI, and represented Raymond Grant, the sole
shareholder of ECI. The memorandum also noted that “Miller
[would] receive substantial additional compensation for
representing PI in connection with this transaction.” Not
surprisingly, Miller was supportive of SAB Foam.
Nothing in the record suggests that Miller had any expertise
or knowledge with respect to plastics or plastics recycling, or
that petitioners believed he had any such knowledge or expertise.
There is also no showing that petitioner had any special or
enduring friendship with Miller. Petitioner’s relationship with
Miller was indirect, through Lewin’s tenuous acquaintance with
Miller. Given the extent to which Miller was immersed in the SAB
partnerships, how much he stood to benefit financially, and his
lack of expertise regarding plastics materials and plastics
recycling, we do not consider petitioners’ purported reliance on
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