- 35 -
Memo. 1994-329, affd. 72 F.3d 123 (3d Cir. 1995); Rogers v.
Commissioner, T.C. Memo. 1990-619.
3. Miller
Petitioner also contends that he reasonably relied on
Miller. He knew of Miller by reputation and met with Miller,
along with Becker and attorneys from Boylan & Evans, to review
the SAB Foam memorandum. Petitioner testified that Miller
specifically assured him that he could rely on the valuations
attached to the memorandum.12 Other than this one-time meeting
with Miller, petitioner’s interaction with Miller was indirect
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
12 Petitioner testified:
I relied upon the opinions of experts that were hired
for the purpose of providing that information and had
no reason not to rely upon the opinions of the experts.
They were highly qualified, it was confirmed to me by *
* * [Elliot] Miller that he knew the experts, that he
met with them and that they were people upon whose
opinion you could rely.
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