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promotional reports of Ulanoff and Burstein and any discussions
he may have had with Miller or Dooskin.
2. Miller
Petitioner also contends that he reasonably relied on
Miller. When approached by petitioner with respect to the
offering memorandum for SAB Resource and later as to the
memorandum for SAB Foam, 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, despite petitioner’s contrary
argument. Miller’s testimony indicates that during the time in
issue he had only a tenuous acquaintance with petitioner. Miller
specifically stated that after petitioner ceased working for him,
10 years before the investment in issue, Miller saw petitioner
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