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Becker had no education, special qualifications, or
professional skills in plastics engineering, plastics recycling,
or plastics materials. In evaluating the Plastics Recycling
transactions and organizing the SAB recycling partnerships,
Becker supposedly relied upon: (1) The memorandum and the
accompanying materials; (2) a tour of the PI facility in Hyannis;
(3) discussions with insiders to the transactions; (4) Michael
Canno (Canno), a client of Becker Co.; and (5) his investigation
of the reputation and background of PI and persons involved in
the transactions.
Despite his lack of knowledge regarding the product, the
target market, and the technical aspects at the heart of the
Plastics Recycling transactions, Becker did not hire an expert in
plastics materials or plastics recycling. The only independent
person having any connection with the plastics industry with whom
Becker spoke was Canno. Canno was part owner and the production
manager of Equitable Bag Co., a manufacturer of paper and plastic
bags. Becker spoke to Canno about the recyclers and PI, but he
did not hire or pay him for any advice. Canno did not visit the
PI plant in Hyannis, see or test a recycler, or see or test any
of the output from a recycler or the recycled resin pellets after
further processing. According to Becker, Canno endorsed the
Plastics Recycling transactions after reviewing the memorandum.
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