Malcolm I. Lewin and Trina Lewin - Page 34

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          intellect, skills, experience, and resources to have the                    
          viability of the SAB Foam transactions thoroughly investigated              
          either by himself or by an independent qualified expert.                    
          Petitioners claim that they relied on Becker, known through Cohen           
          and Feinberg, for the bona fides and viability of the SAB Foam              
          transactions.  Yet Becker’s expertise was in taxation, not                  
          plastics materials or plastics recycling, and his investigation             
          and analysis of the Plastics Recycling transactions reflected               
          this circumstance.  Moreover, Becker indicated that he was                  
          careful not to mislead any of his clients regarding the                     
          particulars of his limited investigation.  As he put it:  “I                
          don’t recall saying to a client I did due diligence * * *                   
          [Rather,] I told [my clients] precisely what I had done to                  
          investigate or analyze the transaction.  I didn’t just say I did            
          due diligence, and leave it open for them to define what I might            
          or might not have done.”                                                    
               The purported value of the recyclers generated the                     
          deductions and credits in this case, and that circumstance was              
          clearly reflected in the memorandum.  Certainly Becker recognized           
          the nature of the tax benefits and, given his education and                 
          experience, petitioner should have recognized it as well.  Yet              
          petitioner, Cohen, Feinberg, and Becker neglected to verify the             
          purported value of the recyclers.  Becker confirmed in his                  
          testimony incorporated in this record by stipulation that he                

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