- 9 - with respect to a partnership called Madison Recycling Associates (Madison Recycling). According to the private offering memoran- dum, Madison Recycling was a New York limited partnership formed on October 1, 1982, that was to lease, as lessee, steam chest molded expanded polystyrene recycling equipment called Sentinel EPS Recyclers (EPS Recyclers). The private offering memorandum further indicated that Madison Recycling and two other entities were to engage in a joint venture in which the EPS Recyclers were to be used in a process designed to recycle scrap polystyrene. According to the private offering memorandum, the recycled polystyrene was to be sold on the open market, and Madison Recycling was to receive a share of the profits from such sales. Mr. Korchak considered in some detail whether to invest in Madison Recycling. That was because he knew a lot about the business of recycling technologies. In considering whether to invest in Madison Recycling, Mr. Korchak was also aware that Congress was encouraging investment in recycling in order to conserve energy. After considering in detail whether to invest in Madison Recycling, on November 30, 1982, without consulting petitioner, Mr. Korchak purchased an interest in Madison Recycling for $75,000 (Mr. Korchak’s Madison Recycling investment). Mr. Korchak did not use the joint checking account into which peti- tioner’s NYU salary was deposited in order to purchase Mr.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011