Helen M. Korchak - Page 30

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               NJ, to Westport, Connecticut.                                          
                    In 1976, Helen Korchak returned to her post-doc-                  
               toral studies and was hired as a research scientist to                 
               conduct research at New York University under a grant                  
               from the National Institute of Health.  During 1979                    
               through 1980, Helen held a post-doctoral fellowship                    
               with the Arthritis Foundation, conducting immunology                   
               research while still being the primary homemaker and                   
               care provider for her family.                                          
                    As Ernest rose to more and more responsible posi-                 
               tions with Halcon, he decided to engage the services of                
               Merrill Lynch as a financial advisor.  In 1982, Ernest                 
               received a substantial dividend distribution from                      
               Halcon.  He sought advice that year from Merrill Lynch,                
               which put him in touch with Hamilton Gregg, a financial                
               advisory group.  Hamilton Gregg recommended the pur-                   
               chase of Madison Recycling, a company that had devel-                  
               oped environmentally friendly recycling technology.                    
               Ernest always had a strong interest in protecting the                  
               environment and was attracted by the investment possi-                 
               bilities, coupled with tax incentives.  In 1982, Ernest                
               purchased a limited partnership interest in Madison                    
               Recycling based on the advise of Merrill Lynch.  He did                
               so without consulting Helen or discussing his interest                 
               in various other investment possibilities with her.                    
               Helen Korchak had no idea that Ernest purchased a lim-                 
               ited partnership interest in Madison Recycling, or even                
               as to the nature of Madison Recycling’s business opera-                
               tions, until 1988, six years after the 1982 investment.                
               In 1982, Helen earned $15,339.00.  Ernest earned                       
               $466,309.00.                                                           
                    Halcon went out of business in 1986, at a time                    
               when there were no employment possibilities for people                 
               in Ernest’s field with his experience.  He was aware of                
               a small company, Riverside Polymer Systems, Inc., which                
               was in financial difficulty.  The company specialized                  
               in waterborne coating technology intended to replace                   
               solvent-based coatings.  Ernest thought the company                    
               could become profitable and bought a majority interest                 
               in Riverside.  He investment approximately $700,000.00                 
               in Riverside, using his savings, including the 1982                    
               federal income tax refund, and money from re-mortgaging                
               the family home.  Unfortunately, the acceptance of                     
               waterborne technology was slower than expected.  River-                
               side struggled for about three years before Ernest had                 





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