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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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