John Franklin Foust - Page 5

                                        - 5 -                                         

               Petitioner and his brother James D. Foust (James) had                  
          engaged in several joint farming and farm-related ventures,3                
          including the conduct of farming through Foust Bros. Farms, Inc.            
          (Foust Bros. Farms).  Foust Bros. Farms applied for and received            
          disaster loans from the Small Business Administration (SBA) and             
          the Farmers Home Administration (FMHA) that were personally                 
          guaranteed by petitioner and James.  At the times the FMHA and              
          the SBA approved the loans to Foust Bros. Farms, petitioner and             
          James had led the lenders to believe that they were lending to a            
          separate corporate entity, independently operated and maintained.           
          However, Petitioner and James did not keep separate books and               
          records for Foust Bros. Farms.  Petitioner and James so                     

               3 The parties have stipulated that, in addition to Foust               
          Bros. Farms, Teton, Mesa, and Cheyenne River, petitioner filed              
          articles of incorporation with the Iowa Secretary of State for              
          the following named corporations, as indicated:                             
               Foust Brothers Leasing Co.         1977                                
               Wind River Corp.                   01/04/80                            
               Ag-Land Investments, Ltd.          01/05/83                            
               Southern Cross, Inc.               01/05/83                            
               Blackhorse Corp.                   01/05/83                            
               Butte Corp.                        11/02/83                            
               Bend Corp.                         11/02/83                            
               Williston Corp.                    11/02/83                            
               Ranger Corp. of U.S.               11/02/83                            
               Savannah Corp.                     11/02/83                            
               Thunderhawk Ltd.                   11/02/83                            
               XIT, Inc.                          09/18/84                            
               Cathedral Corp.                    04/11/86                            
               Agrivest Corp.                     01/09/87                            
               Senora Corp.                       01/09/87                            
               West Texas Corp.                   01/09/87                            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011