Durham Farms #1 - Page 33




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               The Court finds substantial portions of Jay Hoyt’s testimony           
          evasive and less than forthright.  His claims regarding the                 
          contemporaneous nature and reliability of the bills of sale and             
          herd recap sheets are directly contradicted by substantial other            
          convincing evidence in the record.  The Court considers highly              
          suspect the herd recap sheets and other documents the Hoyt                  
          organization prepared during the period from 1987 through 1992.             
          Indeed, as the Court indicated supra, by the early 1980's the               
          Hoyt organization’s cattle management and record-keeping                    
          practices had changed dramatically.  As a result, many of the               
          documents, records, and tax returns the Hoyt organization                   
          subsequently prepared regarding transactions between itself and             
          the many cattle-breeding partnerships (which it had formed,                 
          promoted to numerous investors, and managed) were inaccurate and            
          unreliable.                                                                 
               Contrary to petitioners’ and Jay Hoyt’s contentions, the               
          Court does not believe that the 1987 through 1992 annual herd               
          recap sheets in evidence are contemporaneous documents.  Among              
          other things, if the 1988, 1989, and 1990 herd recap sheets had             
          existed and been available during the fall 1989 through early               
          1991 period, the Hoyt organization worker preparing Management’s            
          financial statements for its fiscal years ended September 30,               
          1989 and 1990, would then have consulted those herd recap sheets            
          to find out each cattle-breeding partnership’s “breeding herd               






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