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and pay all expenses with respect to each partnership’s breeding
sheep.
The dates on which the purchase agreements each of the eight
partnerships and Barnes Ranch entered into, the number of
purported breeding ewes each partnership allegedly acquired, the
total stated purchase price, and the average price per sheep each
partnership agreed to pay for its sheep are as follows:
Total
Date of Number Purchase Avg. Price
Partnership Entry of Ewes Price per Sheep
RCR #1 4-20-81 401 $455,100 $1,135
RCR #2 2-15-82 514 626,400 1,219
RCR #3 3-20-83 584 713,140 1,221
RCR #4 2-01-84 1,468 2,087,880 1,422
RCR #5 5-01-85 1,257 1,825,000 1,452
RCR #6 1-15-86 1,415 1,960,140 1,385
RCR #7 2-01-87 1,873 3,982,360 2,126
OGT 87 1-05-87 1,849 3,636,600 1,967
Each of the nine sheep partnerships at issue was supposedly
formed to operate as a sheep breeding partnership, owning its own
flock of sheep purchased from Barnes Ranch. However, Jay Hoyt
and David Barnes were not independent parties acting at arm’s
length with respect to any of the sheep agreements. In
actuality, none of the sheep partnerships acquired the benefits
and burdens of ownership of any of the sheep listed above.
The bills of sale that Barnes Ranch issued the sheep
partnerships (excluding OGT 90) listed large numbers of
individual breeding sheep that did not exist. The flock recap
sheets prepared by Jay Hoyt contained false information and did
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