River City Ranches #1 Ltd., Leon Shepard, Tax Matters Partner - Page 44

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          persons who had worked for or engaged in transactions with the              
          Hoyt organization, including April and David Barnes, charging               
          them with numerous counts of conspiracy and mail fraud.  On June            
          2, 1999, the Government filed a superseding indictment against              
          the same defendants, which, among other things, charged Jay Hoyt            
          with 54 counts of conspiracy to commit fraud, mail fraud,                   
          bankruptcy fraud, and money laundering.  See United States v.               
          Barnes, et al., No. CR 98-529-JO-04 (D. Or. Feb. 12, 2001), affd.           
          sub nom. United States v. Hoyt, 47 Fed. Appx. 834 (9th Cir.                 
          2002).  All future references to Jay Hoyt’s indictment are to the           
          superseding indictment of June 2, 1999.                                     
               Following a jury trial in the U.S. District Court case noted           
          above, on February 12, 2001, Jay Hoyt was convicted of 1 count of           
          conspiracy to commit fraud, 31 counts of mail fraud, 3 counts of            
          bankruptcy fraud, and 17 counts of money laundering.  See id.               
          The U.S. District Court then sentenced Jay Hoyt to 235 months of            
          imprisonment and also ordered him to pay restitution of over $102           
          million to the individual victims of his crimes.  This $102                 
          million figure represented the total amount that the Government             
          (using Hoyt organization records) determined was paid to the Hoyt           
          organization from 1982 through 1998 by investor-partners in the             
          cattle partnerships, the sheep partnerships, and other similar              
          partnerships that Jay Hoyt promoted.  The fraud perpetrated by              
          Jay Hoyt “impacted over 4,000 people and had actual and intended            






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