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having substantial debt relief income, and that they would have
to deal with the IRS on their own.
On June 5, 1997, a bankruptcy court entered an order for
relief, in effect finding that W.J. Hoyt Sons Management Company
and W.J. Hoyt Sons MLP were both bankrupt. In these bankruptcy
cases, the United States Trustee moved in 1997 to have the
bankruptcy court substantively consolidate all assets and
liabilities of almost all Hoyt organization entities and the many
Hoyt investor partnerships. This consolidation included all the
investor partnerships. On November 13, 1998, the bankruptcy
court entered its Judgment for Substantive Consolidation,
consolidating all the above-mentioned entities for bankruptcy
purposes. The trustee then sold off what livestock the Hoyt
organization owned or managed on behalf of the investor
partnerships.
Mr. Hoyt and others were indicted for certain Federal
crimes, and a trial was conducted in the U.S. District Court for
the District of Oregon. The District Court described Mr. Hoyt’s
actions as “the most egregious white collar crime committed in
the history of the State of Oregon.” Mr. Hoyt was found guilty
on all counts, and as part of his sentence in the criminal case
he was required to pay restitution in the amount of $102 million.
This amount represented the total amount that the United States
determined, using Hoyt organization records, was paid to the Hoyt
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