- 14 -
Around the time of petitioner’s divorce in 1986, she was
informed that her partnership interest had been transferred from
RCR #1 to a similar but separate partnership, River City Ranches
#4 (RCR #4). Around this same time, petitioner personally began
making substantial periodic cash payments to RCR #4; these
payments were in addition to the indirect payments that
petitioner was making to RCR #4 in the form of the tax refund
checks that were being negotiated on her behalf. Petitioner
continued investing in RCR #4 through at least 1995, and she
continued claiming losses with respect to that investment on her
income tax returns through that year.
By letter dated June 9, 1995, petitioner was notified by the
Portland, Oregon, office of the Federal Bureau of Investigation
(FBI) that the FBI and United States Postal Inspection Service
were:
conducting an investigation into allegations that W.J.
Hoyt & Sons and its affiliated entities, and certain
associated individuals, engaged in conduct and/or
practices that may be violations of federal criminal
fraud statutes.
Attached to this letter was a questionnaire pertaining to
petitioner’s involvement in “one or more of the W.J. Hoyt & Sons
investment programs.” Petitioner completed portions of this
questionnaire. In answer to the question “How did you first hear
of Hoyt & Sons or any of its related entities”, petitioner
responded “Relatives were involved in livestock business and were
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011