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appeared to be legal, but he was unable to offer any opinion as
to the legitimacy of the business itself.
On July 12, 1984, petitioner and Mr. Capehart invested in
one of the Hoyt partnerships called Shorthorn Genetic Engineering
1983-2 (SGE). Petitioner did not trust Mr. Hoyt, and she tried
to convince Mr. Capehart that they should not invest in SGE.
Both petitioner and Mr. Capehart, however, signed the
subscription agreement, which included a power of attorney and a
partnership agreement, to invest in SGE. On the signed
subscription agreement, under the heading “Type of Ownership”, a
checkmark was placed on the line indicating “Joint Tenancy”.
Petitioner signed the document because Mr. Capehart told her that
he wanted to join SGE.
From 1984 to 1996, petitioner and Mr. Capehart continued to
invest in other Hoyt partnerships.4 Both petitioner and Mr.
Capehart signed documents related to their purchase of additional
partnership interests, and the Hoyt organization issued
certificates in both of their names to reflect their joint
ownership of partnership units.
Petitioner and Mr. Capehart invested in the Hoyt
partnerships using funds from their joint bank account. Mr.
4The additional partnerships in which petitioner and Mr.
Capehart invested were Hoyt & Sons Trucking Partners J.V.,
Timeshare Breeding Service J.V., Timeshare Breeding Service 1989-
2, and Durham Genetic Engineering 1983-2 J.V.
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