Eugene A. Sanders - Page 3

                                        - 3 -                                         
          States v. Barnes, 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).                                                                      
          B.  Petitioner’s Backgound and Hoyt Investment                              
               Petitioner holds a bachelor’s degree in nuclear engineering            
          and a master’s degree in business administration (MBA).  As part            
          of his MBA curriculum, petitioner took accounting and law-related           
          classes.  He has been employed as a mechanical design engineer              
          for over 25 years and was so employed during 1991.                          
               Before 1989, petitioner invested exclusively in stocks and             
          mutual funds.  He had no experience in cattle, ranching, or                 
          farming, and he had never been a partner in a partnership.                  
               In or around October 1989, petitioner was “making a lot of             
          money” and “looking for a way to defer taxes”, so he discussed              
          investing in a Hoyt partnership with a coworker, Gary Parker (Mr.           
          Parker).  In November 1989, petitioner contacted a Hoyt partner             
          representative for additional information about various Hoyt                
          partnership investment opportunities.  The Hoyt partner                     
          representative provided petitioner with promotional materials               
          assembled by Hoyt that included pamphlets,3 newspaper articles,             
          trade articles, and the Court’s opinion in Bales v. Commissioner,           



               3  For example, the promotional materials stated, in part,             
          that investors could “earn 11.3% tax free annually paid quarterly           
          in cash and 12.93% in tax savings” and that “income from                    
          operations is projected to be sheltered from income tax.”                   




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011