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large numbers of individual breeding sheep that did not exist.
The flock recap sheets prepared by Hoyt contained false
information and did not represent the sheep purportedly owned by
each partnership. Sheep purportedly sold to the partnerships
were not of the quality represented on the bills of sale.
Further, the total purchase price that each partnership agreed to
pay for each sheep was much greater than the fair market value of
similar quality sheep. The average purported purchase price per
ewe paid by the sheep partnerships ranged from $1,135 to $2,126,
but these purchase prices were not within a reasonable range of
value. The sheep that Barnes Ranches sold for $400 or more
typically had been judged champions or had won some other awards
at national shows, but the sheep purportedly sold to the sheep
partnerships were nowhere near the quality of breeding sheep sold
for $400 or more.
The partnerships never acquired control over the ewes
allegedly purchased, nor did they obtain the benefits and burdens
of ownership of any breeding ewe. Barnes Ranches purportedly
managed the partnerships’ breeding sheep in a commingled flock
with Barnes’s own sheep. No sheep registration certificates were
issued in the name of any of the partnerships. Neither Hoyt nor
Barnes Ranches kept any records that adequately identified the
breeding sheep owned by each partnership. The partnerships could
not identify the specific breeding sheep they purchased, nor
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Last modified: November 10, 2007