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The Hoyt Fiasco: PDFT Partner Defense Fund Trust

What is the PDFT?

Partnership Defense Fund Trust (PDFT)

In February 1998, the partnerships, acting on the advice of the partnerships' attorney (Montgomery Cobb), assisted the Assistant US Trustee (Neal Jensen) in closing down the "Hoyt" business enterprises.
 

The PDFT fulfilled its mission in 2011, and is no longer accepting contributions.

All of the partnerships' assets have been sold and the funds have been placed under the control of the US Trustee and the Bankruptcy Court. The partnerships are now out of business.

In February 1998, the US Trustee allowed the partners to form a trust, the Partnerships' Defense Fund Trust (PDFT), to pay the partnerships' legal, accounting, and administrative support functions.  This effort is totally funded by partners and has no other source of revenue.

PDFT contributions are not credited as "Hoyt" note payments, interest payments, or subscription agreement payments. PDFT contributions are used to pay partnership expenses. This is not a "Hoyt deal" and not "payment book payments."   Contribution amounts are based on what each partner determines what the final resolution of the "Hoyt fiasco" is worth to them.

Some of the partnership issues funded by the PDFT are resolution of the more than 800 pending Tax Court petitions, filing petitions in response to IRS Final Partnership Administrative Adjustments (FPAAs), and settlement negotiations with the IRS and bankruptcy creditors. The Monty Cobb letter to the TAO was funded by the PDFT.

The PDFT is not about protecting the partnerships; it is about protecting the partners. If there is no legal defense at the partnership level, there is no protection against the bankruptcy creditors or the IRS for the partnerships and, as a result, the partners.

The only practical approach to resolve these issues is at the partnership level. The extraordinary cost and effort of individual partners trying to resolve each issue on their own is not realistic.

There is a lot at stake here! All partners need to ensure the best legal representation possible is available to negotiate a settlement with the US Trustee, IRS, and other partnership creditors in this bankruptcy case. We hope you will join your partners in the effort to settle this once and for all and get on with our lives.

We recommend you talk to your tax attorney or accountant concerning your contributions and participation in the PDFT, as well as your individual tax situation and bankruptcy claims.   Your personal attorney can benefit from the work of the Partnerships' attorney, which will be shared freely with contributing partners' attorneys.  The reasons you should have your own attorney in addition to the Partnerships' attorney are

(1) your personal situation may, in some cases, differ from most of the partners, and
(2) there are some partner level tax issues that cannot be resolved at the partnership level.


Examples of PDFT items
01.  Nearly 800 pending Tax Court Cases
02.  Partnership Bankruptcy Court
03.  Late Filing Penalty Case
04.  Finding relief of 81-86 assessments
05.  Tax Court Fraud (Bales amp Cattle Case) evidence and path forward.
06.  Partnership Level Attorney Update
07.  Partnership Defense Trust Fund Updates (PDFT)
08.  Working with Networked Attorneys to ensure consideration of the investor's best interests during partnership closure activities.
09.  Responding to all legal issues (Tax Court, Bankruptcy Court, Civil Court and IRS)
10. Pursue Settlement Options.
11. Case study of other court opinions (Transpac)

See Monty's cover letter--of a 462 page document sent to the National TAO stating our claims with the factual evidence (Court, FBI and IRS document). You may use this letter as an attachment to your Congressional letter. Call a CSRA Partner Group Mail Clerk, for nearest point of contact or other methods available information.

Why should you support the PDFT and be part of a Group Attorney Program? IRS filed a motion to remove Jay as TMP in Tax Court recently (1998). Thus, the Tax Court will appoint a TMP to finalize partnership items. This new TMP will make some hard choices. To support the PDFT, inform the appointed TMP you have an interest in this mess and it is his fiduciary duty as the TMP to act in the best interests of the investor.

The CSRA Partner Group members include partners dating back to 1979. Some members are part of ongoing litigation. We practice "Help Yourself By Helping Others" is best--without violating attorney client privilege for information releases. The CSRA Partner Group maintains close ties with the PDFT.

We have people in AL, AZ, CA, FL, GA, ID, IL, LA, KS, MS, NC,NM, NY, OH, OR, PA, SC, TN, and WA as points of contact to receive a 600+ page package that explains what we must write to our Congressional Leader/TAOs. Persons receiving that package have been contributing to the PDFT and will be points of contact for that state. The CSRA Partner Group Procedure gives you phone numbers (CSRA Mail Clerk) for more information.

We have a webmaster (Mark Lamendola) who places information on the Web to help encourage your letter writing efforts. Mark makes his living as a professional editor. Mark has been very strong in voicing his opinion and we understand why. No one has supplied him the information (Matters of Law) causing this mess. Nothing like being in the fog, standing on a bridge with Mac trucks traveling both directions (IRS 4U for a license plate). We will keep Mark informed so he may utilize the Web to keep you informed.

The 14 subjects Richard Pooley mentions in his letter dated 1/22/98 to Senator Roth will blow you away. Who is this Richard Pooley and what right does he have to say these things? Mr. Pooley included his resume in his  letter.

Have I encouraged you to join our letter writing campaign yet?  If not, read on.

 

Last updated: Saturday, September 28, 2013

Questions, problems? Want to render assistance?
Write to hoyt @mindconnection.com (paste this address into your e-mail program, and delete the space).

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Disclaimer: The facts represented here are as accurate as a reasonable investigation can determine. Mindconnection hosts this site at no charge to the Hoyt victims, to expose this miscarriage of justice.