Walter Hoyt dies in prison
Posted: Mon Sep 24, 2007 11:05 am
The Federal Bureau of Prisons has confirmed to Tax Analysts that Walter J. Hoyt died September 6 while in prison. Hoyt, infamous in the tax community for spawning decades of litigation based on his eponymous tax shelter scheme, had been serving out his sentences for fraud and money laundering in the Federal Correctional Institution in Terminal Island, San Pedro, Calif. No cause of death was made public.
Hoyt's scheme involved selling limited interests in cattle and sheep partnerships to thousands of unwary individuals eager to make an easy investment return. Audits by the IRS of the partnerships' and investors' tax returns showed that depreciation and tax credits had been claimed for nonexistent animals. The ensuing litigation involved deficiencies, interest, and penalties amounting to hundreds of millions of dollars and encompassed decades of judicial resources.
In 2001 Hoyt was convicted on 1 count of conspiracy to commit fraud, 31 counts of mail fraud, 3 counts of bankruptcy fraud, and 17 counts of money laundering. He was scheduled for release from prison in 2018.
Hoyt's scheme involved selling limited interests in cattle and sheep partnerships to thousands of unwary individuals eager to make an easy investment return. Audits by the IRS of the partnerships' and investors' tax returns showed that depreciation and tax credits had been claimed for nonexistent animals. The ensuing litigation involved deficiencies, interest, and penalties amounting to hundreds of millions of dollars and encompassed decades of judicial resources.
In 2001 Hoyt was convicted on 1 count of conspiracy to commit fraud, 31 counts of mail fraud, 3 counts of bankruptcy fraud, and 17 counts of money laundering. He was scheduled for release from prison in 2018.