The Oregon Supreme Court on Thursday overturned the disbarment of attorney Montgomery W. Cobb for his work on the Hoyt cattle-breeding and tax shelter partnerships. In re Montgomery W. Cobb, OSB No. 05-07; SC No. S054584 (Ore. 7/17/08).  Here is the court’s conclusion:

Hoyt created and operated a fraudulent enterprise. For many years, the accused believed in the legitimacy of that enterprise and represented the partnerships that invested in it. The accused heeded the separate existence of those investor partnerships and each of the other entities that made up the Hoyt enterprise, including MLP. Ultimately, of course, the accused was wrong: The enterprise was not legitimate in either substance or form. But it took from February to November 1997 for the accused to understand that reality. That the accused did not act as promptly as he should have to disassociate himself from Hoyt and other aspects of his conduct in connection with the Hoyt matters are not above criticism. However, the Bar did not prove by clear and convincing evidence that the accused committed the ethical violations that it charges. We therefore dismiss the complaint in its entirety.