The Long Trail Of Lies Continues

Walter’s letter to RE Reno investors, dated November 11, 2010, states that the sale of the Siena “has not closed as of November 15, 2010.”  That’s just the beginning of the absurdity contained within Walter’s letter, found HERE.

Walter states that “it appears likely that the aggregate distribution to R.E. Reno from the sale proceeds will be in the range of $2 million to $2.5 million.”  Is Walter so senile as to actually believe that RER will command over half of the sale price when companies like IGT, Konami Gaming and the various city and state agencies are all vying for the proceeds?  This is just another case of half-truths and nonsensical blue sky B.S.

In order to soften the blow to the hard working, earnest RER investors, Walter goes on to stick a hot poker in their eyes with this statement:

“While this is very disappointing to all concerned, R.E. Reno investors have received over the life of the investment aggregate distributions of $32,250,000.”

Absolutely absent from this insincere letter is what happens to the RE Loans investors who put in $21 million of their own money into this failed hobby.  Walter, what is the return on our $21 million investment?

Walter then takes a swing at his formerly favored son Barney.

“Barney Ng has apparently informed some of you that counsel for R.E. Reno was some how responsible for the truncated marketing process or the failure of WGN to raise sufficient capital to continue operating The Siena.  He has apparently indicated that counsel refused to meet with a proposed “white knight” who was purportedly offering to provide new senior secured debt financing, which would have subordinated R.E. Reno’s mortgage, to fund WGN’s continuing losses.  These statements are untrue.  At no tie did R.E. Reno or its counsel refuse to meet with either WGN or any proposed investor.  R.E. Reno informed WGN and the proposed investor that R.E. Reno was prepared to meet, but absent something extraordinary, R.E. Reno would not be willing to subordinate its debt to new loans that would be used to fund ongoing losses.  R.E. Reno asked for a business plan and suggested that at least part of any new money would probably have to be invested as equity, junior to R.E. Reno’s secured debt.  No such business plan was ever submitted by WGN or the proposed new financing source.”

IF Walter can be believed, and that’s a BIG IF, Barney sought to subordinate his investors again simply to continue soaking his investors for everything they had.  Another WFF bailout would have put millions in Barney’s pockets, allowing his casino joyride to continue for some amount of time.

Walter spends a page and a half playing the blame game and pointing his finger at everyone but himself.  He takes no responsibility for his actions and he fails to recall the personal guarantee he signed to every single one of his RER investors.

P.S. Bruce is not absolved here, either.  He was the one who sweet talked people into putting their money into this crock.


69 thoughts on “The Long Trail Of Lies Continues

  1. Thanks for the clarification. It wasn’t clear from the earlier posts that the Google group had no relationship to this blog. Perhaps John doesn’t have the time or interest in starting and maintaining another outlet, and it doesn’t have to be him, but he is more integrated into the issue than most investors, so I think anyone else would be reluctant to start a forum.

    I suggest continuing to distribute information in this blog and adding a discussion board linked to it, where threads in different topics could be maintained and point back to posts here, so as people search the internet they can easily get up to date. One hundred and seventy people is a good start, but that’s probably less than 10% of the people affected. And for those on the fence, who have trusted the Ng’s for decades, being able to see what other people have posted might be a good wake-up call. Especially if people realize that the Ng’s have moved on with the new project which I’ve heard may now be making payments to investors, while the old accounts are left to die and probably be drained of assets.

    • The Ngs have moved on to a ‘new’ project? What new project are you referring t? That certainly might create a conflict of interest which should be explored by Mr. Brower or others with knowledge of the inner workings of the Ng ventures.

  2. Thanks for sorting out who is operating what medium.

    Mr. Brower… Is the email list still active, (beyond organizing the meeting,) and if so, how can investors get on the email list?

    Bert Kurtin– Have you considered modifying the screen message where people go to sign up, so they know you’ve got a list of investors that you’re matching against? Right now it leaves the impression that someone is trying to collect information. Without the benefit of your explanation, I think a lot of people would think twice before typing that info to strangers, unless they had some reassurance from someone already affiliated with the Google group.

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