A Fun Exercise

The Bar-K website has a Frequently Asked Questions (“FAQ”) section.  Though the link says it will be updated frequently, it seems as though it has never been updated at all.  We should take it upon ourselves to pose some questions.  Whaddya say?

We’ll start with a few simple questions we would love answers to:

Where’s our money?

Will you pay us soon?

If you won’t pay us soon, where DID the money go?

Who’s to blame?

Readers…it’s your turn.  Tell us what questions you think should appear on the FAQ section of the Bar-K website.  Pretty please?

 

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60 thoughts on “A Fun Exercise

  1. According to the CRO, there is $119Million in bucket 1
    more than enough to pay WF off.

    How is that workin for you Jimmy? You going to sell even half of those great properties?

  2. John,

    Why are all your readers so quiet?

    a) Have their fingers crossed hoping for good news
    b) Have gone into a deep depression
    c) Are intimidated by the Ng Gang
    d) Think they are above the fray
    e) Are waiting for someone to rescue them
    f) Don’t want to seen as disloyal
    g) The average loss of $500k doesn’t bother them.
    h) They are plotting their revenge
    i) They don’t know about this bolg
    j) Are too embarrassed by their bad judgement
    k) Don’t want their kid to know
    l) Are real true friends of Bruce Horwitz
    m) Are waiting for another free Chinese dinner
    n) Are paralyzed by fear
    o) Live in Alamo
    p) Looking for someone else to do all the work
    q) Don’t give a shit about anything but golf
    r) Waiting for the CRO report
    s) Waiting for a sign from God
    t) Waiting for advise of the creditor committee
    u) Are drunk or on drugs
    v) Praying for redemption
    w) Are in denial still
    x) Don’t trust anyone anymore
    y) Other more personal reasons
    z) All of the above

  3. Fellow investors,

    I’m as sick about our predicament as anyone else…My wife and I have funds in RE Loans and ’08. We live in WA state now, but if I were closer, rather than just blog, I would join forces with others to visit JW’s office, and Walter/Kelly’s office to protest and demand some answers and action. Done from a distance has not produced anything. Has this approach been considered by anyone? What about opening up this chicanery to the media?
    Is there an attorney among us who could advise about the efficacy of a class action suit, before the statute of limitations runs out (likely the reason for abject delays by the antagonists.
    Just expressing my thoughts and a few questions as solicited.
    What say you?

    • To our knowledge, there have not been any attempts to contact the media. Certain investors have been working with attorneys and others have contacted state and federal agencies, though we are unaware of the outcomes of these inquiries. The more people do – anything and everything – to spread the word about what happened to us, the better off we will be. We have a supposed Creditor’s Committee hand-picked by Walter that answers to Walter and Weissenborn. Even though they are supposedly in our boat, they are bailing water for the guys who got us in this mess in the first place. So, Frank, to be frank, we have offered the idea of a picket/rally, which nobody seemed interested in, we have offered this blog as a way to publicize our plight, but also to share our insights and knowledge and, although we have hundreds of readers, only a few choose to share, we have cheered Mr. Collins’ efforts (and Mr. Brower’s), yet the majority remains lethargic, at best. We, the very few who speak, including you, Frank, as well as Equitatus and others, remain the vocal minority. The vocal minority, though, can still make A LOT of noise, so it’s about time we figure out how to do just that, no matter where we live, how much time we have or who we are.

      • F.Y.I. Apparently many Bar-K investors have contacted the Contra Costa Co. District Atty.’s Office to investigate any wrong doings with reloans. Upon the D.A.’s investigation they have turned the matter over to the F.B.I. The F.B.I. agents name handling the case is Christina Boules ( victim coordinator ). 415-553-7400

        • SINCE ALOT OF US ARE RETIRED ISN’T THEIR SCHEME CALLED ELDER ABUSE..WHERE ARE OUR RIGHTS AND WHY DOESN’T THE FBI TALK TO US AS A GROUP…THE NG’S CAN SAVE THEIR ROSES AND GOLDEN DRAGON CHINESE DINNERS AND PUT IT WHERE THE SUN DOESN’T SHINE “SIDEWISE!!!” AND WHERE IS THE PERSONAL GUARANTEE FOR OUR MONEY THAT WALTER NG TALKED TO ME ABOUT A FEW WEEKS AGO???kELLY SAID HIS FATHER IS………YOU FILL IN THE BLANKS…..I THINK ALL 3 NGS AND BRUCE HOROWITZ ARE LAUGHING ALL THE WAY TO THEIR BANKS…OFFSHORE ACCOUNTS!!!!!!!!!!!! BY THE WAY HOW IS IT THAT THEY HAVE MONEY TO PAY THEMSELVES A SIX FIGURE SALARY EVERY MONTH!!!!!!!!!!!!!

  4. Frank,

    I understand your concerns.

    Many of us are waiting to see how the round of
    demurrer’s go in the Collins v. Ng case in Contra
    Costa Superior Court. You can find the Collins case
    and track the docket at:

    http://icms.cc-courts.org/iotw/

    The case number is 10-02950

    This case was filed by contributor attorney Robert Brower.

    I have not read the complaint but I understand
    it names the funds accountants and advisers,
    who unlike the Ng’s or the fund itself have insurnace
    policies.

    The fact that these policies are nowhere near the limit of losses in this disaster is good and bad news.
    Should they be held in the case, a policy limits demand could be made by groups of investors who later file suits. If they fail to pay the policy limits it
    may act to remove the limits on the policy thereby covering all losses.

    Many of us believe that the Ng’s will be forced into
    Bankruptcy as their deeds catch up with them.

    The funds may also go into bankruptcy.

    We are also waiting to see what the CRO and the current valuation of the fund is.

    • Equitatus,

      Thank you sir for your thoughtful response. Sounds like we have to still play the waiting game, which is gut-wrenching to say the least.

      Anyone else out there have any solid ideas or thoughts?

      Speak up please!

      • Yes. Call the Attorney General’s office. Call The SEC. Call the Department of Corporations. Call your Senator, Congress, your local representative, the newspaper, the radio station, post more on this blog, post on other blogs, hire an attorney, start a letter writing campaign to any or all of the above and get other investors involved. Waiting is an option, but it is not the only option.

        • You might consider letters to Senator Barbara Boxer.

          Make the following points:

          1. Ronald and Mary Langenbahn, two investors from Murphys, California, sent a letter to Senator Boxer explaining in detail how they were suffering from the freezing of R.E. Loans’ disbursements by Wells Fargo Foothill, attaching some letters, including the November 3, 2008, letter signed by Bruce Horwitz, Walter Ng, and Kelly Ng. (You might attach a copy of that letter to your letter.)

          2. Senator Boxer’s Director of Constituent Services, Eric Jose Vizcaino, referred the Langenbahn’s letter to the SEC with his letter dated July 10, 2009.

          3. The SEC had an investigation open. The two investigators, Sahil Desai and Michael Fortunato, however failed to discover that the managers of R.E. Loans willfully violated the rules and regulations of the SEC by selling unregistered securities in California, by using the United States mail to sell unregulated securities to investors in other states, by laundering out-of-state money to make it look like California money, by running a Ponzi scheme, and by intentionally concealing that Ponzi scheme from the SEC during the investigation.

          4. Ask her why the SEC closed the investigation without reporting back to her.

          5. Ask her to refer the case to the United States Attorney’s Office for a more comprehensive investigation by the FBI.

          6. Ask her to have a hearing to find out why the SEC failed more than 2,000 California investors with more $700,000,000 of their savings, most of it for retirement, and how the SEC process could be changed to be more effective in the future.

          7. Explain in your own words that when this story hits the media, it will be another example of the SEC’s failure to uncover a Ponzi scheme, like Bernie Madorf, but this one was known to her and this one affects thousands of her California constituents.

          8. It is very important to include a summary of your own case and how the SEC’s failure has harmed you.

          9. Send original copies to Senator Boxer’s offices in San Francisco and Washington.

          This might be effective if there are at least 5 letters from different investors.

    • The case number you mention seems incorrect as I understand it, for the Dixon Collins case – it needs letters to indicate the court – eg Walnut Creek etc. Can you post the full details of the reference and which court is hearing the case?

      Thanks

  5. Questions

    First, I can’t seem to find a copy of the Nov 3 letter cited above. Can someone post it please.

    Second can someone explain why the Alegria complaint was dismissed?

  6. The Alegria/Grassi dismissal.

    First, some background.

    John Scott Alegria and Linda Grassi invested $1,350,000 in November 2007. The money ended up in Mortgage Fund ’08 secured by a note. They needed to withdraw part of their investment, but ran into the unfulfilled promises of Kelly and Walter Ng. These conversations are alleged in Paragraphs 71 through 74 of their First Amended Complaint. After threatening a lawsuit, they did receive $55,000. Linda Grassi alleges that in one of her conversations with Kelly Ng, Kelly said that up until September 2008, Mortgage Fund ’08 had no money to fund interest reserves for its construction loans; they had been taking in just enough money in new investments to just pay the ongoing interest obligations due to current investors. (Paragraph 79.)

    Alegria and Grassi hired Robert Huddleston’s office and his office filed a complaint alleging the existence of a Ponzi scheme. The defendants, which included Walter, Kelly and Barney Ng, hired Greenberg Traurig who started a scorched earth defense. Alegria and Grassi very soon ran out of money to finance the case, especially in light of the aggressive defense.

    The case settled with a dismissal without prejudice and the settlement is secret. It has been reported that Alegria and Grassi got some money to pay Huddleston’s fees.

    Here is the interesting part of the story.

    Alegria and Grassi were right; Mortgage Fund ’08 was a Ponzi scheme. What they did not know was that Greenberg Traurig was actively involved with the Ng family in the cover up of the Ponzi scheme, and that Greenberg Traurig was actively involved as counsel helping the Ng family dodge the Ponzi scheme bullet in the SEC investigation, which was pending when Alegria and Grassi were trying to prosecute the case.

    The SEC received a copy of Alegria and Grassi’s complaint, but there is no indication that the SEC grasped the significance of the allegations in their case.

      • I think that there is a simple explanation.

        The SEC investigation was conducted by Sahil W. Desai, an SEC staff attorney (California State Bar No. 197358), and Michael A. Fortunato, an SEC staff accountant. They served subpoenas for documents and they asked R.E. Loans and Greenberg Traurig to deliver those documents to the SEC offices in San Francisco. The SEC off-site investigation failed to discover the operative facts of the Ponzi scheme and the investigation was concluded with no action.

        The DRE investigation of Bar-K was conducted by Michael J. Rivera, a DRE staff auditor with more than 20 years of experience. For his audit of Bar-K, Mr. Rivera went to the Bar-K offices and conducted his investigation on-site. The DRE on-site investigation led to charges against Bar-K and Barney Ng, a trial, and a conviction.

        So the simple explanation is this: If you want to investigate a crime, then go to the scene of the crime.

    • Here are some more details.

      The Dixon Collins case is filed in the Contra Costa County Superior Court. It is currently assigned to Judge Judith Craddick, who sits in Department 9 in Martinez. Directions to the courthouse can be found on the court’s website.

      You can follow the case on the court’s website by entering through “Open Access” and logging into the Martinez branch.

      Use the case name search with “Ng” and “Walter” which will give you a list of cases against Walter Ng, including Dixon’s case and the two Stewart cases.

      You will not be able to see scans of any of the documents because the court does not have a scanner or the staff to run one.

      The website closes every night for several hours, so if you cannot log on, wait till morning.

      The first meeting with the judge to discuss scheduling and Alternative Dispute Resolution (ADR) will take place on March 2, 2011, at 8:30 am. The judge might set a trial date.

      Every session of the court is open to the public. Arrive early if you want a seat. Turn your cell phone off or you will lose it if it rings. The court’s deputy sheriffs use all the confiscated cell phones as targets at the shooting range.

      If you attend and have questions after the hearing, we can meet for coffee and I will try to answer them.

      • If you attend and have questions after the hearing, we can meet for coffee and I will try to answer them.

        Trolling, trolling, trolling. Nothing like an ambitious attorney trolling for new clients.

  7. I’ve sent a letter to Barbara Boxer. How many others have sent them? I’d like to know if we came up with enough to get her attention.

  8. I just became aware of this blog and have some catching up to do. If Collins wins his case would a class action suit be filed by Brower.

  9. Should we contact the media? Would it help or hurt to have it written up in the Chronicle, for example, or mentioned on one of the TV stations? It’s certainly big enough to get their attention.

      • The poster asked if it would help or hurt. Why do you think that having the R.E. Loans story mentioned in the media will help and not hurt?

        It seems to me that all the media attention to the Siena Hotel story did not help the investors in R.E. Reno.

        • Here’s our $0.02 (which is really only worth 12% of $0.02): Why should anyone care about us or our plight? All we do is sit back and keep our fingers crossed hoping and praying someone will swoop down from above to help us. We can’t even help ourselves, or maybe it’s simply that we won’t help ourselves. Sure, if someone wants to sit down and devise a proper media and pr campaign, please do so. Otherwise, let’s not stifle the very limited amount of motivation emanating from this crowd. We say scream it from the rooftops, because nobody gives a flying f*** about us right now.

          • LET’S STORM THE OFFICE……IT IS THE ONLY WAY TO GET ANSWERS….THEY CAN SAVE THEIR LIES FOR THE FBI…WE LET THEM GET THIS FAR LET’S GET OFF OUR ASSES AND DO SOMETHING….TOGETHER11111WHY DO YOU THINK THEY ONLY ALLOWED 20 INVESTERS AT A TIME IN THEIR MEETINGS! IT IS NOT TOO LATE LETS HAVE THE FBI INVESTIGATE THEIR BANK ACCOUNTS…OUR ACCOUNTS HAVE BEEN EMPTY FOR 2 1/2 YEARS AND THURS KELLY SAID IT WILL BE SEVERAL YEARS BEFORE ANY OF US SEE ANY MONEY…THAT IS TOTALLY UNACCEPTABLE!

  10. My opinion on involving the media at this time is, unless you get a real dedicated reporter who has the time to work this story thoroughly, you will get a superficial and inaccurate coverage. That is definitely the way it would go if you go the attention of the sound bite TV news.
    What we should do is involve tried and true investigative journalists, from independent publications like the New Yorker or Atlantic Monthly. Local newspapers and TV will not do this story justice.

      • Start local and it will grab national media interest. The Ngs are hibernating in the warmth of all the Ponzi collections while their self-appointed chaperones (who are on our payroll) are cleaning and mopping.

        Media attention will start hounding them to come out in the cold (where noteholders have been living ever since) and come clean or succumb to new regulatory probes.

        Is there someone who wants to be the point of contact for media? If there is no one who can feed the media’s information needs, they may not get to the depth of this massive Ponzi scheme.

        I may be able to help guide this process and help wherever possible. In the meanwhile, if you have some sort of a fact sheet, start with this media as it is fresh on their agenda.

        http://www.ft.com/cms/s/0/9eeeb3ec-2020-11e0-a6fb-00144feab49a.html#axzz1CiKzxJy4 (via FT)

        • The link to the story may not work – if it doesn’t, conduct a search for Westridge Capital + Ponzi and then get to the FT story.

  11. I have come across this blog just in the last few days so perhaps a lot of the note holders don’t know about it…hence no responses. To get a flood of letters to Barbara Boxer we need to inform the great majority of investors. How can we bring this to the attention of masses of investors? Could one get access to an e-mail master list of the note holders? Is there anyone in the R E Loans office who would cooperate? Any other way?

  12. Even if someone an mailing address list we could send out letters to let people know about this blog. I’ll pay the mailing costs.

  13. KELLY SAID THURSDAY THEY NEED TO KEEP THE OFFICE OPEN TO HANDLE BUSINESS…WHO WOULD HIRE HIM AFTER THE HONORABLE NG FAMILY CHEATED 2600 INVESTORS OUT OF THEIR LIVES SAVINGS…SHAME ON THEM!!!!!!!!!! GOLDEN DRAGON FORTUNE COOKIE ANYONE? WALTER SAID HE INTENDS TO HONOR HIS GUARANTEE ON OUR MONEY….PLEASE KEEP YOUR WORD WALTER…HE ALSO SAID THEIR SHOULD BE A DISTRIBUTION SOON…KELLY SAID IT WILL BE SEVERAL YEARS BEFORE WE SEE ANY MONEY….BUT HE SEES HIS PAYCHECK EVERY MONTH…IUT DOESN’T TAKE A ROCKET SCIENTIST…OR DOES IT?????????????

  14. John Robbie,
    As the moderator of this blog can you somehow straighten out the lack of chronology of the posts.
    They are getting all mixed up I just found Dave’s
    Feb 25 post about the FBI agent in charge of the investigation buried between January 24 and 31st postings?

    Maybe start a new thread called FBI. I intend to call this agent on Monday morning and will report back to
    all then.

    • Will post an FBI thread. The blog has it’s challenges and it has been brought up by others that it is a bit difficult to navigate these days. We’ll work on finding some new technology to improve the product.

    • THE NG CLAN AND DR. HOROWITZ BETTER TAKE A LESSON FROM THE OLD DISNEY CLASSIC PINOCHIO…THE CAT IS OUT OF THE BAG……….AND YOUR LIES WILL CATCH UP TO YOU….REMEMBER..IF YOU HID ANY OF OUR MONEY YOU LINRD YOUR POCKETS WITH IN SWISS BANKS THE US GOVERNMENT HAS A RIGHT TO CHECK IT OUT! NOW STAnd up AT ONE OF YOUR YESTERYEAR GOLDEN DRANGON BANQUETS AND TELL US AGAIN..WE HAVE NEVER LOST A DIME OF YOUR MONEY…NO YOU LOST IT ALL…SHAME ON YOU…KARMA…THINK KARMA…….

      • Dear Wake Up: Let’s tone down the rhetoric, okay? We’re about solutions. If you have valid insights or strategies, please offer them up. We understand the need to vent, but this isn’t the forum for such venting. By the way, ALL CAPS = SCREAMING in internet speak. Are you aware of this?

  15. John,

    I agree. Lets exchange information and take a few well deserved digs when we can, but we need to civil.
    Don’t get mad, get even.

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