Mortgage Fund ’08, RE Loans letter to Walter Ng and Kelly Ng

Three cheers for Mr. Jim McKenna’s letter to Walter & Kelly, linked here and copy and pasted below.

https://barkinvestors.files.wordpress.com/2011/02/jim-mckenna-letter.doc

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February 4, 20111

To: Kelly & Walter NG

From: Jim McKenna

Re: MF08 & RELoans

Having just received your Mortgage Fund 08 2010 Year End Summary I am disappointed in the information given and the apparent status of the Fund.  When 91% of the Fund is on unimproved land it shows that you two were not monitoring Barney as to the type of loans he was making.  Bruce had told me that all the land loans had permits and utilities.  Any way, we cannot change what is.

However, for both MF08 & RELoans better and more useful information can be given to us.  While I understand that you do not want to try to do financial statements in accordance with GAAP as it is almost impossible to fairly value the assets there is other financial information that could be provided.

In past years when everyone was receiving their interest at good rates no one cared about your expenses but now that both funds are in trouble you should prepare at least annual recaps of cash receipts and disbursements.  This would show where the money is coming from and where you are expending it.  We have a right to this information.  The expenditures to protect the assets should be detailed enough for us to understand.  Also, fees paid to yourselfs and other experts hired should be separately shown and told how they were calculated.  This would at least be fairer disclosure.

Also, for RELoans a recap of monies paid to Well Fargo note indicating breakdown as to how they have been applied and reconciling the balance at the start of each year to the balance at each year end.  Most of us investors feel this loan is cannibalizing the entire fund and could cost us to loose our entire investment.

What I have requested above is not costly to produce.  You probably already have it in some form already. If you need guidance as to how to do this I would be pleased to assist you and your staff.

I hope you will seriously consider this request and I would appreciate a reply from you.

Thanks.

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21 thoughts on “Mortgage Fund ’08, RE Loans letter to Walter Ng and Kelly Ng

  1. Mr. McKenna,

    Thanks very much for your on-point letter to the Ngs!

    What we receive from them and JW is nothing more than highly-frustrating pacification.

  2. BRAVO MR. M,CKENNA…YOU ARE RIGHT THESE QUESTIONS SHOULD HAVE BEEN ANSWERED EARLY ON IN 2009! THE NGS HAVE SHOWN US NO ACCOUNTABILITY FOR THEIR ACTIONS REGARDING OUR INVESTMENTS…WE NEVER GAVE THEM CARTE BLANCHE TO INVEST OUR HARD EARNED SAVINGS BY ALLOWING BARNEY NG TO PURCHASE WORTHLESS UNDEVELOPED LAND ETC…WHILE HIS POCKETS WERE LINED BY COMMISSIONS EARNED AT THE OUR THE INVESTORS EXPENSE. THE SO CALLED FAVORITE SON BILKED US ALL AND CONVENIENBTLY RESIGNED. HOW MANY BANNKRUPCIES AND LAW SUITS WILL IT TAKE BEFORE WE SEE THE NGS FOR WHAT THEY ARE “WOLVES IN SHEEPS CLOTHING”…ALL THE TIME TELLING US TO REMEMBER THE GOOD OLD DAYS………..

    • Though there is a lot of important information on this forum,we have to DO something about it.THERE WAS GROSS WRONGDOING and FRAUD and at least in mortgage fund 08 a PONZI SHEME! We have to go again to the SSC.There is more and more evidence that they commited FRAUD and in the back of their mind,they must be afraid that they might be criminally held responsible.When they paid all the money to their friends you can be sure that they also paid themselves.B.& S. W.

      • The SEC Complaint form is available and can be completed and filed on line. The SEC will not longer simply accept e-mail complaints; you MUST use the form and you must tell your complete story and complaints or nothing will happen as far as the SEC is concerned. It is an underfunded and overburdened agency. You should stress the total $$$ involved and the total number of investors, especially including, if you know, any out of state, meaning out of California ‘investors’.

  3. I know out of state investors. But is there a reference post I could point them to for some of the key points, like how many investors and how much money? I know a few in state investors as well, who would like to file an SEC complaint, but don’t have the full background info to make a strong complaint. I think most of the investors are somewhat isolated, so they don’t know the particulars beyond their own friends and family.

    • The investors your refer to need to tell their OWN story of what happened to them and how. Go to the SEC website and find the SEC complaint form. In RE Loans LLC, as I understand it, there is about $777 Million involved from about 2800 investors (although some of those may duplicate accounts). The SEC Complaint form will lead the person complaining through the form. It is the story of how each individual got involved in RE Loans that will, I believe, require the SEC to take notice. For example, how were they contacted, who contacted them, what were they told, who told them, were they represented by a broker/dealer who assisted them regarding the investment, when did they invest, how much did they invest, were they given an Offering Circular or anything else in writing to review before making their decision to invest; in other words, WHY did they make this particular investment; what and on whom did they rely in making their investment decision. Get the SEC form of Complaint. Look at what it asks for and if you have further questions, post them. Someone will try to answer them – probably Robert Brower.

  4. I filed mine today. I don’t hold out any hope that the SEC will take notice. If I don’t hear back from them within a few weeks I’ll file another complaint.

    • go for it, not one more day – but what’s the point? call the FBI – tell them your story and deliver actual facts as to why you believe laws were broken. Enough of this empty banter. Action, please.

    • To Not one more day: You KNOW where the Lafayette office is. What’s holding you back? Go demand what answers you want!

        • Sorry….didn’t know that. You didn’t ever say what response you received from your several visits to the Lafayette office. What responses did you get – who did you get in to see????

  5. Being careful not to make any allegation without proof to support it, if any monies were used from Mortgage Fund ’08 to pay Bar-K amounts owed/due or to purchase what turned out to be worthless Bar-K loans/debt, such acts would seem to amount to criminal activity (i.e. “kiting,” “Ponzie,” or “Pyramiding”). Monies in a one account (’08) cannot legally be used to pay investors in another, separate account.

  6. Has not the August 5, 2011 date been properly extended per the posted “Stipulation among debtors and R.E. Loans, LLC, et al”? Thanks

  7. Has the not Aug. 5, 2011 deadline/date been properly extended per the posted July 19, 2011 “Stipulation Among Debtors and R.E. Loans, LLC et al”?

  8. Only as to RE Loans and other entities. Your personal right to hold Walter individually responsibe for fraud will be extinguished forever. Do you really think
    anyone representing RE Loans is going to go after Walter for fraud?

    There is some group think going on around this isse now. I expect by middle of next week people should have their ear to the ground, (This blog and my blog) and be ready to follow advise. I wouldn’t hold my breath that the Creditors Committee or the US trustee will protect these rights.

  9. It is 2012 & still we have no answers! Yet the Laffeyette office is still open & there sits Kelly & Walter Ng like the Cheshire Cat in Alice in Wonderland with their silly grins & our money. Are they not accountable for defrauyding their unsuspecting Investors? Their last Thank-You dinner they gave their Investors Walter gave his famous speech, “Our Investment group has never lost a penny we have again been able to provide our quarterly dividends.” To whom? 4 months later there were no more dividends ! 4 years later no dividends are forthcoming…& the Ngs say it could be another 4 years until Investors see any return on their investments. Yet it seems like “business as usual.” Where does that leave the Investors?

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