Did RE Loans “Park” Money?

It has come to our attention that RE Loans may have allowed some of its investors the ability and/or option to “park” money in the fund.  “Parking” is a term used to describe money that is deposited into a fund, but not necessarily invested in the fund.  Rumor has it that R.E. Loans offered a parking service for some of its preferred investors who wished to place their money somewhere on a temporary basis.  The interest earned may or may not be reported to the IRS, some have speculated.

For example, it seems possible that the $5,000,000 returned to J. Robert (“Eddie”)  Orton, III, on March 30, 2007, just a day or two before the “freeze” letter was mailed to investors, was money that had been “parked.”  Same with Len “Austin Val Verde” Epstein’s return, perhaps?

Does anyone have any further insight into this issue, whether or not it’s true and what it means?  If so, please share what you know.

3/1/2007            MCG Investments              2,000,000.00               wire

3/1/2007            Gifford Fong                        677,008.00            29875

3/9/2007            Len Epstein                        1,250,000.00               wire

3/15/2007          Kenneth Ambrose              1,600,000.00            29988

3/30/2007          J. Robert Orton, III            5,000,000.00               wire

4/9/2007            MCG Investments              6,691,300.00            30619

4/16/2007          Kelly Ng                               495,000.00            30728

4/23/2007          Gifford Fong                      3,365,569.00            30801

4/23/2007          Tim Fong                              661,419.00            30802

4/23/2007          Steven Fong                          661,416.00            30803

6/13/2007          Bruce Horwitz (16B)              100,000.00            31703

7/17/2007          Hudson Lending                 1,000,000.00            32206

8/23/2007          Bruce Horwitz (16B)              164,000.00            32760

9/12/2007          Bruce Horwitz                       300,000.00            33174

11/8/2007          Michael Ziegler                   2,900,000.00            34108

11/9/2007          Kenneth Nelson                 1,000,000.00            34127

12/7/2007          CP Trofie                              450,000.00            34624

12/20/2007        Steven Fong                       1,250,000.00               wire

12/20/2007        Tim Fong                           1,250,000.00               wire

1/23/2008          Walter Ng Investors              300,000.00            35443

2/1/2008            MCG Investments              1,576,817.94               wire

2/1/2008            Kenneth Nelson                    963,267.70            35825

2/1/2008            Kenneth Nelson                    394,710.82            35826

2/11/2008          James Peterson                      500,000.00            35863

3/31/2008          Walter Ng Investors                50,000.00            36794

5/23/2008          Carrie Johns                            16,670.10            37421

5/30/2008          Bruce Horwitz (16B)              100,000.00            37620

5/23/2008          Warren Snodgrass                  900,000.00            37430

5/30/2008          Bruce Horwitz (16B)              100,000.00            37620

6/2/2008            Walter Ng Investors              400,000.00            37781

6/23/2008          Bruce Horwitz (16B)              380,000.00            37875

6/23/2008          Bruce Horwitz (16B)              250,000.00            37878

6/30/2008          Walter Ng Investors              120,000.00            38232

6/30/2008          Richard Bedayn (015)            247,771.36            38462

6/30/2008          Richard Bedayn (016)            247,771.36            38463

7/31/2008          Bruce Horwitz (16B)              250,000.00            38706

7/31/2008          Walter Ng Investors              140,000.00            38779

8/8/2008            Tyler Hofinga                        330,000.00            38877

8/8/2008            Tyler Hofinga                        300,000.00            38878

8/12/2008          Ed Blumenstock                    250,000.00            38894

8/12/2008          Jeri Sacks                               227,921.11            38903

8/14/2008          Walter Ng Investors              150,000.00            38918

8/15/2008          James Peterson                   1,000,000.00            38923

8/21/2008          Robert Montgomery (IRA)    150,000.00            38946

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52 thoughts on “Did RE Loans “Park” Money?

  1. If the list in the first posting to this thread is supposed to be those who received investment returns it’s very possibly incomplete. I believe there are others who got some of their money back during the period indicated.

    In addition, everyone listed who received investment returns and/or interest payments after the beginning of July, 2007 is a ‘preferred investor’ over me.

    I made formal requests for a small portion of the principal investment in one of my three accounts at the beginning of July, ’07 and was denied by Bruce Horwitz, who told me that “the SEC” had “closed” the fund to payouts but that they could still take additional investments.

    Horwitz himself evidently received over $1.5 million after he told me that no money was going to the investors.

  2. In December, 2008, the Principal Life Insurance Company purchased, on behalf of it’s investors in their U.S. Property Separate Account, a $13.2 million “outstanding Mortgagenote,” secured by 16.25 acre parcel of land known as “Henderson Lofts” in Henderson, NV. By 12/31/2009, the GAV of the purchase was $3,480,000, and on 12/31/.2010, the GAV was $2.8 million. No other information was provided. Is there any likelihood that the purchase could have been related to the issues discussed in your blog? Your comments will be appreciated, as I am researching why the USPSA lost the 401k investors 50% of their savings in 2 years, and would like to start a blog similar to yours.

    • Dennis,

      The short answer is “maybe”. Can you share more details, if you have them? Henderson Lofts often comes up in our research and we know Henderson properties were on our list.

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