2nd Posting of the Evening – update on Wally’s BK

Please read the following update from Equitatus (with one caveat -Tracy Green from Wendel, Rosen Black & Dean has a history with REL investors – a blast from the past, if you will):

The bankruptcy court this afternoon approved Walter’s modification of notice requirement.

Everyone will get a one- time notification in response to which they can either opt (in) to receive all notices or not (opt out).

There will also possibly be a web site where the Creditors Committee will post information about the case.

A new attorney on the scene for Dr. Fredric Mendes who had an investment in RE Loan addressed the court on the notice issue. He suggested that not everyone had access to the internet or was tech savvy and the court and creditors committee should protect the claimants’ basic contitutional right to notice.

The meeting of creditors and examination of Walter is still scheduled for June 6, 2011 at 11a.m.see the notice on my blog.

http://equitatus.wordpress.com

This is going to be the most interesting and dramatic moment in the case. Walter will wilt under the relentless questions of investors and attorney alike.

A most interesting discussion took place in the hall after the hearing between the US Trustee, the newly proposed attorney for the creditors committee, Tracy Green from Wendel,Rosen,and Black &Dean of Oakland. There were about 15 investors present.

The hot topic of discussion was about the composition of the creditor committee. The US Trustee denied getting request to serve on the committee from several investors who said they had sent her a request. The US Trustee seemed to question the status of the REL and MF08 investors to be on the committee. Reason: They are not really direct creditors of Walter as an individual, and their individual claims were not large enough.

She was quickly corrected on both these points several investors but seemed unmoved to appoint REL or MF08 investors to the committee. She denied gettting any requests form REL or MFO8 investors to be on the committee. (See the form at the top of this string. Send it in to the US Trustee)

Attorney Brown then explained to her that Walters’s top 20 was a fraud, citing the history of reinvesting these out of state investors in RE Loans through Walter’s dummy fund. The US Trustee was unaware of this. Mr. Brown also asked her if she was aware of the FBI investigation or had talked to the FBI. She knew nothing about this.

Several investors offered to meet with her and bring her up to speed on the Walter. She declined. The general impression that one is left with is that she is not a warm and fuzzy protector of the individual investor. She seems be be above it all or she doing a job she doesn’t really care about.

Ms. Green on the other hand gives the impression is that she is intelligent and will work to protect all the creditors. She seemed more inclined to listen to the investors and was interested in all the information people were giving her. She said at one point that she was open to having REL and MF08 investors added to the committee and seemed shocked that individual investors standing in the hall had larger dollar claims than those already appointed to the committee.

If you miss the June 6 examination of Walter you will be sorry. It may be the only satisfaction you get in this case.

equitatus

June 1, 2011 at 4:44 pm Edit

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16 thoughts on “2nd Posting of the Evening – update on Wally’s BK

  1. I was there too and what Equitatus describes is very accurate. What I would like to know is what is Tracy Green’s prior history with RE Loans? She seemed to be the only one who had any interest (at least when we were all out in the hall) in trying to get notice to all “investors”. The US Trustee attorney was what people perceive as a government employee, disinterested and almost rude, but the bankruptcy judge himself was an extremely courteous, efficient judge – at least from what I could tell listening to presentations from 1:30 until 2 p.m. when I had to open the courtroom doors and tell the crowd outside in the hall that if they were interested in the Ng matter it had been called FIRST on the calendar with no one but the attorney for Dr. Melendez stepping forward. Good grief!!!!

    • I agree with Diiydarlin about the US Trustee.

      I expected more, but I believe we are going to get less.

      I wanted to be kind in my comments about her approach to this case but my god! can’t she see this is 3/4 of a billion $ tragedy for several thousand mostly retired people.

      I know the Judge gets it.

      • I really do believe the Judge ‘gets it’ and after reading the Ng Exhibit “B” to the financial ‘reports’ filed today as posted by Equitatus it is possible the US Trustee attorney may finally understand what is going on – if she reads Exhibit “B”. A basic problem here, as I see it, is that there is NO ONE speaking for/representing the ‘investors’ in RE Loans, LLC and/or Mortgage Fund ’08 even though the recently filed Ng financial reports clearly reflect that these ‘investors’ are people Walter perceives as ‘included’ in this bankruptcy proceeding. On the other hand, read the recent ‘memo from RE Loans LLC in which it takes the position that, because it is an ‘affiliate’, or “related entity’ of the Ngs (I don’t remember how it was classified) it, RE Loans, LLC, cannot/will not seek representatiaon on the Creditors’ Committee. It is a ‘catch 22”.

    • Equitatus: All I got in clicking on that link was Walter and Maribele’s Declaration. Were there also schedules attached or does the Declaration refer to the Exhibis A, B, and C you posted yesterday after the hearing?????

  2. Ms. Green and her firm were one of those contacted by a group of investors a couple of years ago in a failed effort to find affordable legal representation to pursue Walter and company for the return of our investments.

    Ms. Green and her associates were very cordial to all who attended the meeting in their offices but nothing of any real value came from the meeting.

    Unfortunately, the same can be said for other such meetings with other legal firms during the same period.

    Either they wanted too much money ‘up front’, too much on the backside (huge percentages of any awards), or both. Then there were those firms who simply didn’t want the case based upon how convoluted it would be.

    Still another wanted to sue the law firm that put together the infamous Reorganization Plan because the might have the ‘deepest pockets’.

    In the end, we who worked so hard and so long seeking legal representation ended up with nothing.

  3. I would like to know the time for Office of the US Treasury on Monday, 6/6/11. I felt Tracy Green,
    was in tune with the investor.

    • I’m grateful for this and all the info and work from you.We just want our money/principal and interest returned or Walter, Barney and Kelly to go to jail. Thanks very much.

  4. I will be flying up to Oakland on June 6th to attend. Does anyone know how long it will last? Thank you.

  5. It is set for 11 and there is another different hearing set there for 2pm. So it will either go to noon and a little past.

    Unfortunately not enough time to ask all the questions that need to be asked.

    • Thank you for your response. I am hoping to meet with other investors after the hearing, to discuss what had transpired etc.

  6. I am still in doubt as to proper way to answer some questions on the claims..Basis for claim..Is it Mortgage note??
    Is it recomended to add the last 30 months of intrest on to the totals claimed??
    One account REReno provided half my monthly income. which Walter renewed in Dec 2007..and told me it was solid investment and payments could continue long term..Since it was necessary income would it have priority over my IRA account..? Any help would be appreciated. thanks

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