If you haven’t read this yet, please do….

…and thank you to Richard Brown, Esq. for his hard work.  Putting together a complaint of this nature isn’t easy.  It’s painstaking and time consuming.

http://equitatus.files.wordpress.com/2011/08/mendes-class-action-complaint.pdf

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19 thoughts on “If you haven’t read this yet, please do….

  1. Along with the thanks, bouquets and applause to Richard Brown, Esq. for his remarkable Complaint which is succint, comprehensible, and stunning. No doubt he has invested a staggering amount of energy and time to create a document to benefit in Court “the Class” investors inflicted with great, gapping mental and economic wounds suffered because they trusted the wrong people . Thank you, dear Mr. Brown. AND, for those of you that have not read it…it is the map of your horror story and nightmare. Read it and know.

  2. Congratulations to Attorney Brown for a well documented class action complaint. And THANK YOU Mr. Brown!

    I have but a couple of questions;

    1. Why was the matter of the “vote” for reorganization not discussed?

    Documentary evidence will show that it had to have been the Ngs themselves, along with a few of their heavily invested ‘friends’, who had to have been considered the “majority in interest” who voted for the reorganization if, in fact, there ever was such a “vote”.

    The “vote” itself is highly questionable and very probably another example of fraud committed by ALL FOUR managing members.

    The extremely short period of time between when the investors received the ‘proposed’ Reorganization Plan, along with ballot for the “vote”, and the time that we, the now ‘Noteholders’ were notified that the reorganization had been approved by a “majority in interest” would lead any cognizant person to conclude that the “vote” was a sham and that the implementation of the ‘plan’ had already been put into place before the reorganization documents were ever mailed to we investors.

    2. Was the omission of the debacle that is/was RE Reno, LLC, One South Lake Street, LLC, Wild Game Ng, etc., commonly referred to as the Siena Hotel loan, intentional? If so, please explain why.

    The $50MM that Barney Ng borrowed from, and never repaid to, his father was our money; acquired by Walter from both RE Loans, LLC and many private investors outside of (but many also invested in) RE Loans, LLC.

    The fact that Walter and Kelly failed to follow through on their REQUIRED duty to foreclose on Barney Ng and his several entites surely seems important in the scope of the class action lawsuit.

    In addition, the ‘personal guarantee’ issued by both Walter and Barney Ng to we investors in RE Reno, LLC is obviously another example of fraud. It was a document issued to induce investment but which was deceitful in it’s purpose. Demands submitted to Walter Ng to honor his ‘personal guarantee’ have been ignored and the Ngs themselves have referred to it as a “feel good” document, one without force of law.

    3. Why is Barney Ng not included in the suit?

    His deceitful, self serving actions from the beginning to the end of RE Loans, LLC are a direct cause of, and a major influence to, the failure of the fund.

    Barney Ng is no less culpable, and is probably more so, than the other three ‘Partners’.

    Why was so little attention given to Barney Ng as the fourth ‘Partner’ in B-4 Partners and as President of Bar-K?

    Please don’t conclude by these questions that I am ungrateful for the extraordinary amount of time you obviously spent researching and preparing for this much sought after action on behalf of all of we investor/noteholders. However, I personally believe that the questions, and more importantly the answers, are necessary for a through investigation to be conducted and the resultant facts and history of this disaster to be wholly presented.

    Once again, THANK YOU for your efforts on our behalf.

    AnotherNgVictim

  3. Perhaps Barney wasn’t included because this is an Adversary Complaint to Determine the Dischargeability of Debts in WALTER and MARIBEL NG’S Bankruptcy Case No.11 45175 RLE.

  4. I agree , everything was decided and in place before we got the papers on the so called vote…I think they are trying to keep Barney as clear as possiable for a reason…. ..I dont believe the family has split..but they want us to believe it..

  5. “Why is Barney Ng not included in the suit?”

    I could have phrased this better. More correctly I should have asked why Barney Ng was not mentioned more prominently in the suit. Kelly was mentioned many times, Barney perhaps once or twice, and as the “other son”.

    My point is that Barney is a least as responsible for this debacle as any of the other Partners and, in my opinion, more so. Don’t forget that Barney was the President of Bar-K.

    And I mention the Siena loan because Walter owes us $50MM for that one and he failed in his fiduciary duty to try to stop the total failure of the loan by choosing not to foreclose on the property while it still had some value.

    • Rather than thinking of it as a $50 million dollar hotel that sold for about $3.6, I have ask, was it ever appraised anywhere near $50 million, or even $10 million, by any real licenced appraiser not affiliated with the Ngs?

      Barney bought an old hotel for under $3 million and renovated it to 214 rooms. Now that we’ve all realized that the California Office of Real Estate Appraisers, (and all other states,) have no record we could find of Barney Ng ever being a licensed real estate appraiser, I’m wonder if the $50 million+ was ever all spent on the hotel, or did this project have some mysterious holes where money slipped through, unaccounted for?

      New owners renovated and changed the whole look of all the rooms and main public space for about $5 million.

  6. All complements for the class action complaint should go to Robert Brower who drafted excellent adversary complaint which was the basis of my complaint.

    • Mr. Brown is not only a humanitarian but a certified gentleman as well. Wizard smart too.

      Yes, Mr. Brower is something special…centered, intense and fascinating in his execution to duty in the court room.

  7. It is hard to see how to thank Robert Brower and Mr. Brown for their amazing work … all of us who are not “legal types” are so grateful!! We are happy to contribute to any work going forward, but do not see how to get connected with those efforts.. Please … let us all know how to move forward!! We are part of Mortgage Fund 2008 and contributing but not sure how to connect with other folks with our main losses in RE Loans, etc… Arlyss

    • Get your password from Susie at the office, then you should be able to go on line and pull up your portfolio. Or, just ask the office what is your balance as of today in MF08. I am curious to hear the answer. At the bankruptcy hearing, someone said they heard the attorney’s state that MF08’s portfolio was 0. I find that odd unless something not so good happened yet again. $85m just doesn’t disappear.

      • “$85m just doesn’t disappear.”

        Perhaps there is some fracture in the time-space continuum around Lafayette, which causes large amounts of money to disappear into space? Because not too many years ago, there was $750 million, then there wasn’t, and $50+ million for a hotel which appears to have less than half of that amount spent on it.

        All those millions Walter was paid for his work over the years also seemed to have vanished, because he’s bankrupt now.

        Space Aliens, gremlins, gophers, large amounts of cash in safety deposit boxes, treasure chest buried somewhere, offshore accounts? I guess anything is possible.

  8. Request enlightenment by someone in the know…Mssrs Brower, Brown, Equitatus, et al…

    We received a copy of a court order signed by Judge Efremsky granting a stipulation to extend deadline to file complaints (BK code 523) until 11/15/11. Our names (spouse and mine) did not show on the list of creditors, even though I sent the Judge a letter of complaint (not a filing) to which no reply was made as of yet. Attorney Kaplan’s name appeared on the notice as return address.

    What relevance does this have to us and other investors not shown on that particular list?

    Any other thoughts?

    Thank you.

    Frank

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