The Clerk of the Bankruptcy Court entered a Default against Walter Ng, today, September 23, 2011.  You can read the doc <here>.
According to attorney Richard Brown, taking a default in an adversary proceeding is a multi-step process.
He noted that many if not all who filed adversary proceeding have not served them and/or have not filed a proof of service.  The court might take action to dismiss your case unless you dismiss it, sign Walter’s Stipulation (not recommended),  serve the complaint (recommended action), or take Walters default (recommended as well).
Here is how you can do all of that:
1.     The complaint and summons need to be served by first class mail on the Ng’s and Gary Kaplan (use a copy of your summons and complaint.  Make sure the complaint has your adversary complaint number, which is on the summons).
2.      A proof of service needs to be filled out and filed with the court.
3.      You have to wait 30 days from date of service to take the next step, filing of request for default. and a request for Judgment.   The 30 days starts from the date you mail the summons and complaint to Walter.
4.      Next prepare two documents.  Affidavit Request for Entry of Default,  and  Request for Default. ( See sample Affidavit Clerks Entry of Default,  blank b260_pdf_fillable and Docket_7_Request_to_Enter_Default) Entry.
File these two documents.  The clerk should publish the Entry of Default within a day. See Docket 10 Clerks Entry of Default.
5.     Prepare two more documents  Affidavit Default Judgement ( Affidavit  Request for Clerks Entry of Default Judgement  ) and Form 261a  and example  Docket 8  request for entry of default judgment). Once the clerk creates the Entry of Default send in these two documents. ( you should get a copy of this in the mail or by ECF Docket 10 Clerks Entry of Default)
There are instructions published by the Bankruptcy Court on how to fill out these documents. (form 260 and 261 instructions)
Mr. Brown will later publish what steps to take following this in a later posting, on how to get your filing fee back from Walter and how to record your judgment. He indicated he is willing to answer any of your questions. You can call him at his office 925-295-0700.

















  1. Does this mean that Walter is not going to try and fight those complaints, *and* people don’t have to agree to his stipulation? That would be good news, if we could just then find some assets to recover.

    In the meantime, there was a settlement conference scheduled for the 19th on the culture to culture “donation”. Anyone have some news and results from that?

      • I often forget to look at the Tracy Green site which she billed $4000 for, since it’s not very helpful. They don’t even have this last settlement conference on their calendar. They haven’t updated the monthly operating expenses which you posted a few days ago, and I don’t see any reference to the MF ’08 or RE Loans bankruptcy filings. I come here for actual news.

        So I’m still curious about the results of that power struggle over the $257,000 “donation”.

  2. For those people who filed a stipulation to extend deadline (to Nov 15) on the personal bankruptcy, with the class action suits and other events that have occurred since then, is it your opinion that we should still file an individual complaint and still follow all of the steps above? And if so, I imagine that would still be with the California court? Thanks for all you do!!!

  3. The Creditors Committee has directed Tracy Green to file a motion
    asking the Bankruptcy Court to convert Walter Ng’s Chapter 11 case
    into a Chapter 7 case. The motion is set for hearing on November 2.

    If that motion is granted and the case is converted, then new dates will
    be set for filing a Complaint challenging the dischargeability of Walter
    Ng’s debts. So it might be wise to wait and see if the motion is granted.

  4. Isn’t there a court day for Walter to present his payment plan coming up? I neglected to write it on my calendar. If Ms. Green’s motion succeeds, then I guess that payment plan doesn’t matter. (Although their lawyers will probably bill generously for the effort.) Can we attend Nov 2?

    Whatever happened in the conference with Culture to Culture, and their pricey pro bono lawyers?

  5. The date for filing the plan is October 21, 2011.

    The Court set a status conference for October 25
    at 3 p.m. Mr. Kaplan filed a motion that will be
    heard on that date and time.

    Tracy Green’s motion to convert the case from
    Chapter 11 to Chapter 7 is set for November 2
    at 2:00 p.m.

    Mrt. Kaplan’s bill probably exceeds $250,000 by

    Perhaps the Culture to Culture issue will be
    discussed st the status conference.

    You can go to everything. Courts are open
    to the public.

    • Thank you Mr. Brower-

      Many of us have assumed that Walter Ng filed for bankruptcy to dodge your trial last summer. Now that he’s spent more money on bankruptcy lawyers than he might have lost in that lawsuit, it reminds us of how clueless Walter really is with money.

      • I do not believe this statement to be true. In the end if he can file for bk protection he can avoid further costs and suits that would follow. He is a master, don’t kid yourself.

        • I was reducing it to the most minimal elements. There’s a lot more to it than a simple legal bill vs a single lawsuit. Including not wanting to testify in a court because of criminal proceedings and investigations and not wanting to risk future perjury issues if investigations uncover assets he neglected to mention, etc.

          Obviously Walter spent a lot of time pre-planning, like buying a new home with just under the exempt amount in equity which is allowed for a person of his age in bankruptcy, then financing the rest to justify his need for an income. Those things take time to coordinate. But I also believe that Walter expected his bankruptcy to go more smoothly, and that it would be simply signed off and discharged. Anyone who attended the creditor’s meeting could see that he wasn’t taking it seriously. Couldn’t even be bothered to read the forms he signed. After the 19 complaints were filed, Walter tried to get people to agree to defer, to which I think only one agreed.

          Don’t forget that Walter wrote a letter to Judge saying that he was willing to stipulate to a judgment of non-dischargability as long as the judgment was not based on “a factual finding of fraud, false statements, breach of fiduciary duty, or other similar allegations.” Well, you can ask, but… that’s the reason this thread exists. In the end, Walter made no effort to defend against the complaints, so there was a default on the class action. The whole personal bankruptcy is a side show, or diversion, from the RE Loans/Bar K issues.

          I disagree with calling Walter a master at anything other than deception, and he may still live long enough to see that implode on him, more than it has already. You give him way too much credit for being some mastermind. Walter was a mediocre businessman who started with a sound plan and did pretty good over time. He was no financial genius–it was a very simple formula. If they had not gotten so greedy and stuck with the original plan, Walter might have spent his twilight years still basking in adoration at annual Silver Dragon dinners, rather sitting in court rooms, and perhaps dying in prison.

          • Well stated. Greed definitely took hold of the Ng family. They had a great thing going for a very long time and now the end is near for them. Unfortunately, to late for the investors which saddens me greatly.

      • Before recommending a course of action, an attorney must
        obtain all the relevant facts. This is taught in the first-year
        law school class, How to Be a Lawyer 101, and published
        in Lawyering for Dummies.

        For those of you who have closely followed Walter Ng’s
        bankruptcy case, you know that Mr. Kaplan did not obtain
        the relevant facts before he recommended Chapter 11 for
        Walter Ng, and that he still does not know the relevant
        facts. For example, when asked by the Judge, Mr. Kaplan
        could not explain B-4 Partners.

        Based upon the relevant facts, no competent attorney would
        have proposed to Walter Ng that he file Chapter 11. It was
        incredibly stupid advice.

        Mr. Kaplan was “clueless” and Walter Ng was a victim of a
        grossly incompetent attorney who had his eyes on a $100,000
        retainer and not his clients’ best interests.

        In terms of any future criminal prosecution, Walter Ng, Kelly Ng,
        and probably Bruce Horwitz, will assert their Fifth Amendment
        rights and not testify. That will leave Barney Ng as the sole
        principal witness and his testimony will be undisputed.

        • “That will leave Barney Ng as the sole principal witness and his testimony will be undisputed”.

          How wonderful – the “UNDISPUTED” testimony of Barney Ng. That should be a really good story!

          • More good news about Barney Ng.

            The Wild Game Ng (Siena Hotel) bankruptcy was dismissed
            yesterday. The Judge gave Barney Ng and his attorney the
            right to pursue the $160,000,000 lawsuit against IGT for the
            defective slot machine/computer system. If Barney Ng and
            his attorney are successful, then the R.E. Reno investors will
            get all their money back.

          • “The Wild Game Ng (Siena Hotel) bankruptcy was dismissed yesterday.”

            In layman’s terms, what does this mean?

            I’m invested to a life altering degree in RE Reno and have been stunned at the speed with which Barney’s BK hosed us.

  6. “Walter Ng, Kelly Ng, and probably Bruce Horwitz, will assert their Fifth Amendment rights and not testify. That will leave Barney Ng as the sole principal witness and his testimony will be undisputed.”

    Interesting scenario. I know it’s still early and no charges are filed, so we can only speak hypothetically, but considering there are potential criminal charges which could mean years of jail time, would taking the 5th be simply a legal maneuver for different leverage in appeal? Or is it possible that what things they could say would make it worse for them than saying nothing and letting Barney prattle on unchallenged?

  7. Tuesday, 10/25, another status conference with Walter and Maribel.

    Looking at Judge Efremsky’s calendar, ( ) here’s the playlist:

    a) Status Conference

    b) Motion to Extend Exclusivity Period for Filing a Chapter 11 Plan and Disclosure Statement
    filed by Debtors [329]
    Opposition filed by Official Unsecured Creditors’ Committee [344]

    They were supposed to have their plan in by the 21st, but I guess with all the good weather, it was hard to pull Walter off the golf course. What are we paying Walters attorney Gary Kaplan– $600 or $700 an hour? So filing a motion for an extension is in his best interest.

    Perhaps we’ll learn the results of the Culture to Culture conference.

    3:00 pm at the usual place:
    U.S. Bankruptcy Court
    1300 Clay St. Room 201
    Oakland Room 201 Oakland, CA 94612

    • The motion was dropped by Mr.Kaplan.

      There is no plan, there will be no plan,
      there was never any pan, or even a
      remote possibility there could be a plan.

      $250,000 plus billed by Mr. Kaplan,
      with no result.

      • Thanks for the update Mr. Brower. Will be interesting to hear what the Judge has to say about the lack of a plan.

        If this goes to Chapter 7, as Tracy Green is motioning for next week, would that start liquidating Walter’s businesses, like Walter Ng Investors? And doesn’t Walter draw a monthly check, (stipend, salary, consulting fee–not sure what they call it,) and interest from some of those? In other words, wouldn’t it be financially advantageous for Walter to prolong the charade of trying to make a payment plan for as long as he could?

        I am probably not the only one reading here who is interested in what the change to chapter 7 might mean for creditors.

        To answer ServieItCold, if I recall correctly, I think the creditor’s committee attorney (Tracy Green) and Walter’s Attorney (Kaplan) get paid out of Walter’s money before anything goes to creditors. Anyone else feel free to chime in if I’ve misstated that.

        • Yes, he gets paid first. You can object to the detailed time records and argue it did not provide a benefit to the estate. Sometimes it is successful, if done right..

          The best thing to do is to elect the Chapter 7 Trustee you want (you need to be organized) and then YOU control the liquidation and the costs.

  8. There ought to be a law for milking for fees and the delay, delay, delay tactics of these monetary vampires and vultures. EXACTLY who is paying Walter’s enormous attorney fees? If it is US, the victims, HOW IS THIS ALLOWED?

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