Open Questions

1.  What effect did the RE Loans bankruptcy filing have, if any, on the class action suits filed by the Phoenix law firm and Brown (Mendes) as well as the Brower suit filed on behalf of Dixon Collins?  We know that an automatic stay is put into effect once BK occurs, but parties can enter motions to lift the stay, allowing for the case(s) to move forward upon approval from the BK judge.

2.  What is the status of the Alegria/Grassi lawsuit?  We know the suit was dismissed without prejudice.  Did this turn into a settlement?  Do any of the bankruptcy filings pump new life into this case or did Alegria & Grassi secure a settlement and pocket some cash or property?

3.  If, as some say, ’08 is simply a ponzi, that was built on the backs of RE Loans, is ’08 in a better or worse position than RE Loans?  Given the lack of a line of credit, one might argue that ’08 is in a stronger position.  Given the specter of a ponzi scheme, others might argue they’re in deeper sh!t than RE Loans.  What say you?

Chime in, people.

 

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24 thoughts on “Open Questions

  1. I say this: The real target defendants in the class action filed by the Phoenix attorneys are: (1) Greenberg Traurig, the law firm, and (2) WFF. They both have $$ and they both have insurance. And, don’t forget: Barney has mega bucks and he is still a defendant as are Kelly and Dr. H. The class action can proceed as to those defendants and as was noted, relief from the stay can be requested.

  2. John,
    These are excellent questions you propose. I do not have legal knowledge to be able to ponder them and reply. I look forward to answers from those who have the knowledge to render an opinion.

  3. When two or more different cases in the same county have all or some of the same parties and all or some of the same issues, the court can consolidate those cases.

    In Contra Costa County, there are three candidates for consolidation: (1) Collins v. Ng; (2) BATROA v. R.E. Loans, LLC; and (3) Sullivan v. Horwitz.

    When two or more different cases in different counties have all or some of the same parties and all or some of the same issues, the Judicial Council can coordinate those cases and have them heard in one county.

    In Alameda County, there is one case, the class action filed by the attorneys from Phoenix. In that case, Greenberg Traurig has filed a notice of related case letting the court know that Greenberg Traurig is also a defendant in the Dixon Collins case and the BATROA case in Contra Costa County.

    It will take some time for all of this to get resolved.

  4. I was wondering if someone has a flow-chart of the organizations that are in question? I don’t know if it will benefit your cause but maybe it might help or let others see how their various schemes are all connected or maybe not connected.

    I am of a simplified mind, but I think a visual view would make some sense of the way these guys spun off their scams.

  5. http://news.yahoo.com/texas-man-sentenced-60-years-100m-fraud-213307122.html

    Maybe something similar that might happen in the Ng’s possible passage to their own demise?

    Texas man sentenced to 60 years for $100M fraud

    RICHMOND, Va. (AP) — After hearing tearful testimony from several people whose life savings were stolen, a federal judge sentenced a former Texas businessman to 60 years in prison Wednesday for his role in a $100 million life insurance scam that claimed more than 800 victims in three dozen states and Canada.

    A Richmond jury in June convicted Adley Abdulwahab of Spring, Texas, on 15 counts of conspiracy, wire fraud, securities fraud and money laundering.

    Abdulwahab, 36, was one of the principals of companies called A&O that used investor funds to buy life insurance policies from individuals at less than face value. Investors were supposed to be paid when the insured died, but A&O’s partners spent the money on lavish lifestyles instead of safeguarding the investments and paying premiums. Policies lapsed, and investors lost their money.

    “They were people who built their dreams by hard work — real hard work — and those dreams have been stripped from every one of these investors,” U.S. District Judge Robert E. Payne said.

    Given a chance to address the court before sentencing, Abdulwahab said “I do feel for the investors” but remained largely defiant. He suggested the value of insurance policies was incorrectly calculated, said prosecutors had declined to meet with him during the investigation, blamed a co-defendant for encouraging him to join A&O, and said he had nothing to do with obtaining Whitaker’s investment.

    Among the victims was Paula Higdon Whitaker of Magnolia, Texas, whose life savings of $1 million helped finance mansions, fancy cars, expensive jewelry, resort vacations and other luxuries for A&O’s leaders. Whitaker, a teacher and counselor, said she worked as many as three full-time jobs at a time over 40 years of frugal living to build a nest egg to help her only son, who had medical problems.

    “I earned money the old-fashioned way — I worked for it,” a weeping Whitaker testified. “That’s why this is such a horrendous and difficult thing for me.”

    After her son Ryan died, she planned to use the A&O investment to fund a charitable foundation in his memory. Then she learned that A&O was a scam, and all her money was gone.

    “It’s been four years, seven months and 28 days since I lost my son and I cry every day because I can’t leave the legacy for him that I wanted,” she said. “It was like taking Ryan away from me again.”

    Therese Giger of Naperville, Ill., said her husband spent the last few months of his life worrying about their $500,000 A&O investment while undergoing cancer treatment.

    “He was not only robbed of half a million dollars, but in his darkest hour he would be robbed of his peace of mind, which is unforgivable,” Giger said.

    She turned and looked through tears directly at Abdulwahab and said: “You are nothing more than a scoundrel and a glorified thief who deserves his day of reckoning.”

    Other victims talked about the embarrassment of losing their life savings to a fraud and the anguish of seeing a lifelong goal of a comfortable retirement vanish.
    “I think justice was served for the victims,” Giger said.

    U.S. Attorney Neil MacBride, who attended the sentencing, also said 60 years was a fair sentence.

    “A case like this really puts a human face on financial crimes,” he said. “These defendants stole life savings and retirement funds from hundreds of people who worked hard and played by the rules.”

    He noted that some of the investors worked their entire lives to save $50,000, while A&O’s officers often rang up that much in credit card purchases in a month.

    Abdulwahab was sentenced a day after Payne sentenced A&O co-founder Christian Allmendinger of Houston to 45 years for his role in the scheme. Five other conspirators, including A&O co-founder Brent Oncale of Houston, previously pleaded guilty and received lighter sentences.

    A federal financial crimes task force in Virginia coordinated the investigaton. Several victims are from Virginia, and an A&O sales agent who pleaded guilty is from Richmond.

    ..

    “What you heard today was a small fragment of the misery you perpetuated,” Payne told Abdulwahab, calling his attention to a stack of letters the court had received from A&O’s victims.

    Payne said Abdulwahab was responsible for spreading lies about A&O’s size, record of success and business practices — all intended to talk people out of their money.

    “This defendant has shown the capacity to lie, cheat and steal to make his life better with no regard for the impact on others,” Payne said.

    The judge gave Abdulwahab far less than the maximum 225 years prosecutors requested, but Whitaker and Giger said they were satisfied that Abdulwahab likely will spend the rest of his life in prison.

  6. I am glad you wrote that. It’s been 3 days and no posts. I thought maybe I was out here alone. I would like to know if the Dept. Of Labor or the SEC Investigation has come up with any answers. I believe Mr. Brower has been following this. Can you comment Mr. Brower? Thank YOu.

    • Equitatus, I am so glad you are here. I don’t understand the SEC Special Notice and names attached to the servicing. Can you explain what this all means?

      • Actually the SEC should be requesting Special Notice in the Alameda County class action case AS WELL AS the BK of RE Loans, LLC. in Texas. I imagine either Mr. Brower or Mr. Brown will be suggesting that to SEC counsel. They (the SEC) are a little late to the game viz Walter’s BK.

    • The members of the committee should select the Chapter 7 Trustee – they can vote (it is not difficult). Assuming you are (or are in touch with) those creditors that sit on the committee, this is potentially a time when they can take some control over the process. Note that it is possible in some instances to seek to recover distributions made by a debtor, such that if Mr. or Mrs. Ng disbursed funds on the eve of the filing so that they would be assetless it is possible to recover these funds – if the Trustee is motivated and has the information required to do so.

  7. Just to reiterate from the above: What is the status of the Alegria/Grassi lawsuit? We know the suit was dismissed without prejudice. Did this turn into a settlement? Do any of the bankruptcy filings pump new life into this case or did Alegria & Grassi secure a settlement and pocket some cash or property?

    Interesting question, but not sure this one was answered?

    Does anyone have the link of the Alergia/Grassi lawsuit dismissal?

    Wondering how it seems that some investor’s have taken it upon their own to go after the Ng’s and maybe there are many many others who have but either not aware of this website blog or just staying very quiet and discreet to get in their share of any possible monies if recovered or maybe the Ng’s have enough in their illegal gains and have worked with the creditors just to settle them (paid off), maybe not in whole but enough to make them go away.

  8. At some point I made an entry on my calendar that there is a Walter/RE Loans hearing tomorrow at 11:00 in Department D 20. Unfortunately, I can’t remember which case or even which court. If anyone knows about this, could you give us all a reminder on this message board? Thanks very much.

    • When the Alameda County class action was filed, it was
      assigned to Department 20 and a hearing was set to
      determine if it qualified as a complex case. That hearing
      was set for tomorrow in Department 20.

      The Department 20 judge recused himself and the case was
      reassigned to Department 17. The hearing to determine
      if the class action qualifies as a complex case was vacated
      in Department 20 and it has been reset for next week in
      Department 17. In his tentative ruling, the Department 17
      judge has granted the motion and the class action should
      proceed under the special rules for complex litigation.

  9. Does the SEC have a formal investigation into RE Loans? Is the case # known to anyone. Please share. Or is the case # the same as was previously designated when they withdrew further investigation (after being wrestled and muddled with docs by Traurig).?

    • If you look at the Appearance and Request for Special Notice filed
      in the Walter Ng bankruptcy case, and posted by Equitatus on his
      blog, you will see the names of two attorneys at the top of the first page.

      The second attorney listed is Michael E. Lifttik. He is the local attorney
      leading the SEC part of the current investigation. Although it is a
      combined investigation with the FBI/U.S. Attorney and the Department
      of Labor, I suspect that he has his own SEC case number. Ask him
      your question.

      His e-mail is liftikm@sec.gov

    • The judge fills out a standard form. The essence is the judge’s
      statement: If you know what I know, then you would not think I
      should be the judge on this case.

      It is very common in local cases where the judge may know one
      or more of the parties in the case.

      Log on to DomainWeb, put the case number in and look at
      the register of actions. The recusal form is there for everyone
      to see.

      • Mr. Brower:

        Can you please post the website and case number. I am not very computer literate to search this information out. Thank you.

        • It is not easy, but once you get it to work you will
          be understand how it works.

          This is a repost of my attempt to describe the process:

          The Alameda County Superior Court scans most
 documents and
          posts them on a public access page. That
 page is called DomainWeb.

          The first step is to get to the Case Summary page of DomainWeb.
          Go here first:

          http://apps.alameda.courts.ca.gov/domainweb/html/index.html

          You will see several paragraphs. Find the “Case Summary” page
 highlight,
          and click there.

          You will now see a box for the case number. In that box, type the case number:

          RG11593201

          No spaces, no dashes, capitalize “RG.” It must be exact or you

          cannot get to the next step.

          The next page will be the page for the case:

          “Oshima v. R.E. Loans, LLC.”

          On the left column, you will see “Register of Actions.” Click there.

          The case documents appear. There should be the Complaint, the
          
Civil Cover Sheet and the Summons and so on.

          There are two places to click
on the right side of each document. I use “TIFF.”

          If everything has worked so far, when you click on the “TIFF” for any document
          you will get a list of pages.

          For each document, click on page 1. You will see
 the first scanned page.
          To get back to the list to see page 2, use your “go back” button.

          If you
 “close” page 1, the program will send you farther back and you
          will have
 to retrace your steps. So, always use your “go back” button.

          As documents are filed, they are scanned and you can see them.

          • Mr. Brower: Your efforts and assistance on behalf of the investors is so appreciated. Thank you very much.

  10. Shades of Bar-K scam, this puts Bar-K numbers way on top versus what this Namco guy did, but I found some pretty good reads for all of the investors and those trying to close the case on Bar-K.

    If you read along the various links, it’s pretty much what the Ng’s etal are currently doing to everyone right now: BK filings, lawsuits, etc.

    I think this will put some light into what’s been going with this Namco company will happen to Bar-K.

    In the first link, the main player was just arrested. Justice was served, just not sure if anyone will get their monies back.

    It appears that even the families and other friends were also named in the case and they have not escaped this unscratched.

    Moderator: note I didn’t know where to put this, but you’re welcome to move this if you think it will add some more information for others to read, so that it’s not lost in the shuffle, thanks.

    http://losangeles.cbslocal.com/2011/10/12/madoff-of-beverly-hills-sentenced-to-7-years-in-federal-prison/

    http://www.namvar-namco-bankruptcy.com/pdf/02-26-10%20Financial%20Report%20-%20Trustee%20with%20Exhibits.PDF

    http://www.allbusiness.com/legal/trial-procedure-suits-claims/12336107-1.html

    http://www.namvar-namco-bankruptcy.com/Namco/professionals.aspx

    http://latimesblogs.latimes.com/money_co/2010/09/namvar-namco-white-collar-crime-investment-real-estate-fraud-criminal-law-fbi-.html

    http://peoplevsnamvars.com/busted-ventures-rock-persian-jewish-community-ezri-namvar-is-said-to-owe-hundreds-of-millions-financenamco-capital-group/

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