An Update From The Field

Don’t Miss the Tracy Green Show!

November 2, 2011 2:00 p.m. Courtroom 201 1300 Clay Street Oakland, California.

Come one, come all to hear Ms. Green’s motion on behalf of the esteemed creditor’s committee to move the Walter Ng Bankruptcy to Chapter 7. Didn’t Judge Efremsky already suggest this a while back. . .?

As usual, get there early because seating is limited. Let’s be nice and try to save a few seats for the FBI, SEC and Dept of Labor.

Also, if you could not make it to the October 25th Walter Ng Status Conference, here’s an update:

Tuesday, October 25th Status Conference, Oakland, California – Walter & Maribel Ng Bankruptcy
The courtroom was somewhat empty today, probably due to the downtown Oakland area being under intense lockdown. The attorneys present included Tracy Green, Maggie McGee, Gary Kaplan, the Culture2Culture attorney and an assistant and Kathleen Black, representing an RE Loans investor. There were approximately 4 RE Loans investors in attendance.

The pre-conference banter between Green, McGee and Kaplan was uncomfortable. They are quite friendly with each other. Tracy, Maggie and Gary seemed more like two sisters and their brother. It definitely did not feel opposing attorneys, getting ready to defend the interests of clients. Perhaps, all of their invoices had just been paid and they were feeling good about the remaining gravy.

Walter entered the courtroom with Edward Swanson his criminal attorney and they took the usual spot in the front row. Walter was dressed in a black and blue tweed jacket and dark slacks. He look rested, well fed and was all smiles as he did not have to do the walk of shame thru angry investors and former friends. Maribel took a seat in the first row away from the action. Maribel wore a leather jacket with silver metal studs, white blouse and black pants. Kelly Ng entered the courtroom with the Ng family body guard and they sat in the back row. The bodyguard was a young, rotund chap, somewhat resembling of low budget version of “Oddjob” in Goldfinger. Upon Kelly’s instruction the bodyguard moved up to a seat next to Maribel, just in case there was trouble.

Kaplan spoke briefly. He was more at ease than in previous conferences, his partners at Farella, Braun & Martel have likely advised him scale down the coffee and Red Bull regimen. There was an issue about payment of $7,000 in employment taxes needed for the caretaker of Maribel. While Maribel clearly does not need a caretaker, it likely gives Walter the “me time” he needs for his golf game. The Culture2Culture donation (aka payoff) issue is still under mediation and has not been resolved. Kaplan had no plan for Chapter 11 and no objection to Tracy Green’s motion for Chapter 7. He stated that only 1 of the adversary complaints had agreed to Walter’s stipulation and Walter will not be presenting any legal opposition to the complaints.

Tracy Green and Maggie McGee were then given a chance to follow up. Nothing. No followup. No statements of concern for investors. No plan for how a trustee needs to urgently start clawing back assets. No questions for the Judge. They must be saving all their cards for the Chapter 7 Hearing (11/2), where Kaplan will likely roll over and Judge Efremsky will move Walter Ng’s bankruptcy on to the next phase. Conference lasted approximately 5 minutes and Judge Efremsky tentatively scheduled a Status Conference for 11/22.

Kelly Ng quickly left the courtroom and assumed his new role, family driver. The phones are pretty quiet at Lend, Inc. and he is no longer a part of the Cal Berkeley volleyball scene, so Kelly has plenty of time to support mom and dad. The bodyguard shuffled Walter and Maribel into a black SUV driven by Kelly Ng.

(This post was written by someone who cares)

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34 thoughts on “An Update From The Field

  1. To (This post was written by someone who cares) Thank you for the thorough summary of the proceedings. Your humor helps me digest it somewhat. I believe Walter does not care any more. The plan he put in place a few years back when he saw this coming is in place and his cash money is hidden just like the rest. His worries are over, life is good for him and his wife and sons. He can slowly dip into the money he has tucked away to live. He is to old to wear a jumpsuit. Unless the FBI can pull a rabbit out of a hat the clock is ticking. We need a court case now to happen for the exposure before it’s to late.

    • There was one son missing from the court room that day. I think if anyone spoke to him, he would tell a very different story about how well his family is doing through this. Some might be surprised to find that he may opposes what his father and brother are doing and may be looking for ways to make the situation right.

      • They can never make this whole mess right. Even if a suit can be won on the Siena’s issues, it will take a very long time to prove that case. (Virtually impossible) If you feel that B.N. can save this you are dreaming. The brothers are at odds and if they are drawn into a court hearing they will try to save themselves from any criminal activity and blame each other. No way will the investors ever be made right for their wrong doings. It’s a sad and pathetic situation and their investors are the victims. It’s the most disturbing situation I have ever had to encounter in my life time. I can only hope that the authorities do their job and bring some kind of justice before us. “Please don’t quote that a brother is looking to make the situation right, he played a major role in this mess”, although, unless he wants to come up with 750 million and 50 million. Now that would make it right.

        • As for Barney looking for ways to make it right… is this like OJ looking for the real killer?

          If Barney wrote checks for the full $750 million and $50 million tomorrow, it couldn’t make it right. People have lost their homes and compromised their health because they didn’t have enough money for the housing and medical care they needed, or even the heating bills and medicine. Some of the investors are quite elderly and won’t live long enough to see how this ends. Some of the pension funds invested with the Ng’s have lost about 80-90% of their value, which doesn’t leave people many options .

          College funds were lost, and those kids are older now and did something else with their lives. Handing them back their college funds when they are 30 wouldn’t make it right. Kelly and Barney spent generously on education for their kids–Bentley School, USC, Pepperdine, etc. They got nice vacations around the world, horses, lavish weddings, and I hope that the FBI looks closely at all of that. The court trustee has gone after Bernie Madoff’s children and grandchildren, suing them for salary, gifts and cash received during their lives.

          http://www.guardian.co.uk/world/2010/dec/12/madoff-suicide-son-upset-lawsuits

          If that were to happen in this case, Barney and Kelly might have to find a whole lot of money to avoid having their children sued for the funds used to support their lifestyle. Although there would be some irony to having their kids saddled for years with large judgments to pay back investors.

          But let’s not get ahead of ourselves. The FBI hasn’t filed any charges yet, so it’s all academic.

          • Both very right. They can’t make it right. Thousands of people’s lives have been changed forever. They should be held accountable, but who else should share in accountability? There is no question that those who did wrong should pay, but do we not all hold a certain measure of accountability for the simple fact that we understood from the beginning that investing the money came with risks?

            No one questioned any decision the family made while the money was rolling in. Nor would any of us question what they spent amongst themselves. Simple fact is that for years many of us enjoyed one of the best kept secrets and never thought twice. Those invested for years made it through all the down turns and ups and downs and not once did the company miss a beat or a payment. We all had access to a very stable, well run investment with interest that was often above the norm. Did we not get a bit lazy in the success and fail to ask questions or was it so good we never imagined we would have to?

            We all understood the risks and sadly it has bit all of us in a way that for many is life changing. Now we are all asking the questions and pointing fingers. Anger is forefront in all that has been lost, but that doesn’t change the fact that the investment had risks.

            The wrong doing has to be addressed but is there another story here? We all know how good it was and not one of us would have invested if we thought the family was shady. The track record was solid. It looked good and for many years was good. The bigger question here is why did it go so wrong? Is the story deeper than greed? Why are they so divided? Do we really understand who did what? Has anyone attempted to talk to Barney?

            Anger is important but what if one of them would like to make any of it right? Sure it may never happen, but what if it did? May not be happy with what has happened but sure would like to see some of it come back and would it not be a better ending if one of them did care enough to try to make an awful situation right? Maybe wishful thinking.

  2. Culture to Culture pro-bono attorney AND an assistant? Somebody at O’Melevny & Myers LLP has a lot of love for Culture to Culture, because at this rate, the pro-bono value of their representation may exceed the disputed “donation”.

    And why is this not settled? Looking back at the judge’s Aug 22 order for a settlement conference, which was scheduled for Sept 19, it says, “Parties and their counsel should be prepared to remain beyond normal business hours if necessary; travel arrangements should be flexible and alternative arrangements should be made for routine personal and family commitments. The settlement judge will not normally excuse parties or counsel except in the case of emergency or extreme inconvenience.

    7. The parties must make a good faith attempt to settle the matter before the settlement conference.”

    http://equitatus.files.wordpress.com/2011/08/order-re-settlement-conference-cult2cult.pdf

    Does nobody in the court system have to abide by the orders? It was a complete charade to wait two months for Walter’s big plan, only to have no plan offered, and no repercussions for him or his attorney for having wasted everyone’s time and money.

  3. The fact of the matter is everyone was told over and over again that the investment was safe, safe, safe. Heck you would be a fool if you did not invest in R.E.Loans. Where else could you receive a 8% guaranteed rate of return??? Sold to us or lied to us, it was the story for years. The stock market plummented, gold fluctuates, but R.E.Loans is safe, safe, safe and guaranteed. The risk was never presented because they wanted us all to believe that the risk was nothing to think about. Sure Walter and Bruce sometimes would say “there is always a risk when you invest” however, R.E. Loans was your safest place to be and their loans were always the safest ever, no questions asked. And no one could replicate their business. Now I tell you, did we make a decision based on risk??? I think not. I myself was told that their business was the only place to invest your money to guarantee, (that’s right guarantee) your future for safety and stability. No one stands on a podium and makes that statement of promise to hundreds of people. Now that my friends turns out to be the biggest lie yet.

    • Not to give you a hard time ABKV but my grandmother taught me an investment was a risk either way you looked at. Not to consider it so is foolish, but that’s exactly what most of us did. We had it so good we lost sight of the very definition of what we were doing with our money. Risking it to make more.

      What is hard here is that for more than 90 percent of the time it did seem like the perfect deal. Our friends did exactly what they promised for all that time. To all of a sudden change course from a tradition they lived by for so many years deserves consideration for what in the heck happened.

      Bottom line is that it went so well most considered them friends. We shared in all the good times and it was great. Nobody would have ever predicted this, not with that track record. Did they lie all those years they made many rich?

      Not taking their side in anyway. I think they need to be held accountable for some of what they did.

      • Life is a risk but promises should not be made or written of guarantee. That is a different name. Guarantee defined is return, satisfaction, safeguarded need I say more. You don’t guarantee if you can’t deliver and if so you return the $ collected. Our friends did what they said they would for a long time but suddenly something happened. If it was just the economy or the market, they would not be fighting each other and pointing the finger of blame unless something else happened. The FBI, SEC, DOJ, DOL etc. would not be involved if it was all OK. We will find out soon when all is uncovered. I bet the investors and everyone for that matter will be greatly surprised of the findings then ask themselves was this truly all this good for so many years????? I say this all in frustration; although, with due respect J. S., we seem to be in this mess together.

      • I hope you did not miss the Madoff’s (minus Bernie & the dead son) on 60 Minutes last night. Everthing there went great there too until the economic collapse. So many similarities: Sons in business, SEPARATE FLOORS for conducting “business”, lavish life style, adoring, trusting investors and of course, THE SEC giving them a pass.

        J. Samson, you do sound like you are defending the Ng’s. The Ng’s have destroyed lives present and future. At Walter’s joke of a bankruptcy hearing (first one) an individual in front of me was writing on a pad, over and over, DIE MONSTER DIE in big letters. I hope Walter lives until he is 120 and goes through misery ever second on his way to prison where he will stay until he does die. I hope Belle lives forever…along with her two sons in a one bedroom shack like some of the investors they robbed.

  4. Not defending them in any way. I believe they should be held accountable. Everyone has their own way of getting through this. Just open minded to a situation that seems to have more turns than all the soaps combined. Also not going to let anger rule as there has already been enough damage done. If what Brower says is true and one son plans to fight and return what can be returned, then that sure sends an even different message. Like I said, lots of unexpected twists to a story none of us ever would of imagined being a part of.

  5. Yes, now that would be very interesting, if one of the sons turned against the dad and others that are in the wrong. Maybe they will offer him immunity against jail time, monetary fines and other sanctions in return for his testimony. Maybe one of the sons has a conscience and wants to come clean so that he can live with himself and not drag the family (his own personal immediate family, not the dad or brother) into more mud.

  6. What is the matter with you some of you people? You’re not defending the Ng’s J. Sampson?

    BS! That’s exactly what you’re doing! You need to study the documented history of what went on like some of the others here have. You’ll find under the table dealing to preferred ‘investors’, lies, corruption, double and triple dipping of fees, collusion, fraud, and the list goes on and on.

    We have all kinds of guarantees on our investments with the Bar-K group and they’re not only not being honored, they’re being ignored.

    The investment strategy of Bar-K changed from sound investments to speculative ones . . . under the leadership of BARNEY NG, and the others let him do it. They’re all, including Stephanie and her husband, responsible for what we’re going through now.

    Do you think for even one minute that the investors had anything to say about the way any of the investment funds were handled? Not a chance. Read the paperwork!

    Do you think that the ‘vote’ to change us from ‘investors’ to noteholders’ was legitimate? Read the documents and look at the timelines.

    Do you think that the LOC from WFF was taken out to help us? Not on your life! Follow the money.

    And when BARNEY NG blames his family and Horwitz for dispersing the LOC funds to preferred investors instead of bolstering the fund remember the it was he, his daughter and his son-in-law who reportedly negotiated the whole thing with WF.

    Also, don’t forget that it was BARNEY NG who got paid for (greatly inflated) appraisals that he wasn’t qualified to make and that in many instances added his fees into the loans to increase the amount, thereby increasing the commissions the Partners ‘earned’ every year.

    Anyone who thinks BARNEY NG is going to be our savior is delusional. BARNEY NG turned on his family over a year ago. Read the documents. He tried to take over the whole business and his father, brother and Horwitz stopped him. He retaliated with some fake resignation and started blow2ing the whistle on them. Oh, and he’s quite likely the one providing all of the information being used against them now, yet he’s primarily responsible for all of this.

    Anyone who thinks BARNEY NG has any honor whatsoever need only look at the Siena fiasco to know how false that assumption is.

    How those people can live with themselves after the way they deceived us is beyond me and that ANYONE can defend them, or put the responsibility for what they did to us back on us, is unconscionable!

    • I agree with the above poster. “Do you think that the ‘vote’ to change us from ‘investors’ to noteholders’ was legitimate? Read the documents and look at the timelines.

      Do you think that the LOC from WFF was taken out to help us? Not on your life! Follow the money.

      And when BARNEY NG blames his family and Horwitz for dispersing the LOC funds to preferred investors instead of bolstering the fund remember the it was he, his daughter and his son-in-law who reportedly negotiated the whole thing with WF.

      Yes, lies, collusion, misapporpriation, and betrayal of trust. And more…

      Another Ng victim

      • The “above poster” was me, AnotherNgVictim.

        You’ve not only taken my words, written by me on Oct. 31st, but you’ve tried to take the ‘handle’ I’ve been using for over three years.

        It’s very disheartening that someone would do this and that it appears anyone can post here, even to the extent of assuming the identity of someone who has been here since the very beginning.

        Since your post offers absolutely nothing new or original, you’ve blatantly plagiarized the words of another long time contributor, and you’ve even attempted to steal a recognized ‘name’, I have a hard time understanding why your post is allowed to remain.

        • John Robie if you are out there please remove me entirely from this blog. Thank you for all of the helpful information you have given us investors.

          • Another Bar-K Victim, I’m not going to remove you from the blog. Just pick a new name to post under. ABKVictim or thereabouts. And don’t copy other people’s posts verbatim.

        • Seriously? Plagiarism?

          They agree with you and give you credit for the original comment. Is the notion that Barney Ng and his lawyer daughter negotiated the LOC a completely unique concept you developed? At one time or another many of us have reiterated previously stated comments here. Reinforcement can be a good thing for those who have trouble following the blog format and might have missed an earlier post.

          Given that there are thousands of Ng victims, it’s not surprising that three people would include that in their online name. Since you claim to be the first and original, why don’t you use “The First Ng Victim” so others will be clear? Using “Another” immediately implies there are others before you.

          To “Another Bar-K Victim”, I believe “AnotherNgVictim” is upset with “Another Ng victim”. (Note spaces between the words.) Yes, sure it’s a bit confusing, but it’s the internet. Since we’re all on the same side, maybe you could just say, “glad you agree, but could you change your moniker so people don’t confuse us?”

          Let’s not lose sight of what was really stolen … our money. Hopefully you all can work out your naming issues and nobody has to leave, because we appreciate all of your contributions.

  7. Thank you ANOTHER NG VICTIM for your outstanding, informative post above.

    Regarding the Bankruptcy hearing scheduled for 2 November, 2011 @ 2:00 o’clock in Oakland…please comment on the news coverage this morning that the protestors are going to attempt to disrupt all of Oakland on November 2, 2011 and spread themselves all over the place and bring misery, trouble and close the town down?

  8. Well said ANV. You missed the part that I clearly said they should be held accountable. That includes all parties, but if any of them actually attempt to do the right thing at this point I will gladly consider that another chapter in a very complicated story that has yet to be clearly told. We all know bits and pieces but in the end I think we will all see a very different story. Your absolutely right. Doesn’t change a damn thing unless we get our money back and even then it doesn’t fix it. I’d rather have a bit of hope as silly as that may sound to you and while we probably agree on many things I do happen to have a conscious and an open mind and make no apologies for attempting to look at this from all angles and hoping something good comes out of it.

  9. If you are thinking of attending the Wednesday, 11/2/11 Walter & Maribel Bankruptcy Hearing @2:00pm, check this blog for updates on the situation in downtown Oakland. I will try to post updates at 9:00am and 12:00 noon (on this thread of the Bar K investor’s blog) of the scene at Frank Ogawa Plaza/City Hall. Let’s not allow a few protestors to deter us from justice and the legendary Tracy Green Show.

    • Right now the situation is that Occupy Oakland is calling for a citywide strike on Wednesday, with the goal of shutting down 1% of the city, by calling on people to not go to school or work. This might not lead to a direct confrontation in Ogawa Plaza, which is just half a block from the Federal building where the Tracy Green show happens.
      http://www.occupyoakland.org/2011/10/general-strike-mass-day-of-action/

      Of course the situation could change, so updates from the scene would be appreciated.

  10. For those who filed an objectioon to dischargeability of debt in the Chapter 11 NG case, there is a hearing sometimes in December.

    Now that the NGs have filed to convert the Chapter 11 to Chapter 7, is there any action required by those who filed the objection including the need to attend the hearing scheduled in Dec.

    Please share any information or knowledge you have on the above. Thanks!

    • The Court has set a scheduling hearing for December 13, 2011,
      at 1:30 pm.

      If you have filed a request that the clerk enter the default on your
      case, then the Judge will set a date for a hearing for you to prove
      the amount of your damages. At that hearing you should bring your
      records and prove your damages. If you have any questions about
      this procedure, just ask the Judge. He gives full and complete
      answers.

      If you have not filed your request for the clerk to enter the default
      on your case, the Judge will probably give you a date to comply.

      If you want to abandon your case, you can also do that.

  11. Thanks for sharing. I am posing a few more questions that will be informative for all those who plan on pursuing their objections.

    1. Does the default need to be filed by a certain time (before scheduling a hearing, etc other statutes)
    2. If one does proceed with the hearing, will the statements and agreements serve as evidence to prove the amount of damages
    3. Most importantly – if a hearing is pursued and damages proved, what will be the outcome (eg. lien against debtors/defendants i.e. Ngs)
    4. If one abandons the case, what are the implications. Is this a sound approach given that an objection was filed?

    • I guess Bill McGrane has to get his $150,000 and counting legal bills, (since Oct 2011) paid somehow, and booting out us investors might make it easier for DSI to grab cash.

      Everybody liked us investors back when we had money to fund Walter, Kelly and Barney’s lifestyle. Now that our pockets are picked, we’re just roadkill along the highway while so many lawyers and managers try to scrape money off the bones.

      Important to remember, as will all legal filings, they can ask, but a judge might not see it their way. However, Attorney William McGrane did just raise the suspicions and ire of a couple thousand investors.

  12. You think DSI’s Objection was interesting take a look at their
    Claim, and the underlying Settlement Agreement with B4.

    Ask yourself why do the noteholders have to pay for
    this. My understanding of their bill was that it was for producing
    documents for the SEC who was looking into the the Ng’s
    misconduct.

    See DSI claim at: http://equitatus.wordpress.com/

    • I agree that it seems unethical that we have to pay for the services they used while being investigated for misconduct, although that might be legal. But in this document: http://equitatus.files.wordpress.com/2011/12/dsi_claim_47.pdf on page 26, it appears that Kelly signed in multiple places, agreeing to wire transfer them $180,000 by Nov 30, 2010, (just over a year ago,) to settle all claims with DSI. Then evidently Kelly misplaced his wallet and it looks like the money was never sent, thus Bill McGrane has racked up $162,279.65 in legal bills as of 12/22/11, and counting, to try and recoup the $180,000.

      More crappy management by the most incompetent Kelly Ng. The legal filings on behalf of DSI have introduced us to a wealth of very interesting documents and information, like how much Weissenborn bills us, the letters from the US Attorney and FBI which confirms investigations, the cozy relationship between James Weissenborn and Kelly Ng, and the $400 an hour consulting fees to Rick Dishnica for hooking them up, and some possible breaches of duty by Weissenborn and his legal counsel Jeffrey Krause. Oh, and let’s not forget DSI’s that effort to undo the RE Loans bankruptcy filing, and/or move it to California, and get Makinac Partners/James Weissenborn separated from our money.

      Perhaps the twinkly lights of the season are making me feel generous, but given all that we’ve learned from their process, if a judge decides that DSI has valid claims, I’m not going to hate them. But I may pack some popcorn for that January 25th hearing with motions from Bill McGrane and Jeffrey Krause.

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