Scrutinizing The Burn Rate

Equitatus has posted the first series of receipts being billed to the RE Loans portfolio. You can visit the documents here: http://equitatus.wordpress.com/2012/03/06/burn-rate-super-texas-size/

There are hundreds of pages, so it may take awhile to absorb, but since it’s all being billed to us investors, and  nobody else seems to be questioning the obscene spending habits of James Wiessenborn and his merry band of contractors, feel free to use this thread to post and discuss any charges which you find questionable.

For example, I found that Rick Dishnica took Kelly Ng to lunch on 11/30/2011 and sent us the tab.

11/30/2011 Dishnica, Rick 1.5 hours at $410 per hour =  $615
Comment: Lunch with Kelly Ng to update on business activities for loan servicer.
11/30/2011 Dishnica, Rick Lunch- R. Dishnica, Kelly Ng $64
Billing us a total of $679.

Did James Weissenborn, Judge Barbara J. Houser or anybody on our Creditor’s Committee think this might be poor judgement to be billing us for Kelly Ng’s lunch??

Let’s not forget that Kelly Ng and Rick Dishnica go back many years, while working with the $25,000 a year (range) private Bentley school that Kelly sent his kids to, and Kelly coached their volleyball team.

Rick Dishnica is reportedly who referred James Weissenborn/Mackinac Partners to the Ng’s.

Ng’s hire Mackinac Partners, paying James Weissenborn $560 an hour. Weissenborn hires Rick Dishnica at $410 an hour. Now Dishnica bills us $679 to have lunch with his old pal Kelly Ng.

Many more gems like this will probably turn up when we start scrutinizing these bills.

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18 thoughts on “Scrutinizing The Burn Rate

    • The entire thing, including the Legal Injustice System which favors the criminal and continually insults and re-victimizes the victim is depressing, in my opinion. Many of the investors have thrown in the towel, don’t open their documents, if they do, they tell me they throw them in a drawer.. .the legal language designed to confuse and intimidate those that are not attorneys. There is an atmosphere of despair.

      Kelly and Dishnica dining and sticking us with the bill is no surprise. Kelly is a criminal reprobate and has a doctorate degree in lies, deceit, and, well other stuff.

      Maybe there is hope that the Ng Crime Family will ultimately come to justice. Texan Allen Stanford, Ponzi expert was convicted of investment fraud (7 billion) and will spend the rest of his life in prison. Hope the Ng’s get to meet and die with him.

  1. I guess we are going to have to do the job of the creditors committee in objecting to these expenses.

    Can some go through Macinak’s Supplemental Fee Request and figure out how much they billed for the abortion of a trip to the Walnut Creek Marriott to attempt an illegal cram down?

    Page 61 lists the dates of travel and hotel. You can go back trough the time records and see what they billed or their time?

    Once that’s done a letter should be to the committee asking them to object to these fees. The time may have passed but I think at the end of the case or their next application they can be objected to.

    $3,297 just for the hotels! and it looks like Jimmy Boy didn’t think the Walnut Creek Marriott was good enough for him so he stayed at the Lafayette Park Hotel. How much more for food, rental cars, and air fare
    together with their billable hours did that cost?

    Someone who was there write an letter and expose this corruption.

    • At the Marriott Combination Circle Jerk Weissenborn/Krause Cram-Con Fest there were at least two Committe Members…Gene Rapp and Pearl Tom (hand picked by the Master of Misery himself, Walter Ng) and these two were chastised by a respected attorney…not the one sitting as master of the mouth attemping to talk us to death…yeah, i mean Krause…the respected attorney told Rapp and Tom that they were breaching their duty of confifentiality ,,,they were doing lots of talking. I wish they would watch the paid pick pockets instead. The Ng’s planned and constructed this well organized raid and rape of investors, installing in position all of the bad actors.

  2. This is unbelievable! Ignore the absurd sickening hourly rates for these jokers are billing. Take a look at Exhibit B, page 5 and focus on the total hours for each Mackinac person just for the period 11/01/11 – 11/30/11. Jim Weissenborn 136.3, Farley Dakan 150.0, Ron Rakunas 189.3, Rick Dashnica 35.0, Mike Brennan, George Henderson 149.2, Josh Holley 168.2. Keep in mind a full-time, 8 hour day, 40 hour week is 160 hours. That would be every minute of a regular work day.
    This really CAN NOT be the hours that they worked. Is this their ONLY account? How many properties from the sacred RE Loans portfolio were sold/unloaded? Are they just billing for their office discussions about 2 and a Half Men, American Idol and their facebook updates? Please subpoena all phone and tax records for Mackinac Partners IMMEDIATELY! I hope the FBI, SEC and Dept. of Labor are seriously looking into this.
    After milking this the RE Loans mess for almost 2 years, Jimmy is still able to work almost full-time on it? It is highly unlikely, that in the middle of the Detroit Lions best season in years, that he worked any more than 136 minutes in any one month. Big Jimmy is the co-founder of the company. Name another co-founder for company that has raised over $5B in capital, that works and is billing full-time hours to one client. This is highly, freaking unlikely people, simply disgusting!

  3. Ok, I checked some of the MacAttach records too. You can search by word. Try SEC, FBI.
    Then check that againt the “Litigation” section of their billing.

    First billing periond $52,502.00 representing 150.8 hours.
    Now at least 40 of those hours were spent on SEC subpoena and the like.
    Granted thats not a lot, but watch that number grow as the wheels start to come off.

    Jimmy is going to have a tough choice. Will he act as a “fire wall” for the Ng’s.
    “I know nothing” or will he make the classic mistake that all fools do, lie to the
    SEC and FBI? Remeber John Dean? another JImmy, Jim Erlicman?

    Watch that litigation number grow, or look for bogus offset creative billing activity as a cover
    for the real water cooler conversations.

    Once you start down this path and make a couple of wrong turns, you will never be
    able to find your way back.

    The Judge will do nothing about these clowns billings by herself someone has to object.

    Maybe the Committee could call for an audit of Jimmy’s fees, if they have the balls.

    Or maybe the are concerned about a closer looks at their expenses flying to SF, traviling
    by limo to the Fairmont for a Creditors Committee. Most note holder can’t even afford a
    cup of coffee there, or at the Lafayette Park Hotel.

    Burn Baby Burn

    • Thank you Equitatus once again. Hey, fellow victims…one of you must be an ACCOUNTANT with the skills to to take the information pointed out by poster “Equitatus”, gather it and deliver this information to the FBI, Dan Noyes, any television channel, the DOJ..the Creditor’s Committee? Like they will do anything about it.

      Speaking about not affording a cup of coffee…years ago Walter Ng thought he should share a recipe with me. He said “in case you don’t have any food in the house” you can always make yourself something to eat…

      WALTER NG RECIPE (i swear this is true)

      Boil Noodles & drain
      Mix on tsp. catsup, 1 tsp. curry powder, 1 tsp. soy sauce. Mix together.

      Guess he knew it would be needed. I call it the bilked boil.

  4. Here’s my take on these expenses incurred, like with medical insurance billings and reimbursements, so a hospital charges for a cup of ice water is $3, a regular aspirin is $10, the paper covering for your shoes is $15, a box of tissues is $8, it’s all padded. Like when I had my appendix taken out, it was over $XXXX, no complications, but when I got the final cost breakdown of what was actually paid to the hospital versus what was charged to me, it was much less than what was asked for, Luckily, in my case, insurance covered it all, except for the small deductible.

    So like a hospital, these guys pad the expenses and if they don’t get it all, it’s still the same amount they would have liked to have gotten in the first place. If they do get it all or most of it, then they got a bonus out of it.

    I did notice in the Sanford case ($7B scam), they mentioned some forensic accounting found a lot of the cash or more so where most of it went. So like the Ng’s case here, there is some money hidden somewhere, the attorney’s knows that (but maybe not the actual location(s), and it’s a small fee even if in the millions for the Ng’s to pay, so that they can later bring it out and enjoy to spend it after the smoke clears. However, I have to believe that the FBI, IRS, FTB, etc are all digging more and more into their process and will find the Ng’s guilty of many charges.

    I’m sure they will have lots of undisclosed income that wasn’t declared, resulting in a hugh tax bill. Maybe enough evidence to seize all their assets and sell them off so that it can be returned back to the investors, it’s certainly not going to be dollar for dollar, but the fact that it could make the Ng’s live in some squatter’s apartment might be nice for them.

    Hope that the Ng’s relatives and immediate family members don’t get to enjoy any inheritances as it will be all taken away, just like how it has affected every investors here.

    I believe in the old saying…”what comes around, goes around”. I hope that many will live to see the day that happens to the Ng’s.

    I wonder if the Ng’s follow or care about a blog site like this, just to see how they can see how others just hate their guts and have nothing but ill will for them.

    • Steve, the difference in medical billing is that the medical providers bill the top rate, which is what you would be charged if you didn’t have insurance, and the actual amount paid is the deeply discounted “previously agreed upon” rate that the insurance company gets for whatever procedure. Often it’s as much as 90-95% of what the uninsured get billed.

      In this case, nobody is questioning these bills, until now, as we investors pick them apart. I think that they were already paid, just as submitted.

      Equitatus: I have not yet found bills for the creditor’s committee travel. If it’s listed in there somewhere, it should be questioned and scrutinized as well. I am working on the Walnut Creek RE Reno meeting charges. Lots of staff and bills under different categories to hunt through for that one.

      Does anyone know if there is a specific time frame that bills are supposed to be submitted in, before they are approved for payment, and who is supposed to question any charges?? (The creditor’s committee?) Weissenborn tends to expect quick decisions with little time for discussion. Maybe there is a way we can ascertain that things are being submitted promptly, with proper review time before payment is approved?

      • Why did Weissenborn need the six or more Brown Shirts that did nothing but sit in the back near the door ? We paid for those clowns too.

        • That reminds me to hunt for the security guard bill for that meeting too. Why did Weissenborn need to fly out to hear the McGrane motion in person, in California?? And bring more staff with him? Obviously Krause had to fly up from Los Angeles, as the attorney, but the front row was filled with Weissenborn and his posse, billing us thousands of dollars so they could attend.

          Have the bills for Walter’s personal bankruptcy been posted somewhere? I’m sure there are a few questionable charges buried in Kaplan’s $250,000++. Hope we weren’t being billed for his personal security.

  5. Reading thru equitatus.wordpress on the Burn Rate..the documents for RE Futures,LLC monthly expense .Dec 2011….(this information is on page 3 of 11 ) ..
    It says RELoans was advanced $68,717.13
    Operating dispersments >
    Homeowners association dues 10,331.14
    legal expense 56,545.83
    there is a curious statement at the bottom of this page.with no explanation.. It Reads..
    “As of September ,2010, Management has not adjusted or analyzed the allowance for loan losses or real estate held for sale..The absence of any adjustment is not consistent with accounting standards generally accepted in the United States of America…
    A payment amount that occurred in July 2011 Weyrich was not recorded on RE Futures books..This resulted in reduction of the real estate owned and the corresponding note payable to RELoans..”

    So my question is, If they are not even keeping records. What does Mackinac do to justify their high expenses.. They certainly do nothing to help the investors . Does the Committee or the court approve these disbursments??
    Seems like a free for all feast for attorneys..I invested 28 years of my life savings in this…and they are burning it up in usless paper work, trips. and expensive hotels..with no regard for the people that have had their lives ruined by the Ngs , .

  6. I have heard that any RE Loans investor can sign on to support the involuntary bankruptcy by simply contacting attorney Bob Cross. Cross can be reached via the following:

    Robert Cross, Esq.
    Sideman & Bancroft
    Ph: 415.392.1960
    Fx: 415.392.0827
    rcross@sideman.com
    http://sideman.com/attorneys/robert-r-cross.cfm

    I intend to call Cross on Monday morning and add my name to the list. We all know strength in numbers is the path forward. I urge you to pick up the phone or send an email now.

    • I am unclear on how this fits into all of our other legal pleadings/class action suits, etc?? Is this something we need to do to be included in RE Loans bankruptcy… ?? Someone with legal expertise please advise.. Thanks

  7. Here’s a peek into how clawback works, with a fresh settlement in the Madoff case. Notice at the end, the trustee has billed $273 million in fees so far. Trying to get your own money back doesn’t come cheap.

    The New York Mets owners will pay $162 million to settle a $303 million lawsuit by the liquidator of Bernard Madoff’s firm, just before they were due to go to trial for allegedly ignoring the fraud.

    Fred Wilpon, Saul Katz and related defendants reached the settlement with the liquidator, trustee Irving Picard, on March 16, U.S. District Judge Jed Rakoff in Manhattan said today. Rakoff must approve the settlement under bankruptcy law. The Mets owners will pay the money over a period of five years, Rakoff said.

    Rakoff ruled on March 5 that the Mets defendants must give up as much as $83 million in so-called fictitious profits from Madoff’s Ponzi scheme and face a jury trial over an additional $303 million. The main question for the trial was to have been whether the owners acted in bad faith when they withdrew money from Bernard L. Madoff Investment Securities, the brokerage Madoff used to run his swindle.

    “The SIPA Trustee believes that this settlement represents the best possible outcome for BLMIS Customers with allowed claims, as it provides for the recovery of 100 percent of the $162 million in fictitious profits for the six-year period,” said Picard’s lawyer, David Sheehan, in a press release. “We believe that this is a fair and just settlement. At the same time, the SIPA Trustee has withdrawn all willful blindness claims against any Sterling party.”
    SIPC Approval

    The settlement has been approved by the Securities Investor Protection Corp., which selected Picard as trustee, Sheehan said.

    The press release from Picard thanked former New York Governor Mario Cuomo, who was appointed by the bankruptcy court to mediate between Picard and the Mets owners.

    The trustee “also thanks the Wilpon and Katz families and the other Sterling Partners for setting a positive example by returning 100 percent of the six-year fictitious profits to the Customer Fund,” according to the statement.

    The Mets owners opposed a jury trial and tried unsuccessfully to get the remaining claims brought by Picard dismissed after Rakoff cut them back to $386 million from $1 billion.

    Picard’s lawyers had said they were confident a jury would find the Major League Baseball club’s owners deliberately ignored the fraud because it benefited their businesses, ranging from the team to real estate.

    The Ponzi scheme cost investors an estimated $20 billion in principal, according to Picard.

    Madoff, 73, pleaded guilty in 2009 to orchestrating what prosecutors called the biggest Ponzi scheme in history. He’s serving a 150-year sentence in federal prison in North Carolina. Picard and his law firm, Baker & Hostetler LLP (1155L), have charged about $273 million in fees for liquidating the Madoff firm since it collapsed in December 2008.

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