Department of Justice Letter Update and Commentary

Well, today the Robie household received its USDOJ Victim Notification System letter that we discussed on this site just a few days ago.

Here’s the gist:

“The government has [charged] defendants Walter Ng and Kelly Ng with the crime of Structuring Transactions for the Purpose of Evading a Reporting Requirement.”

  • That’s the best they could do?  Evading a reporting requirement?  This is nothing like tripping up Al Capone on an income tax issue.  This feels a lot more like giving Walter and Kelly a jaywalking ticket.

“The defendants are scheduled for arraignment on November 6, 2013, at 9:30 AM, before Magistrate Judge Kandis Westmore in Courtroom 4, 3rd Floor, 1301 Clay Street, Oakland, CA.”

  • Okay…tell us more….

The government and defense counsel for the Ngs have reached a resolution to these charges and anticipate that the defendants will plead guilty on November 6, 2013, at 1:30 PM, before District Judge Phyllis Hamilton in Courtroom 3, 3rd Floor, 1301 Clay Street, Oakland, CA.”

  • This doesn’t bode well for the investors.  A “resolution” has been reached.  Why let these guys off easy?  This has the aroma of a skunk’s rear end.

“The government provides this notice to you because you may have been an investor in RE Loans, LLC and/or Mortgage Fund 08, LLC.  Victims of all crimes under federal investigation are entitled to service under the Victims’ Rights and Restitution Act (VRRA), including notification of court events.  However, because you were not directly and proximately harmed as a result of the structuring-related conduct charged in the filed criminal Information, you are not covered under the Crime Victims’ Rights Act.

  • Huh?

“With regard to restitution, the government does not expect to recover any loss amounts in this case.”


  • The picture above about sums it up.  Et tu, Brute?  Would anyone else supposedly put in place to help us like to cave like a house of cards and do nothing to help those who need — and DESERVE — the help?

“In any event, we will continue to provide you with notifications and services unless you tell us not to.”

  • Gee, thanks.

“Because of the Court’s schedule, hearing dates could change on very short notice.  If you plan on attending, you may want to call the Victim Notification System (VNS) Call Center or check the website to confirm the date and time.  Please note, there is a 24-hour delay in information transferred to the website.”

  • The phone number to call is 1-866-365-4968
  • No, we cannot bill the call to the Ngs

“Separate from the charges filed by the U.S. Attorney’s Office; please note that the Securities and Exchange Commission has charged Walter and Kelly Ng by Complaint with fraud-related securities violations for their activities involving RE Loans and Mortgage Fund 08.”

  • Finally some good news in an otherwise bleak letter from the government.
  • It’s not our Victim Witness Specialist Yvette Baird’s fault that it seems like these thieves are getting off scott-free.  She’s just doing her job.  The real blame lies with the folks WAY up the food chain.
  • We matter.  There are A LOT of us.  We’ve all been stolen from, duped, lied to, taken advantage of and, in some cases, had our lives upended, detoured and even ruined.  All because of the Ngs and now they’re essentially getting away with it without ever having to pay the true piper.  This isn’t right.  This isn’t justice.  This is injustice, and it’s far from the American way.  Our government has failed us.  The DOJ, the SEC, the California Attorney General, the FBI.  Everyone.  It’s fucking preposterous and every official, whether elected or appointed, should be ashamed.




43 thoughts on “Department of Justice Letter Update and Commentary

  1. Maybe start a letter writing campaign? I have seen where someone draws up a letter and it just needs to be signed by those affected (or those that are not directly affected but wish to voice their concerns). I have seen where it’s all properly addressed (some even have the link to the receiver’s e-mail box). I think to be heard in both voice and written forms will let Feinstein’s office know they are counting on her office to help.

  2. Yesterday, Thursday Nov. 21st, several RELoans and Mortgage 08 investors met with 3 members of Senator Dianne Feinstein’s staff in her office at One Post Street, San Francisco. The investors described the history of the loans, the development of the fraud, the FBI investigation and the failure of the Assistant US Attorney Maureen Bessette, to file a criminal indictment for fraud against Walter and Kelly before the Statute of Limitations apparently ended. (She did file a “Criminal Information” against Walter and Kelly for illegally transferring a total of $671,900 to 4 bank accounts (Mechanics Bank, Chase, Bank of America and Fremont Bank) beginning in April 2008 through December 2012 to which they pleaded guilty and for that they received basically a slap on the wrist).

    The staff asked the investors what they wanted to achieve. The answer was that investors want a Criminal Indictment against Walter and Kelly so they will be punished for their deliberate fraud that has devastated so many people and will also trigger the IRS 156 “Madoff” ruling and allow investors to apply for restitution of taxes they’ve already paid or will pay in future.

    The staff agreed to review the investors concerns (and were already working on it when I spoke with them this morning Friday 22nd) but said that investors must put their information and requests in writing. So if we want to get serious attention to our situation and get any satisfaction now is the time to act. Please write now and call all your friends and fellow investors and urge them to write, describing your own particular situation, how this has affected and harmed you and what you want to see happen now. Be specific and personal in describing how this has affected you. This may be our last chance to achieve anything so please do it now. Write to Jessica Glass, Caitlin Meyer and Kevin Chang at Senator Dianne Feinstein’s Office, One Post Street, Suite 2450, San Francisco CA 94104.

    Everyone…please circulate this message as widely as possible, especially to those who don’t use computers.

    Thank you and don’t give up hope. We still have a chance to get something worthwhile out of this. Senator Feinstein is a powerful voice.

  3. The investors who met with Dianne Feinstein’s staff on the 21st asked for a criminal indictment against Walter, Kelly and Barney Ng and Bruce Horwitz.

          • Please write. Received this letter yesterday:

            WASHINGTON, DC 20510-0504

            December 6, 2013

            Thank you for contacting my office regarding your concerns with RE Loans
            Mortgage Fund. I appreciate your bringing this to my attention and giving me an
            opportunity to see if my office can be of assistance.
            I have asked Caitlin Meyer and Kevin Chang in my San Francisco office to
            assist you. Ms. Meyer and Mr. Chang have contacted the Securities and Exchange Commission and the Department of Justice on your behalf. You will hear back from my office when responses are received from the agencies, which can take up to twelve weeks.
            Again, thank you for contacting me. My San Francisco staff will do all they
            can to help you

            Dianne Feinstein
            United States Senator

            ONE POST STREET
            SUITE 2450
            SAN FRANCISCO, CA 94104
            (415) 393-{)707

  4. Have there been a response from US Senator Diane Feinstein’s office? It is more than the twelve weeks now that they asked for to respond on their efforts in contacting the SEC.

    • I have not received a response from Senator Feinstein’s office. I imagine that she is busy with the national security investigations.

        • You should have received a grantor letter. I believe it substitutes for a K1 Statement. You’ll want to consult a tax professional. I received mine yesterday, Thursday, March 20th. If you have not received it, I would call Dennis Faulkner, the liquidating trustee’s office.

          • yes – I received the Grantor letter and forwarded same to my CPA. CPA is now inquiring about a K-1 for 2013 which I have not received.

  5. I revisited a correspondence from Faulkner dated 12 months ago that indicates that the grantor letter takes the place of a K-1 for each given fiscal year. That is how I will roll.

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