In Case You Missed It (ICYMI)

ICYMI:

DIANNE FEINSTEIN
CALIFORNIA
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

Sincerely,
Dianne Feinstein
United States Senator

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

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42 thoughts on “In Case You Missed It (ICYMI)

  1. As you know, the so-called criminal action that was brought against Walter and Kelly was probably not sufficient to satisfy the requirements for the application of the “Madoff Rule.” However, although more cumbersome, we can still get advantageous ordinary income losses if we qualify for a “theft loss” deduction under IRC Sec. 165. I believe that those requirements could be met if a tax payer/investor could provide the documentation that the SEC obviously has given the allegations in its complaint against the Ngs and Horwitz. The issue is obtaining access to those documents. I have written the SEC and requested them and have not yet received a response. However, I would guess that the more pressure that is brought on the SEC to make those documents available, the better chance there is that it will do so. I don’t know what you requested of Diane Feinstein, but from a practical standpoint, asking for her help in this regard would be one of the best things that could happen for many of the investors.

    • Thank you Rick. Was wondering if your CPA or Tax Attorney had advised you that the “Madoff Rule” would not apply. I was planning on going to a Tax Attorney with this question but if you already have than I may not bother.

      • I do not want to give you tax advise. However, according to my reading of the regulations that govern the so-called Madoff rule, one of the requirements is that the criminal charges must be “fraud, embezzlement or a similar crime that, if proven, would meet the definition of theft …” I am concerned that the charges brought against Walter and Kelly Ng do not fall within that definition. However, you should rely on the advice of your tax counselor. And if you get a positive response, I would certainly like to hear about it at rl_perez@yahoo.com. Thank you.

  2. Rick, thank you for the above information. Would you please post the address to contact the SEC? I too would like to send a letter to the same address. Also, do you have a link to the SEC’s ruling on the Ngs and Horowitz?

    • The SEC complaint, SEC v. Walter Ng, et al., Civ. No. C 13 0895, lists, among others, Erin E. Schneider – schneidere@sec-gov – as one of the attorneys.

      As far as I know, there is not yet a resolution of the SEC action. However, the complaint makes a number of allegations that I believe would, if proven, support IRS Sec. 165 theft loss claims (keep in mind, however, that I am NOT a tax advisor).

      Since federal criminal charges have already been brought and resolved against the Ngs, I am concerned that even pressure from Sen. Feinstein’s office will not result in more charges being brought. Plus, although I certainly want “justice,” I am also interested in recovering as much of my loss as possible, and one means is to be able to claim the losses as “theft losses” so that a significant portion can be written off against future ordinary income. I believe that there is hope for that based on the allegations contained in the SEC complaint because I believe – but do not now – that the SEC had documents to support those claims. Accordingly, something specific, and probably more realistic, that we can request from Sen. Feinstein is help in obtaining those documents from the SEC.

      The following is a greatly summarized and edited version of some of the SEC complaint’s charges.

      I believe that the following allegations, if true, would support a claim for a theft loss as to R.E. Loans, LLC:

      By June 30, 2007, R.E. Loans had depleted its cash to approximately $1,000,000 from approximately $55,000,000 just 6 months earlier. R.E. Loans was illiquid because it was contractually obligated to its borrowers for another $105,000,000. To continue making distributions, in July 2007 R.E. Loans obtained a $50,000,000 line of credit from a commercial lender. Shortly after signing for the line of credit on behalf of R.E. Loans, Walter Ng drew approximately $43,000,000 of that $50,000,000 line of credit to make payments to himself, various affiliated entities and investors. The line of credit imposed numerous financing and operating restrictions on R.E. Loans. By August 2007, R.E. Loans had difficulty making distributions to investors which were continuing to be requested because of a slowdown on borrower payments and because it had stopped accepting new investors.

      I believe that the following (again, this is summarized) from the SEC complaint would, if true, support a theft loss claim for MF08 investors:

      Although MF08 was authorized to buy non-delinquent loans from R.E. Loans at fair market value so long as they did not exceed 20% of MF08’s assets, when MF08’s commercial lender discovered these unauthorized unsecured loans, R.E. Loans transferred $39,000,000 of its commercial loans to MF08 to “satisfy” re loan’s obligation to repay MF08 the $39,000,000 it had obtained from it. However, those loans were all delinquent, they were transferred at significantly more than their fair market value and they substantially exceeded 20% of MF08’s assets.

      I am not a securities lawyer. However, I believe that to make these and the other allegations that the SEC has documents to support its claims. I believe that if we can obtain copies of those documents that we as investors will be in a much better position to make theft loss claims with the IRS. Accordingly, asking the SEC for the documents, and asking Sen. Feinstein’s help in obtaining those documents, could be very beneficial to all of us.

        • Thank you, Erin. The more investors who ask for those documents, the better. As I said, they could very likely support our claims for ordinary income losses rather than the capital losses we would otherwise be entitled to and the difference is likely to be significant.

          So, everyone, contact the SEC through Erin Schneider at schneidere@sec.gov and ask for access to the documents the SEC has that support the charges contained in the SEC’s complaint. Also, ask Senator Feinstein’s office for help in obtaining those documents.

          And, if you succeed in getting the documents, let the rest of us know and put them in Dropbox or something so that we can share them. I will certainly do that if they are provided to me.
          Thank you.

      • I thought I heard some where that all that is needed to trigger the Madoff rule was the merely charging them with fraud, they do not have to be convicted. The SEC has done this.
        Does anyone know?

        • Check with your tax advisor, but I believe the problem with the SEC action with regards to the Madoff rule is that it is NOT a criminal proceeding which is what I believe the Madoff rule requires. However, with a proper showing one can still get ordinary losses for a theft loss. If the SEC charges are proven, I think that would qualify. Also, if one had the documents upon which the SEC bases it’s charges, I think that would work. That is why I encourage investors to do what they can to get those documents made available to us. That includes contacting the SEC and asking Sen. Feinstein’s office for help in that regard.

          • Were you able to get anything from the SEC? Anything new about the ability to take the loss as a theft loss? Any information about this would be greatly helpful!

  3. Rick, I asked readers to write to Sen. Dianne Feinstein and describe their personal situation to pressure her but her office received virtually nothing from investors so we likely won’t get any useful action from her. Your effort with the SEC is worth working on. Thank you.

    • Maybe investors would be more active if they knew that they could get favorable tax treatment with the info that the SEC has. (The difference between claiming an ordinary loss and a capital loss can be significant.) It would be worth investors contacting Sen Feinstein’s office asking for its help in obtaining that information.

    • Hi,
      We wrote to Sen. Dianne Feinstein shortly after her email was posted on this website. We just received an email from her requesting us to fill out paperwork with our personal information and detailed explanation of the problem in order to open a case.

  4. These bastards stole $350,000 from me, my life savings. I worked 22 years as a public servant to save it. Not much to some people, but a huge amount to me. Is there any justice ?

  5. Thanks for your suggestions. My husband and I both wrote letters to Sen. Feinstein according to your original suggestion. Maybe others did too.

  6. I spoke to Caitlin, one of Senator Feinstein’s representatives on our behalf last Tuesday, and she said they DID receive letters and phone calls. I called her because I WANT TO KNOW WHAT IS BEING DONE ON OUR BEHALF. Caitlin said they are working hard on getting some answers from the SEC, DOJ, IRS, Asst. Attorney General Maureen Bessette, and the FBI. She cannot tell me what they have so far. Caitlin sounded sincere and on top of everything, as she reeled information off the top of her head and did not have to run and look things up. She was familiar with our goals and what has already happened to us. Senator Feinstein is our elected official. This Federal crime was done in her back yard. It is her job to investigate the DISjustice that was done to us. Call her, write to her:
    San Francisco
    One Post Street, Suite 2450
    San Francisco, CA 94104
    Phone: (415) 393-0707
    Fax: (415) 393-0710
    Email on website
    She and her representatives will appreciate the emotional and financial harm that has been done to the investors if we start sticking up for ourselves. We have had no voice of our own until now. We have the attention of a long respected Senator serving on the U.S. Dept. of Justice Committee. Go get your phones, pens and keyboards and BE HEARD.

    • There is another avenue that can and should be pursued. It is the DOJ’s Office of Professional Responsibility (OPR). http://www.justice.gov/opr/process.htm
      This is the web site with instructions to file a complaint against DOJ
      attorneys.
      I believe the entire expiration of the statute of limitations issue was completely botched and somebody should be responsible. This venue allows us to make that complaint. I have followed their instructions and filed.
      I know we are talking and writing to Feinstein’s office, and she is on the OPR committee, but the more approaches we can take the better. Take the time and file! No this will not get our investments back but it may help on our taxes, and get these bastards the sentence they deserve.
      As others have already said everyone should call and write Feinstein’s office, OPR, SEC, how about TV? FOX news, American Greed, etc., this is a big deal! If enough of us tell our story who knows what might happen.

      Nancy

      • Hi,
        I just came across your suggestion on this site. I would like to file a complaint with DOJ because it sounds like a great idea. I am not sure what details to put down where they request names of the attorneys, etc. Do you have a copy of your complaint? If so would you mind emailing it to me so I can use it as a model? I am lazyhiker@gmail.com
        Thanks either way.
        Rtish

  7. It’s great to hear that investors are starting to contact Sen. Feinstein’s staff…when I spoke with her staff there had been little response. Your encouragement to investors to make ourselves heard is very valuable. I believe the personal accounts of what this has done to each one of us is very powerful and every letter adds to that. Let’s ask all our investor friends to do the same. We may indeed get some real help now.

    • Well, here is your big and LAST chance. Call—usually Caitlin answers [nothing wrong with asking for her], identify yourself as an investor in the Ponzi scheme created by RE Loans, and that you are thankful the Senator is taking this Federal crime seriously. Leave your name and number and tell her you will follow up your conversation with a letter of your story, which was the original request from the Senator. You would be amazed at the courtesy and seriousness they treat the investors. It is well worth it to me. We are certainly not the only people on Senator Feinstein’s list of priorities—SO GET IN GEAR AND MOVE US UP TO THE TOP. Remember, WE are her constituents. WE are not asking her for a favor. It is her job to help us to go after the people who threw us under the bus.

  8. Yes, glad to hear the affected investors have seen to taken a stronger stance with the pursuit!
    DON’T GIVE UP!! That’s what the Ng’s and Bruce and their lawyers and anyone in their pockets wants you guys to do to stop “this witch hunt”. Well, let them all know until the witches have to put some years in the concrete Ritz Carlton AND recoup as much money as they can, should no one investors and their families will ever back down now!!

    Can someone keep Mr. Dan Noyes informed and hopefully involved, he might help give this more public exposure thru the TV media. Does anyone have a way to contact the newspaper AND radio medias?

    Keep the pressure up till they POP!

    NEVER GIVE UP!!

    • So, Steve, presumably you are also contacting Sen. Feinstein’s office and the SEC to ask for the documents as discussed above?

      • Hi, Rick:

        No, I’m not an investor nor know of anyone affected, just following on the sideline.

        I’m not sure so many of the actual investors want to put down their feelings whether it’s because they are so tired, don’t know what to say or if they do, they don’t want to. I had suggested before to have a pre-written one maybe it just has one to be signed as an “affected investor” or have another one with the general heading but allow the sender to add in their own comments.

        It just seems like out of the hundreds that have been affected only a handful or a slightly larger percentage of more than two handfuls are still willing to voice themselves. Maybe some are so old and the surviving family don’t see the value in “numbers speaks”.

        • I think you are correct..some of us are just old and tired and feel totally beaten.. six years of our lives have been stollen from us.. The Ngs can pay the lawyers with our money.
          .Im a long time invester. at first I believed Walter when my monthly checks ended and he said it was temporary and everthing would be fine soon.
          .Im an elderly widow I had taken his advice for many years..We had all our life savings invested with them.. I expected to lose some when the economy got bad..but NEVER did I believe they could lose all my dollars and Im reduced to living on social security only.. and now they hardly get a slap on the wrist because all the government agencys have failed us..
          .I first called the .District attorneys office contra costa in 2009 and was told there were too many complaints for them to handle so should call the FBI and it took almost two years before they seemed intrested and asked for information.. I hope finally this case can get some attention, and justice..And some of our investments back..as long as We have to live out our final years in poverty..and not able to help our children or grandchildren….They do not deserve any better..
          I have written to Senator Feinsteins office.

          • I am so sorry to hear what about what you are going through (correct that) what you are in! Those bastards ruined so many of our lives and they deserve so much more than they are slated to get.
            I spoke to Erin schneidere with SEC and she said she is interested to hear from more investors as to how this has affected our lives. The SEC is going after them and hopefully they will achieve better results than the U.S.Attorney.
            Also log on the DOJ site that I mentioned above and make a complaint to the OPR
            Office of Professional Responsibility. The more of us to complain the better our chances of getting some justice.

  9. From the article referenced above;
    “Vassallo and Kenitzer engaged in stalling tactics, saying they were “restructuring” the funds or that the SEC had frozen company accounts due to a baseless complaint. Even as some customers began to doubt the investment company, EIMT continued to aggressively pursue new investments.”

    Sound familiar? Especially the “”restructuring” the funds”” and “the SEC had frozen the company accounts” parts?

    That’s EXACTLY what Bruce Horwitz and Kelly Ng said to me when I started asking for the return of my investment(s). EXACTLY!!!!!

    And, while REL was rapidly going under, the Ngs “continued to aggressively pursue new investments” into MF ’08.

    The difference between these two cases? The article is about $40 million dollars.

    Horwitz and the Ngs are responsible for the loss of almost ONE BILLION DOLLARS!
    (R E Loans + Mortgage Fund ’08 + Barney’s hobby casino in Reno).

  10. Here is the sentencing report for Kelly and a letter from one of his friends to the Judge espousing his good character:

    U.S. SENTENCING MEMO
    CR 13-00650 PJH

    MELINDA HAAG (CABN 132612)
    United States Attorney
    J. DOUGLAS WILSON (DCBN 412811)
    Chief, Criminal Division
    MAUREEN C. BESSETTE (CABN 165775)
    Assistant United States Attorney
    1301 Clay Street, Suite 340S
    Oakland, California 94612
    Telephone: (510) 637-3680
    FAX: (510) 637-3724
    Maureen.Bessette@usdoj.gov
    Attorneys for United States of America
    UNITED STATES DISTRICT COURT
    NORTHERN DISTRICT OF CALIFORNIA
    OAKLAND DIVISION
    UNITED STATES OF AMERICA,
    Plaintiff,
    v.
    KELLY NG,
    Defendant.
    NO. CR 13-00650 PJH
    U.S. SENTENCING MEMORANDUM
    Date: March 5, 2014
    Time: 2:30 PM
    Courtroom #3
    On November 6, 2013, defendant Kelly Ng pled guilty pursuant to a plea agreement to Counts
    One through Twenty of the Information charging him with Structuring Transactions for the Purpose of Evading a Reporting Requirement, in violation of 31 U.S.C. §§ 5324(a) and (d)(2). The Probation
    Officer has determined that defendants adjusted offense level is 19, Criminal History Category I, with a resulting sentencing range of 30 to 37 months, and recommends that the Court sentence Ng to 30 months imprisonment. The United States agrees with Probation’s Guideline calculation and respectfully requests that the Court sentence defendant to 30 months imprisonment, three years supervised release, and a $2,000 special assessment.

    On September 30, 2013, defendant Kelly Ng, was charged by information with twenty counts of
    Structuring Transactions for the Purpose of Evading a Reporting Requirement, in violation of 31 U.S.C. §§ 5324(a) and (d)(2). On November 6, 2013, the defendant pled guilty to all counts pursuant to a plea agreement entered into pursuant to Rule 11(c)(1)(C) of the Federal Rules of Criminal Procedure.
    In the plea agreement, the parties agree that the Sentencing Guidelines will be calculated as
    follows and that, other than seeking a downward departure pursuant to 18 U.S.C. § 3553(a), the
    defendant would not ask for any other adjustment to, or reduction in, the offense level or for a
    downward departure from the offense level and Guidelines range:
    a. Base Offense Level, U.S.S.G. § 2S1.3(a)(2): +6
    b. U.S.S.G. § 2B1.1(b)(1)(G), Amount of structured funds $406,000 +14
    U.S.S.G. § 2S1.3(b)(2), Pattern of illegal activity involving $100,000+1
    in a 12-month period +2
    c. Adjusted Offense Level: 22
    d. Acceptance of responsibility -3
    e. Total Adjusted Offense Level 19
    Plea Agreement at ¶ 7.
    The parties agree that a reasonable and appropriate disposition of this case under the Sentencing
    Guidelines and 18 U.S.C. § 3553(a), and the sentence to which the parties agree is: (1) a sentence of no more than the low end of the above guideline range [30 months imprisonment]; (2) three years supervised release; and (3) a mandatory special assessment of $100.00 per count to be paid on the day of sentencing. Id. at ¶ 8.
    The government recommends a sentence of thirty months imprisonment, three years supervised
    release, and a $2,000 special assessment to be paid on the day of sentencing.

    From 2008 through 2012, the defendant structured over $400,000 through three bank accounts
    and one credit card. PSR at ¶ 8. As shown in the information, this pattern of illegal activity totaled over $100,000 in a 12-month period. The defendant obtained these structured funds from salaries and bonuses paid by his family-owned businesses — Bar-K, Inc., The Mortgage Fund, and RE Loans. PSR at ¶¶ 8, 63-64. The defendant’s work at these entities involved lending private money to finance residential and commercial real estate projects that were unable to obtain loans from ordinary banks. Defense Ex. 18 at p.2. The defendant and his brother worked with their father from the time they graduated from college. Id. Despite being told by a bank employee about the rules involving Currency Transaction Report limits in October 2008, the defendant continued to structure funds through his bank accounts through December 2012. PSR at ¶ 8.

    ****************************************************************************************************************THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) INVESTIGATED THE DEFENDANT, HIS FATHER AND BROTHER AND THEIR BUSINESS ENTITIES. PSR AT ¶¶ 6-7. THIS RESULTED IN THE SEC FILING A CIVIL COMPLAINT AGAINST THE DEFENDANT, HIS FATHER, HIS BROTHER, AND THEIR ENTITY THE MORTGAGE FUND, LLC. PSR ¶ 76. THE FAMILY BUSINESSES (RE LOANS, THE MORTGAGE FUND, LLC, AND BAR-K) ARE IN BANKRUPTCY, AND ARE SUBJECT TO CIVIL LAWSUITS. PSR ¶¶ 69, 73, 75.
    ****************************************************************************************************************
    As detailed in the presentence investigation report, the defendant has enjoyed a strong, stable,
    and supportive family, an excellent education, a lucrative position in his family businesses, and an
    affluent lifestyle, including a five million dollar residence in Orinda, California. PSR at ¶¶ 7, 35-42, 52, 63-64, 68, 69. Despite these advantages, the defendant structured hundreds of thousands of dollars through multiple bank accounts, again and again, over four and a half years, knowing he was violating the law. Defendant’s repeated structuring activities, over such a lengthy period of time, warrants a sentence of thirty months imprisonment.
    The defense has submitted information regarding his good deeds over the years, providing
    financial contributions and support to volleyball teams and to his children’s school. Defense Exhibits 1through 20. These actions, while laudable, do not minimize defendant’s long term structuring of hundreds of thousands of dollars. Therefore, the government believes its recommended sentence is reasonable and sufficient but not greater than necessary to reflect the seriousness of defendant’s offense promote respect for the law, and provide just punishment.

    “The Honorable Phyllis Hamilton”
    “Judge ofthe U.S. District Court”
    “1301 Clay Street”
    “10 February 2014”
    “Oakland, CA. 94612”
    “Dear Judge Hamilton,”

    “I am humbly sending you this letter as a character witness for Kelly Ng. I have known Kelly for”
    “34 years. We have traveled, played athletics and socialized together since 1981. I consider him a very close friend; we were in each others weddings.”
    “Kelly has always been generous and helpful to me and others around him. He has always been”
    “very welcoming and hospitable to people visiting his home. He is a loyal and attentive father and husband.”
    “I first met Kelly in his senior year at Davis. Kelly challenged and mentored me to become a”
    “better setter and leader in Volleyball. He also dragged me along and made me feel welcomed with the older and established Volleyball crowd, even though I was the youngest. We played open Volleyball together after college, which is where we became fast friends. He coached me in”
    “volleyball and life. He encouraged me to buy my first house, to start investing and saving. He made me aware ofEESOP retirement programs, which I brought to the next 2 companies I worked for. We traveled together, where he exposed me to different parts of the world and the”
    “excitement and fulfillment of traveling. He included me and my family into the life of his family. We later discovered we were both musicians so played music together for weddings, families”
    “and friends gatherings.”
    “After Kelly stopped playing competitive Volleyball, he began to volunteer as a high school”
    “coach. As with all parts of Kelly’s life he was very generous of his time and talent and he built a very good Boys Volleyball program at Bentley High school. The Bentley”
    “program was recognized as a top High school program and it started sending boys to collegiate”
    “volleyball programs. Kelly was recruited to coach Men’s Volleyball at UC Berkeley, where he ran a great program and coached up and mentored young men.”
    “Kelly has been a loyal and incredible friend and mentor to me. I have always looked up to him”
    “and examined his personal life close up and never found reasons to question his integrity or character. I have known him to be a hardworking and conscientious businessman; a loyal and honoring son and brother; a charitable person to friends and his community; and a caring and supportive father and husband.”
    “In writing this letter witnessing Kelly’s life it amazes me of his high level accomplishments. He”
    “has truly lead a blessed life and passed those blessings on to so many others. I am aware of the charges against him and that he has pleaded guilty. This does not diminish my high opinion of Kelly, but I look forward to him being able to do good and help others wherever he is.”
    “Sincerely,”
    “Frank T. Largusa”
    “4116 Krolop Road,”
    “Castro Valley, CA. 94546”

    • Mr. Largusa, do you realize how many lives Kelly has ruined? How he cheated thousands of people out of their life savings? Were you invested with him?

      This is insulting to all of the investors whom he stole from, using our hard earned money to pay for his $5 million dollar home and lavish expenses. Continuing to live his life as all of us suffered and could no longer buy a cup of coffee at Starbucks as he was using our money for himself!

      Shame on you, you’re disgusting.

  11. We had almost an hour long conversation with Jacqueline Palank for CNN regarding bankruptcy cases. She is very keen to expose what has happened to all of us. Please contact her and she will arrange a call quite quickly. We need to get our stories out. Finally someone is taking notice of our plight. She has already spoken with quite a few of us. All of our stories are different, please take the time to write to her.

  12. he Honorable Phyllis Hamilton”
    “Judge of the U.S. District Court”
    “1301 Clay Street”
    “Oakland, CA. 94612″

    Write a letter to the judge right now telling her what Kelly has done to you: on Monday send it through the post office as an overnight letter so she can read it before sentencing. Several letters could have an effect on the sentence. Isn’t it worth the effort?

  13. You are so right, this is total crap!
    But we can send our own emails to Judge Hamilton and tell her about Kelly’s real character.
    I have two emails addresses, I am not sure which one to use, so send to both.
    Tell everyone you know to do the same, let’s flood her with emails.
    PJHpo@cand.uscourts.gov
    CRIMpdf@cand.uscourts.gov

    Why not copy the U.S.Attorney Maureen.Bessette@usdoj.gov
    The sentencing is this Wednesday March 4, so send the Emails immediately.

    A large turnout Wednesday might also help to show our distain for the Ngs and we may be able to speak. Please tell us all if anyone knows for sure if we will be allowed to speak.

    • According to Judge Hamilton’s clerk our emails will not be read. The only way that a letter will be seen by the judge is if we physically take it to the courthouse and file it. The only way we will be permitted to speak at the sentencing is if the US Attorney permits it and conveys this to the judge.

        • You are facing an uphill battle.

          The Assistant U.S. Attorney Maureen Bessette filed a 3+ page memorandum in support of a jail sentence for Kelly Ng. Maureen Bessette’s memorandum was incomplete, inaccurate and insulting to the FBI and IRS agents who worked for more than 2 years developing an ironclad mail fraud, wire fraud and money laundering case. Maureen Bessette did not attach any statements or letters from any investor, leaving the impression none of you care. The failure to attach a single investor letter to the pro forma memorandum was a sellout and an abandonment of all the investors who gave their time to the FBI agents to help build the criminal case, a case that Maureen Bessette declined to file.

          On the other hand, Kelly Ng’s defense counsel filed a 16-page memorandum that was complete, accurate and persuasive. Kelly Ng’s defense attached 29 letters, all of which described a Kelly Ng quite different from the one you might know.

          On balance, Kelly Ng has the better of the argument.

          it is very unlikely that your letter filed today or tomorrow will overcome the failure of Maureen Bessette to make a case for a jail sentence for Kelly Ng.

          If you doubt what I say, send your e-mail address to me at combatlit@aol.com and I will send the two memoranda to you. Then you can be the Judge.

          Robert W. Brower

          • If this is true, here’s Bessette’s phone number. There may not be much we can do to turn the tide, but an expression of severe disappointment might help: (510) 637-3691

  14. I invested funds ($36,835)in 2004 RE loans under advisement that this was a relatively risk free investment and that funds could be withdrawn at any time. Even though the dollars are small compared to other investors this is a significant amount of cash that was hard earned. Justice needs to be brought to the NG’s for their criminal theft of funds.

    • While the desire for revenge is understandable, getting some financial relief would help. Making our losses ordinary income losses rather than capital losses is a step in that direction. That could be accomplished by state or federal indictments against some or all of the Ngs/Horwitz for acts that amount to “theft” – which I believe would include fraud – (the “Madoff” rule) or, likely, by having access to documents that the SEC has that shows that the promoters transferred funds from MF08 to RE Loans for less than fair value and that Walter Ng took for himself and his associates $43,000,000 of the $50,000,000 line of credit RE Loans got to help it with its cash flow situation. Pressure on the SEC to release these documents, or upon Sen. Feinstein’s office to force their release, would be helpful in that regard.

  15. Should several investors suffer because Ms. Maureen Bessette did not do her job well? Should criminals escape the law and due to the incompetency of the officials we as citizens have elected? How much progress has Feinstein’s office made on the matter since it was reported? The statute of limitations ran out and now the sentencing will be all done and sealed. Do investors expect to get a notice saying that it is ‘too late’ for any further course of action in bringing the criminals to justice or getting any relief whatsoever? (eg. the ordinary loss as per IRC).

    All of the questions shroud in darkness, the little hope, if any. It also sends a message to fellow citizens and investors that criminals will find their way out with the help of the elected officials.

    Shall we now go to the White house since we have little to do once the sentencing is over? The US Attorney’s office is busy chasing crimes that amount to pennies compared to what investors have been cheated of by the Ngs. And they will be complimented for the great job they have done. May be this should be brought to Eric Holder’s notice.

  16. Sorry if this is posted under the wrong heading (?).
    I presume everyone got the letters discussing the Jones, et al. v. Armanino LLP, Case No. RG13684105 (the “Jones Action”). One of the letters was the “Notice of Class Action Settlement”. There we are given 4 choices of which one is “Exclude Yourself. Get no payment. This is the only option that allows you to be part of any other lawsuit against Armanino about the claims in this case”. The letters discuss a lot of reasons to “Do Nothing” and be sent a small payment. But I was wondering if anyone is “Doing Something”. i.e. Excluding themselves at this point, objecting or going to a hearing? Are there any good and real reasons to exclude myself? e.g., are there any other class action lawsuits existing or coming up relevant to *this* particular case? Or other considerations I might be overlooking? I know the easiest path is “Do Nothing”. And that may be the correct path. But I wondered if anyone out there has thoughts about this situation. I believe the exclusion deadline is July 24, 2014. Thanks ahead of time.

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