Armanino McKenna Suit Settled

Per this link, Armanino has agreed to settle for $3.325 million.

Don’t be too excited, though.  This won’t even begin to make anyone whole.  Expect a check for very little and let it serve as a reminder of just how badly we were fleeced.

It’s not a goose egg, but the check coming back to the Robie household probably won’t even cover the cost of our Thanksgiving turkey.

This is in no way diminishes the outstanding efforts of Theodore H.D. Jones, Jeanie Kayser-Jones, and Robert Frost, who fought this battle on our behalf.

Please comment if/when you receive a check.

And in the meantime, “Be passionate about your profession.”

armanino

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21 thoughts on “Armanino McKenna Suit Settled

  1. Did anyone read of the Madoff “paybacks” lately? Persons with less than 925K invested have been made whole, wish we could approach even 5% of that, eh?

  2. Husband and I received checks for the accounts we had with RE Loans and Mortgage Fund 08. Will there be any other settlements that could possibly add up to get us back at least 5% of our life savings???

  3. Checks were received in mail today. Payment comes from Armanino Class Action Settlement, and I don’t think has anything to do with future payouts (albeit minuscule) from the various BK actions. There is another CA lawsuit (Greenberg Traurig & WFB, defendants) in process now which might result in a similar payout if plaintiff(s) prevail. Concerning checks received…suggest consulting with your tax consultant on whether these payments constitute a “taxable event”.

    • Agreed. If the CPA distributions are probably “taxable income” . I assume they settled to the maximum of the their insurance policy.
      The liquidating trustee recently announced a 5% distribution in the first quarter.
      The entire situation is sad.

  4. I don’t know why people don’t really understand the magnitude of what we actually lost to the Ng’s and Horwitz and what a slap in the face the $3.325 million Armanino McKenna settlement is.

    Between RE Loans, MF ’08 and the One South Lake Tahoe (Sienna Hotel, Spa and Casino) $50 million loan to Barney Ng, the loss to we investors was (six years ago) almost one BILLION dollars.

    Armanino, the auditors who knowingly misreported the financial status (and illegality) of Bar-K, were somehow allowed to settle the class action suit against them for a pitiful $3.325 million.

    The life savings I had invested (the paltry sum of something near a half million dollars) today returned $288.56 on top of the approx. $2,000.00 I got back from my investment in Barney Ng’s hobby, the Sienna.

    I know I’ll never get it but, with the interest we were promised, the Ng’s and Horwitz today owe me nearly a million dollars and six years of a wretched life.

  5. Sickening… Over a million and we see one check for $238, one for $600+.. May see a couple more, but definitely “fractions of pennies on the dollar” …the Maddoff clawbacks were the result of Federal intervention from the SEC and FBI.. Do we have anyone from those agencies working on our behalf?

  6. We received paltry 3 checks today without any identifying link to a specific Bar-K account and without any indication of the percentage recovered. Interesting that a host of law firms have bombarded us with reams of legalese over the last several years but don’t have the grace to include an explanatory letter.
    We are reluctant to cash them without some further communication.

  7. We tried to cash our checks today and the bank would not cash them due to IRA services and Pension written on them Have other people experienced the same issues? What are others planning to do for such accounts vs checks written to individuals? They once again adding insult to injury.

    • I had a email conversation with John Robie on Monday about the ‘probable’ problems we may experience with IRA Services regarding settlement checks issued for our IRA accounts.
      From past experience with IRA Services I expect that they will want to keep those checks to pay their ongoing service fees and will continue to refuse to return ANY of our remaining IRA contributions to us.
      I was told by them that my account no longer has any cash value, ergo nothing for me to withdraw, yet they insist that they still administer the account and are therefore due their service fees. I have/had funds in the IRA that are not part of RE Loans and they refuse to release those as well.
      I hope anyone who interacts with IRA Service re. this matter will post their experience here.
      ‘Received minuscule checks & outraged!’, please let us know if you’re able to deposit the check(s) with IRA Services and Pension noted on them.

  8. Spoke to representative from law firm issuing checks. They will NOT be sending 1099-Rs at year-end. Was informed that proceeds were strictly from CA settlement and no REL or MF ’08 assets were sold to effect payment. Consult with your CPA as to “taxable event”. I plan to consult with my bank about accepting deposited funds with a “hold” for 10-12 days. If checks are not returned within that timeframe, should be no problem.

  9. It would be interesting to know how the law firm calculated the payouts on the Armanino settlement. Seems that people with a lot invested got about the same general amount as those with less invested.

    • We got a call back yesterday from BFFB, the Class Council issuing the checks and were told they were allocated on a pro- rata basis.

  10. Walter Ng cheated my sister’s worth over US$1M ~ Partnership, RE Loan, etc. They were closed friends for decades, playing golf, taking trips to Asia. She passed away 6 years ago, and I’m glad that she didn’t have to see through this.
    I received a check for $9.32 from the Jones V Armanino LLP Settlement.

  11. Armanino got off easy with such a small settlement..Hopefully Wells fargo will have to pay more for what they have done to all of us.
    Its impossiable to survive on social security only.. and at 80 unable to go to work..
    .We spent lifetime saving , and had everything invested with Walter because he told us how safe the investments were.. and we had trusted him for 30 years..We were Robbed when he took the loan from Wells Fargo..
    I do not understand why it took so long to get government agencys or Media attention on this. all government agencys failed us….and the media is still minimal..This affected many more than the 3000 investors..we all had familys we could no longer help,,
    These people need to pay back more than just fractions of pennies to help their victims repair their shatterd lives…Its been a very long miserable wait already for some justice..

    • I don’t understand much of these investments. I just knew that in January 2008, Walter signed an IOU Partnertship 4 with my sister worth $750k. In the summer he promised my then dying sister that he’d transfer the title to me. That was a joke. Then I read that they were already having so much problems the year before. Now, I just look at it as my deceased sister had made a huge donation to the community.

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