Payday!

 

US_One_Cent_Obv

Finally something has come in from all the legal action, but those Greenberg Traurig settlement checks are pretty slim.  Very few pennies on the dollar for your life savings.

Is this the end, or will we see any more small change from other legal actions?

What are the Ng’s up to these days?

Advertisements

17 thoughts on “Payday!

  1. I am hoping this will mean I never have to hear about RE Loans and the gang of 4 anytime in the future. I do appreciate the efforts of the law firm and pleased to receive anything at the end. The check may not seem like much, but those of us who lost a lot, it still seems like a lot of money when none was expected.

    • You will hear about it one more time. Read the last page of the letter, dated March 7, 2016, from D. Faulkner, Liquidating Trustee (he does write clearly). We are going to have ‘phantom income’ ascribed to us for the debt that was not paid by the Trust/liquidation proceeds. So expect tax complications and perhaps an actual cash tax liability to add insult to injury.

  2. Totally upset with our bankruptcy “Industry”. The Bankruptcy laws, courts, and the ways that individuals are allowed to legally hide all their money during the process. Totally upset with the Industry of consultants, accountants, lawyers, and property managers that feed off this bankruptcy process and the politicians that enable it to continue.

    However, what ever anger that I have left is focused on one individual. To help isolate this individual here is a little math exercise.

    RE loans had about $700 million in property loans before it fell apart. We were always told that RE Loans rules were to loan on no more than 50% of the property valuation. So the real “value” of those properties should have been $1.4 Billion, yes thats right, $1.4 BILLION DOLLARS.

    After the bubble burst in 2008, only about $650 million of property assets remained , and thru the bankruptcy process after 2011, $72 million was recovered from property sales which was not enough to pay off Wells Fargo. So the remaining property assets were seized by Wells Fargo and the receiver sold them off for $43 million. Noteholders got $0.00. And were never adequately communicated with during the whole process.

    Hmmm, so through this process, property assets with “appraised valuations” of $1.4 Billion sold for only $165 Million. We only have Bar-K to blame for originating loans on worthless properties. Who at Bar- K flew around the country making these “deals” ? Sure, the “great recession” was a factor in decreasing the value of the properties. But the primary factor was just human greed, ambition and very poor business judgement. Bar-K that enabled noteholders money to fund loans made on highly speculative/junk poorly appraised properties.

    I wonder what went wrong? I wonder who found all these “qualified” properties and took their 5% “loan origination” fees and then used our money to fund loans on garbage properties. I wonder who secured the original Wells Fargo Loan that resulted in stealing all our assets and what they did with the millions they got from the origination fees payed for securing that loan in 2007?

    I suspect that it is the same individual that has not been held accountable by our legal system(criminal or civil) for his failures.

    When my father went thru his business bankruptcy he spent years voluntarily (because of his high morals) paying back his investors. Has anyone seen any such effort from the Bar-K/RELoans. Anyone got a check from the Ng family recently. I keep checking my mail!!!

    Guess we can only hope that Karma intercedes where our legal system and the offenders “morality” does not.

  3. Well.. We had decided to move on ala Buddha.. And work as hard as we could to honestly build capital.. Luckily we had some working years left.. Not like some whose whole nest eggs were invested in these schemes. So, were pleasantly surprised to see approximately 10% for all of our personal and IRA investments. And we saw approximately 22% return on our corporate pension (Erisa qualified) retirement plan investments… Still huge losses, but many thanks to all who worked so hard to inform and move these proceedings forward… Bro ward, Kaiser-Jones, many others…
    I would really appreciate someone putting together a list of those who were integral to this process of getting any money back and doing some sort of tribute and thanks.. Any of you know the players?
    A

    • I received six cents on the dollar from one of my accounts with RE Loans.
      I also have a retirement account ‘serviced’ by IRA Services and have as yet received neither the March 7 letter from them nor a settlement check for that account.
      Had it not been for an email about the reduction to $0.00 value in this retirement account I wouldn’t have known about the letter at all.
      Has anyone with an IRA Services account received either the March 7 letter or a settlement check?

  4. Does anyone know how to account for the class action settlement?

    Is it:
    * Count the settlement funds as distribution of capital on the investment, so instead of 100% write-off, it is approximately 94% write-off
    * DO we write off 100% of investment, and then have ordinary income of 6% if investment, which would be taxable? This would be a terrible outcome
    * Something else?

    Also what happens if the RE Loans investment was in an IRA? Should the class action check go into IRA, or is it income that is separate?

    Any ideas?

    • You will have to consult with your tax adviser, but I did check with the settlement administrator and there will not be any tax forms issued in connection with the settlement distributions received by the class members. I hope this is useful.

  5. I worked for Barney at the Siena Casino. I was brought in by a general manager desperately trying to bail that mess out. We actually got the thing to make a few bucks that year. But the place was so in the hole from the previous 4 years of poor management and absurd owners ideas, it would never make it. Barney personally fired me for not reverting back to his failed business model once we made a few bucks. I was proud to have stuck to my guns and not knuckle under to his dopey ideas. The guy couldn’t manage a pop corn cart.

  6. So how are the Ng’s etal able to repay their home mortgages? Did they use those funds to pay off their mortgage debts? If not surely they must have hidden those funds into another accounts be they offshore or local banks or via online bank.

    How are they paying for their “basic” lifestyles? Food, gas etc?

    There must be a way to find out looking for the hidden assets?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s