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

Coco Times Weighs In

Dear Media,

With the exception of Dan Noyes, where have you been and what took you so long?  This is a big story and deserves your attention.

Regards,

The Robie Family

STORY HERE:

http://www.contracostatimes.com/news/ci_26181046/local-investment-fund-accused-defrauding-investors-out-700

Ng’s Didn’t Want Us To Talk

Didn’t have time to post this earlier today.  In a move that surprised absolutely nobody, Walter & Kelly’s attorneys filed this document in an attempt to gag us lowly investors.

Heaven forbid someone actually told the court the truth about these slimeballs  😉

Here’s a link to the filing:

Defendant Walter Ng’s And Kelly Ng’s Statement Regarding Investor Testimony

Breaking News

Walter gets sentenced to 5 years of probation.

Kelly sentenced to 18 months in prison.

Sound off.

Another Failed Investment Gone Awry

I believe we discussed this one years ago…

For those who don’t read the Bonner County Daily Bee every day, check this out:

LINK

This summons lists Barney, Wells, MF ’08, Pensco Trust and RE Loans.

 

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.”

Capture

  • 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.

 

 

 

“Freedom Lies In Being Bold”

The title is a quote from the author Robert Frost, which is certainly apropos as we’ve just unearthed this “COMPLAINT FOR AIDING AND ABETTING BREACH OF FIDUCIARY DUTY”.

It was filed against Armanino McKenna in the names of three brave investors who have taken on the burden of leading the charge for the greater good of the whole.

Thank you to Theodore Jones, Jeanie Kayser-Jones and (not the author) Robert Frost.

Link to Lawsuit

Sound off below and let us know your thoughts.

Ponzi A-Hole Scammer Sentenced – Ng’s Next?

James Koenig gets 42 years.  Good.

In other news, we wait for something to happen to Walter, Kelly & Bruce.

Barney Ng

This blog has received a lot of feedback on the Barney issue, both positive and negative.  We took a hard-line stance that this blog should remain civil – as civil as possible given the highly charged, emotional nature of the state of our union.  Long story short, we not only appreciate the feedback many have provided, but we are willing to rethink the hard-line stance on the Barney discussion.

As such, please utilize this space to discuss Barney’s role in this fiasco.

Is he innocent?

Should he be given a hall pass because he may likely be aiding the investigation if not the legal battles being waged?

Do you even care as long as some of the other conspirators are brought to justice?

We’ve all invested a lot of time, a lot of money and a lot of heartache into the Bar-K scandal.  It’s ugly and it’s likely only going to get uglier before it (hopefully) gets any better.

Use this thread as a place to discuss Barney’s role in our plight.  Civil discussion only shall be permitted and John Robie shall be the arbiter.

Fire away….

WHO IS EQUITATUS AND WHY DOES MICHAEL COOLEY CARE?

If you thought Michael Cooley of Akin Gump was on your side, think again.  Cooley was a regular visitor to this site when he was pimping for a yes vote on the reorganization plan.  He got what he wanted and hasn’t been back since.  Sadly, that doesn’t mean he hasn’t continued his manipulative ways.

John Robies – (hmmm, just how many of us are there?) everywhere are doing their best to stay civil after your latest shenanigan.  Trust us, it ain’t easy.

If you care to click on this link (000981), you’ll see that Cooley is spending OUR money pursuing the true identity of Equitatus.  Why?  Well, Cooley works at the bequest of Walter and Kelly the Creditor’s Committee, who purportedly report to us.  I’m sure this is a truly pressing matter for them.  Rather than focus on recovering our hard earned life savings, they feel the need to file an emergency motion to lift Equitatus’ veil.

Who’s next?  John Robie and everyone who has ever posted a comment on a REL-related blog?  Stop screwing around and get us our pennies on the dollar before we die.

Shame on you, Michael Cooley.  Shame on the entire Creditor’s Committee.  You’re a farce and a disgrace.

Per the Equitatus blog – Barney is mad :-(

Barney has decided to take a piss on some noteholders – again.  If enough wasn’t already enough, he’s trying to take two investors to the woodshed because they tried to do the right thing on behalf of the whole (unlike the Creditor’s Committee).

Here’s a picture of young Barney Joe Ng showing what he’ll do to you if you stand up to him. He was a punk then and he’s a punk now.

I don’t know if anything is going on with the Kelly and Bruce BKs, but there is a status conference in Barney’s case on Tuesday, June 5th (that’s TOMORROW) at 1 p.m in front of Judge Efremsky.  Barney is asking the judge to slam the investors (noteholders) who filed against him, claiming the filing was for “an improper purpose”.  A rhetorical question: What could possibly be “improper” about not owning up to one’s personal guarantees and responsibilities for loans that he and his family made to his business entities to the tune of over $100 million dollars while leaving RE Loans investors broke – many destitute.  It’s laughable, but Barney wants punitive damages for the loss to his reputation, attorneys’ fees and costs against these investors who stuck their neck out for all of us. Is this shocking?  No.  It’s expected, because that’s how these guys play ball.  Hard ball.

The judge has let Barney explore his theory and Barney is running up the attorney fees that he wants to collect from them.

It may seem impossible but has anything about the Ngs seemed fair?  Come and watch how Judge Efremsky treats our fellow investors who tried to take on Barney.  It’s at 1300 Clay Street, Room 201 at 1:00 pm. Get there a little early because you’ll have to go through security.  And while you’re there, the judge is also hearing a motion and having a status conference on the B-4 Partners Involuntary Bankruptcy. It could be a very, very interesting afternoon.

We should stand up for those who stood up for us.  The best way to do it is to show up tomorrow.

This is the best we can do?

Just accept the plan.  It’s the best we can do.  Wells Fargo didn’t do anything wrong.  We’re not in cahoots with the Ngs.  We weren’t chosen by the Ngs.  Our counsel wasn’t chosen by the Ngs.  We’re independent.  We’re looking out for you.  We have your best interests at heart.  We know more than you.  You don’t understand.  You’re not smart enough.  You should trust us.

Sick and tired of hearing these insulting types of comments made by members of the creditor’s committee and Walter and Kelly’s friends?  Vote to REJECT the plan.

When Robert Brower, Dixon Collins and many, many others who have fought tirelessly on behalf of the 99% are telling us to REJECT THE PLAN, throwing up your hands and siding with insiders (the 1%) who are covering their own asses is the wrong solution.  Reject the plan.  Reject the notion that you can be duped AGAIN.

Fool me once shame on you.  Fool me twice shame on me.

 

 

…and so it begins

Has anyone ever played the carnival game Whack-A-Mole?

Now is the time to test your hand at the game.  As you know, Ng apologists are popping up out of the woodwork everywhere.  We’ve seen it on this blog, we’ve seen it on the Google group and we’ve heard rumors of Walter Ng Pearl Tom gearing up to send hand-written letters to investors in an effort to persuade them to accept the plan we should outright reject.

Over the next few weeks, Elliott Abrams and Ms. Tom will be joined by other shills, ambushing us with misinformation about the impending vote.  Members of the Ng hand-selected creditor’s committee represented by Ng-selected attorneys will tell you to vote for the plan.  Don’t be bamboozled by their shenanigans.  Simply pick up the mallet and take a theoretical whack at the mole.

Then send your ballot to AlixPartners.  Vote to “REJECT” the Plan.

 

No Means No – REJECT THE PLAN

Why You Should Reject The Reorganization Plan

We (and by “we” I mean those of us who aren’t in on the scam) can make this easy on ourselves.  We really can.  Vote no.  Reject the plan.  I’m voting to REJECT THE PLAN.  All you really need to know is one simple item.  When your packet arrives in the mail, you’ll find a nine (9) page letter from the Official Committee of Note Holders of R.E. Loans, LLC, et al.  Search for the BIG BOLD CAPS.  Focus on this sentence:

THE COMMITTEE RECOMMENDS THAT YOU VOTE TO ACCEPT THE PLAN

Interestingly, the letter from the “committee” “elected” to represent us doesn’t actually list their names.  It doesn’t matter.  Here’s the math:

Any Committee Member = Walter Ng

The very people recommending urging us to trust them and approve their plan are the same people who been accused of taking distributions when the rest of us got NOTHING.  They’re the same people who were purportedly spotted dining with Walter and Bel and they’re the same people who will, without a doubt, screw us over to protect themselves and their friends.

The nine page tome suggests five times that we accept the plan.  I suggest six times that we REJECT the plan.

The last time we “voted” on a plan, our ballots ended up floating in the proverbial Bay.  Our votes didn’t matter because once Walter and Kelly cast their votes, it was over.  The process is slightly different this time around.

The Class of Noteholders will have accepted the Plan if at least two-thirds in dollar amount and more than one-half in number of the Allowed Noteholder Claims that are actually voted are cast in favor of the Plan.

Walter can line up the two-thirds in dollar amount votes.  Can he line up MORE than 50% of the entire votes that will be cast?  I don’t think so.  Many of our busiest traffic nights on this very blog saw over 1,800 unique views.  We’re out there.  We can “win” (Yes, I’m using the term “win” rather loosely).  We can beat Walter at his own shell game.  We need to vote.  Every one of us for each and every account we hold.

A few other notable items from the expensive packet of crap they sent us:

Mackinac Partners and Jim Weissenborn would remain in charge to liquidate our assets.  They’ve done such an absolutely shitty job to-date that we should not allow them many more years of revenue on our backs.

Page five (5) item B discusses the “Plan Compromise”.  The Committee got this right in that you should read this in detail.  My reading says this is such a blatant cover your ass and screw the majority it’s not even funny.  It’s sad.  And it should be criminal (is ANYONE at the FBI or SEC actually listening?).  The only compromise we’d be making is to our own detriment.  Read this:

The Plan Compromise resolves potential objections to, or grounds for subordination of, the Noteholders’ Claims, and further eliminates the risk that Noteholders could be subject to future litigation over the recovery of distributions paid to Noteholders between November 2007 and the Petition Date.

Do you know what this means?  It’s a GET OUT OF JAIL FREE CARD in a legal sense for Walter, Kelly, Barney, Bruce and everyone who got money when the rest of us couldn’t.  It glosses over the fact that the exchange agreement was potentially illegal, but who cares when the committee elected to represent us doesn’t actually represent us?

If you’re worried about the sweet little bank with the stagecoach, don’t.  Wells Fargo will be just fine under this plan, because if the plan is accepted, we will be giving them a full release.

The document also warns us about the downside of rejecting the plan.  This downside would be a Chapter 7.  While Pearl, Gene, Allen Cone, Sherrat Reicher and their cronies warn us about the ominous nature of a 7, I believe there are many, myself included, who would welcome a 7.  This gives a Chapter 7  Trustee supreme power.  Walter would be instructed to bend over and cough while we inserted the Hubble telescope up his anus.

Finally, our friends on the committee estimate a distribution of  approximately $34-$63.6 million for Distribution to Holders of Allowed Claims, including Noteholders”.  INCLUDING Noteholders?  We’re still second fiddle, but this time we’re likely taking a back seat to the attorneys at Akin Gump and all the other firms eating our cake.  Do the math on the low number and we’re looking at a glass that isn’t just half-empty, it’s entirely empty.

I urge you to VOTE NO.  REJECT THE PLAN.

I’m John Robie and I approve this message.

The Trustee Strikes Back

Image

Could Walter’s days of sipping coffee on this Rossmoor terrace be limited?

On behalf of Trustee Fred Hjelmeset, attorney Tracy Green has filed an objection to Walter’s many exemptions in his personal bankruptcy case, including challenging the exemption of his new digs in Rossmoor, because it exceeds the $146,450 cap he’s allowed for a homestead.

While the investors have spent countless hours digging through old files in search of documents to support your claims and filings with the FBI and bankruptcy courts, take heart that Walter will now be digging through his files to prove the the source of funds in his bank accounts.

Those who have lost your IRA accounts to the Ng family could soon find Walter in your club, since the trustee is objecting to Walter’s exemption claim to keep his IRA “because the account was involved in prohibited transactions.”

Will Walter’s droid attorney challenge any of this? He’s already racked up over a quarter of a million dollars in legal fees, without being able to answer almost any question the judge asked, or making even an attempt at a repayment plan for chapter 11. What’s it going to cost us if Kaplan actually has to write or file something?

Looks like Walter might finally get some sense of the financial squeeze he’s put so many others in. But even if the trustee succeeds on every objection, Walter will still be living better than many of the people who trusted him with their life savings or retirement funds. Maybe Kelly will let them stay in a room at his 6441 square foot house, unless a future trustee lays claim to that too, along with Barney and Bruce’s McMansions. We can hope.

Read the whole filing here.

The Hunt for Hidden Treasure

With Walter and Maribel Ng’s personal bankruptcy now in chapter 7, the search for assets is on. If you have any information about art, jewelry, property, or other assets of the Ng family, whether or not they were listed on the bankruptcy schedules, please send that information to:

Attorney Richard Brown, at rebrownlaw@aol.com, and
US Bankruptcy Court trustee Fred Hjelmeset, at fhtrustee@gmail.com

Also interested would be FBI Special Agent Christina Boules at Christina.Bouls@ic.fbi.gov, (415) 553-7400 or (510) 451-9782.

Any little piece of information, no matter how innocuous Continue reading

Ding Dong…

…is the witch almost dead?

 

You might want to give this whopper of a document a read:

2011-12-01_LETTER_from_W._McGrane_to_W._Neary

Holy smokes!

An Update From The Field

Don’t Miss the Tracy Green Show!

November 2, 2011 2:00 p.m. Courtroom 201 1300 Clay Street Oakland, California.

Come one, come all to hear Ms. Green’s motion on behalf of the esteemed creditor’s committee to move the Walter Ng Bankruptcy to Chapter 7. Didn’t Judge Efremsky already suggest this a while back. . .?

As usual, get there early because seating is limited. Let’s be nice and try to save a few seats for the FBI, SEC and Dept of Labor.

Also, if you could not make it to the October 25th Walter Ng Status Conference, here’s an update:

Continue reading

FBI Update

By now, many of you have received a letter from the FBI notifying you of the the fact that we may be a “victim of a federal crime”.  The letter also included an “Investor Questionnaire” asking for some pretty detailed information.  At first glance, the FBI is asking for a lot of information.  Don’t let this stress you out.

A friend of the blog was able to confirm that the most important documents are cancelled checks or wire transfer confirmations on deposits and withdrawals to REL/MF ’08 (missing from the questionnaire is RE Reno)and to whom the money was sent and/or given.

For example, did you hand the money to Bruce at a dinner, did you mail a check to Susie, did you wire money through your bank account?  Conversely, did Walter hand you a check, did Bruce arrange for a wire transfer, or did they hand you a bag of cash?   Some of these scenarios are more likely than others, of course.

Just do the best you can, even if the information is complete.

Thanks and please use this thread to discuss and/or comment.

We’re on our way, folks.  Where?  I don’t know.  But we’re going somewhere, and that’s positive in and of itself.

Desist and Refrain Order

GREAT find by a friend – a short, but sweet read.  While this helps others in the future, is there any way this helps us today?

CLICK HERE for the DOCUMENT

The dominoes are falling – Mortgage Fund ’08 slapped with an involuntary BK

Mortgage Fund ’08 is placed into INVOLUNTARY bankruptcy.

Here is a link provided by a diligent reader/contributor on involuntary bankruptcy (HERE).

RE LOANS FILES FOR BANKRUPTCY PROTECTION

RE Loans filed for bankruptcy.  While this was inevitable, no doubt, it’s still a shock to the system.  Despite the fact that it’s our money, our lives and our futures, the real bankrupt entity is the Ng Family Dynasty.  They’re morally bankrupt.  They’re ethically bankrupt.  Yet they’re still out there doing business and tricking more suckers like us out of their hard-earned savings.

Maybe Led Zepplin said it best in “When the levee breaks”

If it keeps on rainin’, levee’s goin’ to break,
When The Levee Breaks I’ll have no place to stay.
Mean old levee taught me to weep and moan,
Got what it takes to make a mountain man leave his home

Equitatus posted the following a few minutes ago: Continue reading

Eating a Loan – Weyrich article with REL/Walter mention

The more the merrier…

Monday Funnies

Ask and You Shall Receive?

It is now seems clear that we are not going to receive any information about the state of the funds from Walter’s Bankruptcy or from noted volleyball guru Kelly Ng (some doubt Kelly can even write a letter, let alone do simple arithmetic).

In reviewing the correspondence from Jim Weissenborn over the years he professes to be acting in a fiduciary capacity for the investors and note holders. Continue reading

Tracy Green of Wendel, Rosen, Black & Dean – Angel or Bottom Feeding Troll?

Tracy Green, a name some of us are familiar with (and some have even met with in regard to our conundrum), has applied to be named counsel to the unsecured creditors’ committee.  The link below will lead you to her application.

Continue reading

Fighting Kaplan

The documents on Equitatus’ blog are worth reviewing.  In the end, Kaplan and his firm will likely be representing Maribel & Walter.  While it costs us money (that we don’t have) every time papers are filed and court appearances occur, we gain a deeper insight into the affairs of the entities and the individuals, which is highly beneficial.  Transparency benefits us.

UPDATE:  Forgot to mention that a mailing arrived yesterday from Kaplan.  Yesterday was, of course, June 7, 2011.  The Continue reading

Kaplan’s Kapers (UPDATED to include BRAVO, BROWER)

Thanks Equitatus:  http://equitatus.files.wordpress.com/2011/06/us-trustee-objection-to-hiring-of-counsel.pdf

Thanks Again to Equitatus and especially to Robert Brower:  http://equitatus.files.wordpress.com/2011/06/r-brower-objection-re-walters-attny.pdf

yes…we are fans of alliteration here…

Walter’s Financials

It’s rather interesting to peruse the financial exhibits provided by Walter’s attorneys.  Who knew that Bar-K was worth a grand total of $0?  Have you ever heard of LOWN, LLC?  We always thought Barney was the creative force behind the naming of the LLC’s, but we were wrong!

You can find the documents by clicking on THIS LINK.

Thanks to super sleuth Equitatus for their hard work in tracking down these documents.

Siena Update

Thanks again to the inscrutable blogging superstar behind REReno for the attached document and the willingness to provide their thoughts: Continue reading

This Is Insulting

Lunacy is defined as “Insanity, especially insanity relieved intermittently by periods of clear-mindedness.”  What’s missing at the Bar-K office is the part about intermittent clear-mindedness, as evidenced by their statement below.  They certainly have the remainder of the definition covered.

REL Statement

Does Anyone Have Good News?

It’s been rather quiet here. No word from Weissenborn. Nothing from the Ngs.  The good folks at Pensco haven’t said a word.  Neither have our friends at Wells Fargo Foothill.  We get occasional status updates on the various lawsuits against our former financial stewards and we hear occasional juicy rumors, but there’s nothing worth sharing at this time that anyone would consider a game changer.  By the way, is Lend, Inc. lending?

Speaking of Kelly, in 2003 he was busy with a start-up venture, the Bentley School’s volleyball team:

Mens Volleyball Sweeps Terra Linda 3-0 to Head on to NCS Semis!

profile image BCL Champions — the Bentley Mens Volleyball Team — defeated Terra Linda in 3 games last night and now will play against Sir Frances Drake H.S. in the Semi-finals of the North Coast Section Championship on Thursday, May 17th @ 7pm in the Athletic Center on the Lafayette Campus.
Bentley defeated Drake when the Phoenix won the Novato Volleyball Tournament earlier in the season so an exciting match is anticipated Thursday night. Meanwhile, on the same night, #5 seeded arch-rivals Head-Royce will face #1 seeded Moreau Catholic.
Winners of both games on Thursday will meet on Saturday, May 19th, for the NCS Finals!
What a wonderful accomplishment this has been for Coach Kelly Ng and his team, especially considering that Coach Ng only founded the Bentley Mens Volleyball program 4 years ago!
Bentley’s Spring Awards event will be held May 22, 2007 in the Student Performing Arts Center on the Lafayette Campus.

Wasn’t Kelly supposed to be working on RE Loans, Bar-K et al in 2003-2007?  That is all.  Who has something to share?  Speak up if you do!

Is Anyone Surprised?

We thought the Tumwater story was over and that we could close the book on at least one awful Ng investment.  Turns out we were wrong.  Two newspapers, the Olympian and the Tacoma News Tribune, report that the folks who purchased the brewery property through their LLC (“It’s the Water LLC”) are suing you-know-who.  It’s the Water seeks to void their $12 million purchase of the agreement and seeks a return of their $360,000 deposit. Continue reading

Barney’s “Hobby” Revisited

The Siena saga is nearly over, but info keeps landing in our laps.  Therefore, we present another document with the following reader comment:

3 Page Notice that all claims close 15 April, then 26 pages of creditors.  Wouldn’t you love to know how much American Document Destruction is owed, and exactly what their services were?  It takes some major cajones to stiff your shredding company.

Click here for the document:  Creditors Doc 265

Do you see any creditors on the list that spark your curiosity?

 

What’s New In The Zoo?

A few items for your consideration and comment:

  1. KGO investigative reporter Steve Fyffe has been interviewing investors and noteholders.
  2. Hundreds of noteholders have contacted the FBI.
  3. People haven’t yet embraced the new message board (http://s3.excoboard.com/barkinvestors) – try it out today.
  4. Weissenborn remains in hiding.
  5. The Ad-Hoc Creditor’s Committee must be holed up with Weissenborn.
  6. Barney hasn’t sued or been sued in months.  Weird. Continue reading

Did RE Loans “Park” Money?

It has come to our attention that RE Loans may have allowed some of its investors the ability and/or option to “park” money in the fund.  “Parking” is a term used to describe money that is deposited into a fund, but not necessarily invested in the fund.  Rumor has it that R.E. Loans offered a parking service for some of its preferred investors who wished to place their money somewhere on a temporary basis.  The interest earned may or may not be reported to the IRS, some have speculated.

For example, it seems possible that the $5,000,000 returned to J. Robert (“Eddie”)  Orton, III, on March 30, 2007, just a day or two before the “freeze” letter was mailed to investors, was money that had been “parked.”  Same with Len “Austin Val Verde” Epstein’s return, perhaps? Continue reading

Mortgage Fund ’08, RE Loans letter to Walter Ng and Kelly Ng

Three cheers for Mr. Jim McKenna’s letter to Walter & Kelly, linked here and copy and pasted below.

https://barkinvestors.files.wordpress.com/2011/02/jim-mckenna-letter.doc

============================================

February 4, 20111

To: Kelly & Walter NG

From: Jim McKenna

Re: MF08 & RELoans

Continue reading

Good News (sort of)

Our 1099 arrived via mail today.  Turns out the good folks at Bar-K zeroed it out without even having to be asked, so we won’t be paying interest on all that money we made in 2010 on our “investment”.  Yee-haw.

Keep Your Eye On The Ball

Or don’t.

Just know that the Siena story isn’t simply history.  It is a story that is constantly evolving and unfolding right before our very eyes.  It is an amazingly instructive story that can only help us if we pay attention.  Continue reading

Heads They Win Tails We Lose

People often ask what the difference is between the Siena bankruptcy and a soap opera.  We’re not sure we know the answer, but research genius and insider-outsider founder of www.rereno.com might have some insight, as the following was sent along:

Continue reading

Barney’s License

We’ve been over this a gazillion times already (with a special tip of the hat to Researcher), but we thought it would be worthwhile to post this anyway, complete with a colorful and skillful highlighting effort:

What’s On The Horizon (a positive posting)

While the future of RE Loans/Mortgage Fund ’08/RE Reno appears bleak, not all is lost.  There are some good things happening in our little world.

Continue reading

The Siena Saga Continues

Aram, King Kong, Arent Fox and Barney are not fulfilling their end of the bargain – and it’s likely costing us all.

Tri Ng became Bar K

The document doctor delivered another document (and is a big fan of alliteration).  Here it is.

Here is the link to the previous post on the subject:

https://barkinvestors.wordpress.com/2010/10/02/tri-ng-to-look-out-for-our-well-b-ng/

Barney’s Failed Experiment – The Siena…where the fun never ends…

Interested in staying up-to-speed on the Siena?  Click on the two links below and let us know if you can find any items of interest:

Cash Flow July 2010

Cash Flow August 2010

Tumwater Water Documents

If you like documents, you’ll love this posting.

We don’t want to sensationalize this posting, however.  Some documents are informative, many are not.  It has taken many months to cobble together these documents.  All-in-all, there are too many people to thank for assembling this information, but you know who you are and hopefully that’s thanks enough.

File management proved to be a severe challenge, so consider this more of a document dump than an orderly, numerical library.  Feel free to save the documents in a file on your computer and peruse them at your own speed.  Use this posting to discuss your findings and perhaps this will lead us all back to our inner “Researcher” by potentially helping us figure out who got the water money and why (and then where it went!).

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What’s The Value Of A Personal Guarantee?

…and how can a personal guarantee be enforced?

HERE’s the document….

 

RE Reno Seven Months Later…

On May 14, 2009 Barney Ng wrote the following to RE Reno investors:

I recognize and appreciate the trust that you as an investor have placed in me in originally providing this Loan to the Siena, and because of this I am committed to the pay-off of the loan.

Barney’s commitment to paying off the loan should be lauded.  His follow-through, however, is laughable (so is yours, Walter – you, too, signed the personal guarantee).  Barney continues… Continue reading

Loan #A0110

We believe THIS DOCUMENT is very important.  We posted it on the old site.  Researcher and AnotherNgVictim batted it back-and-forth.  We’ve posted it on this site.  Now we’re posting it again.  Why?  Because we believe this is the single most important document we have discovered to date.  Do you think it’s important?  If so, why?  Please share your thoughts.

Barney Being Bad

We’ve had a lot of action here today.  Why not end the day on a positive (unless your name is Barney Ng).  An obscure blogger sent the following to us today:

CLICK HERE

 

Tumwater Brewery Water Teaser #3

On Wednesday, October 10, 2007 at 4:24 p.m., Mark Northrup, Larry Smith’s colleague at Graham & Dunn, wrote the following to the representatives for Olympia, Tumwater and Lacey:

I attach the Trustee’s responses to the motions.  He supports our tolling motion but qualifies his support for granting us relief from stay to proceed with our condemnation action.  He opposes Ng’s motion on the grounds that CBRE has valued the AABW property as being worth $58 million (!).

Yes, the exclamation point is part of the quote.

Tumwater Brewery Water Teaser #2

Larry Smith from Graham & Dunn is quickly becoming one of our favorite people.  From the start, he pegged Barney for what he is.  On Monday, April 14, 2008 at 5:16 p.m. Mr. Smith wrote the following to Scott Smith of Riddell Williams, Barney’s attorney:

It would help me if you could propose an agenda, since, as I already told you, we are not going to spend a bunch of time and money to arrange a meeting to talk about value with a guy who does not know the value.  No disrespect to Mr. Ng, of course, but he is an owner and owner’s opinions of the value of their own property are not reliable.

Olympia Water Documents – Teaser…

On 04/15/08 Larry Smith, an attorney with Graham & Dunn in Washington State, wrote the following in an email to officials from Tumwater, Lacey and Olympia as well as their outside counsel.  Smith and his team served as the condemnation attorneys regarding the water at the Olympia Tumwater Brewery, also known in REL circles as All American Bottled Water.

Instead, Barney wants to meet with “the decision makers.”  I resisted such a meeting and told him that we would not take our appraisal backed value into a negotiation with an owner whose only authority on value was his own opinion.  I think meeting with Barney is fine, if it is going to be something more than Barney pitching us with wild ideas and proposals, expecting his charm to carry the day.

There’s a lot more, folks.  Some useful information, some not.

Ready for more?

Weissenborn Lives!

Thanks to bluemoonagency for the heads-up.  After eight days of silence, Team Weissenborn finally found the time to give the peons an update.  Why is the update dated December 6th, yet posted two days later?  Bigger questions exist, however.  While Weissenborn’s memo is short, it says a lot and leaves us pondering the following:

  1. How much existing debt remains outstanding?
  2. What is the existing interest rate?
  3. New advances?  For what?  Please explain.
  4. New advances “accrue interest at a 4% higher rate”.  Higher than what?  The existing interest rate?
  5. We are being conditioned to accept the fact that Weissenborn and his cronies will take out a new loan in an effort to pay off the WFF LOC, again subordinating noteholders to junior status.  We know what a new line of credit means.  It means our money is gone and Weissenborn, Lend, Inc. and all the others eating and drinking from the Bar-K trough are getting fat and happy at our expense, laughing all the way to the (offshore) bank.

Anyway, mark your calendars for February 28, 2011!

Weissenborn Update

Harmony Holdings

CLICK HERE if you are interested in reading more about Loan No. H0118 (Harmony Holdings) in the amount of $35 million and change.  This loan constituted (note past tense) 5% of the REL fund.  Everyone will find different details of interest.

Care to discuss?

Paging Mr. Weissenborn

At close of business today, Jim Weissenborn will know whether or not WFF has decided to grant an extension of the forbearance agreement.  Per the November 18, 2010 newsletter:

“The current forbearance agreement ends November 30, 2010.  Mackinac Partners is cautiously optimistic that if additional progress is made, Wells Fargo is likely to extend this period.  There is, however, a risk that Wells Fargo will not grant a further extension or that other litigation will force R.E. Loans to seek chapter 11 protection.” Continue reading

RE Loans # C0390 – Canyon Club (9% of REL portfolio)

Thank you Equitatus for bringing up one of our “favorite” REL investments, Canyon Club aka Snake River Sporting Club.  If you like documents, this post is for you.  Per Equitatus:

Q: Whats RE Loans biggest investment?A:  C0390 Canyon Club 61,146,348 9% of RE Loans (EDITOR’S NOTE – While technically true, if you add up Loan #s P0097 Georgetown/LochenHeath at $90M, Canyon Club is the second largest loan).

What does valuation expert Mary Ann say about it, “We are estimating that the loan will be paid in full seven years after the due date which is 1/7/2016, with several interim payments along the way beginning in 2011. As shown in the table, the estimated fair market value of the note is $16,821,364 or$16,800,000 rounded which is $28 per $100 of face value.”

Q: How did we end up in this mess? Continue reading

RE Loans #A0109

We dug this information up today and thought we would give those in the know a chance to chime in.  The Loan Summary sheet dated November 5, 2009 lists the following information on page two:

A0109
This property is located in Salt Lake County, Utah. It consists of 496 acres of which 260 are entitled for
187 residential lots, 60 condos and a commercial component. Original appraisal $23,000,000, current
$12,000,000. Loan $5,616,478. Foreclosure process has begun.

The current holder of the foreclosed upon loan is not identified by the REL folks.

According to the  this October 2009 posting, however, “the current beneficiary of the Trust Deed as of the date of this notice is: Barney J. Ng., An Individual.”

Is this a head scratcher that we don’t understand or is it yet another example of Barney’s ability to use our cash for his benefit?

Perhaps Jim Weissenborn will explain this to us in his upcoming newsletter.  In the meantime, can anyone take a stab at explaining this?

This Deserves It’s Own Thread

From Equitatus:

Jim Weissenborn has a new letter on the RE Loans web site. http://reloansllc.com/pdf/cro.pdf Comments please.

The Strangely Expedited Sale Of The Siena

Is there something more to the expeditious sale of the Siena than meets the eye?

Read this:  Zive To Retire

Then ask yourself which firm represents the new owners of the (Grand) Siena.

The Long Trail Of Lies Continues

Walter’s letter to RE Reno investors, dated November 11, 2010, states that the sale of the Siena “has not closed as of November 15, 2010.”  That’s just the beginning of the absurdity contained within Walter’s letter, found HERE.

Walter states that “it appears likely that the aggregate distribution to R.E. Reno from the sale proceeds will be in the range of $2 million to $2.5 million.”  Is Walter so senile as to actually believe that RER will command over half of the sale price when companies like IGT, Konami Gaming and the various city and state agencies are all vying for the proceeds?  This is just another case of half-truths and nonsensical blue sky B.S.

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Tumwater Brewery Update

Updated Story – Click HERE

The ‘Mourning’ After

Rage faded to disappointment overnight, but returned with a vengeance this morning.  The realization (or was it a reminder?) that the valuations provided by the NG family aren’t simply inflated, but greatly exaggerated, hit like a ton of bricks.  Weissenborn and his high-priced team have been noticeably quiet.  They apparently don’t have time to update us on anything, let alone the great financial loss we sustained yesterday.  Arent Fox made money.  Stephanie & Matthew Kelly made a few bucks.  So did Innovation Capital, to the tune of $300,000 plus consulting fees of $10,000 per month.  We, however, lost everything unless, of course, you believe in divine intervention.

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Siena Auction TODAY – Rambling Thoughts and Questions

From REreno:

“So tomorrow is the auction. I’m a bit of an insider and have been following the activity closely. There was only one party who conducted a thorough due diligence inspection of the Siena as far as I can tell (I read vanity plates and the contractor signs on the F-150s in the parking lot). I think the opening bid will be $1. And I have no indication that there is a back up bidder. I don’t think that RE Reno or Loans has the deep pockets anymore to enter the fray. Meaning you investors will be wiped out 100%.”

We know Konami Gaming filed another objection yesterday.  We read what REreno wrote above.

WHAT DOES THIS MEAN?


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Barney, Aram and King Kong

Aram Ordubegian and Andy “King” Kong, also known as Barney’s personal bankruptcy attorneys, apparently have their hands full handling all of Barney’s biz.  King Kong’s bio lists his work on a case called S-King:

“S-King Estates, LLC Represented debtor-in-possession, a “ski down” resort in Salt Lake City, Utah, in heavily contested plan confirmation, conducting extensive discovery regarding lender’s “predatory tactics” and property valuation. Successfully confirmed plan of reorganization”

Interestingly enough, the work Aram and King Kong did on S-King resulted in the following on page 13 of this document (click here).

G.  On the Effective Date, Barney Ng’s position as manager of the Debtor shall be terminated and the manager of the Reorganized Debtor, as defined in the Modified Plan, shall be David M. Luber. David M. Luber shall not receive compensation for serving as manager of the Reorganized Debtor.

Barney’s potential Siena golden parachute is $7,000,000.  How’d he do on S-King?  Anybody know?

While we discuss the question above, the good folks of Arent Fox will continue cleaning up Barney’s messes (click here to learn more about their activities and how they relate to the Siena).

 

Siena Watch – UPDATE

Per the RGJ’s Ray Hagar this morning:

The auction of the Siena Hotel Casino in downtown Reno will take place next week in a Reno courtroom, where a national investment banking firm will try to sell the downtown resort that recently closed after a long string of financial problems.

“The reality is that the Siena has ceased operations and we are going to sell this in a bulk sale in one transaction to a singular buyer,” said Matt Sodl, managing director of Innovation Capital LLC in Los Angeles. “It will be a turn-key operation for that buyer and that buyer can either run it as it were, with the hotel and casino, or the buyer can decided if they want to operate a casino there or not.”

Those interested in participating the Nov. 10 auction are asked by Monday noon to submit a $250,000 deposit by wire transfer, evidence of financial wherewithal, a signed non-collusion affidavit and a mark-up of the Debtors’ form purchase agreement.

One-on-one tours of the property will be held on Tuesday with the auction Wednesday in the U.S. Bankruptcy Court of Judge Gregg Zive.

“We have marketed this thing far and wide and have a lot of interest in this asset,” Sodl said. “We have had a lot of interest from in-market competitors to buyers who are looking to get involved in the Reno market.”

CA Election Results May Not Bode Well for Bar-K Investors

Jerry Brown, former CA Governor, former Oakland Mayor, current CA Attorney General, and now about to once again become CA Governor, and Oakland movers and shakers Phil Tagami and Len Epstein;

“He (Tagami) is one of Brown’s closest confidants, and though he won’t admit it, one of the most influential players in downtown Oakland. “
http://articles.sfgate.com/2005-03-18/bay-area/17364783_1_fox-theater-buildings-loma-prieta

Jerry Brown’s wedding was held in the Oakland Rotunda.  (reference the newspaper article, above.)

His latest election night party was hosted in the recently renovated Fox Theater in Oakland.  (reference again the newspaper article, above.)

Tagami and his mentor/business partner Len Epstein, both fast friends of the Ngs, are/were very large investors in RE Loans and ‘may’ have received greatly preferential treatment when they were ‘given’ the Austin Val Verde loan/property (as was previously reported here and for which there are public documents, one of which is available here:  https://barkinvestors.files.wordpress.com/2010/11/santa-barbara-documents.pdf

Reportedly, at least two requests were made of Attorney General Brown last year by RE Loans, LLC investors to investigate Bar-K, RE Loans, the Ngs, et al.  On both occasions AG Brown’s office declined to do more than give the requests even minor consideration.

Hopefully the next AG will be willing to conduct an investigation into the almost one billion dollar fiasco that is commonly referred to as Bar-K.

ANV

Siena Watch – Update

It appears as if the Siena will be put on the auction block. No “binding, acceptable offer[s]” were made to buy the property.

Here is the closing paragraph from the Arent Fox filing:

WHEREFORE, based on the foregoing, the Debtors respectfully request that the Court enter an order: (a) establishing auction procedures with respect to the sale of the Debtors’ real and personal property; (b) approving and authorizing the sale by auction of the Debtors’ real property free and clear of liens, claims, interests, and encumbrances, subject to higher and better offers, (c) approving the assumption and assignment of certain unexpired leases and executory contracts to the winning bidder and establishing the cure amounts, if any, payable under such Assumed Agreements, or, in the alternative, approving the rejection of the Debtors’ unexpired leases and executory contracts to the extent such agreements are not assumed and assigned to the winning bidder, (d) approving that certain addendum to Innovation’s engagement letter dated October 28, 2010; (e) waiving the 14 day stay provided in Rule 6004(h); and (f) granting such other and further relief the Court deems just and proper.

Continue reading

Siena Watch

Today is the day Barney, Clyde and their team of attorneys from Arent Fox are due in BK court before Judge Zive.  Noticeably absent, of course, are the attorneys from the Kelly Law Group.  We’ll keep you posted if and when we hear anything.

Legal Discussion

Insider Researcher asked the following:

“Would you consider a new topic were we can discuss some of the pending litigation, the status of the case, and what it means to us as investors? Even discussing the closed cases, like Alegria/Grassi can help to uncover the truth or get a better understanding of how the Ng family and their attorneys operate.”

The answer is a resounding “yes”.

We’ll kick things off with a few updates.  First, it appears as though Dwight Dixon Collins and Kathleen D. Collins have sued Walter, Kelly, Bruce, RE Loans, Armanino McKenna, Greenberg Traurig and Elizabeth Cobey, an attorney at Greenberg.  Noticeably absent from the list is everyone’s favorite villain.  Secondly, down south in Reno, the Debtors (Team Barney) failed to appear on the 25th, so the case has been continued until November 15th.  Lastly, Judge Zive denied the application to approve the Kelly Law Group and Matthew Kelly as Special Corporate Counsel.

So let’s discuss.  Have at it….

This blog is a safe place.  You can post anonymously.

Today we challenge you to take a step forward, hopefully fueled by the distressing news regarding the Siena.  We’re not giving up hope.  We are continuing to educate ourselves, to uncover the truth and, ultimately, we will use these truths to recover what is rightfully ours.

We’ve had enough of the status quo.

Have you?

The Honolulu International Airport, Bar-K and "Gross Bad Faith"

This unpublished opinion by Judge James R. Lambden is quite a nugget.  Bar-K sued First American Title Corp. If you are interested in the details, click the link in the first sentence.  If not, then focus on the excerpts below:


“Without the benefit of an appraisal and with minimal due diligence, Ng concluded the lease and improvements were probably worth $8 or $9 million and certainly no less than $6 million”.

“The trial court rejected (Bar-K attorney) Kroetch’s  testimony. . . noted that Kroetch . . . was “obviously lying” and had “zero” credibility. The court also did not believe the testimony of Bar-K’s office manager”.

“Gross bad faith by Bar-K”.

“Bar-K had “intentionally tried to trick” First American into looking like an escrow holder.”

“The court stated, “Bar-K’s escrow claim was a ploy, a scam, a fraud” that was “consciously orchestrated by Bar-K” with the consent of its management.”

“The cases cited by Bar-K in support of its argument are either inapposite or contradict its position.”

“The court found that Bar-K brought a meritless, bad faith claim”.

What else can be said?  We invested our hard-earned dollars in these guys.  We put our faith in these guys.  We entrusted our retirements, our lives and our futures in these guys.   We invested generations worth of dollars in these guys.  Hindsight certainly is 20/20.

UPDATE: BAR-K LOSES REAL ESTATE LICENSE AGAIN – SEE STORY AND COMMENTS

Note:  The following has been re-posted by request.  The original was posted on September 18, 2010.  New information has been provided in the comments section below.  Barney’s license is/was listed as ‘Salesperson’, not ‘Broker’.

Another day another doc.  Click HERE and scroll down to page 8.  Look in the middle column near the top.

Barney Joe NG (Real Estate Officer – “REO”) and Bar-K (Real Estate Corporation – “REC”) were suspended by the Department of Real Estate for a 2832 10177 (d) violation.

On page 5, you’ll find disciplinary action definitions.

  • A 2832 is for “Failure to comply with trust fund handling provisions.” 
  • A 10177 (d) is a “Violation of real estate law or regulations.”

These violations were effective 10/31/01.  Barney and Bar-K were suspended for 180 days, but the suspensions were stayed on terms and conditions.  No word on what the terms and conditions were, but it does highlight a disturbing trend of questionable actions.

Assignments to Wells Fargo Foothill

A quick search of the Harris County (TX) Clerk’s Office website shows that RE Loans assigned its interests in the Bravo Marshall development to Wells Fargo Foothill (pasted below).  It’s not difficult to track down these assignments to WFF.  REL noteholders were led to believe that each and every loan was assigned to WFF.  Is this the case?  If not, why would B-4 Partners exclude certain properties from the deal with WFF?  If there were certain properties not assigned to WFF, where did they go and who got them?  Could they be viewed as preferential payouts to preferred investors?  What makes one investor more important than another?  If this happened, B-4 could be much more ethically challenged than we imagined.  As we methodically work our way down the list, loan-by-loan, we’ll see if this is true. If anyone has information on this subject they care to share, please do so here.

File Number Description
Type
Vol. Pg.
Names File Date YYYYMMDD Sec.
Lot
Block
Misc.
Pgs Film Code
20080153115 SEE INSTR
ASSGN
Grantor: RE LOANS LLC
Grantee: WELLS FARGO FOOTHILL LLC
20080328

9 RP055290556
20080433825 SEE INSTR
SUBORD
Grantor: RE LOANS LLC
Grantee: BARRINGTON SEC 2
20080819

2 RP059241310
20070467886 KINGWOOD LAKES SOUTH
ASSGN
Grantor: RE LOANS LLC
Grantee: WELLS FARGO FOOTHILL LLC
20070801 01

INSTR

5 RP047860917
20090113699 BARRINGTON SUBDIVISION
PT REL
Grantor: RE LOANS LLC ETAL
Grantee: BRAVO MARSHALL COMMUNITIES LP
20090319 01

B0002
INSTR

5 ER010971715
20090113702 NO 096693Z
REL
Grantor: RE LOANS LLC ETAL
Grantee: BRAVO MARSHALL COMMUNITIES LP
20090319

5 ER010971720

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Siena BK Venue Change Confirmed

The latest filing from Barney’s attorneys lists the following:


Hearing
DATE: October 21, 2010
TIME: 11:00 a.m.
PLACE: 300 Booth Street, Courtroom 3
Reno, NV 89509

The judge is the Honorable Gregg W. Zive .  Zive is also handling the Station Casinos BK.


The venue change is good news.  It takes the filing out of Barney’s backyard and moves it to Reno, the location of the Siena.  If you happen to be in Reno on the 21st, please drop on by 300 Booth Street, Courtroom 3.  It should be rather interesting.

Here’s the meat of the filing, which was filed in response to the objections raised by Konami Gaming:

Konami, who had not previously raised concerns with respect to the Lease Motion and therefore was not a party to the Stipulation, filed an objection to the Lease Motion. The Debtors submit that Konami’s objections and concerns have been addressed in full by the Stipulation except for Konami’s unfounded request that it be insulated from potential disgorgement of post-petition payments it receives from the Debtors in the event that Wild Game ultimately lacks the funds necessary to pay One South on account of the administrative claim granted to it under the Stipulation.

 The Debtors submit that the issue of disgorgement is premature since the Stipulation merely
alleviates Wild Game from having to make full Contract Rent (as that term is defined in the
Stipulation) payments for a limited period of time , thereby allowing Wild Game to pay trade creditors and contract parties such as Konami, and the Stipulation otherwise reserves the
rights of parties-in-interest and establishes a framework for the intercompany claims between
Wild Game and One South to be resolved at a later date.

CONCLUSION

WHEREFORE, based on the foregoing, the Debtors respectfully ask that this Court grant the Lease Motion with the modifications as reflected in the Stipulation.

 Our conclusion?  Let’s see how Zive rules on this issue, as well as the $4,000/month payments to Matthew Kelly.  The half a million a month payments from Wild Game Ng to One South Lake would be sliced to a “mere” $11,000, but one thing is clear – Barney still wants to be paid by Barney.

Please feel free to share your thoughts and opinions in the comments section below.

Siena GM Clyde Callicott: "The staff and management of the Siena have made a major commitment to you."

The August 2, 2010 Siena Newsletter from Mr. Callicott speaks of such good things to come.  Do you remember all the way back in August when the Siena was on top of the world?  Yeah, neither do we.  Clyde teases us with this statement:  “We a few (sic) new surprises this time just to shake things up a bit.”  Who knew that meant they would stop allowing gambling at the casino?

Perhaps the Nevada AG should investigate this sentence:  “Everyone is a guaranteed winner.”  We’re not winners on this deal.  Are you?

Callicott ends by saying, “See you on the floor,” but fails to alert us to the fact that the table games will be gone, the slots will be unplugged and the gambling floor will be walled off two short months later.  Details, details….

 Message from the Siena General Manager – Clyde Callicott

Another Reno Summer is whizzing by at the Siena and the action is getting even hotter. We a few new surprises this time just to shake things up a bit. Let’s start with tournaments. Not only do we have $2K Open Slot Tournaments, now on it’s new day Tuesdays from 12vnoon to 8PM where you could win your share of $2000.00 in cash and prizes, we’ve added a new tournament, The Siena $1000 Free Video Poker Tournament, Saturdays from 12noon to 3PM . For River Club card member we are rolling out the Red Carpet as we host special “Guest Appreciation Days”.

On Monday’s all River card Members will receive 2X points for their Slot, Video Poker and Keno play as well as 2 for 1 lunch specials and 50% off all drink prices from 6PM to 9PM.

On Thursday join us for the all new Ladies Night – All Day !! All female River Card members will receive 2X points and 50% off drinks from 6PM to 9PM and that’s not all, all Female River Card members will also be eligible for a special drawing where they can win their share of $500.00 in cash and Spa packages.

It’s the return of 2 of our more popular promotions, Friday’s in August it’s the Great Point Stacker, where the top 20 point earners for the day win $50.00 in Free Play and on Saturdays The CASH IS KING is back. You could win your share of $1000.00 in cash simply by spinning the Siena Spin to Win Wheel.

Everyone is a guaranteed winner. Drawings every 30 minutes from 4 to 9 PM Spin the wheel of cash for your shot at $1,000 in cold hard cash. And don’t forget that you can now EARN 3X’s MORE FREE PLAY AND MORE VALUABLE COMPS than ever before simply by using your River Club Card.

It’s all about the experience, the guest service, the great food, and fun and exciting entertainment. The staff and management of the Siena have made a major commitment to you. So I ask you again – Don’t you think it’s time to rediscover the Siena?

See you on the floor,

Clyde Callicott, General Manager
One South Lake Street, Reno, NV 775-32-SIENA

Wikipedia Needs Your Help

There’s so much left unsaid on the Siena’s Wikipedia site.  Who wants to take a stab at correcting the record?

http://en.wikipedia.org/wiki/Siena_Hotel_Spa_Casino

Siena – This Is A Must Read

Our favorite Reno-centric blog, REreno — Hardcore Real Estate News — does a great job of providing local (and insider) analysis and information, especially concerning the Siena.  This witty repartee can be found RIGHT HERE (yes, please click HERE)

They ask some great questions.  Does anyone have any of the answers?

Hoping these questions will, at the very least, spur ongoing dialogue.

RGJ Update: Siena shifts money "to other obligations"

Update at 3:38 p.m.:

 Dennis Neilander, chairman of the Nevada Gaming Control Board, said the Siena requested temporary closure of its gaming operations. Its sports book will remain open because it is run by the Cal Neva under a separate license.

Neilander said there is a requirement for licensees to maintain a minimum bankroll, calculated based on the types of games they have and potential jackpots.

“They decided to shut down (their) gaming operation and take that bankroll to other obligations as part of steps to make the property viable,” Neilander said.

Gaming was shut down about 4 a.m. Friday morning and agents from the board were on hand to observe the final drop about 6 a.m.

Neilander said the Siena is working on proposals to redo the slot floor.  “I think they decided this was the best course of action,” he said.

Temporary closures are done by quarter. The approval runs through the end of this quarter. If the Siena wants to remain closed for another quarter they can make another request.

Jeff Siri, CEO and president of the Cal Neva, said they will continue to keep the sports book in the Siena open.  “Our sports book’s done OK business today, surprisingly,” he said, noting that a 6-foot wall had been placed around the slot machines. “Hopefully we can spruce up the area and stay active. If they can keep the hotel business open I think it could do OK.”

Reno Mayor Bob Cashell said about 3 p.m. he hadn’t spoken with anyone at the Siena yet, but had heard they closed the gaming to do a renovation.  “I’m just hoping they’re not closing,” he said.

Siena Hotel & Casino – Is The End Near?

According to a local TV station, the Siena’s casino floor is not currently open due to money woes. 

READ THE STORY BY CLICKING HERE

More here, too

Comments on the Siena’s Supplemental Statement re: BK

On September 22, 2010, Andy S. Kong of the law firm Arent Fox submitted a “Supplemental Statement in support of: (1) Motion for authority to obtain post-petition financing; (2) Motion for order authorizing debtors and debtors-in-possession to employ certain professionals in the ordinary course of business and to set procedures; and (3) Joint motion of One South Lake Street, LLC and Wild Game Ng, LLC for order authorizing the interim modification of the debtors’ hotel casino lease and land lease.”

We have already discussed the lease and the suggested modification (3), so let’s focus on items (1) and (2).


Item (1) is a  motion for authority to obtain post-petition financing.
The debtors (Hi-Five, One South and Wild Game Ng) seek financing in the amount of $179,980.50.  This financing would “enable Wild Game Ng to pay the premiums required for its general liability insurance.”  Is it incorrect to assume that Wild Game Ng has not been paying its required premiums?  Did the general liability insurance for the Siena lapse?

This “Premium Financing” arranged by IPFS Corporation of California “is an agreement for insurance premium financing.  Notwithstanding the inadvertent references to ‘working line of credit’ and ‘credit line’ in the Financing Motion, the Premium Financing Agreement does not provide a working capital line of credit for the Debtors.”   That may be the case, but it appears there’s more to this $180k loan than meets the eye.  (We are told this has been approved within the past day or two.)

Let’s pull another paragraph for review to underscore this sentiment:

“The Premium Financing Lender’s liens and security interests shall be senior to the rights of the estates in this or any subsequent proceeding under the Bankruptcy Code and to the rights of any other person or entity claiming a security interest in the Collateral, except, with respect to any loss payments which reduce the unearned premiums, the rights of mortgagees or other loss payees, including RE Reno to the extent it has a valid, perfected, and enforceable lien against the assets of One South and/or Wild Game.”

WOW.  By the way, the bolded, underlined text above was not added for emphasis.  It was emphasized as such in the filing.  What we think this paragraph says is that IPFS will get paid its $180k before RE Reno investors get their cash.  Furthermore, it’s the third time the document calls into question RE Reno’s “purported” status as a secured creditor “to the extent it has a valid, perfected, and enforceable lien against the assets of One South and/or Wild Game.”

Okay.  But what about document number 2594653 filed in Washoe County listing RE Reno as the secured party?  It’s the UCC Financing Statement for those interested in reviewing the document.  Furthermore, there’s the January 12, 2004 personal guarantee letter currently being ignored by Barney and Walter, but it doesn’t necessarily “perfect” RE Reno’s security interest.  The language from that letter reads as such:

01/12/04

Dear Investor:

Thank you for your investment in RE Reno, LLC.

RE Reno is the sole investor in the 50 million dollar

 

1st mortgage on the Siena Hotel, including the parking lots, 

hotel equipment, kitchen equipment and dining room

equipment.

To reinforce our position regarding  the 1st mortgage on the

hotel, we hereby personally guarantee the note secured by

the First Deed of Trust on the Siena Hotel.

Barney Ng

Walter Ng

Item (2) is a “motion for order authorizing debtors and debtors-in-possession to employ certain professionals in the ordinary course of business and to set procedures.”  Essentially, the Debtors need to pay a group of businesses a certain amount of money per month to perform services vital to the operation of the Siena.  So who are these “certain professionals”?

Let’s start with #4 and work our way up to #1.

Number 4 on the list is Onsite Consulting, who’s fees would be capped at $60,000 per month.  That’s $720,000 per year.  Onsite Consulting provides hospitality management and consulting for restaurants, casinos and hotels.  On its face, Onsite sounds like a perfect fit.  However, another glance would lead one to believe this is nothing more than putting lipstick on a pig (yes, the Siena is the pig).  Onsite may be able to smear some lipstick on the Siena, but it’s still the Siena.

Number 3 on the list is Elever Professional, clocking in at $10,000 per month.  Elever does executive recruiting, interim placement and performance consulting.  This makes no sense and unless we are missing something here, Judge Newsome should consider denying this request.

Number 2 on the list is KMC, Inc. at $8,000 per month.  There are two KMC’s on the internet – one does information management.  The other manufactures fluid film bearings.  Regardless, $8k is a boatload of cash to pay KMC.

This brings us to Numero Uno on the list and our favorite inclusion.  Number one, at $4,000 per month “is a California virtual law firm that offers a variety of legal services at cost-effective flat rates. Our virtual law offices and user-friendly website ensure efficiency in the services we render at reduced expense to our clients.

We are not a simple document preparation service, but California licensed attorneys dedicated to providing superior legal services at fair rates.”
The Siena, as far as we know, is located in the state of Nevada.  This virtual law firm is located in California.  Prior to founding the firm, one of the firm’s partners “served as General Counsel to one of the largest private commercial lenders in California, where he engaged in real estate and corporate transactions, advised on employment and regulatory matters, and coordinated litigation and bankruptcy matters throughout the country.”
His name?
Matthew Kelly.
How amazingly self-serving is it of Barney’s Hi-Five & Wild Game Ng to include his daughter and son-in-law’s firm, the Kelly Law Group, LLP on the Ordinary Course Professionals list?
All-in for these four groups?  $984,000 per year.

Our last two points have to do with this document is in regard to  Part IV, The Lease Motion.

First, it appears Konami Gaming has objected to the Lease Motion.  According to Kong, the Arent Fox attorney proposed to represent Barney’s companies in this BK and restructuring process, “The Debtors are still evaluating the objection but submit that Konami Gaming, Inc.’s objections may be addressed, at least in part, by the Stipulation.”  Looks like Konami isn’t putting up with Barney’s BS.  We’ll continue monitoring Konami’s involvement.

Secondly, Kong writes, “The Debtors do not believe the above clarifications are controversial.”

When people who trusted Barney have lost everything, everything is controversial.

Siena Bankruptcy Update

Following up on the September 14th posting entitled “Siena Bankruptcy”, we stated that we were anxiously anticipating the day the Wild Game Ng / Hi-Five and/or Five-Way Development lease would be made public.  That day is upon us.

There are two leases that we could find.  The original lease from March 6, 2000 and the amended lease from April 14, 2000.  Are we to believe that the original lease Barney signed with Barney wasn’t rich enough for Barney in hindsight (6 weeks later)?

It turns out that we were way off on the numbers from the September 14th posting.  The monthly rent wasn’t $350,000 per month. It’s actually $553,333.34 and, prior to the Siena BK filing, was scheduled to balloon its way up to $774,666.67 shortly, as the lease hits its tenth year. It was scheduled to escalate to $885,333.34 in its 15th year. Anyway, the latest filing seeks to suspend these $553,333.34 monthly payments from Wild Game Ng to One South Lake, substituting $11,000 monthly payments instead.  For those of us who are mathematically challenged, that’s $132,000 a year – a nice income that many of us would be thrilled to have given the state of our investment(s)…but let’s move on, shall we?

Something that initially makes no sense is the fact that the lease is by and between Wild Game Ng and Five-Way Development.

“On or about March 6, 2000, One South (as successor-in-interest to Hi-Five Enterprises, LLC and Five-Way Development) entered into a Land Lease and Hotel Casino Lease pursuant to which it leases the Property to WGN.”

 

If that’s the case, why is One South Lake the beneficiary?  Well, on August 22, 2001, Hi-Five Enterprises Granted, Bargained, or Sold to One South Lake Street – you can find this document on the marvelous Washoe County Recorder’s website.

The BK lease document is full of good information.  The following comes from Barney NG’s declaration:

“Pursuant to the Casino Lease, WGN is currently required to pay to One South
monthly rent, without deduction, setoff, prior notice, or demand, equal to an estimated $553,333.34 per month, payable in advance. This rental amount is based upon lease modification documents recently provided to the Debtors by RE Reno, which documents are inconsistent with the Debtors’ internal books and records. The Debtors’ accounting team, under my supervision and direction, is currently verifying this number and reconciling all available documents with the Debtors’ books and records. Since commencing these cases on July 21, 2010 (the “Petition Date,”), however. WGN has not made such rent payments. In connection with WGN’s usage of cash, WGN and One South have been providing R.E. Reno, LLC (“RE Reno”), One South’s secured lender, with periodic operating reports setting forth the Debtors’ net cash flow and operating results, and comparing those results to the Debtors’ operating budget previously tiled with this Court. As demonstrated both by the Debtors’ budget and by its actual operating results during the pendency of these Chapter II cases, WGN is operating on close to a “break even” basis and does not have the ability to make the lease payments called for under the Casino Lease, Furthermore, as of the Petition Date, WGN owed One South as much as $10 million or more pursuant to the Casino Lease on account of unpaid, prepetition rent. (The amount of the prepetition default under the Casino Lease is still being calculated and verified by the Debtors’ accounting staff. under my supervision and direction,).  The Debtors commenced these cases primarily to obtain the breathing space afforded by the Bankruptcy Code’s automatic stay while they implement various operating improvements, locate a new operator or transactional partner for The Siena, and develop a plan of reorganization for their business. Those efforts have been ongoing, and 1 have received numerous expressions of interest that I am currently exploring.” 

Anyone care to comment?  There is plenty of meat in the above paragraph.

Finally, we’ll leave you with the following – does anyone care to comment on the sheer number of affiliated entities and loans and deals zinging back and forth between Walter and Barney (and Barney and Barney)?  Who recognizes Gold Mountain Financial Institution?  Didn’t the RE Loans Operating Agreement strictly cap the percentage of affiliated loans that could be made?

VIII.  FUNDS FOR TENANT IMPROVEMENTS
Landlord shall provide construction funds for tenant improvements to the premises. Such construction funds shall not exceed $35,000,000.00 (less closing costs, attorneys’ fees, the Land Lease Portion defined below and other related costs and expenses) (the “Construction Funds”) which amount, together with $5,000,000.00 borrowed for acquisition of the premises and loan broker fees, Landlord has or shall borrow from Gold Mountain Financial Institution through two loans arranged by Bar K, Inc., a California corporation, evidenced by a promissory note in the amount of $20,000,000.00 dated June 29, 1999 secured by a first position deed of trust recorded against the premises (the “First Loan”) and evidenced by a promissory note in the amount of $20,000,000.00 dated April 17, 2000 secured by a second position deed of trust recorded against the premises (the “Second Loan”) other real property. The lien of such deeds of trust against the premises shall be senior and superior to this Lease. The disbursement of the Construction Funds shall be made in accordance with the requirements of such lender.  Tenant shall have the right to approve the use of the Construction Funds.  All costs of construction in excess of the Construction Funds shall be the responsibility of Tenant.  The term “Hotel & Casino Lease Percentage” shall be deemed to be the percentage determined by dividing the difference between the amount that has been funded under the two loans minus $2,090,000 (which equals that portion of the $40,000,000.00 that is used to pay existing liens against the property that is secured by the deed of trust under the Second Loan that is not secured by the premises) by the amount that has been funded under the two loans.  The term “Portion Funded Percentage” shall be 100% less the percentage determined by  dividing that portion of the $40,000,000.00 that is not funded for construction by $40,000,000.00.

Tri-Ng to look out for our Well B Ng?

Sometimes it feels like we’re just “Tri-Ng” too hard in life, doesn’t it? Or maybe we’re not “Tri-Ng” hard enough.  The information is out there, but we’ve all been too oblivious, too lazy, or too gosh darn blind to search for the truth.  Whatever the truth may be, we’re certain Barney Ng is always Tri-Ng really hard to get ahead.

Tri-Ng, Inc. was operating out of 432 Estudillo Avenue, Room 9, San Leandro, CA 94577.  Room 9 just so happens to be the current global headquarters for Five-Way Development, Wild Game Ng and Hi-Five Enterprises.  RE Reno’ers following the Siena’s bankruptcy proceedings or reading this blog will recognize the names of these three entities.  It isn’t too hard for anyone with a PACER account and some initiative to figure out that Barney NG is the Manager of each of these entities, all headquartered at, you guessed it, 432 Estudillo Avenue, Room 9, San Leandro, CA 94577.  This building is 20 miles or so from Bar-K’s building in Lafayette.

Tri-Ng, Inc. Entity Number C1189195, was formed December 27, 1985 by Barney J. Ng.  It’s current status is listed as “Merged Out.”  What does “Merged Out” mean?  We’ll let you know what has become of Tri-Ng if and when possible.

Finally, a quick search of the expensive Alameda County Recorder’s site lists a record showing a tax lien for a company called “Tr Ing Props” that may or may not be Barney’s “Tri-Ng” entity (is it misspelled?):

Document Detail
Instrument Number: 89298117
Sequence #: 0
Date Received: 11/02/1989 12:00:00 AM
Document Type: NOTICE OF TAX LIEN (COUNTY)
Book: 0
Page: 0

Names
TR ING PROPS
We love the creativity of the cute names, but, cute names aside, how do all these known and unknown entities affect us MF’08’ers, REL’ers and RE Reno’ers?


Tumwater Brewery Sold

According to the Tacoma News Tribune, an ownership group has purchased the “200,000-square-foot brick (Tumwater) brewhouse, 32 acres of property that surrounds the building and two parking lots”.  George Heidgerken and Patrick Rhodes spent $1.4 million in cash on the purchase.  It’s important to note that we believe this isn’t the entire Tumwater property.  We think there’s more to sell.  Mackinac Partners’ promise to maximize the value of this asset can’t be fully blamed on them given the fact that the water rights were sold out from under the property by Barney. Gut wrenching as it might be, if you check your loan summary list on the Bar-K website, you’ll be troubled to find that the original appraisal for the property was $57 million and the loan amount was $26 million.

The article states that “The sellers of the property were Capital Salvage Inc. of California, a group of investors who owned the remaining brewery property after they foreclosed on the previous owner, Barney Ng and his company, Well B Ng.”
That is a difficult sentence to untangle.  If the News Tribune article is to be believed, Barney foreclosed on himself, in a sense.  Also, as far as we know, Capital Salvage is not a group of investors -it’s Barney and perhaps Kelly.  Jim Weissenborn’s sobering August newsletter gives us some insight on this topic.  Weissenborn states the following about Capital Salvage:
Kelly Ng and Barney Ng transferred the ownership and control of Capital Salvage, Inc., which owns six of  the properties on which RE Loans had previously foreclosed, to RE Loans. This will enable RE Loans and Mackinac Partners to control the disposition of these assets directly. RE Loans foreclosed on the property commonly known as “All American Bottled Water,” during August of 2010. This property was owned by an entity controlled by Barney Ng and Barney Ng had agreed to transfer the property to Capital Salvage voluntarily.

As for the $1.4 million, we presume this will be deposited into REL’s interest reserve account and that our good friends from Wells Fargo will enjoy the fruits of this “windfall” while the rest of us pine for the return of our principal and the dream of enjoying our interest payments again.

 

** UPDATE:  The Olympian ran an article that you can find here:  http://www.theolympian.com/2010/10/02/1390011/historic-olympia-brewhouse-sold.html  

Bar-K and Barney NG were suspended by the CA Dept. of Real Estate in 2001

Another day another doc.  Click HERE and scroll down to page 8. Look in the middle column near the top.

Barney Joe NG (Real Estate Officer – “REO”) and Bar-K (Real Estate Corporation – “REC”) were suspended by the Department of Real Estate for a 2832 10177 (d) violation.

On page 5, you’ll find disciplinary action definitions.

  • A 2832 is for “Failure to comply with trust fund handling provisions.”
  • A 10177 (d) is a “Violation of real estate law or regulations.”

These violations were effective 10/31/01.  Barney and Bar-K were suspended for 180 days, but the suspensions were stayed on terms and conditions.  No word on what the terms and conditions were, but it does highlight a disturbing trend of questionable actions.

Siena Bankruptcy

There are a few documents that we are anxious to see as the bankruptcy moves forward.  The first document is the supposed lease signed in March 2000 between Wild Game Ng (Barney) and Hi-Five (Barney) where Barney is supposed to be paid approximately $350,000 per month in rent.  The second document is the underlying paperwork attesting to the fact that Hi-Five (Barney) owns 25% of One South Lake (Barney).

If you’re confused, it’s quite simple.  Barney will come out of this filing smelling like roses.  The rest of us won’t.  We’re not surprised.  Are you?

A Spotlight on Kelly NG

One fourth of the B-4 partnership happens to be a BIG volleyball fan.  He plays volleyball.  He coaches volleyball.  He even trains for volleyball by dancing along with some sort of video game.

Money Manager, Volleyballer and Dancer Kelly NG was highlighted in this SF Chronicle blurb.

That, my friends, is 1/4 of the B-4/Bar-K/RE Loans/Mortgage Fund ’08 brain trust.

Investor: Barney NG is "An Egomaniac"

The RGJ takes a superficial look at the Siena.  Barney speaks, but continues to blame the Siena’s failure on the slot machines.  You can read the article here:  Siena Doomed To Fail?
The paper also runs a companion article.  This one is kind of fun given the title on the RGJ headline about Barney:  “He’s An Egomaniac”.


76 year old Joe Villareal of San Leandro put $160k into RE Reno and half a million into RE Loans.  We’re not sure who Mr. Villareal is or how Ray Hagar tracked him down, but we’re thrilled to see an RE Reno investor speaking publicly about the issue.

Ron Langenbahn, 78, apparently put $600k into “Bar-K”.  I wonder if that means RE Loans, Mortgage Fund ’08, RE Reno or, perhaps, some combination of the funds.

We need to push for further investigation into the deals the Bar-K people put together.  We need disclosure on what the deals look like.  We need to be able to follow the money, which may lead us, the investors, or some sort of government entity to action and help us recover our investment dollars.

Labor Day Weekend

Today is Friday, September 3rd, 2010.  Labor Day is on Monday.  It’s also the day before most kids go back to school across the country.  The importance of Labor Day to investors in the Bar-K family of funds is that the majority of the investors *must* labor, more often than not because our investment has stopped paying interest.

It is going to take a lot of energy to continue the fight to recover our money lost to the NG dynasty.

In that spirit, may you enjoy the national holiday to the fullest.  Rest, relax, sit in the sun, have a cocktail, a picnic, or a barbeque and, hopefully, take some much needed time with family and friends.

Revolving Door Policy

Finally a bit of press coverage on something important to us.  Unfortunately, Rolf Boone, the author, got it wrong at the end, as Capital Salvage, as we all know, is Barney’s entity.  RE Loans recently “won” the property back at auction, essentially recovering the note for no money down. Get an NG out, replace that NG with another NG.  That’s the theory here.

If, in months or years past, “the brewhouse was listed for $2 million and the two parking lots were listed for $1 million,” then RE Loans (or Capital Salvage, if you will), isn’t taking home a lot of cash, which means the WFF LOC isn’t going to dwindle much, if at all due to this potential sale.  Also, what’s with the NG propaganda machine touting potential sales?  It’s all horse manure until there is something concrete to tell us.


After the article, in the comments section, my favorite newly found, highly informed commenter, AnotherNgVictim, pops up again and points out the following rock-solid information:

“A bit more research would have shown that Capital Salvage, Inc., a California Corporation, is owned and managed by Barney Ng. (of Siena Hotel, Reno, NV infamy.)  RE Loans, LLC, the entity which recently had the winning bid, is owned and managed by Walter and Kelly Ng, Barney’s father and brother.  All three of them have held ‘ownership’ of the property for some time through one corporation or another. They’re the ones who loaned the original money to All American Bottled Water Company.  The “cast of characters” is listed at http://www.reloansllc.com/partners.htm
The list of corporations owned by these three is too long to post here.  Be aware that with any sale of the Tumwater property, even if papers are signed and money has changed hands, the Ngs will still be involved, wheelin’ and dealin’, and that we poor saps who invested the better part of a billion dollars with them won’t get one red cent of this or any other money.” 

Here’s the link to the article:

Plans solidify for brewhouse – Business – The Olympian By Rolf Boone

Scouring the internet for NG dirt

Technology is really amazing these days.  Back when I invested in RE Loans, the internet wasn’t what it is today.  Now, a simple Google search turns up some really incredible information.

Read this story about Michael Ohayon & David Papera.  Then scroll down to the comments section and check out the posting made by my favorite internet poster of the month, AnotherNgVictim. If you check the 2009 (de)valuation document written by Mary Ann Lerch, you’ll spot Loan Number T0467.  Loan Number T0467, as Lerch states, is “REO. Property is owned by R.E. LOANS, LLC (3XS, LLC).”  3XS, LLC is a registered business in the state of California.  The Agent For Service Of Process is none other than Michael Ohayon.  The comments made by AnotherNgVictim do a great job of pointing out the NGs history of doing questionable deals with crooks (see All American Bottled Water in Tumwater, WA).

AnotherNgVictim does us another favor by walking us through some of the history regarding the NG reign of terror.

Finally, AnotherNgVictim draws attention to some happenings in the Aloha State (click here for some pretty jaw-dropping information) that certainly confirm what many already presume to be true, i.e. that Barney loaned money solely to collect fees and points from every side of the deal, that this whole thing is a shell game being played to enrich a select few and, of course, that we’ve been snookered because none of these investments are the “safe” investments promised to us by Walter and Bruce.

I will continue my search for information and, more importantly, truth.  It’s about time people actually realized who the NGs are and what they’ve done to us.  They owe each and every one of us a staggering amount of money that we’ll likely never see in this lifetime.

The Press, The Government and Disappointment

There are a few issues that have caught the attention of Bar-K investors lately.  You know what they are, right?  The Olympia Brewery in Tumwater, WA and the Siena Hotel and Casino in Reno, NV.

I’ve been disappointed by the lack of media coverage on these two issues, with the exception of the Channel 4 in Reno and an obscure blog.  When the local TV station  and a blog upstage the local newspaper, something is wrong, especially when it comes to investigative journalism.  The Reno Gazette-Journal (“RGJ”) writes a story here and there on the Siena, but, ultimately, they are just skimming the surface, which does less harm to the local economy.  I get it.  I really do.  There are jobs at stake here.  This has a profound effect on lives, relationships and families.

I’m sure rank-and-file employees are not thrilled with the the way its members have been treated.  We’ve seen Channel 4 report on paychecks falling short of minimum wage requirements, on paycheck deductions for medical insurance that was going straight into the corporate coffers while letting the insurance coverage lapse and we saw one brave (former) Siena employee get fired for telling the truth.  Meanwhile, the RGJ, through their silence, seems to be telling people to look the other way.  Maybe they would feel differently if their company were one of the creditors – the 430 pages of creditors – listed in the bankruptcy filing.

In Tumwater, a picturesque city located 2.5 miles south of Olympia, the capitol of Washington State, there has been little coverage there, as well.  The local paper, The Olympian, has run some stories, touching on the All-American Bottled Water debacle, the foreclosure and the “auction”, but they, too, have not cared enough to delve too deeply into the specifics.  The AP has picked up the paragraph on the “auction”, which then ran in the Seattle Times, the Tacoma News Tribune and, strangely, the San Jose Mercury News, but that’s about it.

Meanwhile, the SEC is nowhere to be found, having only taken a cursory glance at the RE Loans issue, presumably choosing to hide behind the Exchange Agreement per a December 3, 2009 letter from Michael S. Dicke, Associate Regional Director of the SEC.  No information was given as to the scope of the SEC’s investigation.  Maybe Dicke and his associates are too busy surfing the net for porn to conduct a thorough investigation.  We’ll have to trust they did everything they could.  Tax dollars well spent, no doubt.  While the SEC was browsing erotic materials online, the CA Department of Corporations chose to discontinue their investigation into wrongdoing as well.

Finally, our elected officials have let us down.  From the Attorneys General of California and Nevada (and probably a dozen other states as well) to the other various local, state and federal officials elected to represent us, there’s not a single one who appears to care.

December 31, 2012

MARK YOUR CALENDARS!

December 31, 2012 is the maturity date of the RE Loans note.  As we all know from our thorough reading of the October 2007 RE Loans Reorganization Plan And Note Program (the “Exchange Agreement”), we can get our money back if the Ngs feel like it.

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It’s so close we can almost taste it!

Kelly NG. Volleyball Coach / Fund Manager. WHAT WERE WE THINKING?

Math Camp

It’s summer, and children across the country are having the time of their lives at camp.  Maybe it’s art camp, perhaps it’s religious camp, or something more athletic like soccer camp.  I figured the good readers of the Bar-K Investors website might want to join me at math camp.

As we all know, there are too many people who have had to end their retirements and go back to work.  Some have had to stop watering their lawns, or scrap the remodeling of their homes.  Others had to swallow their pride and move in with family members.  Even worse, some of us have skipped medical treatments or been unable to pay our medical bills.  I have heard stories about some unfortunate noteholders losing their homes to foreclosure.  It’s far from uplifting.

We generally know how many people are part of the Ng coalition (Walter, Barney, Bruce, Kelly, etc), but how many people have been affected by the meltdown/dismantling of the funds directly or indirectly?  There are roughly 2,000 RE Loans investors (rounding up for those nitpickers out there who have a tendency to be overly exacting).  Let’s start doing some math.  If there are 2,000 REL investors, how many are married?  Half?  Okay, so that’s another thousand people give or take.  We’re up to 3,000.  How many have kids?  Half?  Great, let’s be conservative here and say 1,000 people each have one child.  That gives us 4,000.  I know there are a lot of senior citizens invested, so there are some grandparents out there.  Let’s say 25% of those with kids are grandparents and that each grandparent has one grandchild.  That’s another 250 on the conservative side.  So we’re up to 4,250.  Add in the Mortgage Fund ’08 investors (anyone know the numbers?  I’m not a MF’08-er) and the RE Reno investors (same here, help please!) and I’ll estimate that we’re looking at 7,500 PEOPLE directly or indirectly affected by this catastrophe.  Multiply that number by 100,000, which could be the average investment into the Ng family of funds and you’ll arrive at about 750,000,000, which is the supposed amount, in dollars, of the value of the RE Loans fund.

Feel free to offer your own fuzzy math below in the comments section.  I welcome your input and your creativity as well as your stories.  You’ve finally got a place to share, to vent, to scream, to rant, to rave and to generally raise holy hell.

That is, of course, what math camp is all about.