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

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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

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!).

Continue reading

Tumwater Brewery Update

Updated Story – Click HERE

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  

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.

Tumwater needs united front in brewery redevelopment – Editorials – The Olympian – Olympia, Washington

Tumwater needs united front in brewery redevelopment – Editorials – The Olympian – Olympia, Washington

There has been very little public discourse about the Olympia Brewery in Tumwater, WA (Loan #A00977 if you’re scoring at home). This is a weird one. The property is a hot potato. First All American Bottled Water owned the property. Then they defaulted. Who scooped it up? One of Barney’s companies, Well Be Ng — or was it Capital Salvage? — anyhow, it now looks like RE Loans has claimed title on the defunct brewery. There are a ton of unanswered questions, but I’ll pose just one today:
Who received the 3 x $1.76M from the cities of Lacey, Olympia & Tumwater? Was it Well Be Ng, All American Bottled Water, RE Loans or one of the B-4 individuals?

Does anyone know?