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