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

Breaking News

Walter gets sentenced to 5 years of probation.

Kelly sentenced to 18 months in prison.

Sound off.

Our Money

Excerpts from letters of support filed on behalf of Kelly Ng:

Richard Fitzgerald:

Paris

Omar Irigoyen, men’s volleyball coach at the University of California, Berkeley:

Omar IrigoyenAbhinav Janghala:

Abhinav Janghala

Brandt Ng:

Brandt Ng

 

Douglas White:

Douglas White

 

Frank Largusa:

Frank Largusa

 

 

 

James Wilcenski:

James WilcenskiLupe Rodriguez:

Lupe Rodriguez

Mark Lowe DDS:

Mark Lowe DDS

Nathan Wang:

Nathan Wang

Rick Dishnica:

Rick Dishnica

Rick Tune:

Rick Tune

Vincent Hua:

Vincent Hua

And last, but not least, Christina Zemba Casey — WHAT???

Christina Zemba Casey --- WHAT

Sentencing for Walter and Kelly Ng — MARCH 5th at 2:30 PM in Oakland

Re:

United States v. Defendant(s) Case Number 2011R00248 and Court Docket Number 13-CR-00650   United Sates v. Defendants Walter Ng and Kelly Ng

There’s been some talk on this site about Walter & Kelly’s sentencing.  And we’re aware that it’s not just us victims reading this site anymore.  We have readers from the media as well as law enforcement/judicial.  There’s a lot to learn here about what these crooks did to us and how they stole our hard-earned money.

Life isn’t fair sometimes and we’ve received the short end of the stick in terms of this investment and the fallout that has ensued.  Here’s to the legal system dealing a knockout punch to the hucksters who robbed us blind.

The enclosed information is provided by the United States Department of Justice Victim Notification System (VNS). As a victim witness professional with the United States Attorney’s Office, my role is to assist you with information and services during the prosecution of this case. I am contacting you because you were identified by law enforcement as a victim during the investigation of the above criminal case.

The sentencing hearing for defendants Walter Ng and Kelly Ng has been set for March 5, 2014, 2:30 PM at Courtroom 1, 4th Floor, 1301 Clay Street, Oakland, CA before Judge Phyllis Hamilton. You are welcome to attend this proceeding; however, unless you have received a subpoena, your attendance is not required by the Court.
guilty

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.

 

 

 

Jail Time Coming for Walter & Kelly?

Dan Noyes on Ng’s Fate:

The charging document, “the United States of America versus Walter Ng and Kelly Ng,” says they, in effect, looted the funds by making repeated cash withdrawals. The Ng’s are charged with “structuring transactions for the purpose of evading a reporting requirement;” 11 counts for Walter, 20 for Kelly. Each count carries a possible 10 years in prison and a $500,000 fine.

Quick math:

  • Walter 11×10 = 110 years, $500,000 fine
  • Kelly 20×10 = 200 years, $500,000 fine

May they live that long to serve out their potential prison terms….

Where’s Bruce, we ask?

Courtesty KGO

Courtesty KGO

While many of us are beyond the age when a tax write off is helpful, it may provide solace for some.  John Robie’s message to everyone who got ripped off:  KEEP UP THE FIGHT.  Anyone who invested in RE Loans, RE Reno, or Mortgage Fund ’08 needs each and every one of you to stay strong and keep the pressure on.  Kudos to Brown and Bernard Wittenburg, amongst many others, for their efforts.

Finally, thanks to Dan Noyes for being the only reporter in the NATION who has stayed on top of this story.

http://abclocal.go.com/kgo/video?id=9273735&pid=9273730

Faces of Failure

Where’s Mackinac These Days?

Faces of Failure

Faces of Failure       Jim Weissenborn

Certainly not “navigating companies to financial success.”  It’s astounding that Jim Weissenborn would publicize his association/relationship with RE Loans on his website:

As co-founder and Managing Partner, Jim leads or co-leads numerous Mackinac Partners practice areas, including Financial Restructuring, Transaction Advisory, and Specialty Real Estate, which includes advisory engagements with national and regional homebuilders, sub-prime mortgage lenders, Resort and timeshare operators and housing-related manufacturers. Jim has served as Chief Restructuring Officer for several of the firm’s hospitality and real estate-related clients, including…RE Loans, LLC.

My dog could have achieved similar results for far less pay.

 

 

“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.

SEC Sues Walter, Kelly and Bruce for Fraud

By now, you’ve all likely heard the great news.  Stories are everywhere.

Here

Here

Here

and

Here (my personal favorite as it calls them “fraudsters”)

So…

What’s it mean for Mortgage Fund ’08 investors?

What’s it mean for RE Loans investors?

Does it mean anything for RE Reno investors?

Weigh in….

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.

How Did You Vote?

Please vote one time for every ballot you received.

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.

Shipwrecked on Mackinac Island

GUEST POST….

Due to the rainy weather in the Bay Area and technical issues with surveillance feeds, the exposés on Walter Ng and Bruce Horwitz have been temporarily delayed. So, today we will focus our attention on Jim Weissenborn and the crew at Mackinac Partners.

Click on the graphic above to take a closer look. Money. BIG MONEY, you guessed it. That’s why these guys are smiling. Continue reading

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

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

CRO-Magnon Report

Here’s the latest from Jim Weissenborn:

http://equitatus.files.wordpress.com/2011/07/cro-7-12-2011.pdf

 

Weissenborn’s Lazy Weekend

How many of you emailed Jim Weissenborn last week or over the weekend?  How many of you received a response?

John Robie’s guess?  Zero.

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

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.

Update From Bar-K’s Website

Here’s the latest from the good folks from Bar-K, RE Loans, MF ’08, Lend, Inc., Mackinac Partners, etc. etc. etc.

Take it for what it’s worth:  Click Here:  bk-additional-information

They’re Spoiling Us

This is the second communication from Weissenborn & Team this week.  What’s next?  Three communications next week?  Unlikely.   RE Reno investors might not enjoy reading that while Walter acknowledges his   commitment to RE Reno, his commitment is to the entity, not the individual noteholders.  That’s weak.  Anyhow, here’s the document:
  5-20-11 REL Statement (click here).

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

Please Attend The Creditors Meeting – June 6th

Thank you to Dixon Collins for the following: Continue reading

BREAKING NEWS!

Maribel & Walter Ng filed for bankruptcy protection yesterday, listing their estimated assets at $500,000,001 to, get this, $1 billion.  The judge assigned to the case is the Honorable Roger L. Efremsky.

Walter checked the box that says, “Debtor estimates that funds will be available for distribution to unsecured creditors.”

Please do us a favor and click the links below to learn more (and to see your name listed as a creditor). 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

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

Guest Guesser

When will Mr. Weissenborn live up to his promise to give the noteholders an update around the end of the year?

Our guess is March 4, 2011 (three months into the year).

Why?  Well, the current forbearance agreement expires on February 28, 2011.  We can’t realistically expect Mr. Weissenborn to pen an update on the 28th, so we’re giving him four days of leeway.  Does this seem fair?  Tell us when you think we’ll hear from our cherished CRO.

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

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 #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 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.

Continue reading

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.

Continue reading

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?


Continue reading

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  

Jim Weissenborn’s September 9, 2010 Newsletter

We will spend time breaking down the newsletter in the near future.  In the meantime, here are our initial thoughts:

  1. The money is gone.  If you can’t figure this out after reading the newsletter, we feel sorry for you.
  2. On page 3, the nifty pie chart shows 0% of the loans Walter, Barney, Bruce and Kelly made are performing.  Note that everyone’s favorite, Walter, is included in this list.  Conventional wisdom these days is to point the finger at Barney, but it’s not too difficult to understand that sweet Walter may have unclean hands.
  3. Speaking of Barney, Capital Salvage is a far bigger player in this whole mess than I anticipated.
  4. Speaking of Bruce, it’s sad that such a well-respected member of the community found it so easy to mislead us.  These investments were safe according to Bruce.  They’d never lost a penny according to Bruce. Don’t worry, said Bruce.  NONE of the loans were safe.  Not a single one.  The exchange agreement is no big deal, said Bruce.  Nothing will change if you sign the exchange agreement, said Bruce.  The exchange agreement subordinated every single investor to WFF.  Forever.
  5. WFF drew down all but half a million dollars of REL’s cash reserves.  Question – how much was in the account before WFF drew it down?
  6. Weissenborn wants to take out a smaller loan to cover taxes and carrying costs in the amount of TWENTY MILLION DOLLARS!   Weissenborn is simply digging a deeper hole for us.  Question – Will the noteholders be subordinated even further down the list?  Likely pecking order if/when the new loan is secured:  1)  WFF 2) Company loaning $20 million 3) noteholders.
  7. The Ad-Hoc Creditor’s Committee isn’t supposed to communicate with the other noteholders, but they are supposed to help Weissenborn gain a better understanding of “investor concerns.”  How can the committee understand what we’re going through if they’re not allowed to converse with the rank-and-file?  The hand-picked committee is a sham.
  8. Pearl Tom is a member of the Creditor’s Committee.  Why does her name keep popping up everywhere?  Ms. Tom’s name appears on all the Siena/Wild Game Ng/High Five/Five-Way/One South Lake bankruptcy filings.  Somehow she’s figured out how to receive notice on all the BK filings.  Just who is Pearl Tom?  We’ll delve into that at a later time, but it’s becoming abundantly clear she’s in cahoots with sweet Walter.

More later….

An open letter to our savior

On July 15th, James Weissenborn (“Jimmy“), the Chief Restructuring Officer of RE Loans and the Managing Partner of Mackinac Partners wrote a letter to RE Loans noteholders.  If you haven’t seen the letter, check out the RE Loans website (recent news section) and look under Mackinac Correspondence.  Click on the link for “Message from Chief Restructuring Officer (CRO)”.   Now, onto the response…

Dear Jimmy,

Thank you for reaching out (over a month ago).  It feels good to hear from someone at the C level.  Quite a title bestowed upon you.  I bet Barney is pissed.  He never got such a fancy title, did he?  Anyway, let’s move on to the reason I’m writing you…your most recent communication with the noteholders of RE Loans.  You mention in your letter of July 15, 2010 that RE Loans is “operating under a series of forbearance agreements with Wells Fargo.”  You go on to state that the “note matures” at the end of July.

Today happens to be August 26th, about a month after the maturation of the note.  We haven’t heard a peep from you, so should we presume all’s well with Wells Fargo Foothill (“WFF”) or should we presume the worst?  Did you extend “the facility” or are you preparing to file for Chapter 11?

Inquiring minds want to know.

It’s actually pretty inconsiderate to tell everyone that the world could blow up at the end of July – if it hasn’t blown up already – and then fail to communicate at month’s end.

You also mention a business plan.  It’s probably the first time RE Loans has had an actual business plan.  I can only suspect that a business plan might affect us (the subordinated, former investors turned noteholders).  It would be really cool to actually see the document.  Given the fact that there has been very little exchange of actual information since we watched our investments disappear like a poor magic trick performed by a B level magician booked to perform at the Siena Hotel & Casino, it sure would be refreshing for someone like you to share with us just exactly WHAT is going on.

I have a few questions for you, Jimmy, as follows:

What does this statement mean?

“Provide for the significant liquidity and infrastructure we need to support these assets.”

I take it to mean you are running an operation with a monstrous overhead.  Between your monthly nut, The Dishnica Group’s retainer, Walter, Kelly and the office staff salaries (Susie Parker, et al), that sounds pretty significant to me.  How much are we talking here?

You go on to state that, “As details emerge, I will update you on our progress with respect to these discussions and other matters of significance.”  It must be safe to assume that no details have emerged and nothing significant has happened for over a month.  Am I right?

You write, “In my last two communications we discussed the critical need for liquidity.”  I understand how you feel, Jimmy.  I too have a critical need for liquidity.  Help me out here if you could.  Do you have any idea how critical liquidity is for the noteholders, many of whom have relied upon interest payments to fund their retirement?

It would be truly magical to see the asset status reports your people are putting together.  What do you say, Jimmy?  Feel like sharing?  How about the title/lien and loan documentation papers, too, while you’re at it?

Thanks, Jimmy.  I appreciate your time and your responsiveness.  Thank you for your tireless pursuits on behalf of WFF, B-4 Partners and yourself the RE Loans noteholders.  We’ll never forget what you’ve done for us.

Sincerely,

Your Constituent