Andy Armanino – Man of the Month

Bishop O’Dowd High School should be ashamed.  So should Andy Armanino.  His firm just copped to its role in fleecing investors out of nearly $1 billion in retirement funds.  But anyway…Armanino is Bishop O’Dowd’s November Alum of the Month!

Congrats Andy!

We’re awfully proud of you and what you’ve accomplished.

Says Andy:

“We look at our key systems and ask ourselves if we were starting from scratch today would we do things differently,” Andy said. “If the answer is yes, we better have a pretty good reason for not changing.”

Did he ask that question when all of our hard-earned money was being “ponzied” down the toilet?

And it’s interesting that Armanino McKenna changed it’s name to Armanino recently.  Why?  Well, likely because of the scrutiny it was receiving from lawyers, judges, press, senior citizens, the DOJ, the FBI and God knows who else.  They should have gone with a far more common last name.

Once again, we get screwed and those in charge of the wrongdoing get celebrated. Again, thanks to Bishop O’Dowd High School for recognizing what a great human being Armanino really is….

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

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.

 

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

The Tax Man Cometh

He’ll be here soon.

Many need to figure out their strategy.  Write off your losses, some of your losses or do nothing?

It’s been relatively quiet here lately after the MF ’08 news dropped and someone decided to fling some insults at me.  It’s okay, it’s all part of the game.  I’m just glad there’s something happening at the government level.  I wish MORE were happening (hint, hint FBI), but this is a good start.  I’m not sure anything can trigger a recovery of more than a few pennies on the dollar and I don’t think we’ll see 100 cents on the dollar – ever – but we’ll all take what we can get given the injustice that has been dropped on us like a pigeon from an overhead wire.

May the good graces of luck deliver good news for us and horrible news for the Ngs.

Cross your fingers and keep dialing the FBI.  They’ll listen one of these days.

p.s. What do you think Phil Tagami and Len Epstein are up to right now?  They got their money out.  So did Eddie Orton (some of it at least).  So did the McGah Family Trust.  The rich get richer, apparently, and they get away with it.

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….

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.

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

Proof of Claim Forms

Okay, we’re up against a deadline everyone. If you haven’t yet sent your proof of claim form, today is the day to focus on this important task.

Don’t forget to factor in the interest you are due and any other costs or fees you can reasonably validate. Our math shows that interest payments ceased on November 1, 2008 and should be calculated through 05/12/11, the date sweet Walter filed for Chapter 11.

Bankruptcy Claim Form fillable – blank

Gordon Noble and others have posted examples. We have not received legal guidance on this, so your guess is as good as mine as to how to properly fill these out and what documentation you will want to send. Regardless, the best option is to simply get it done and send it in.

If anyone has suggestions, please share them ASAP.

No lines - If you filed your Proof of Claim form, you didn't have to wait

Is Walter Guilty of Perjury?

Read this document -> Brower Status Statement 8_16_11-1  <- and decide for yourself.

Worthless New Website (Thank You For Spending Our Money, Tracy Green)

Thanks to Tracy Green, we can waste our time getting zero information on <a website> built at our expense, an expense, we might argue, that is far greater than the value provided by Ms. Green and the website combined.

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

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.

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

Walter’s BK Discussion – What’s happening and what does it all mean?

The following comes from Robert Brower:

Walter Ng filed for Chapter 11 bankruptcy protection
on Thursday afternoon.  Just before Friday’s hearing,
I filed a dismissal of Walter Ng, without prejudice.
This removed Walter Ng from the case and preserved
the McGuire’s rights to go after Walter in bankruptcy
court.

Please Attend The Creditors Meeting – June 6th

Thank you to Dixon Collins for the following: Continue reading

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!

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

Mortgage Fund ’08 2010 Year End “Newsletter”, Doom & Gloom Edition

For those keeping score, Kelly Ng wins.  Jim Weissenborn loses.  Kelly (the good son?) did everyone a favor by getting the end of the year newsletter out “early”.

Unfortunately, we’re the real losers based upon Kelly’s bullshit-laced tome.

You might as well sit down, pour a cocktail, practice your breathing or do some yoga, because this is not pretty.  Despite our favorite Cal Volleyball Coach’s strong effort to make everyone think everything is hunky-dory, it ain’t, people.  In fact, MF ’08, as everyone already presumed, is just about as screwed as RE Loans and RE Reno.  If you want to keep reading, this story and the link to the letter continues after the jump.

Continue reading

Required Minimum Distributions (RMD’s) and your “investment”

Equitatus brings up an issue that has been discussed here and there, but we believe this topic is important enough to highlight and discuss:

Equitatus writes:

“I’m not asking for tax advise but my brother noteholder will be 70 this year. The following is from the IRS web site:

Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired.

How do make or account for an RMD when you funds are frozen?”

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

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

What Do You Care About? SPEAK UP!

We want to hear from you.  What topics/types of topics do you want to know more about?  We can throw spaghetti at the wall all day long, but unless you give a sh!t, the time and energy spent is futile.  Can you tell us in ten words or less what you care about?

We’ll go first with an example:

Documents proving wrongdoing allowing for any kind of recovery ASAP.

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

Question For Those Smarter Than Us

On page 33 of the MF ’08 valuation dated September 8, 2010, Ms. Lerch writes the following:

“This is an indication of the net assets of RE Loans LLC.  But the security being appraised is a debt
security payable to noteholders rather than equity holders.  The securities at issue are the notes of RE
Loans LLC to its noteholders, and are appraised separately.  Nevertheless, it is one indication of value, in that the net asset value of RE Loans is $47 per dollar of book value.”

Question:  Why does the Mortgage Fund ’08 Valuation Report end with three sentences about RE Loans?

Can anyone answer this question?

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?

Mortgage Fund ’08 September 2010 Newsletter

We received the September 2010 MF ’08 newsletter in the mail this weekend. Thank you to Walter and Kelly for keeping us abreast of the latest developments.

At first blush, the outlook seems rosier for the ’08ers than it does for the REL’ers or the RE Reno’ers.  ’08 doesn’t have a $60+ million line of credit and isn’t contemplating a secondary loan of $20 million like RE Loans, nor were they subordinated to junior status like the RE Loans noteholders.  ’08 also isn’t a secured creditor staring down the barrel of a bankruptcy filing by Wild Game Ng/One South Lake/Hi-Five like RE Reno.  That’s the positive news.

The not-so-positive news is embedded within the newsletter and many of the statements beg for further clarification.

The newsletter states the following:


NEWSLETTER STATEMENT:
“When there is cash available for distribution to investors, each investor will receive a payment prorated based on the amount of that investor’s note, divided by the sum of all notes. This method of distribution is the fairest way.”
COMMENT:
Unless the distributions are imminent, why build up hope when so little hope exists?  We’ve all seen these sorts of carrots waved in front of our faces throughout the years.  See page 4 of the newsletter regarding the Red Mountain loan.  MF ’08 is on the hook for another $950,000 due to a failure to fully fund the loan.  There’s no way Walter & Kelly will be returning principal prior to the $950k being provided to the borrower, as evidenced by this statement:  “Investor distributions can begin after we have funded this additional funding
commitment.”  So, guys, just where, exactly, are you going to find an extra $950,000 given the “current depressed market”?

NEWSLETTER STATEMENT:
“This distribution should be treated as a return of principal, which should not be recognized as interest income. A return of principal should not trigger current taxable income, unless the investor is withdrawing these payments from an IRA or 401K account. If MF08 is subsequently able to pay interest, we will advise the investors of that occurrence. This should minimize taxes incurred by investors and recognizes the possibility that MF08 simply will not be able to pay interest on its obligations.”
COMMENT:
Other than the underlined red text above, there’s not much to make one believe principal will be repaid, let alone interest.  If you do receive a return of principal, be sure to contact your tax specialist just in case.


NEWSLETTER STATEMENT:
“A small group of investors tried to put us in involuntary Chapter 11 Bankruptcy. If they had been successful the costs of the Bankruptcy would have been enormous.”
COMMENT:
HOW DARE YOU?  Everything is fine as you can obviously surmise from reading the September newsletter!

NEWSLETTER STATEMENT:
“Barney Ng, President of Bar-K since 1975, resigned in September of 2009.
COMMENT:
Like Richard Dawson, the NG family continues to put its investors in the middle of a Family Feud.  Has Barney really been the President of Bar-K for 35 years?  Who knew?

Finally, did you see how many condo loans have been made as part of the ’08 portfolio?  It’s not like they loaned money to buy or develop buildings full of condos.  These are small loans and the payoff on these couldn’t be large enough to cover the interest payments you’ll likely never receive.  It leaves one to ponder whether or not these loans were made as favors to friends or family.  Could they be related entity loans?  If so, the covenants of the ’08 operating agreement may have been broken.

The conclusion of the newsletter states, “Our recovery is dependent upon the recovery of the Real Estate economy.  We can begin distribution of cash when some loans pay off. We invite your comments.”

To sum up the whole fiasco, the dubious position this fund finds itself in has nothing to do with the management provided, with the exception of Barney, according to Walter & Kelly.  It’s 100% about the state of the market and economy.  While the economy plays a role, no doubt, it’s not entirely to blame.  Also, I don’t think they invite your comments.  They probably wish you’d simply leave them alone.

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.

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.

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.

Is Mortgage Fund ’08 A Ponzi Scheme?

Sadly, the Courthouse News Service looks like the only outlet interested in covering this $64 million issue.  Then see this document (page 6 Box 13).  You’ll notice that the total amount sold is actually $84,868,977 according to Coach K, everyone’s favorite volleyball coach/fund manager, brother of Barney and, of course, son of Walter.

Was this fund a ponzi scheme?  Two investors and their attorney think so.  Decide for yourself by clicking here.