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
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 →
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!).
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.
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.