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

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

Siena Update

Thanks again to the inscrutable blogging superstar behind REReno for the attached document and the willingness to provide their thoughts: Continue reading

Barney’s “Hobby” Revisited

The Siena saga is nearly over, but info keeps landing in our laps.  Therefore, we present another document with the following reader comment:

3 Page Notice that all claims close 15 April, then 26 pages of creditors.  Wouldn’t you love to know how much American Document Destruction is owed, and exactly what their services were?  It takes some major cajones to stiff your shredding company.

Click here for the document:  Creditors Doc 265

Do you see any creditors on the list that spark your curiosity?


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

Barney’s Failed Experiment – The Siena…where the fun never ends…

Interested in staying up-to-speed on the Siena?  Click on the two links below and let us know if you can find any items of interest:

Cash Flow July 2010

Cash Flow August 2010

RE Reno Seven Months Later…

On May 14, 2009 Barney Ng wrote the following to RE Reno investors:

I recognize and appreciate the trust that you as an investor have placed in me in originally providing this Loan to the Siena, and because of this I am committed to the pay-off of the loan.

Barney’s commitment to paying off the loan should be lauded.  His follow-through, however, is laughable (so is yours, Walter – you, too, signed the personal guarantee).  Barney continues… Continue reading

Barney Being Bad

We’ve had a lot of action here today.  Why not end the day on a positive (unless your name is Barney Ng).  An obscure blogger sent the following to us today:



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

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.


Continue reading

Barney, Aram and King Kong

Aram Ordubegian and Andy “King” Kong, also known as Barney’s personal bankruptcy attorneys, apparently have their hands full handling all of Barney’s biz.  King Kong’s bio lists his work on a case called S-King:

“S-King Estates, LLC Represented debtor-in-possession, a “ski down” resort in Salt Lake City, Utah, in heavily contested plan confirmation, conducting extensive discovery regarding lender’s “predatory tactics” and property valuation. Successfully confirmed plan of reorganization”

Interestingly enough, the work Aram and King Kong did on S-King resulted in the following on page 13 of this document (click here).

G.  On the Effective Date, Barney Ng’s position as manager of the Debtor shall be terminated and the manager of the Reorganized Debtor, as defined in the Modified Plan, shall be David M. Luber. David M. Luber shall not receive compensation for serving as manager of the Reorganized Debtor.

Barney’s potential Siena golden parachute is $7,000,000.  How’d he do on S-King?  Anybody know?

While we discuss the question above, the good folks of Arent Fox will continue cleaning up Barney’s messes (click here to learn more about their activities and how they relate to the Siena).


Siena Watch – UPDATE

Per the RGJ’s Ray Hagar this morning:

The auction of the Siena Hotel Casino in downtown Reno will take place next week in a Reno courtroom, where a national investment banking firm will try to sell the downtown resort that recently closed after a long string of financial problems.

“The reality is that the Siena has ceased operations and we are going to sell this in a bulk sale in one transaction to a singular buyer,” said Matt Sodl, managing director of Innovation Capital LLC in Los Angeles. “It will be a turn-key operation for that buyer and that buyer can either run it as it were, with the hotel and casino, or the buyer can decided if they want to operate a casino there or not.”

Those interested in participating the Nov. 10 auction are asked by Monday noon to submit a $250,000 deposit by wire transfer, evidence of financial wherewithal, a signed non-collusion affidavit and a mark-up of the Debtors’ form purchase agreement.

One-on-one tours of the property will be held on Tuesday with the auction Wednesday in the U.S. Bankruptcy Court of Judge Gregg Zive.

“We have marketed this thing far and wide and have a lot of interest in this asset,” Sodl said. “We have had a lot of interest from in-market competitors to buyers who are looking to get involved in the Reno market.”

Siena Watch – Update

It appears as if the Siena will be put on the auction block. No “binding, acceptable offer[s]” were made to buy the property.

Here is the closing paragraph from the Arent Fox filing:

WHEREFORE, based on the foregoing, the Debtors respectfully request that the Court enter an order: (a) establishing auction procedures with respect to the sale of the Debtors’ real and personal property; (b) approving and authorizing the sale by auction of the Debtors’ real property free and clear of liens, claims, interests, and encumbrances, subject to higher and better offers, (c) approving the assumption and assignment of certain unexpired leases and executory contracts to the winning bidder and establishing the cure amounts, if any, payable under such Assumed Agreements, or, in the alternative, approving the rejection of the Debtors’ unexpired leases and executory contracts to the extent such agreements are not assumed and assigned to the winning bidder, (d) approving that certain addendum to Innovation’s engagement letter dated October 28, 2010; (e) waiving the 14 day stay provided in Rule 6004(h); and (f) granting such other and further relief the Court deems just and proper.

Continue reading

Siena Watch

Today is the day Barney, Clyde and their team of attorneys from Arent Fox are due in BK court before Judge Zive.  Noticeably absent, of course, are the attorneys from the Kelly Law Group.  We’ll keep you posted if and when we hear anything.

Barney Finally Called On His High Jinx

 On October 6, 2010 we discussed Barney’s Supplemental Statement filing.  This filing asked the bankruptcy court to allow Barney’s group to hire a few firms, amongst them the Kelly Law Group.  KLG was to provide legal services to the Siena.  As we all know, the Kelly Law Group is run by (virtual) legal dynamos Stephanie & Matthew Kelly, also known as Barney’s daughter and son-in-law. 

While the SEC allowed its employees to spend many of their office hours watching pornography on the internet instead of prosecuting the NG family and Bruce Horwitz, the lawyers in the Office of The U.S. Trustee were working hard, as evidenced by their October 20, 2010 filing objecting to the arrangement between Barney NG and the Kellys.  The Attorneys for the Acting U.S. Trustee August B. Landis deserve a standing ovation thus far.

In 13 easy-to-comprehend pages, Landis’ attorneys spell out exactly why the sweetheart deal Barney put in place with his family doesn’t pass muster and would have been denied by Judge Newsome had the Siena not shut down earlier this week.  It is comforting to finally see Barney take a right hook to the chin.  Perhaps he didn’t realize he’d get called on his bullshit.  This isn’t the bush leagues anymore, Barney.  You can no longer make up the rules as you go along, enriching yourself and those you deem worthy.  You are now playing in the big leagues.  Everything you do shows up on PACER.  Sure, the RGJ and other newspapers may not cover ever move you make, but you can be certain the team behind will.  A simple Google search leads people to this website.  The web traffic shows people are coming to this website often, looking for updates on your latest transgressions.  You and your Bar-K cohorts fooled us for years.  Those days are over.

Getting back to the Landis filing, here are the salient points:


1.  Matthew Kelly is Barney Ng’s son-in-law and grand-son-in-law to Walter Ng.
2.  Barney Ng is the managing member of each of the debtors and has served in that capacity since May 8, 1998.
3.  Barney Ng is the 100% owner of Wild Game Ng, LLC.
4.  Barney Ng is the sole unsecured creditor for Hi-Five Enterprises, LLC ($75,000).
5.  Barney Ng and Walter Ng are co-debtors with One South Lake Street, LLC on the secured note to RE Reno, LLC.
6.  Walter Ng is the registered agent and manager of One South Lake Street, LLC.
7.  The Kelly Law Group – Matt Kelly was paid $4,656.70 on the petition date.
8.  Matthew Kelly is not licensed to practice law in Nevada, only California.
9.  The Kelly Law Group, LLP is “a virtual law firm.”
10.  Although the Application states that the Applicant was employed since December 2009, the Engagement Letter is dated July 22, 2010.
11.  Barney Ng’s testimony at the 341 hearing state in-part:
      a.  Matthew Kelly was employed on an “oral basis before the bankruptcies were filed “because he’s my son-in-law”;
      b.  the flat fee rate of $7,000 per month is a “family discount”;
      c.  Matthew Kelly was employed by Barney Ng on numerous personal matters;
      d.  Matthew Kelly was in-house counsel for Bar-K, Inc., an entity owned by Barney Ng and where Barney Ng was also employed;
      e.  Matthew Kelly left Bar-K, Inc. employment when Barney Ng left Bar-K, Inc. employment;
      f.  Walter Ng and Barney Ng’s brother were also involved with Bar-K, Inc.;
     g.  initially, Matthew Kelly was working on mostly personal issues for Barney Ng (70% of his time), not the Debtors; and
      h.  Barney Ng has an unsecured claim of approximately $35 to $36 million, that he intends to subordinate to other unsecured claims.
12.  The first application to employ the Applicant was filed on September 8, 2010, forty-nine (49) days after the petitions were filed.

Whew.  That’s a lot to digest, but we’re not done yet!

In the “Application Of Authorities To The Relevant Facts” section of the filing, Landis’ team describes  why the Kelly Law Group is not eligible to receive Barney’s rich handout.

 A professional in a bankruptcy case should not be put in the position of having to divide his loyalties.  Matthew Kelly, as Barney Ng’s son-in-law, is an insider and therefore is NOT a disinterested person. 

The Application and the accompanying verified statement of Applicant and Barney Ng, do not adequately disclose the significant connections between the Applicant, Barney Ng and Walter Ng. 

Additionally, Applicant gave a less than full disclosure that his “four years working in-house for one of California’s largest private commercial real estate lenders” was Bar-K, Inc., a company that is owned by Barney Ng and also involved Barney Ng, Walter Ng and Barney Ng’s brother.  Applicant’s statement that he “is a disinterested person as that term is defined in 11 U.S.C. § 101(14),” shows a lack of understanding of and appreciation for the requirements of disclosure by professionals working for a bankruptcy estate.

Applicant’s legal abilities are not unique or extraordinary enough to warrant overlooking the obvious concerns regarding his allegiance to his family over the interests of the estates.

Allow us to summarize:

1.  The U.S. Trustee and his staff won’t stand for Barney’s bovine feces.
2.  Matthew Kelly attested to the fact that he and his firm would be a “disinterested” party as required by law.  Landis called him on his blatant lie.  The California State Bar will want to look into this ethical breach.
3.  Barney’s $7,000 per month gravy train broke down and became unhitched.
4.  How much would this contract cost if the ‘family discount’ weren’t applied?
4.  We still haven’t recovered a single cent of our investment, unlike favored investors Leonard Epstein and Phillip Tagami.

Please add your own analysis below in the comments section.

Wikipedia Needs Your Help

There’s so much left unsaid on the Siena’s Wikipedia site.  Who wants to take a stab at correcting the record?

RGJ Update: Siena shifts money "to other obligations"

Update at 3:38 p.m.:

 Dennis Neilander, chairman of the Nevada Gaming Control Board, said the Siena requested temporary closure of its gaming operations. Its sports book will remain open because it is run by the Cal Neva under a separate license.

Neilander said there is a requirement for licensees to maintain a minimum bankroll, calculated based on the types of games they have and potential jackpots.

“They decided to shut down (their) gaming operation and take that bankroll to other obligations as part of steps to make the property viable,” Neilander said.

Gaming was shut down about 4 a.m. Friday morning and agents from the board were on hand to observe the final drop about 6 a.m.

Neilander said the Siena is working on proposals to redo the slot floor.  “I think they decided this was the best course of action,” he said.

Temporary closures are done by quarter. The approval runs through the end of this quarter. If the Siena wants to remain closed for another quarter they can make another request.

Jeff Siri, CEO and president of the Cal Neva, said they will continue to keep the sports book in the Siena open.  “Our sports book’s done OK business today, surprisingly,” he said, noting that a 6-foot wall had been placed around the slot machines. “Hopefully we can spruce up the area and stay active. If they can keep the hotel business open I think it could do OK.”

Reno Mayor Bob Cashell said about 3 p.m. he hadn’t spoken with anyone at the Siena yet, but had heard they closed the gaming to do a renovation.  “I’m just hoping they’re not closing,” he said.

Tri-Ng to look out for our Well B Ng?

Sometimes it feels like we’re just “Tri-Ng” too hard in life, doesn’t it? Or maybe we’re not “Tri-Ng” hard enough.  The information is out there, but we’ve all been too oblivious, too lazy, or too gosh darn blind to search for the truth.  Whatever the truth may be, we’re certain Barney Ng is always Tri-Ng really hard to get ahead.

Tri-Ng, Inc. was operating out of 432 Estudillo Avenue, Room 9, San Leandro, CA 94577.  Room 9 just so happens to be the current global headquarters for Five-Way Development, Wild Game Ng and Hi-Five Enterprises.  RE Reno’ers following the Siena’s bankruptcy proceedings or reading this blog will recognize the names of these three entities.  It isn’t too hard for anyone with a PACER account and some initiative to figure out that Barney NG is the Manager of each of these entities, all headquartered at, you guessed it, 432 Estudillo Avenue, Room 9, San Leandro, CA 94577.  This building is 20 miles or so from Bar-K’s building in Lafayette.

Tri-Ng, Inc. Entity Number C1189195, was formed December 27, 1985 by Barney J. Ng.  It’s current status is listed as “Merged Out.”  What does “Merged Out” mean?  We’ll let you know what has become of Tri-Ng if and when possible.

Finally, a quick search of the expensive Alameda County Recorder’s site lists a record showing a tax lien for a company called “Tr Ing Props” that may or may not be Barney’s “Tri-Ng” entity (is it misspelled?):

Document Detail
Instrument Number: 89298117
Sequence #: 0
Date Received: 11/02/1989 12:00:00 AM
Book: 0
Page: 0

We love the creativity of the cute names, but, cute names aside, how do all these known and unknown entities affect us MF’08’ers, REL’ers and RE Reno’ers?

How To Play A Shell Game — A Tutorial

This post deals specifically with the Siena Hotel and Casino in Reno, NV. Close your eyes and cover your ears if you’re scared to read scary things. It’s like Halloween in August.

Check out the various entities involved in the development, financing and ownership of the Siena:

One South Lake Street, Inc.
Barney Ng, Managing Member

*Gold Mountain Financial Institution, Inc.
Barney Ng, President
Maribel Ng, Vice President
Walter Ng, Agent for Service of Process (per CA Secretary of State)

Five Way Development, LP
Barney Ng, General Partner
Frank Yuen, General Partner

Hi-Five Enterprises
Barney Ng, Managing Member

Wild Game Ng
Barney Ng, Manager

RE Reno
Walter Ng, Manager

RE Loans
Walter Ng, Managing Partner

Barney Ng, President
Kelly Ng, Vice-President

B-4 Partners
Walter Ng, Partner
Bruce Horwitz, Partner
Barney Ng, Partner
Kelly Ng, Partner

*Annual Rate of Interest on this $20 million “Note” is 11%. That’s the best financing that could be lined up in 2001? Unlikely.  The real story is that it appears as if Barney is borrowing from Barney and paying Barney the interest.

Moving along, the interest rate promised to RE Reno investors = 9%. How much interest was Barney (One South) paying Walter (RE Reno)? How much interest was Walter (RE Reno) paying Walter (RE Loans)? We know Walter (Re Loans) was paying his RE Loans investors 8%.

I’m confused. Are you?  Interestingly, it all boils down to a game of pin the tail on the donkey. Who’s the donkey here?

Siena Creditors

This is pretty interesting…

Hi-Five Enterprises filed for BK. It’s only creditor is none other than Barney Ng in the amount of $75,000 for “services.”
Want to guess who is the Managing Member of Hi-Five Enterprises? Bingo. Barney Ng.

One South Lake filed for BK the same day as Hi-Five. One South also has one creditor. RE Reno in the amount of $106 MILLION. That includes anyone who invested in RE Reno. Are there any of you out there?

Then there’s Wild Game Ng, Barney’s LLC. Wild Game Ng also filed for BK, believe it or not! There are over 400 pages of creditors. Scanning the Top 20 creditors list, two really stand out:
1. Barney Ng for $36.5 MILLION for “Rent Payments”
2. Walter Ng for $450,000 listed as a “Loan”

The takeaway, you ask? Barney bankrupts his company, then lists himself and his dad as the biggest creditors.

More Trouble At The Siena


This isn’t getting better.