Legal Discussion

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Insider Researcher asked the following:

"Would you consider a new topic were we can discuss some of the pending litigation, the status of the case, and what it means to us as investors? Even discussing the closed cases, like Alegria/Grassi can help to uncover the truth or get a better understanding of how the Ng family and their attorneys operate."

The answer is a resounding "yes".

We'll kick things off with a few updates.  First, it appears as though Dwight Dixon Collins and Kathleen D. Collins have sued Walter, Kelly, Bruce, RE Loans, Armanino McKenna, Greenberg Traurig and Elizabeth Cobey, an attorney at Greenberg.  Noticeably absent from the list is everyone's favorite villain.  Secondly, down south in Reno, the Debtors (Team Barney) failed to appear on the 25th, so the case has been continued until November 15th.  Lastly, Judge Zive denied the application to approve the Kelly Law Group and Matthew Kelly as Special Corporate Counsel.

So let's discuss.  Have at it....

Assignments to Wells Fargo Foothill

A quick search of the Harris County (TX) Clerk's Office website shows that RE Loans assigned its interests in the Bravo Marshall development to Wells Fargo Foothill (pasted below).  It's not difficult to track down these assignments to WFF.  REL noteholders were led to believe that each and every loan was assigned to WFF.  Is this the case?  If not, why would B-4 Partners exclude certain properties from the deal with WFF?  If there were certain properties not assigned to WFF, where did they go and who got them?  Could they be viewed as preferential payouts to preferred investors?  What makes one investor more important than another?  If this happened, B-4 could be much more ethically challenged than we imagined.  As we methodically work our way down the list, loan-by-loan, we'll see if this is true. If anyone has information on this subject they care to share, please do so here.

File Number Description Type Vol. Pg. Names File Date YYYYMMDD Sec. Lot Block Misc. Pgs Film Code 20080153115 SEE INSTR ASSGN Grantor: RE LOANS LLC Grantee: WELLS FARGO FOOTHILL LLC 20080328 9 RP055290556 20080433825 SEE INSTR SUBORD Grantor: RE LOANS LLC Grantee: BARRINGTON SEC 2 20080819 2 RP059241310 20070467886 KINGWOOD LAKES SOUTH ASSGN Grantor: RE LOANS LLC Grantee: WELLS FARGO FOOTHILL LLC 20070801 01 INSTR 5 RP047860917 20090113699 BARRINGTON SUBDIVISION PT REL Grantor: RE LOANS LLC ETAL Grantee: BRAVO MARSHALL COMMUNITIES LP 20090319 01 B0002 INSTR 5 ER010971715 20090113702 NO 096693Z REL Grantor: RE LOANS LLC ETAL Grantee: BRAVO MARSHALL COMMUNITIES LP 20090319 5 ER010971720 << Previous 1 Next >>

Siena Bankruptcy

There are a few documents that we are anxious to see as the bankruptcy moves forward.  The first document is the supposed lease signed in March 2000 between Wild Game Ng (Barney) and Hi-Five (Barney) where Barney is supposed to be paid approximately $350,000 per month in rent.  The second document is the underlying paperwork attesting to the fact that Hi-Five (Barney) owns 25% of One South Lake (Barney).

If you're confused, it's quite simple.  Barney will come out of this filing smelling like roses.  The rest of us won't.  We're not surprised.  Are you?

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....

Revolving Door Policy

Finally a bit of press coverage on something important to us.  Unfortunately, Rolf Boone, the author, got it wrong at the end, as Capital Salvage, as we all know, is Barney's entity.  RE Loans recently "won" the property back at auction, essentially recovering the note for no money down. Get an NG out, replace that NG with another NG.  That's the theory here.

If, in months or years past, "the brewhouse was listed for $2 million and the two parking lots were listed for $1 million," then RE Loans (or Capital Salvage, if you will), isn't taking home a lot of cash, which means the WFF LOC isn't going to dwindle much, if at all due to this potential sale.  Also, what's with the NG propaganda machine touting potential sales?  It's all horse manure until there is something concrete to tell us. 

Scouring the internet for NG dirt

Technology is really amazing these days.  Back when I invested in RE Loans, the internet wasn't what it is today.  Now, a simple Google search turns up some really incredible information.

Read this story about Michael Ohayon & David Papera.  Then scroll down to the comments section and check out the posting made by my favorite internet poster of the month, AnotherNgVictim.  If you check the 2009 (de)valuation document written by Mary Ann Lerch, you'll spot Loan Number T0467.  Loan Number T0467, as Lerch states, is "REO. Property is owned by R.E. LOANS, LLC (3XS, LLC)."  3XS, LLC is a registered business in the state of California.  The Agent For Service Of Process is none other than Michael Ohayon.  The comments made by AnotherNgVictim do a great job of pointing out the NGs history of doing questionable deals with crooks (see All American Bottled Water in Tumwater, WA).

December 31, 2012

MARK YOUR CALENDARS!

December 31, 2012 is the maturity date of the RE Loans note.  As we all know from our thorough reading of the October 2007 RE Loans Reorganization Plan And Note Program (the "Exchange Agreement"), we can get our money back if the Ngs feel like it.

It's so close we can almost taste it!

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.

B-4, aka a story by Mario Puzo

According to those in the know, B-4 includes the following:

-- Walter Ng
*81 years old...coincidentally born the same year as the beginning of the Great Depression. Walter, the patriarch, is the Godfather, Don Corleone in this story. Loved and trusted by many, despised by some...will the people ever really know who the real Walter Ng is?

-- Barney Ng
*Some consider Barney to be either Michael Corleone or Sonny Corleone. He's probably a little bit of both -- he's smart, devious, impulsive, lives in the shadows, pulls all the strings....

-- Kelly Ng
*Some consider Kelly the Fredo Corleone of the family. Call him up on the phone and come to your own conclusions.  To make ends meet, Kelly coaches volleyball (Kelly's Other Day Job - go to roster, then scroll down to coaches).

-- Dr. Bruce Horwitz
*This is the guy who got people to trust the investment pools. Who better to trust than a pediatrician?
*Consider him the Tom Hagen of the family, the consigliere, in a way, except for the fact that Michael Corleone and Tom Hagen never sued each other.