Thursday, July 31, 2008
February 29, 2008---supposed to be funded within 36 hours
Received you mail a little while ago.. and to be fair.. can understand your frustrations.. and as you rightfully point out.. we have been as frustrated as you guys for the same reasons.. and others.. however to get right down to it.. I can advise you as follows:1. The Bank Guarantee (as attached) has been sent to our bankers (via HSBC - just like Gil said) and they (HSBC) have confirmed to my bankers that they have received it and are working as quick as they can to get it moved over to my bank and bankers. Once confirmed that the bankers have it on hand and all is okay with it.. (and I have absolutely no concerns about this at this time.. I know the client and the bankers that this has come from.. and they are SOLID..!! as above once confirmed.. I will have the cash to settle you (and our other clients) within 36 hours..2. additionally I have another Bank Guarantee (of which I am holding the MT799 transfer copies) arriving at our bank in Vienna which has come to me via Dresdner Bank in Germany.. and similarly to the situation in ( 1 above) as soon as the BG is confirmed as being on hand we will have the cash in 36 hours.. as above I know the client who in this instance happens to be the United Nations.. they have put up a chunk of cash for a project and our client (who happens to be the Finance minister for that country ) is investing it with us. for a twelve month period.. we help to build the school and hospital as a result of our profits from the investment and at the end of the 12 month term we give him a large chunk of cash monies to build other infrastructure in his country and also put the BG back in his hands..Client #3, as above it has been a struggle for you, me Gil and everyone else.. aside from dealing with a few delusional brokers in the USA.. making all sorts of weird and wonderful statements simply to get folks off the phone.. while making life so much more difficult for those of us working to make these projects and funding happen for everyone. While we might be 10,000 kilometres away we are very aware of the financial difficulties that folks are finding themselves in all over the country.. while most folks in USA only know of New Zealand from the "Lord of the Rings" or Zena or whatever.. we know the States on a minute by minute basis.. we have CNN, CNBC , NBC etc all arriving down here live 24 hours a day.. and are very aware of exactly how tough it is.. We will be doing absolutely everything possible to move this forward in any way possible.. but please be assured.. this is the truth.. and nothing but..I personally expect to have this wrapped up and completed during the early part of next week and will endeavour to keep you updated either directly as time permits or via Gil.. who is getting a copy of this so he knows exactly what i have told you..Best regards, Paul.
February 25, 2008---told us we would be funded "tomorrow"
ITS GOING TO BE TIGHT ON THE FUNDS WE ARE GETTING THIS DONE,,,, AND IT SOON I'M WAITING ON SOME PAPER WORK THIS WILL BE TOMORROW MATT KNOWS OF THIS..THEN THEY TRANSFER OUT ALL...PLEASE IF THIS IS TRUE ON YOUR HOUSE ILL KEEP U UPDATED ON THE TRANSFER NOW I DON'T WANT YOU TO EMAIL ME ANYTHING OR SEND ME ANYTHING ILL UPDATE BY EMAIL..
GIL
GIL
February 10, 2008
This is what I received from Paul yesterday.
I can concur from what I know is that Sarah has been so out rightly annoying that things have been said simply to get her off the telephone lines.. and some of that has been reported back and forth along with the real facts of the matter have caused this confusion, all of which has served to achieve nothing but annoy the hell out of everyone concerned.. however that said I can advise you of the following which is the fact s as they stand right at this minute.
1. We had and still do have EVERY intent to fund our clients (yourself included).. there has never been any other intent from our side.. situation is that I have 450 million dollars of Bank Guarantees sitting in the bank in Sydney Australia which have been there since October and we have not been able to get them cleared via the bank in Sydney.. nor the issuing bank.. if they had of cleared we would have been able to fund immediately.2. Consequence of that we had to bring other Bank Guarantees into the bank.. (which we have done) the latest arriving in the past few days and we are literally waiting for the European Bank to affirm these guarantees as genuine.. (which we know they are cause they were issued by a Government - the original funds coming from the United Nations). - Soon as the bank gets the go ahead my trustee bank can draw down on the credit lines ( Which have already been approved - as per my letters) and then the transfers can take place via my lawyers here to the lawyers in the USA (Patrick) for immediate settlements.That is the update as of 30 seconds ago.. so you can not get news any fresher than that.I will advise immediately.. that the bank gets the go ahead regarding the collateral (bank guarantees) - this information is due and expected in the next two / three / four days.. the exact minute / hour or day I can not give you.. all I know from what the bankers have advised me is it will be VERY soon.
I can concur from what I know is that Sarah has been so out rightly annoying that things have been said simply to get her off the telephone lines.. and some of that has been reported back and forth along with the real facts of the matter have caused this confusion, all of which has served to achieve nothing but annoy the hell out of everyone concerned.. however that said I can advise you of the following which is the fact s as they stand right at this minute.
1. We had and still do have EVERY intent to fund our clients (yourself included).. there has never been any other intent from our side.. situation is that I have 450 million dollars of Bank Guarantees sitting in the bank in Sydney Australia which have been there since October and we have not been able to get them cleared via the bank in Sydney.. nor the issuing bank.. if they had of cleared we would have been able to fund immediately.2. Consequence of that we had to bring other Bank Guarantees into the bank.. (which we have done) the latest arriving in the past few days and we are literally waiting for the European Bank to affirm these guarantees as genuine.. (which we know they are cause they were issued by a Government - the original funds coming from the United Nations). - Soon as the bank gets the go ahead my trustee bank can draw down on the credit lines ( Which have already been approved - as per my letters) and then the transfers can take place via my lawyers here to the lawyers in the USA (Patrick) for immediate settlements.That is the update as of 30 seconds ago.. so you can not get news any fresher than that.I will advise immediately.. that the bank gets the go ahead regarding the collateral (bank guarantees) - this information is due and expected in the next two / three / four days.. the exact minute / hour or day I can not give you.. all I know from what the bankers have advised me is it will be VERY soon.
March 24, 2008
Another email from Paul...now refusing to deal with the clients or make promises, but stating that we are "very close to having funds in our hands"...that was four months ago and we still do not have any funding.
Good afternoon Client #1,
I have spoken to the escrow attorney this morning concerning the completion and funding of your file..
and given the nature of the current communications (Sarah's included) I wish to limit the advices regarding such proposed dates to communication between myself, my lawyers and the escrow attorney.
I can in all good faith advise that matters are very very close to you having the funds in your hands and I have been discussing with the escrow attorney this morning the timing of these events.
I do not propose at this time to say that it is going to be 9am this day or that.. for very obvious reasons.. none the less being at 9.01am on that day i would be receiving a further series of communications regardless of where the banks and bankers are at that time. Please be mindful that the bankers in Europe have been on holiday since Thursday evening and will not be back at work until 9am tomorrow (Tuesday morning) at which time I will be speaking to them , our people in Chicago etc etc. after which I will be able to advise the escrow agent further regards such timing.
Until then, sincerely,
Paul
Good afternoon Client #1,
I have spoken to the escrow attorney this morning concerning the completion and funding of your file..
and given the nature of the current communications (Sarah's included) I wish to limit the advices regarding such proposed dates to communication between myself, my lawyers and the escrow attorney.
I can in all good faith advise that matters are very very close to you having the funds in your hands and I have been discussing with the escrow attorney this morning the timing of these events.
I do not propose at this time to say that it is going to be 9am this day or that.. for very obvious reasons.. none the less being at 9.01am on that day i would be receiving a further series of communications regardless of where the banks and bankers are at that time. Please be mindful that the bankers in Europe have been on holiday since Thursday evening and will not be back at work until 9am tomorrow (Tuesday morning) at which time I will be speaking to them , our people in Chicago etc etc. after which I will be able to advise the escrow agent further regards such timing.
Until then, sincerely,
Paul
Gil doesn't want to deal with me anymore...
February 3, 2008:
I THINK I NEED TO DEAL WITH THEM ALL DIRECT SO THIS WONT BE A PROBLEM FOR YOU AND YOU CAN DEAL WITH YOUR PROBLEMS ON HAND ,,,,,SO I WILL BE EMAIL ALL TOMORROW THAT I WILL DEAL WITH THEM DIRECT SO I DON'T HAVE TO DO THIS WITH YOU EVERY DAY SO YOU CAN CONCENTRATE ON YOUR ISSUE OK...WE ARE REALLY SORRY FOR THE BROKEN PROMISES AS YOU SAY,,, WE TELL YOU AND THEM WHAT THEY TELL US,,,,, IF THIS WAS NOT GOING TO HAPPEN I WOULD TELL ALL OK....... SO WHAT ALL ARE GOING THROUGH WE ARE GOING THROUGH MORE OK....
I THINK I NEED TO DEAL WITH THEM ALL DIRECT SO THIS WONT BE A PROBLEM FOR YOU AND YOU CAN DEAL WITH YOUR PROBLEMS ON HAND ,,,,,SO I WILL BE EMAIL ALL TOMORROW THAT I WILL DEAL WITH THEM DIRECT SO I DON'T HAVE TO DO THIS WITH YOU EVERY DAY SO YOU CAN CONCENTRATE ON YOUR ISSUE OK...WE ARE REALLY SORRY FOR THE BROKEN PROMISES AS YOU SAY,,, WE TELL YOU AND THEM WHAT THEY TELL US,,,,, IF THIS WAS NOT GOING TO HAPPEN I WOULD TELL ALL OK....... SO WHAT ALL ARE GOING THROUGH WE ARE GOING THROUGH MORE OK....
January 22, 2008 and still not word...
So, the nasty emails continue from Gil...
HELLO PAUL AND ALL
LAST NIGHT SARAH HAS CALLED ME LAST NIGHT OVER AND OVER MOBIL AND LAND LINE,,,,I HAD A DEATH IN THE FAMILY AND WAS ON THE PHONE WHEN SHE WAS DOING THIS....NOW I KNOW MY PERSONAL AFFAIRS HAS NOTHING TO DO WITH THIS BUT SHE HAS DONE THIS SINCE I DAY ONE,,, THEN WHAT EVER YOU ARE DOING ALL SHE SAYS IS WHATS UP....NOW ALL I WANT IS THIS DONE AS SOON AS WE CAN WE HAVE MAD EVERY POSSIBLE WAY TO GET THIS DONE AS FAST AS WE CAN,,,WE WANT HER OUT OF MY LIFE AS FAST AS WE CAN SO....
SO THIS IS WHY LAST NIGHT I UNPLUG EVERYTHING SARAH GET A HOBBY...
BEST REGARDS
GIL
HELLO PAUL AND ALL
LAST NIGHT SARAH HAS CALLED ME LAST NIGHT OVER AND OVER MOBIL AND LAND LINE,,,,I HAD A DEATH IN THE FAMILY AND WAS ON THE PHONE WHEN SHE WAS DOING THIS....NOW I KNOW MY PERSONAL AFFAIRS HAS NOTHING TO DO WITH THIS BUT SHE HAS DONE THIS SINCE I DAY ONE,,, THEN WHAT EVER YOU ARE DOING ALL SHE SAYS IS WHATS UP....NOW ALL I WANT IS THIS DONE AS SOON AS WE CAN WE HAVE MAD EVERY POSSIBLE WAY TO GET THIS DONE AS FAST AS WE CAN,,,WE WANT HER OUT OF MY LIFE AS FAST AS WE CAN SO....
SO THIS IS WHY LAST NIGHT I UNPLUG EVERYTHING SARAH GET A HOBBY...
BEST REGARDS
GIL
They get abusive...
Gil does not like being expected to perform to his word and starts sending nasty emails.
SEE THIS WHY WE DON'T WANT TO DEAL WITH YOU,,, BECAUSE OF THIS SHIT,,I'M ON A CONFERENCE CALL AND YOU ARE CALLING MY LAND LINE AND MOBIL WE ARE DOING ALL WE CAN I TOLD MATT THAT WE WILL GET A LETTER OUT TO PAT FOR TERRY AND THE OTHERS SO WHEN I GET THIS TONIGHT OUR TOMORROW MORNING I WILL FORWARD ON....YOU GIVE YOU A INCH YOU TAKE A MILE.... IF TOMORROW IS TO LATE ,,,,YOU BEEN SAYING THIS SHIT SINCE I MEET YOU OK... SO I WILL CALL YOUR BUSINESS PARTNER MATT AND SEND HIM EVERYTHING AND COPY YOU OK....
GIL
SEE THIS WHY WE DON'T WANT TO DEAL WITH YOU,,, BECAUSE OF THIS SHIT,,I'M ON A CONFERENCE CALL AND YOU ARE CALLING MY LAND LINE AND MOBIL WE ARE DOING ALL WE CAN I TOLD MATT THAT WE WILL GET A LETTER OUT TO PAT FOR TERRY AND THE OTHERS SO WHEN I GET THIS TONIGHT OUR TOMORROW MORNING I WILL FORWARD ON....YOU GIVE YOU A INCH YOU TAKE A MILE.... IF TOMORROW IS TO LATE ,,,,YOU BEEN SAYING THIS SHIT SINCE I MEET YOU OK... SO I WILL CALL YOUR BUSINESS PARTNER MATT AND SEND HIM EVERYTHING AND COPY YOU OK....
GIL
Holiday excuses...
...an email from Gil on December 28, 2007
the banks are on a skeleton crew because of the holidays i will update you today when i speak to or the banker ok.....
the banks are on a skeleton crew because of the holidays i will update you today when i speak to or the banker ok.....
More promises of imminent funding...
As previously advised I will let you know by phone and or email (most likely both) the very minute the cash is clear in my account.. we do expect and have been expecting this to take place imminently.with regard to Clients #1 and #2.. these settlements would take place on the very same day.. cause there is no hold up or other things to arrange,,with Clients #3 and #4.. both would be settled approximately 7 days after the first two.. so that will give us an approximate guideline that we can reply on.. Appreciate all that you are doing.. and we are doing the same.Very best regards, Paul.
As previously advised I will let you know by phone and or email (most likely both) the very minute the cash is clear in my account.. we do expect and have been expecting this to take place imminently.with regard to Clients #1 and #2.. these settlements would take place on the very same day.. cause there is no hold up or other things to arrange,,with Clients #3 and #4.. both would be settled approximately 7 days after the first two.. so that will give us an approximate guideline that we can reply on.. Appreciate all that you are doing.. and we are doing the same.Very best regards, Paul.
Paul Gets Mad...December 6, 2007
I have today been subjected to the most unbelievable and unreasonable tirade from both partners on client #2 project with regard their project, the funding process and the transfer of funds..Consequence of this... you can please take note of the following facts and information....Fact... 1. Given that these two initial projects Clients #1 and #2 are being funded out of my own personal funds.. (i.e. my commissions from work that I have personally done with the Trust and further that as a result of these earnings I was happy to "put that money back into circulation" it is my decision to proceed or stop as and when I see fit.2. Yes we have all suffered because of these delays.. which have been completely out of my control and beyond the control of my bankers and or attorney / lawyers.. and despite what they had to say in his opening gambit this morning... I most certainly do understand.. none the less the people in Africa who I support.. having to wait for the money before we can get the next shipment of food aid over to them.. 40 tonnes of it are sitting in containers waiting to be airlifted.. right now as we speak.. so people like him do not really know what they are saying.. and I accept that is because of ignorance.. only problem is that some people have more ignorance than others.3. Would any banker or lender be happy to receive the type of emails that these two gentlemen have been party too in the past few days.. yes there have been delays.. and as above apart from the serious and on going need to have monies available for the projects and peoples that I support both here in New Zealand as well as other Aid activities that my trust, my company and my family look after.. we also have two settlements that we are seeking to have completed.. and that is hurting me here personally as well.. so YES I do understand.. However those matters aside... please consider that the matter with Client #2 is at an end.. and accordingly the funds as transferred to my accounts herein New Zealand will be returned to your office forthwith.Under no circumstances would I ever have considered lending money to either of these people iftheir lack of business acumen and or professionalism had been displayed to me prior to theirapplication landing on my desk.The other transactions currently being processed will continue to a conclusion and be funded in due course.Yours sincerely, Paul Douglas
No funds were ever returned to this client and they are still not funded!
No funds were ever returned to this client and they are still not funded!
December 2, 2007-Paul's responses in CAPS
Paul went so far as to say that the funds were just waiting to clear customs and that all the paperwork had been done...
Good Morning Paul- Hope you had a relaxing weekend. Just wanted to see when we should have some update about the four clients. Please help me with the following questions: 1. Has all the paperwork been completed for the Client #2 & Client #1? YES In other words, its my understanding that the funds go from customs (where the delay is) to your account, to your lawyers account, to my account for Client #2 & Client#1s attorney for his deal. Have you already made the preparations with your bank and your attorney so that your signature will not be needed to effectuate these transfers ultimately to the clients? YES 2. Have the funds for the Heights & Amendola at least cleared customs yet? IT IS CURRENTLY 8AM IN THE MORNING DOWN HERE.. (I.E. PCT MINUS 3 HOURS) When will I hear from your attorney? AT PREVIOUSLY ADVISED.. ONCE THE FUNDS TRANSFER INTO HIS ACCOUNT. I am available all day and can be reached at 713-xxx-xx31 NOTED AND ADVISED. 3. Have the funds come in from Zurich for Client #3 & Client #4 NOT YET.. BUT AS BEFORE IT IS ONLY 8AM .. and have all the pre-work been done for them YES as well so that your signature has already been provided to effectuate the transfers? YES BEST REGARDS, PAUL.
Good Morning Paul- Hope you had a relaxing weekend. Just wanted to see when we should have some update about the four clients. Please help me with the following questions: 1. Has all the paperwork been completed for the Client #2 & Client #1? YES In other words, its my understanding that the funds go from customs (where the delay is) to your account, to your lawyers account, to my account for Client #2 & Client#1s attorney for his deal. Have you already made the preparations with your bank and your attorney so that your signature will not be needed to effectuate these transfers ultimately to the clients? YES 2. Have the funds for the Heights & Amendola at least cleared customs yet? IT IS CURRENTLY 8AM IN THE MORNING DOWN HERE.. (I.E. PCT MINUS 3 HOURS) When will I hear from your attorney? AT PREVIOUSLY ADVISED.. ONCE THE FUNDS TRANSFER INTO HIS ACCOUNT. I am available all day and can be reached at 713-xxx-xx31 NOTED AND ADVISED. 3. Have the funds come in from Zurich for Client #3 & Client #4 NOT YET.. BUT AS BEFORE IT IS ONLY 8AM .. and have all the pre-work been done for them YES as well so that your signature has already been provided to effectuate the transfers? YES BEST REGARDS, PAUL.
December 1, 2007
Funds were supposed to be out within the week...again, now July 31, 2008 and we still have not been funded on any one of the four projects.
Seems like stuff still does not translate well from "Kiwi English" to America English"... (must be a bit like Apple Mac and Microsoft Windows.."'cause I am going to be "in hospital" on my Tuesday.. for an Angioplasty and stuff.. I hope and pray that I will be back out and available for "light duties" on my Wednesday.. and that by that time everything will already be wrapped up.. With Terry and Dobbins I expect that your time frames for next week are "not to far out" and that we can have them wrapped up and done by your Friday as well..However... as below... I will confirm these matters personally to you by phone.. when each cash amount goes into my bank account and also once this is transferred to my lawyers account for him to settle with you..that will not change no matter where I am.. Thanks for the prayers.. and thoughts it is much appreciated..Best regards, Paul.
Seems like stuff still does not translate well from "Kiwi English" to America English"... (must be a bit like Apple Mac and Microsoft Windows.."'cause I am going to be "in hospital" on my Tuesday.. for an Angioplasty and stuff.. I hope and pray that I will be back out and available for "light duties" on my Wednesday.. and that by that time everything will already be wrapped up.. With Terry and Dobbins I expect that your time frames for next week are "not to far out" and that we can have them wrapped up and done by your Friday as well..However... as below... I will confirm these matters personally to you by phone.. when each cash amount goes into my bank account and also once this is transferred to my lawyers account for him to settle with you..that will not change no matter where I am.. Thanks for the prayers.. and thoughts it is much appreciated..Best regards, Paul.
November 30, 2007
Paul tells us that a large sum of cash is in route to his accounts in New Zealand...and yet, here it is on July 31, 2008 and we have not settled these deals. What happened to the cash, Paul???
I do not know how when I speak English.. and advise simple information that this looses what I have to say when it gets translated into American. So to avoid any further translation issues I am stating how it is as simply as possible.FACTS.1. At this point in time there is a "HUGE" sum of money on its way form the bank / trust in Zurich to my accounts down here.. (this is for the two deals in America - Amendola and "the Heights" as well as a very large project that my company is involved with in China2. These funds are NOT yet cleared into my accounts.. 3. The bank / bankers and authorities are doing what they can to expedite this clearance. 4. Upon this clearance taking place - I will transfer into my lawyers account such funds as are necessary to settle both of your clients requirements. ( As advised to Sarah.. once this has happened I will call and confirm that the funds are now in my (and / or) his account.)5. Once these funds are in his account he (my lawyer) will contact Patrick to effect settlements and closing and then transfer such settlement to Patrick directly from HIS Trust account to such accounts as confirmed directly between Patrick and my lawyer.6. Copies of all of the settlements (including the fees applicable to Sarah - which will be transferred directly to her accounts) will be forwarded to Patrick for his handling and respective advices to the various parties.SUMMARY.It is known that the clients and all concerned in this have had a rough ride.. and for some of that I apologise (even though the delays are out of my control) it is hard when we are waiting for events to unfold to understand the processes and timing of events.. However as I stated to Sarah a few minutes ago.. while she is dealing with people wanting to finish their projects.. I have a Government wanting to finalise matters on this project prior to the 12 December and they are pushing considerably harder (and the penalties for not closing are extreme) so believe me when I say that I also understand the frustrations.Sincerely, Paul.
I do not know how when I speak English.. and advise simple information that this looses what I have to say when it gets translated into American. So to avoid any further translation issues I am stating how it is as simply as possible.FACTS.1. At this point in time there is a "HUGE" sum of money on its way form the bank / trust in Zurich to my accounts down here.. (this is for the two deals in America - Amendola and "the Heights" as well as a very large project that my company is involved with in China2. These funds are NOT yet cleared into my accounts.. 3. The bank / bankers and authorities are doing what they can to expedite this clearance. 4. Upon this clearance taking place - I will transfer into my lawyers account such funds as are necessary to settle both of your clients requirements. ( As advised to Sarah.. once this has happened I will call and confirm that the funds are now in my (and / or) his account.)5. Once these funds are in his account he (my lawyer) will contact Patrick to effect settlements and closing and then transfer such settlement to Patrick directly from HIS Trust account to such accounts as confirmed directly between Patrick and my lawyer.6. Copies of all of the settlements (including the fees applicable to Sarah - which will be transferred directly to her accounts) will be forwarded to Patrick for his handling and respective advices to the various parties.SUMMARY.It is known that the clients and all concerned in this have had a rough ride.. and for some of that I apologise (even though the delays are out of my control) it is hard when we are waiting for events to unfold to understand the processes and timing of events.. However as I stated to Sarah a few minutes ago.. while she is dealing with people wanting to finish their projects.. I have a Government wanting to finalise matters on this project prior to the 12 December and they are pushing considerably harder (and the penalties for not closing are extreme) so believe me when I say that I also understand the frustrations.Sincerely, Paul.
More Lies...Paul's response in red
Thanks, Paul...A couple of questions... 1. Client #3's contract expires today and he loses $50K to the seller if he does not provide proof of funding by 5pm in Texas today? Can we get a firm committment letter? Will his deal be funded tonight or tomorrow? am printing this off right now... Patrick sent over a draft.. which needed a little bit of tweaking.. and i have just heard back form our lawyer confirming what i can say and what i can not.. so it will be there in a few minutes. 2. Client #1 and #2...will these deals be funded tonight or tomorrow? as I advised you last night.. they will be funded within a few hours.. once those funds have cleared into our accounts.. Have funds been cleared and posted to your trust account in New Zealand? as per number 2 above.. we have the champagne in the bucket.. and two glasses on standby.. I will let you know when we have let the corks fly..!! Paul.
November 29, 2007
Paul is hoping for good news:
Hi xxxx, Thank you for all this detail.. it is brilliant... YES it would be handy if you could repeat the email you have previously sent regarding your payments etc.. this way i can add it directly to the correct files..Best regards, Paul.P.S. Meeting the bankers at 2.30 pm this afternoon so hopefully good news will flow to all following this meeting..
Hi xxxx, Thank you for all this detail.. it is brilliant... YES it would be handy if you could repeat the email you have previously sent regarding your payments etc.. this way i can add it directly to the correct files..Best regards, Paul.P.S. Meeting the bankers at 2.30 pm this afternoon so hopefully good news will flow to all following this meeting..
November 27, 2007
Paul is not happy with us:
After my last email I thought you may have got the message that I was going to bed to catch upon some sleep.. 'cause you allexpect for me to be working tonight with the Trust in Zurich...and that does not happen when I have been awake for more than20 hours of the past 24.. and following the workload over the weekend... If my cardiologist even knew HALF .. he would have my butt back in the Surgical Ward.. (where I have to be again next Tuesday 4th)so put it in the Diary and do not expect anything from me for at least 36 hours at that time....Client #3.. was at absolutely NO time EVER told that there would be no fees on his file.. and to the contrary even under his own signaturehe signed and returned that the fee was dropped from 24,000 to 6,000. So sir.. if he wants to have a go... then by God I am just aboutangry enough to say "bring it on".... Everyone everywhere in the world knows what the state of the mortgage market in the USA is right now.. and none more so that the Trust itself.... so politely as I can.. I suggest that all of these cowboys should just cool their heals... cause you know just like I do... that if therewas anywhere else in the world for them to get their money.. they would already be talking to them..Additionally you point out that these projects mean the world to them.... if that was sincerely the case them you would expect that they wouldin at least two of the cases that we have been presented.. not be borrowing 100% of the project... I could just fall in love with a project as well...if it was doing it with someone else's money..!!As before ALL has been arranged.. and these deals will be settled.. but by jumping on phones 20 times a day and bugging people.. that is theclient's phoning me.. emailing me and then you and Gil repeating the call all over again.. does not make for a sensible or reasonable use of mytime.I will call you and email you and fax you if necessary as soon as I get the copy.. then we will be buggin you for settlement details 40 times a day... so rest up.. cause that is what I am trying to do.Respectfully, Paul.
After my last email I thought you may have got the message that I was going to bed to catch upon some sleep.. 'cause you allexpect for me to be working tonight with the Trust in Zurich...and that does not happen when I have been awake for more than20 hours of the past 24.. and following the workload over the weekend... If my cardiologist even knew HALF .. he would have my butt back in the Surgical Ward.. (where I have to be again next Tuesday 4th)so put it in the Diary and do not expect anything from me for at least 36 hours at that time....Client #3.. was at absolutely NO time EVER told that there would be no fees on his file.. and to the contrary even under his own signaturehe signed and returned that the fee was dropped from 24,000 to 6,000. So sir.. if he wants to have a go... then by God I am just aboutangry enough to say "bring it on".... Everyone everywhere in the world knows what the state of the mortgage market in the USA is right now.. and none more so that the Trust itself.... so politely as I can.. I suggest that all of these cowboys should just cool their heals... cause you know just like I do... that if therewas anywhere else in the world for them to get their money.. they would already be talking to them..Additionally you point out that these projects mean the world to them.... if that was sincerely the case them you would expect that they wouldin at least two of the cases that we have been presented.. not be borrowing 100% of the project... I could just fall in love with a project as well...if it was doing it with someone else's money..!!As before ALL has been arranged.. and these deals will be settled.. but by jumping on phones 20 times a day and bugging people.. that is theclient's phoning me.. emailing me and then you and Gil repeating the call all over again.. does not make for a sensible or reasonable use of mytime.I will call you and email you and fax you if necessary as soon as I get the copy.. then we will be buggin you for settlement details 40 times a day... so rest up.. cause that is what I am trying to do.Respectfully, Paul.
November 15, 2007
More emails from Paul:
Good evening Patrick, We are standing by waiting for the copies etc of all matters.. as advised to you this morning.. additionally with regard to Client #3... his stuff is still sitting in Zurich waiting on the Trust to act upon it.. Mr "I am in".. "I am out".. I am in".. "I am out".. and now I am "back in again"... is not in what I would call "the priority list..."The file is being dealt with.. but the others will have "long grey beards" before ....he is satisfied.Client #4 is proceeding quite quickly and we expect to have "major movement" on that in the next few days as well.. will advise.Going back to sleep now.. last nights flight was 18 hours in total.. and a very upset crying baby shared the plane in the seats next to Dianaand myself..Regards, Paul.
Good evening Patrick, We are standing by waiting for the copies etc of all matters.. as advised to you this morning.. additionally with regard to Client #3... his stuff is still sitting in Zurich waiting on the Trust to act upon it.. Mr "I am in".. "I am out".. I am in".. "I am out".. and now I am "back in again"... is not in what I would call "the priority list..."The file is being dealt with.. but the others will have "long grey beards" before ....he is satisfied.Client #4 is proceeding quite quickly and we expect to have "major movement" on that in the next few days as well.. will advise.Going back to sleep now.. last nights flight was 18 hours in total.. and a very upset crying baby shared the plane in the seats next to Dianaand myself..Regards, Paul.
November 22, 2007
On this date, we received a signed, sealed letter from Stephen Paul Douglas indicating that the approvals for Client #1 and #2 we already done and that funds had been remitted to the trust accounts in New Zealand to settle these deals.
Again, that was November 22, 2007 and it is now July 31, 2008. To date, these deals still have not been funded.
Again, that was November 22, 2007 and it is now July 31, 2008. To date, these deals still have not been funded.
More and More Promises...November 2007
Hi Gil, Here are the answers to the questions asked..
Client #1- will definitely sue Jackson, will probably sue me, Sarah, Matt, you and RC Marketing. In all these, the damages would be easy to assess (loss of opportunity costs, i.e.- profits derived from the project, along with their earnest money, paid fees, and all other costs and expenses) at all times we have been told that they needed to be funded by the end of the month.. and everything is still scheduled for that to happen. Despite the amount of time that it took for Matthew Jackson to get back to us with the details. some aspects of these files have NEVER been answered but in order to achieve the funding in the required time we have shelved the unanswerd questions and given instructions to the lawyer to go ahead ASAP. Remember also that they only asked for the additional 500,000 US dollars during the course of last week..
Client #2- I know #2 wants to sue Jackson, and they could easily sue all of us and, because it would be a suit on a written contract, they would automatically get attys fees, etc. and would undoubtedly win against all of us. Also, because I have been acting in the capacity of lawyer, they could file a grievance against me with the State of Texas Bar, whereupon I would get publicly reprimanded (which would ruin my legal reputation) or disbarred. the comments on the Amendola file are identical to this and as above the lawyers have been instructed and we still believe that they will have the proposed loan by the end of the month.. despite USA having "the Holiday.."
Client #3- if #3 project isnt funded by Monday the 26th, he will lose his $150K that he borrowed from an associate of his. The associate will likely go after #3 for this. If #3 wanted to, he could go after all of us for the earnest $ and lost opportunity costs. Also, since my law partner has been acting in the capacity of an attorney, his law license is on the line here also. Well "hello... so far we do not even have a signed agreement with this file .. let alone the client information nor any of the other information... or the fees ..so if he wants us to "pull a rabbit out of the hat" for him.. I am prepared to burn some midnight oil.. BUT I need the information. In other words, if these parties lose their projects, they will be able to successfully sue us for A LOT more than just the up front fees that have been charged thus far. I dont know about Virginia law, but in Texas, these people would be successful in any such lawsuits, which would potentially leave us all destitute and us losing our law licenses. So, the 3 questions I desperately need answered:
When will the Client #1 and #2 fund? I firmly believe that this will take place over the course of the next few days
Will Client #3's project fund before November 27th? not a show in "hades".. unless I get all of the requested information.
Can I have Tim the NY attorneys contact info and try to reach him myself? I could probably educate him in 10 mins on TX real estate law & could even do it via email- Tim is "out of State".. at present.. and I believe that he will not be back before "the holiday".. so is likely that we will use athe office in LA to settle this via the NZ lawyers office. Best regards, Paul.
Client #1- will definitely sue Jackson, will probably sue me, Sarah, Matt, you and RC Marketing. In all these, the damages would be easy to assess (loss of opportunity costs, i.e.- profits derived from the project, along with their earnest money, paid fees, and all other costs and expenses) at all times we have been told that they needed to be funded by the end of the month.. and everything is still scheduled for that to happen. Despite the amount of time that it took for Matthew Jackson to get back to us with the details. some aspects of these files have NEVER been answered but in order to achieve the funding in the required time we have shelved the unanswerd questions and given instructions to the lawyer to go ahead ASAP. Remember also that they only asked for the additional 500,000 US dollars during the course of last week..
Client #2- I know #2 wants to sue Jackson, and they could easily sue all of us and, because it would be a suit on a written contract, they would automatically get attys fees, etc. and would undoubtedly win against all of us. Also, because I have been acting in the capacity of lawyer, they could file a grievance against me with the State of Texas Bar, whereupon I would get publicly reprimanded (which would ruin my legal reputation) or disbarred. the comments on the Amendola file are identical to this and as above the lawyers have been instructed and we still believe that they will have the proposed loan by the end of the month.. despite USA having "the Holiday.."
Client #3- if #3 project isnt funded by Monday the 26th, he will lose his $150K that he borrowed from an associate of his. The associate will likely go after #3 for this. If #3 wanted to, he could go after all of us for the earnest $ and lost opportunity costs. Also, since my law partner has been acting in the capacity of an attorney, his law license is on the line here also. Well "hello... so far we do not even have a signed agreement with this file .. let alone the client information nor any of the other information... or the fees ..so if he wants us to "pull a rabbit out of the hat" for him.. I am prepared to burn some midnight oil.. BUT I need the information. In other words, if these parties lose their projects, they will be able to successfully sue us for A LOT more than just the up front fees that have been charged thus far. I dont know about Virginia law, but in Texas, these people would be successful in any such lawsuits, which would potentially leave us all destitute and us losing our law licenses. So, the 3 questions I desperately need answered:
When will the Client #1 and #2 fund? I firmly believe that this will take place over the course of the next few days
Will Client #3's project fund before November 27th? not a show in "hades".. unless I get all of the requested information.
Can I have Tim the NY attorneys contact info and try to reach him myself? I could probably educate him in 10 mins on TX real estate law & could even do it via email- Tim is "out of State".. at present.. and I believe that he will not be back before "the holiday".. so is likely that we will use athe office in LA to settle this via the NZ lawyers office. Best regards, Paul.
More Empty Promises
Another email in which funding is promised imminently dated November 15, 2007:
Good afternoon Gil, The following information has been supplied to our lawyers for them to prepare the loan agreement / documentsfor signing by , concerning their project in "The Heights", Houston TexasNAME OF CLIENT :
Houston Texas 77004 U.S.A.
ADDRESS OF PROJECT : Houston, TexasAMOUNT OF LOAN : USD $2,200,000.00 (Two Million Two Hundred Thousand US dollars) INTEREST ON LOAN : 4% (FOUR PERCENT) PER ANNUM - paid quarterly in arrears COST OF BORROWING : 4% (FOUR PERCENT) TO BE WITHDRAWN FROM THE LOAN PROCEEDS. CLIENT'S LAWYERS : , P.C. LAWYER's ADDRESS : Houston, Texas 77027LAWYER's NAME : LAWYER's PHONE No. : (1- Security details will be arranged and confirmed between the two lawyers prior to the loan agreement / documentbeing forwarded to the clients lawyers office. This discussion between the two lawyers will be necessitated to ensurethe requirements of the New Zealand Mortgage Lendor's regulations are complied with. These regulations ensure that the borrower has the security / securities required to effect such borrowings.It is anticipated that the Lawyer will be in position to commence work on the legals and also the financial reporting information to our bankers on Monday (New Zealand time) and once that part is done will be able to contact the lawyerin Texas immediately. We anticipate that settlement could take place as early as your Tuesday if "EVERYTHING" fromboth sides goes thru without a hitch.Best regards, Paul DouglasDirector.
Good afternoon Gil, The following information has been supplied to our lawyers for them to prepare the loan agreement / documentsfor signing by , concerning their project in "The Heights", Houston TexasNAME OF CLIENT :
Houston Texas 77004 U.S.A.
ADDRESS OF PROJECT : Houston, TexasAMOUNT OF LOAN : USD $2,200,000.00 (Two Million Two Hundred Thousand US dollars) INTEREST ON LOAN : 4% (FOUR PERCENT) PER ANNUM - paid quarterly in arrears COST OF BORROWING : 4% (FOUR PERCENT) TO BE WITHDRAWN FROM THE LOAN PROCEEDS. CLIENT'S LAWYERS : , P.C. LAWYER's ADDRESS : Houston, Texas 77027LAWYER's NAME : LAWYER's PHONE No. : (1- Security details will be arranged and confirmed between the two lawyers prior to the loan agreement / documentbeing forwarded to the clients lawyers office. This discussion between the two lawyers will be necessitated to ensurethe requirements of the New Zealand Mortgage Lendor's regulations are complied with. These regulations ensure that the borrower has the security / securities required to effect such borrowings.It is anticipated that the Lawyer will be in position to commence work on the legals and also the financial reporting information to our bankers on Monday (New Zealand time) and once that part is done will be able to contact the lawyerin Texas immediately. We anticipate that settlement could take place as early as your Tuesday if "EVERYTHING" fromboth sides goes thru without a hitch.Best regards, Paul DouglasDirector.
Loan Change for Client #1
Due to the delays and the costs that Client #1 was incurring, RC Marketing agreed to increase the loan amount from $1M to $1.5M. The letter assured us that there would be no delays and that funding would occur within 3-4 days of the loan approval...and that loan approval would take a "few days". This letter was received on November 14, 2007 and as of today, July 31, 2008, this deal has still not been funded.
Client #4
On November 11, 2007, a contract was issued to fund $60M in debt service for biodiesel project in Texas. On November 13, 2007, a letter was issued stating that if the deal didn't fund on or before November 30, 2007 for any reason "attributable to RC Marketing", the fees paid would be returned at that time.
The $6000 paid in due diligence fees has not been returned and as of today, July 31, 2008, this project has not been funded.
The $6000 paid in due diligence fees has not been returned and as of today, July 31, 2008, this project has not been funded.
Due Diligence...
Here is some information we were able to find on the internet...
1. Press Release announcing deal
http://www.scoop.co.nz/stories/BU0608/S00520.htm
2. Do a search in this Notice of Annual Meeting for "R.C. Marketing"
http://www.wdtl.com/pdf/2.WT4844Noticeof2006AGM_final_.pdf
3. Press Release announcing collapse of deal
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10412799
This let's us know they really do discuss investing with others. We don't know if the investor that pulled out is R.C. or somebody else.
But the there are always countless legitimate reasons for a pull-out by an investor. In the end, I think it's an overall good thing to find. If you look at the dates, the time between the two press releases is very quick. From 10-6 to 11-28. Anything could have happened to kill the deal.
1. Press Release announcing deal
http://www.scoop.co.nz/stories/BU0608/S00520.htm
2. Do a search in this Notice of Annual Meeting for "R.C. Marketing"
http://www.wdtl.com/pdf/2.WT4844Noticeof2006AGM_final_.pdf
3. Press Release announcing collapse of deal
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10412799
This let's us know they really do discuss investing with others. We don't know if the investor that pulled out is R.C. or somebody else.
But the there are always countless legitimate reasons for a pull-out by an investor. In the end, I think it's an overall good thing to find. If you look at the dates, the time between the two press releases is very quick. From 10-6 to 11-28. Anything could have happened to kill the deal.
Proof of Funds...
When we asked for Proof of Funds, we were sent this:
Good morning Gil, Here is some other information and confirmation through the banks that RC Marketing Limitedhas capability to handle these deals.. it shows we have bank guarantees sitting here in Aucklandin the amount of USD $450,000, 000 I am waiting for the screen print of the other monies to arrive.. one will show RC Marketing has 4B sitting in HSBC in London and the other account has 5B in it on "time deposit.".As soon as these final two pieces of paper arrive I will forward them to you immediately.. in the meantimeI wondered if this was sufficient information to get started with.. i will leave that decision up to you.Best regards, Paul.
Good morning Gil, Here is some other information and confirmation through the banks that RC Marketing Limitedhas capability to handle these deals.. it shows we have bank guarantees sitting here in Aucklandin the amount of USD $450,000, 000 I am waiting for the screen print of the other monies to arrive.. one will show RC Marketing has 4B sitting in HSBC in London and the other account has 5B in it on "time deposit.".As soon as these final two pieces of paper arrive I will forward them to you immediately.. in the meantimeI wondered if this was sufficient information to get started with.. i will leave that decision up to you.Best regards, Paul.
More emails...
We were sent emails with schedules in it and the names of people that were supposed to be doing site inspections...
This email was received on November 8, 2007:
Hi Gil, I have had look at this schedule and am happy to confirm it "tentatively" at this point..there is one matter outstanding that I have to address here on my Monday / Tuesday and at thattime will be able to confirm 100% as regards to the timing.. however I will be working to achieve what you have proposed at this time.Second point.. the Chinese Officials will NOT be with us in Las Vegas.. but my people will be thereto go over the entire proposal with Segura.. we have everything arranged in China from the very top of the Government downwards. Following the meeting in Las Vegas and the signing off of matters with Segura our people will be travelling to China to meet with the Government and finalise all mattersover there and then sign the contracts with the government there to implement matters.We have already set up the infrastructure in China.. the company, the people to run and manageour project, the people to implement the matters from a Government level and the people we willneed as "support staff" to deal with any issues on installing / training / operating / and support. This includes arranging office facilities and the like... it is all set to go.All these things were very important to the government to show we were not just "fly by nighters"we also had to put up a USD $10 million bond to the government to show we had the ability to evenpropose such a joint Venture with the Government and Local Authorities.The names of the two people (my business analyst and project manager) will be there in Las Vegaswith me and then they will go on down to Texas to review the three projects there - before going backto New Zealand and then before the end of the month meeting me in China, along with the Chinesedelegation from the Government. Their names are "Claude Lewenz" - Business Analyst (he is also our company C.E.O.)and the other is "Bede Roughton" - Company Director and also the Project Manager.Once they have done the appraisals and we have their joint reports - the four projects will be able tobe implemented VERY quickly. I will also bring another person into the discussions with regard to Vietnamand he is John Dietrich from Louisiana. John is already involved with me in the project in Korea and we willbe able to use his expertise to get this moving. No one knows as much about casinos / gaming licences / consents and the like in this field.. than John does.Best regards, Paul.
Dear Gil, The following is a tentative schedule of activity for RCM's meetings with officials from Securiport, China, Viet Nam and Telca Communications: Day/Date: Tues,13 Nov: Ed/Lang receive names of Chinese officials attending mtgs with Securiport. Wed/Thurs, 14/15 Nov: Paul and Chinese officials arrive in Las Vegas. Thurs, 15 Nov: The Jones Goup arrives in Las Vegas. Fri/Sat, 16/17 Nov. Contract discussions and signing between Seuriport and Chinese officials. Sun, 18 Nov: Telca Communications contract signing. Mon/Tues, 19/20 Nov: Vietnam Group discussions concerning Theme Park and oil projects in Viet Nam. Wed, 21 Nov: Freire family and Jones Group depart for Virginia for Thanksgiving. Regards, Ed
This email was received on November 8, 2007:
Hi Gil, I have had look at this schedule and am happy to confirm it "tentatively" at this point..there is one matter outstanding that I have to address here on my Monday / Tuesday and at thattime will be able to confirm 100% as regards to the timing.. however I will be working to achieve what you have proposed at this time.Second point.. the Chinese Officials will NOT be with us in Las Vegas.. but my people will be thereto go over the entire proposal with Segura.. we have everything arranged in China from the very top of the Government downwards. Following the meeting in Las Vegas and the signing off of matters with Segura our people will be travelling to China to meet with the Government and finalise all mattersover there and then sign the contracts with the government there to implement matters.We have already set up the infrastructure in China.. the company, the people to run and manageour project, the people to implement the matters from a Government level and the people we willneed as "support staff" to deal with any issues on installing / training / operating / and support. This includes arranging office facilities and the like... it is all set to go.All these things were very important to the government to show we were not just "fly by nighters"we also had to put up a USD $10 million bond to the government to show we had the ability to evenpropose such a joint Venture with the Government and Local Authorities.The names of the two people (my business analyst and project manager) will be there in Las Vegaswith me and then they will go on down to Texas to review the three projects there - before going backto New Zealand and then before the end of the month meeting me in China, along with the Chinesedelegation from the Government. Their names are "Claude Lewenz" - Business Analyst (he is also our company C.E.O.)and the other is "Bede Roughton" - Company Director and also the Project Manager.Once they have done the appraisals and we have their joint reports - the four projects will be able tobe implemented VERY quickly. I will also bring another person into the discussions with regard to Vietnamand he is John Dietrich from Louisiana. John is already involved with me in the project in Korea and we willbe able to use his expertise to get this moving. No one knows as much about casinos / gaming licences / consents and the like in this field.. than John does.Best regards, Paul.
Dear Gil, The following is a tentative schedule of activity for RCM's meetings with officials from Securiport, China, Viet Nam and Telca Communications: Day/Date: Tues,13 Nov: Ed/Lang receive names of Chinese officials attending mtgs with Securiport. Wed/Thurs, 14/15 Nov: Paul and Chinese officials arrive in Las Vegas. Thurs, 15 Nov: The Jones Goup arrives in Las Vegas. Fri/Sat, 16/17 Nov. Contract discussions and signing between Seuriport and Chinese officials. Sun, 18 Nov: Telca Communications contract signing. Mon/Tues, 19/20 Nov: Vietnam Group discussions concerning Theme Park and oil projects in Viet Nam. Wed, 21 Nov: Freire family and Jones Group depart for Virginia for Thanksgiving. Regards, Ed
Client #3
On November 8, 2007, RC Marketing Ltd. issued a contract to fund $24M on a commercial project in San Antonio, TX. He was also given a letter stating that within 7-10 days, they would have a consultant on site to review the project. The on site visit never occured and to date, this project has not been funded.
What RC Marketing Does...
They sent us information about projects they are involved in:
Framework of
Seattle Investments (China) LTD
1. Mission and Vision
For many years now, every generation has felt that life was getting better, that we were improving quality of life for our children. In the last decade or so, we hear a different view - that if we don't do something about it, we may be viewed as the golden era, fuelled by a mortgage on the future, a debt our children must pay. We deem this unacceptable.
- Seattle Investments Limited
Seattle Investments (China) Limited (Ltd) is the investment arm of Seattle Investments Ltd in China. As such, its mission is to wisely invest funds whose profits can then go to support good works. It applies broader principles so that its profit making endeavours seek - in addition to being economically profitable - to assure that the social, cultural and environmental effects are positive, or at the very minimum, that they not be adverse.
Seattle Investments Ltd believes that China is a good place for us to realize the mission and it will be good for all of us: Seattle Investments, China as well as other parts of the world.
2. Business Structure
Seattle Investments (China) Ltd will be registered in Shanghai – the economic and financial centre in China – as the holding company for all the other investments in China. While the head office of Seattle Investments (China) Ltd is registered in Shanghai, other offices in some other important cities will be set up to look after the potential business opportunities in targeted regions.
At the beginning, sub offices will be set up in the following cities: Beijing, Nanjing, Hangzhou, Guangzhou - these cities are the regional economic centres located in the wealthiest provinces. The total GDP of these provinces is about 50% of the whole of China’s GDP. Further more, Beijing is the capital of China and many big government projects are decided there.
While a potential business opportunity is matured to an outstanding project through the hard work of the Project Development Department, Seattle Investments (China) Ltd will raise money from its mother company Seattle Investments Ltd. and register a subsidiary company to actuate the project. Projects with common elements may be incorporated into a single company to reduce unnecessary duplication of infrastructure, but for very substantial projects there are often advantages in registering a specific subsidiary company.
3. Company Structure
In Seattle Investments (China) Ltd there will be many different functional departments with initially, four local offices. Each functional department and local office will be led by a Manager who reports directly to the General Manager. Every Manager will have a very detailed and clear Job Description, Person Specification and Accountabilities detailing their responsibilities, tasks, and expectations. Their achievements will be reviewed every 3-6 months through a rigorous appraisal process.
The General Manager is responsible for the day to day work of the company and will enjoy clear delegated authority to make these day to day decisions within the general policy directions determined by the Board of Directors and the strategic direction set by the Managing Director. The General Manager reports directly to the Managing Director.
4. Business Development
To make the Seattle brand famous and successful in China, relationships with the Government, banks and other large companies are very important. As a new comer, Seattle Investments (China) Ltd must create long-term relationships with all the important people and organizations.
To create such a relationship with the Government and the bank, we need to know what the Government thinks and wants at any given time. We need to know clearly its industry policies, and the government project lists. We need to be active in meetings held by the Government and if possible become the supporter and sponsor for these meetings.
To create a good relationship with big companies, the quickest way is to join the business association with which we have the most in common. Another very useful way is to become a friend and classmate of the leader of these companies. This can be achieved by joining the EMBA class. If we want to go deep into the Shanghai high grade business society, the best route is through the China Europe International Business School EMBA Class, and if we want to get to know businessmen in Beijing, then the most effective method is though joining the Beijing University EMBA class.
To create a high grade brand in China it is essential to create relationships with newspaper reporters and TV station personnel and management. The newspapers and TV stations are controlled and monopolized by the Government, and their number is limited. So the power of the media in China is far more influential than the media of other countries.
Creating these effective relationships will make it very easy for us to be successful in the China market. Further more, because it is developing so rapidly, China needs these funds urgently, so if Seattle Investments China Limited becomes well recognized, famous even, and enjoys effective relationships with all the important organizations and people, then we can expect outstanding and safe business opportunities and projects to come to us automatically.
Further more, because of our special New Zealand background, agriculture and environment technology projects in China will be recognized and easily accepted business opportunities. We should pay more attention to these fields.
5. Business Costs for Seattle China and its further projects
Costs for Seattle Investments (China) Limited
Head Office
Beijing Office
Nanjing Office
Hangzhou Office
Guangzhou Office
Office Purchasing
￥15,000,000
￥2,000,000
￥2,000,000
￥2,000,000
￥2,000,000
Office Fitment
￥3,000,000
￥400,000
￥400,000
￥400,000
￥400,000
Car purchasing
￥5,000,000
￥1,500,000
￥1,500,000
￥1,500,000
￥1,500,000
Company Registration Fee
￥1,000,000
￥0
￥0
￥0
￥0
Security System
￥2,000,000
￥500,000
￥500,000
￥500,000
￥500,000
Entertainment and Gifts p.a.
￥2,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Business trip cost p.a.
￥2,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Administration cost p.a.
￥1,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Office Cost p.a.
￥1,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Government fees p.a.
￥1,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Personnel Cost p.a.
￥22,000,000
￥1,000,000
￥1,000,000
￥1,000,000
￥1,000,000
Sub Total
￥55,000,000
￥5,900,000
￥5,900,000
￥5,900,000
￥5,900,000
Total Cost in RMB
￥78,600,000
Total Cost in US Dollars
US$10,621,622
1. The head office in Shanghai will be 500m2 and the other offices will be 100m2.
2. The head office will buy3 cars and the other office will have only 1 car.
3. The head office will have 11 manager level staff and 40 normal level staff plus 5 part-time advisors.
4. The other offices each will have 1 manager level staff and 5 normal level staff.
5. The manager level staff average compensation will be RMB500,000 per year, and the normal level staff average compensation will be RMB100,000 per year. The part-time working advisor average compensation will be RMB200,000 per year. The compensation for MD and GM are included. The usual ratio is 5:1 for Responsibility For: Responsibility To in compensation.
Costs and return for Seattle Hi-Tech Ltd
The Securiport project will be the main business of Seattle Hi-Tech Ltd. There are lots of new airports being built in China, but the biggest four airports are Beijing Airport (Beijing), Pudong Airport (Shanghai), Hongqiao Airport (Shanghai) and Baiyun Airport (Guangzhou). As our business model, if we place Securiport systems for these airports for free, and get US$10 in return from each passenger, then our income will be as below:
Air Port
Beijing
Pudong
Hongqiao
Baiyun
Nanjing
Hangzhou
Number of Passengers per year
48,500,000
26,660,000
19,350,000
20,320,000
5,500,000
6,000,000
System Cost
US$100,000,000
US$50,000,000
US$50,000,000
US$50,000,000
US$30,000,000
US$30,000,000
income per year
US$485,000,000
US$266,600,000
US$193,500,000
US$203,200,000
US$55,000,000
US$60,000,000
maintain service cost per year (5% of the income)
US$24,250,000
US$13,330,000
US$9,675,000
US$10,160,000
US$2,750,000
US$3,000,000
profit for the first year
US$360,750,000
US$203,270,000
US$133,825,000
US$143,040,000
US$22,250,000
US$27,000,000
The system cost and the maintain service costs are estimates here, but because of the huge number of the passengers, the profit will be quite good even in the first year. To set up a company and start the Securiport business in China, it will cost no more than US$10 million.
Costs and return for Seattle Oil Ltd
China imported 949 million barrels of crude oil in 2006.
The crude oil business will not cost too much investment, perhaps only US$10 million. The profit will be US$50 million if we can get 5% of the 949 million barrels in one year and earn only US$1 per barrel. Now the China government’s policies about licenses to import crude oil have been changed. More province level companies have now got the right to import crude oil into China, so it is a good chance for us to start our business in China now.
Costs and return for Seattle Manufacture Ltd
To set up a factory in China to manufacture the seats, the investment may need to be about US$5 million. The profit rate for the seats in China may be about 3% to 12%, depends on the quality and quantity.
Costs and return for Seattle Education Ltd
The Investment for a school similar to the East Century School in Shanghai is about RMB60 million (US$8.1 million). The education industry’s profit rate is about 10%-35%, depending upon the type of education.
Costs and return for Seattle Food Ltd
Usually for a food company that imports wine or milk powder products into China, requires a registration fund of RMB10 million to RMB100 million (US$1.35 million to US$13.5 million), and usually the profit rate is about 15%.
Costs and return for Seattle Real Estate Ltd
The Government’s requirement for foreign real estate companies is usually at least US$10 million, and the average profit rate for the real estate company is about 27% in China. Some companies claim that the profit rate is only a little more than 10%, but researchers indicate that it is often up to 45%.
Costs and return for Seattle Bank
The Government’s requirement for registration capital of a foreign invested bank is at least RMB300, million (US$41 million) for the first class (which can only do some kinds of financial services) and RMB1, billion (US$135 million) for the second class (which can do all kinds of financial services). In China the profit rate of the foreign bank is 8%. The Bangladeshi economist Muhammad Yunus’s Grameen (who lent loans to millions of poor people and got the Nobel Peace Prize in year 2006) Bank’s profit rate is 10% per year.
The OLPC project
The OLPC project (http://laptop.org/) is aimed to supply laptops worth only US$100 to poor children for education. We may get involved in the project in some way to make us use the least money, but get the most for the poor children as well as our good brand in China. If we spend US$10 million on this project, we may help up to 100,000 poor children to get better education. This money can be spent during up to ten years, and each year we can give 10,000 laptops to poor children. With this activity, our Seattle brand will be famous and recognized by both the China government and Chinese normal people, and the cost is only US$1 million per year.
6. Points To Notice
a) The China companies law has some very strict regulations on an investment company (Usually an Investment company needs at least USD30 million registration capital), so if we do not put up the USD30 million, then we may need to use some other name instead, for example Seattle China Ltd. But the final result is up to the Shanghai Pudong district industrial and commerce administration.
b) It will take about 2-3 months to complete the whole registration process, so if we want to start our business for next year, we have to prepare the documents and start to register it right now.
c) Before the company registration application is lodged, the office of the company must be rented or purchased.
Framework of
Seattle Investments (China) LTD
1. Mission and Vision
For many years now, every generation has felt that life was getting better, that we were improving quality of life for our children. In the last decade or so, we hear a different view - that if we don't do something about it, we may be viewed as the golden era, fuelled by a mortgage on the future, a debt our children must pay. We deem this unacceptable.
- Seattle Investments Limited
Seattle Investments (China) Limited (Ltd) is the investment arm of Seattle Investments Ltd in China. As such, its mission is to wisely invest funds whose profits can then go to support good works. It applies broader principles so that its profit making endeavours seek - in addition to being economically profitable - to assure that the social, cultural and environmental effects are positive, or at the very minimum, that they not be adverse.
Seattle Investments Ltd believes that China is a good place for us to realize the mission and it will be good for all of us: Seattle Investments, China as well as other parts of the world.
2. Business Structure
Seattle Investments (China) Ltd will be registered in Shanghai – the economic and financial centre in China – as the holding company for all the other investments in China. While the head office of Seattle Investments (China) Ltd is registered in Shanghai, other offices in some other important cities will be set up to look after the potential business opportunities in targeted regions.
At the beginning, sub offices will be set up in the following cities: Beijing, Nanjing, Hangzhou, Guangzhou - these cities are the regional economic centres located in the wealthiest provinces. The total GDP of these provinces is about 50% of the whole of China’s GDP. Further more, Beijing is the capital of China and many big government projects are decided there.
While a potential business opportunity is matured to an outstanding project through the hard work of the Project Development Department, Seattle Investments (China) Ltd will raise money from its mother company Seattle Investments Ltd. and register a subsidiary company to actuate the project. Projects with common elements may be incorporated into a single company to reduce unnecessary duplication of infrastructure, but for very substantial projects there are often advantages in registering a specific subsidiary company.
3. Company Structure
In Seattle Investments (China) Ltd there will be many different functional departments with initially, four local offices. Each functional department and local office will be led by a Manager who reports directly to the General Manager. Every Manager will have a very detailed and clear Job Description, Person Specification and Accountabilities detailing their responsibilities, tasks, and expectations. Their achievements will be reviewed every 3-6 months through a rigorous appraisal process.
The General Manager is responsible for the day to day work of the company and will enjoy clear delegated authority to make these day to day decisions within the general policy directions determined by the Board of Directors and the strategic direction set by the Managing Director. The General Manager reports directly to the Managing Director.
4. Business Development
To make the Seattle brand famous and successful in China, relationships with the Government, banks and other large companies are very important. As a new comer, Seattle Investments (China) Ltd must create long-term relationships with all the important people and organizations.
To create such a relationship with the Government and the bank, we need to know what the Government thinks and wants at any given time. We need to know clearly its industry policies, and the government project lists. We need to be active in meetings held by the Government and if possible become the supporter and sponsor for these meetings.
To create a good relationship with big companies, the quickest way is to join the business association with which we have the most in common. Another very useful way is to become a friend and classmate of the leader of these companies. This can be achieved by joining the EMBA class. If we want to go deep into the Shanghai high grade business society, the best route is through the China Europe International Business School EMBA Class, and if we want to get to know businessmen in Beijing, then the most effective method is though joining the Beijing University EMBA class.
To create a high grade brand in China it is essential to create relationships with newspaper reporters and TV station personnel and management. The newspapers and TV stations are controlled and monopolized by the Government, and their number is limited. So the power of the media in China is far more influential than the media of other countries.
Creating these effective relationships will make it very easy for us to be successful in the China market. Further more, because it is developing so rapidly, China needs these funds urgently, so if Seattle Investments China Limited becomes well recognized, famous even, and enjoys effective relationships with all the important organizations and people, then we can expect outstanding and safe business opportunities and projects to come to us automatically.
Further more, because of our special New Zealand background, agriculture and environment technology projects in China will be recognized and easily accepted business opportunities. We should pay more attention to these fields.
5. Business Costs for Seattle China and its further projects
Costs for Seattle Investments (China) Limited
Head Office
Beijing Office
Nanjing Office
Hangzhou Office
Guangzhou Office
Office Purchasing
￥15,000,000
￥2,000,000
￥2,000,000
￥2,000,000
￥2,000,000
Office Fitment
￥3,000,000
￥400,000
￥400,000
￥400,000
￥400,000
Car purchasing
￥5,000,000
￥1,500,000
￥1,500,000
￥1,500,000
￥1,500,000
Company Registration Fee
￥1,000,000
￥0
￥0
￥0
￥0
Security System
￥2,000,000
￥500,000
￥500,000
￥500,000
￥500,000
Entertainment and Gifts p.a.
￥2,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Business trip cost p.a.
￥2,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Administration cost p.a.
￥1,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Office Cost p.a.
￥1,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Government fees p.a.
￥1,000,000
￥100,000
￥100,000
￥100,000
￥100,000
Personnel Cost p.a.
￥22,000,000
￥1,000,000
￥1,000,000
￥1,000,000
￥1,000,000
Sub Total
￥55,000,000
￥5,900,000
￥5,900,000
￥5,900,000
￥5,900,000
Total Cost in RMB
￥78,600,000
Total Cost in US Dollars
US$10,621,622
1. The head office in Shanghai will be 500m2 and the other offices will be 100m2.
2. The head office will buy3 cars and the other office will have only 1 car.
3. The head office will have 11 manager level staff and 40 normal level staff plus 5 part-time advisors.
4. The other offices each will have 1 manager level staff and 5 normal level staff.
5. The manager level staff average compensation will be RMB500,000 per year, and the normal level staff average compensation will be RMB100,000 per year. The part-time working advisor average compensation will be RMB200,000 per year. The compensation for MD and GM are included. The usual ratio is 5:1 for Responsibility For: Responsibility To in compensation.
Costs and return for Seattle Hi-Tech Ltd
The Securiport project will be the main business of Seattle Hi-Tech Ltd. There are lots of new airports being built in China, but the biggest four airports are Beijing Airport (Beijing), Pudong Airport (Shanghai), Hongqiao Airport (Shanghai) and Baiyun Airport (Guangzhou). As our business model, if we place Securiport systems for these airports for free, and get US$10 in return from each passenger, then our income will be as below:
Air Port
Beijing
Pudong
Hongqiao
Baiyun
Nanjing
Hangzhou
Number of Passengers per year
48,500,000
26,660,000
19,350,000
20,320,000
5,500,000
6,000,000
System Cost
US$100,000,000
US$50,000,000
US$50,000,000
US$50,000,000
US$30,000,000
US$30,000,000
income per year
US$485,000,000
US$266,600,000
US$193,500,000
US$203,200,000
US$55,000,000
US$60,000,000
maintain service cost per year (5% of the income)
US$24,250,000
US$13,330,000
US$9,675,000
US$10,160,000
US$2,750,000
US$3,000,000
profit for the first year
US$360,750,000
US$203,270,000
US$133,825,000
US$143,040,000
US$22,250,000
US$27,000,000
The system cost and the maintain service costs are estimates here, but because of the huge number of the passengers, the profit will be quite good even in the first year. To set up a company and start the Securiport business in China, it will cost no more than US$10 million.
Costs and return for Seattle Oil Ltd
China imported 949 million barrels of crude oil in 2006.
The crude oil business will not cost too much investment, perhaps only US$10 million. The profit will be US$50 million if we can get 5% of the 949 million barrels in one year and earn only US$1 per barrel. Now the China government’s policies about licenses to import crude oil have been changed. More province level companies have now got the right to import crude oil into China, so it is a good chance for us to start our business in China now.
Costs and return for Seattle Manufacture Ltd
To set up a factory in China to manufacture the seats, the investment may need to be about US$5 million. The profit rate for the seats in China may be about 3% to 12%, depends on the quality and quantity.
Costs and return for Seattle Education Ltd
The Investment for a school similar to the East Century School in Shanghai is about RMB60 million (US$8.1 million). The education industry’s profit rate is about 10%-35%, depending upon the type of education.
Costs and return for Seattle Food Ltd
Usually for a food company that imports wine or milk powder products into China, requires a registration fund of RMB10 million to RMB100 million (US$1.35 million to US$13.5 million), and usually the profit rate is about 15%.
Costs and return for Seattle Real Estate Ltd
The Government’s requirement for foreign real estate companies is usually at least US$10 million, and the average profit rate for the real estate company is about 27% in China. Some companies claim that the profit rate is only a little more than 10%, but researchers indicate that it is often up to 45%.
Costs and return for Seattle Bank
The Government’s requirement for registration capital of a foreign invested bank is at least RMB300, million (US$41 million) for the first class (which can only do some kinds of financial services) and RMB1, billion (US$135 million) for the second class (which can do all kinds of financial services). In China the profit rate of the foreign bank is 8%. The Bangladeshi economist Muhammad Yunus’s Grameen (who lent loans to millions of poor people and got the Nobel Peace Prize in year 2006) Bank’s profit rate is 10% per year.
The OLPC project
The OLPC project (http://laptop.org/) is aimed to supply laptops worth only US$100 to poor children for education. We may get involved in the project in some way to make us use the least money, but get the most for the poor children as well as our good brand in China. If we spend US$10 million on this project, we may help up to 100,000 poor children to get better education. This money can be spent during up to ten years, and each year we can give 10,000 laptops to poor children. With this activity, our Seattle brand will be famous and recognized by both the China government and Chinese normal people, and the cost is only US$1 million per year.
6. Points To Notice
a) The China companies law has some very strict regulations on an investment company (Usually an Investment company needs at least USD30 million registration capital), so if we do not put up the USD30 million, then we may need to use some other name instead, for example Seattle China Ltd. But the final result is up to the Shanghai Pudong district industrial and commerce administration.
b) It will take about 2-3 months to complete the whole registration process, so if we want to start our business for next year, we have to prepare the documents and start to register it right now.
c) Before the company registration application is lodged, the office of the company must be rented or purchased.
November 7, 2007
Another email from Paul stating the funding was imminent and would be wrapped up in days...
Good evening Gil,
As advised we are preparing everything so we will be able to get this file completed and closed next off, and we are pushing everyone as hard as possible to get the paperwork completed over the next two days and that way we will be able to have everything finished this week.
I will be speaking with the Lawyers in the morning and will then be able to update you further.. but at this time everything looks good.
Very best regards,
Paul.
Good evening Gil,
As advised we are preparing everything so we will be able to get this file completed and closed next off, and we are pushing everyone as hard as possible to get the paperwork completed over the next two days and that way we will be able to have everything finished this week.
I will be speaking with the Lawyers in the morning and will then be able to update you further.. but at this time everything looks good.
Very best regards,
Paul.
Eliminating Matthew Jackson
After numerous attempts to get information out of Matthew Jackson, him disappearing and not returning emails or phone calls for days at a time and my attempts to contact RC Marketing directly, contacts were redone on November 6, 2007 for Clients #1 and #2 directly between RC Marketing and the clients.
November 6, 2008
All of the sudden, they need additional information from us, after telling us 4 days earlier that the deals had been approved. The document they sent to us was a simple client information sheet with contact details, etc. They had all of the requested information prior to sending us this form.
Hi Gil,
Based upon our latest conversations... you could send these papers to the "lady" and advise that the delay in getting the paperwork completed via the lawyers has been because we have been waiting for this information to be returned to us so we can proceed.
Client #1..
1. Client Information sheet must be completed giving us the lawyers
names and contact details
We have the appraisal of the property (xxx court) along with the title details and other information to prepare the offer, and all of that fits our lending criteria, and we are very happy and ready to proceed.. but need these other details to be able to finalise matters and get the offer to their legal people.
Best regards,
Paul.
And another email regarding Client #2:
Hi Gil, Based upon our latest conversations... you could send these papers to the "lady" and advise that the delay in getting the paperworkcompleted via the lawyers has been because we have been waiting for this information to be returned to us so we can proceed.TEXAS..1. Client Information sheet must be completed giving us the lawyers names and contact details along with project details and valuations etc.. This one is a shocker... I have on hand the tax returns for the company (ZZZZ) and the P & L for a companycalled XXXX Investments Limited along with a profile for the "new company" YYYY Investments LLc. and that is it...no project details.. no security detailsno loan timing or other information regards to draw down or anything.. NADA.. NIET.. ZILCH..!!I also asked Matthew for these informations over ten days ago..Best regards, Paul.
At this point, Paul Douglas blamed the broker, Matthew Jackson for not sending the information. All information had been sent to Matthew Jackson prior to this email and nobody had contacted the clients directly for any additional information.
Hi Gil,
Based upon our latest conversations... you could send these papers to the "lady" and advise that the delay in getting the paperwork completed via the lawyers has been because we have been waiting for this information to be returned to us so we can proceed.
Client #1..
1. Client Information sheet must be completed giving us the lawyers
names and contact details
We have the appraisal of the property (xxx court) along with the title details and other information to prepare the offer, and all of that fits our lending criteria, and we are very happy and ready to proceed.. but need these other details to be able to finalise matters and get the offer to their legal people.
Best regards,
Paul.
And another email regarding Client #2:
Hi Gil, Based upon our latest conversations... you could send these papers to the "lady" and advise that the delay in getting the paperworkcompleted via the lawyers has been because we have been waiting for this information to be returned to us so we can proceed.TEXAS..1. Client Information sheet must be completed giving us the lawyers names and contact details along with project details and valuations etc.. This one is a shocker... I have on hand the tax returns for the company (ZZZZ) and the P & L for a companycalled XXXX Investments Limited along with a profile for the "new company" YYYY Investments LLc. and that is it...no project details.. no security detailsno loan timing or other information regards to draw down or anything.. NADA.. NIET.. ZILCH..!!I also asked Matthew for these informations over ten days ago..Best regards, Paul.
At this point, Paul Douglas blamed the broker, Matthew Jackson for not sending the information. All information had been sent to Matthew Jackson prior to this email and nobody had contacted the clients directly for any additional information.
November 2, 2007
Another update letter was received from Stephen Paul Douglas advising us that all of the paperwork was with their lawyers and that it would be a matter of days before funding would occur. It went so far as to indicate that the funds had been requested from a "European Trust" to the "Lawyer's Trust" to settle these deals.
Again, it is now July 31, 2008 and none of these clients has been funded!
Again, it is now July 31, 2008 and none of these clients has been funded!
The Drama Begins...
On October 28, 2007, we received a letter signed and sealed by Mr. Stephen Paul Douglas of RC Marketing that the lawyers were working on the paperwork, that it was supposed to be done that week and once we had reviewed and approved it, funding would occur in a matter of days.
This email was sent by Client #1 to the broker and his attorney on October 29, 2007 with no response from anyone...and no funds returned to him either.
To All:
It is now after 3:30pm EST on Monday October 29th. At this point I would like to have the $18,000 wired back to me immediately. For two weeks I have been patiently awaiting the closing and funding of this note as promised to me, multiple times, both verbally and in writing. Based on the extremely vague letter I received late yesterday, it seems as if there is no end in sight and that the misrepresentations continue. Mr. Jackson has been given ample notice and it has been made crystal clear to him that all we have asked for is clarity and professional courtesy, and he has refused to comply with these simple requests. I have attached the wiring instructions above and look forward to receipt and reimbursement of my funds by the close of business today. If I do not receive a full refund of the monies I have fronted to “expedite” and “bond” this closing which was guaranteed to me on October 10th, I will begin legal action against the J&J Family Trust, naming Matthew Jackson & Diann Dawson as defendants. In addition, I will also be filing formal complaints to all the regulatory agencies to include the Federal Housing & Urban Development Agency, the Federal Trade Commission, the BBB, the IRS, and RESPA, not to mention the MD and DC Bar.
The lack of response by Mr. Jackson has forced me to take these dire actions. I have not wanted to do any of this but have been forced to take action, since no action has taken place in weeks in regard to our closing. The legal ramifications could be devastating to all parties involved, so some communication would be appreciated immediately. The only other option would be to keep the monies that have been fronted and to fund this transaction by 12:00pm tomorrow. If this happens you can keep your money and I will walk away with nothing else to be heard from me or my attorney’s. I look forward to your response. (If someone actually responds for once)
This email was sent by Client #1 to the broker and his attorney on October 29, 2007 with no response from anyone...and no funds returned to him either.
To All:
It is now after 3:30pm EST on Monday October 29th. At this point I would like to have the $18,000 wired back to me immediately. For two weeks I have been patiently awaiting the closing and funding of this note as promised to me, multiple times, both verbally and in writing. Based on the extremely vague letter I received late yesterday, it seems as if there is no end in sight and that the misrepresentations continue. Mr. Jackson has been given ample notice and it has been made crystal clear to him that all we have asked for is clarity and professional courtesy, and he has refused to comply with these simple requests. I have attached the wiring instructions above and look forward to receipt and reimbursement of my funds by the close of business today. If I do not receive a full refund of the monies I have fronted to “expedite” and “bond” this closing which was guaranteed to me on October 10th, I will begin legal action against the J&J Family Trust, naming Matthew Jackson & Diann Dawson as defendants. In addition, I will also be filing formal complaints to all the regulatory agencies to include the Federal Housing & Urban Development Agency, the Federal Trade Commission, the BBB, the IRS, and RESPA, not to mention the MD and DC Bar.
The lack of response by Mr. Jackson has forced me to take these dire actions. I have not wanted to do any of this but have been forced to take action, since no action has taken place in weeks in regard to our closing. The legal ramifications could be devastating to all parties involved, so some communication would be appreciated immediately. The only other option would be to keep the monies that have been fronted and to fund this transaction by 12:00pm tomorrow. If this happens you can keep your money and I will walk away with nothing else to be heard from me or my attorney’s. I look forward to your response. (If someone actually responds for once)
Commitments...
Commitment letters were issued on all four deals and contracts were signed...client #1 and #2 signed through the broker in NC. Clients #3 and #4 signed contracts directly with RC Marketing because the broker quit returning phone calls and dropped the ball on getting the packages in to RC Marketing.
I spoke directly with Gilbert Freire and he assured me and all the clients that the delays had been because of the broker, who clearly was not doing his job and that we would get these deals done quickly.
J AND FAMILY TRUST, INC.
1207 FRANKLIN AVENUE
LAURINBURG, N C 28352
PH. 910-276-2994/ CELL 910-373-8337
FX. 910-276-2995
E-mail jcjndjfmly@bellsouth.net
DATE: 10/13/o7
Re: Comittment for purchase/construction
Gentlemen:
Please be inform that base upon the information we have received from XXXX for
your project ( the heights ) in Magnola, we are prepared to make you a Purchase/Construction
Loan in the amount of $ 1,806,000.00 for one ( 1 ) year.
The loan will be as follows:
1. A Copy of the most recent appraisal
2. An Irrevacable Letter of Credit made payable to J AND J FAMILY TRUST, INC in the
above amount in or a Supplementary Bond ( thats a part of the performance & payment bond )
3. A copy of your credit reports
4. Interest rate six (6) percent annually/ interest only with a balloon in 1 yr.
6. Interest payment $ 9,030.00 per month
7. Processing fee of $2,500.00 to expidite transaction
8 Attorneys fee 500.00
The above fee,s are to be wired to the banking coordinates listed below
Chevy Chase Bank
Atty. Diann Dawsond/ Client trust account for the benefit of J AND J FAMILY TRUST,INC.
Acct. # 593269225
Rt. # 255071981
8. Borrower agrees to pay any other reasonable cost associated with this loan.
9. Approx. net proceeds to borrwers $ after sale of Note discounted by J AND J
10. Borrwer agrees to pay Consultant ( ) fee at closing
11. Borrwer agrees to pay J and J FAMILY TRUST, INC FOUR (5) POINTS at closing which
includes the fee for xxxx
12. A copy of the construction contracts and permits
13 Copies of the pre-sales agreements
In addition to above if required by and from xxxx for J AND J FAMILY TRUST, INC. to assit and procure a Performance & Payment Bond the cost will be as follows.
1. $13, 000.00 for the bond plus the premium
Upon receipt of line item 2 we are prepared to close withinn 72 hours after receipt of the financial instrument of either one, our lien and collateral will be that of the instruments.
If these terms and conditions are acceptable, please sign.
Matthew Jackson Borrower
J and J FAMILY TRUST, INC. Borrower
President Borrowers
I spoke directly with Gilbert Freire and he assured me and all the clients that the delays had been because of the broker, who clearly was not doing his job and that we would get these deals done quickly.
J AND FAMILY TRUST, INC.
1207 FRANKLIN AVENUE
LAURINBURG, N C 28352
PH. 910-276-2994/ CELL 910-373-8337
FX. 910-276-2995
E-mail jcjndjfmly@bellsouth.net
DATE: 10/13/o7
Re: Comittment for purchase/construction
Gentlemen:
Please be inform that base upon the information we have received from XXXX for
your project ( the heights ) in Magnola, we are prepared to make you a Purchase/Construction
Loan in the amount of $ 1,806,000.00 for one ( 1 ) year.
The loan will be as follows:
1. A Copy of the most recent appraisal
2. An Irrevacable Letter of Credit made payable to J AND J FAMILY TRUST, INC in the
above amount in or a Supplementary Bond ( thats a part of the performance & payment bond )
3. A copy of your credit reports
4. Interest rate six (6) percent annually/ interest only with a balloon in 1 yr.
6. Interest payment $ 9,030.00 per month
7. Processing fee of $2,500.00 to expidite transaction
8 Attorneys fee 500.00
The above fee,s are to be wired to the banking coordinates listed below
Chevy Chase Bank
Atty. Diann Dawsond/ Client trust account for the benefit of J AND J FAMILY TRUST,INC.
Acct. # 593269225
Rt. # 255071981
8. Borrower agrees to pay any other reasonable cost associated with this loan.
9. Approx. net proceeds to borrwers $ after sale of Note discounted by J AND J
10. Borrwer agrees to pay Consultant ( ) fee at closing
11. Borrwer agrees to pay J and J FAMILY TRUST, INC FOUR (5) POINTS at closing which
includes the fee for xxxx
12. A copy of the construction contracts and permits
13 Copies of the pre-sales agreements
In addition to above if required by and from xxxx for J AND J FAMILY TRUST, INC. to assit and procure a Performance & Payment Bond the cost will be as follows.
1. $13, 000.00 for the bond plus the premium
Upon receipt of line item 2 we are prepared to close withinn 72 hours after receipt of the financial instrument of either one, our lien and collateral will be that of the instruments.
If these terms and conditions are acceptable, please sign.
Matthew Jackson Borrower
J and J FAMILY TRUST, INC. Borrower
President Borrowers
Friday, July 25, 2008
October 2007
Client #1 signed his contract on October 10, 2007 and was told he would need to get a bond to back the project. He attempted to get a bond through the builder on his own and then was told that the lender could get it done for him more quickly. He wired $5000 to the broker involved, Matthew Jackson to "expedite" the process...
"Commitment Letter"
J AND FAMILY TRUST, INC.
1207 FRANKLIN AVENUE
LAURINBURG, N C 28352
PH. 910-276-2994/ CELL 910-373-8337
FX. 910-276-2995
E-mail jcjndjfmly@bellsouth.net
DATE: 10.10/07
Re: Comittment to refy construction loan
Dear Mr. & Mrs.
We are please to extend to you an offer to refinance your property located at .
Leesburg, VA. We have reviewed your documents sent to us on your
behalf for a loan.
We are prepared to make you a Loan in the amount of $850,000.00 for one (1) year.
The loan will be as follows:
1. A Copy of the most recent appraisal
2. An Irrevacable Letter of Credit made payable to J AND J FAMILY TRUST, INC in the
above amount.
3. A copy of your credit reports
4. Interest rate six (6) percent annually/ interest only with a balloon in 1 yr.
6. Interest payment $ 4,250.00 per month
7. Processing fee of $5,000.00 to expidite transaction is to be wired to
Chevy Chase Bank
Atty. Diann Dawsond/ Client trust account for the benefit of J AND J FAMILY TRUST,INC.
Acct. # 593269225
Rt. # 255071981
8. Borrower agrees to pay any other reasonable cost associated with loan
9. Approx. net proceeds to borrwers $525,00.00 after sale of Note discounted by J AND J
10. Borrwer agrees to pay Consultant fee at closing
11. Borrwer agrees to pay J and J FAMILY TRUST, INC FOUR (4) POINTS at closing
12. A copy of the construction contract and permits
Upon receipt of line items 1, 3 and 7 we are prepared to close within 72 hours after receipt of
the documents.
If these terms and conditions are acceptable, please sign.
Best regards,
Matthew Jackson
Client was assured that he would close within 72 hours...all necessary requirements were sent and there was no funding!
"Commitment Letter"
J AND FAMILY TRUST, INC.
1207 FRANKLIN AVENUE
LAURINBURG, N C 28352
PH. 910-276-2994/ CELL 910-373-8337
FX. 910-276-2995
E-mail jcjndjfmly@bellsouth.net
DATE: 10.10/07
Re: Comittment to refy construction loan
Dear Mr. & Mrs.
We are please to extend to you an offer to refinance your property located at .
Leesburg, VA. We have reviewed your documents sent to us on your
behalf for a loan.
We are prepared to make you a Loan in the amount of $850,000.00 for one (1) year.
The loan will be as follows:
1. A Copy of the most recent appraisal
2. An Irrevacable Letter of Credit made payable to J AND J FAMILY TRUST, INC in the
above amount.
3. A copy of your credit reports
4. Interest rate six (6) percent annually/ interest only with a balloon in 1 yr.
6. Interest payment $ 4,250.00 per month
7. Processing fee of $5,000.00 to expidite transaction is to be wired to
Chevy Chase Bank
Atty. Diann Dawsond/ Client trust account for the benefit of J AND J FAMILY TRUST,INC.
Acct. # 593269225
Rt. # 255071981
8. Borrower agrees to pay any other reasonable cost associated with loan
9. Approx. net proceeds to borrwers $525,00.00 after sale of Note discounted by J AND J
10. Borrwer agrees to pay Consultant fee at closing
11. Borrwer agrees to pay J and J FAMILY TRUST, INC FOUR (4) POINTS at closing
12. A copy of the construction contract and permits
Upon receipt of line items 1, 3 and 7 we are prepared to close within 72 hours after receipt of
the documents.
If these terms and conditions are acceptable, please sign.
Best regards,
Matthew Jackson
Client was assured that he would close within 72 hours...all necessary requirements were sent and there was no funding!
Thursday, July 24, 2008
The Beginning...
In October and November 2007, four clients here in the USA signed contracts to receive funding on their projects with Stephen Paul Douglas of RC Marketing in Auckland New Zealand. Each client wired "due diligence fees" to RC Marketing...three clients wired directly to accounts at ANZ Bank in New Zealand and one wired through a broker in North Carolina. The projects are described below.
1. $1.5M as a second lien on a luxury home under construction in Virginia. Funds were to e used to complete construction and finish out on the home. Original loan was for $1.0M, but was increased to $1.5M due to costs incurred by delays in October and November 2007.
2. $2.2M to build 7 homes in an urban neighborhood in Houston, TX. This funding was to be used to purchase the land and complete construction on the home. Loan was supposed to be funded no later than October 31, 2007 to meet the terms of the real estate purchase contract. Client put up additional earnest money deposit based on information from RC Marketing that this would fund and they just needed a few additional days.
3. $25M joint venture to aquire raw land in San Antonio, TX and put in horizontal infrastructure on commercial development. This was supposed to close by November 23, 2007.
4. $60M loan to fund biodiesel plants in southern Texas. This was supposed to fund no later than November 30, 2007
Today is July 25, 2008 and none of these clients has received anything towards funding these deals. They have been promised funds every month, been given all kinds of timelines in which they will receive funds, but yet the deals have never been funded.
1. $1.5M as a second lien on a luxury home under construction in Virginia. Funds were to e used to complete construction and finish out on the home. Original loan was for $1.0M, but was increased to $1.5M due to costs incurred by delays in October and November 2007.
2. $2.2M to build 7 homes in an urban neighborhood in Houston, TX. This funding was to be used to purchase the land and complete construction on the home. Loan was supposed to be funded no later than October 31, 2007 to meet the terms of the real estate purchase contract. Client put up additional earnest money deposit based on information from RC Marketing that this would fund and they just needed a few additional days.
3. $25M joint venture to aquire raw land in San Antonio, TX and put in horizontal infrastructure on commercial development. This was supposed to close by November 23, 2007.
4. $60M loan to fund biodiesel plants in southern Texas. This was supposed to fund no later than November 30, 2007
Today is July 25, 2008 and none of these clients has received anything towards funding these deals. They have been promised funds every month, been given all kinds of timelines in which they will receive funds, but yet the deals have never been funded.
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