# League REIT suspends distributions in June



## Berubeland

http://league.ca/REIT-call-06-18-2012.mp3


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## Berubeland

FYI call is 20 minutes long is a conference call, and includes a lot of positivity. Apparently now that distributions have been suspended the REIT is in better shape financially.


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## Sherlock

Why would anyone invest in a reit that doesn't yield anything?


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## andrewf

Capital appreciation?

This seems very disturbing. These private REITs advertise heavily on the basis of their yield, and yet they have cut their distributions. Centurion cut their distribution yield to 7.35% from 8%.


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## Berubeland

I'm not quite as disturbed by a REIT lowering distributions by .65% as I am by a REIT that pays out 14% suspending distributions altogether. Don't forget buildings are selling at 5% cap rates. 

A while back Emmanuel Arruda called me to speak to me about my blog post, in the comments people posted links he didn't like. I got to ask him why the Blue Book reads so positively and quite frankly it seems to be written for 5th graders. Private Reits can only be marketed to "sophisticated investors" so why is their prospectus written to be engaging for the vulnerable it too good to be true speak. 

Weird thing is now that I've had trademark problems I spot weird trademark stuff. I mean why would you trademark the phrase intergenerational wealth? That's a red flag for me.


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## CanadianCapitalist

Berubeland said:


> A while back Emmanuel Arruda called me to speak to me about my blog post...


Can you post the link? Also are investors able to redeem their money?


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## Four Pillars

Berubeland said:


> I'm not quite as disturbed by a REIT lowering distributions by .65% as I am by a REIT that pays out 14% suspending distributions altogether.


Shouldn't a 14% distribution raise some red flags?

Way too good to be true....


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## sharbit

Well we haven't had a crazy real estate related "I just joined the forum, should I invest in this negative return property" post in a while.


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## Berubeland

The blog post was http://landlordrescue.ca/reit-real-estate-investment-trusts/ and if you go all the way to the bottom you'll see that the update came from the comments. 

As for return of capital for investors it appears that League REIT has different classes of investors. Or something. You know CC bullshit confuses me and I can't really figure it out. "Manny" first shuts down all questions investors have on the conference call. Kind of jollies people up apparently people who rely on his REIT for income are "gonna be taken care of." There were different classes of units, ones that participated in property appreciation and ones that just paid interest. I think "Manny" will continue to get paid. 

They also seem to have a web of different companies and REITs. Personally I think one company is usually enough for anybody. When I see rats nest of corporations owned by the same people it makes me think they are hiding stuff. The IGW REIT was lending money to another company. 

I got a call from Emmanuel about 3-4 months ago ??? and quite frankly I was confused about why he was calling me but when I googled League today I'm the second search result. Interesting they are still looking for new investors but offering 8% now at least as per top rated google paid search results. I told him that he could post his own comment which he did. He was particularly taken with me commenting that it all sounds like a ponzi scheme. I told him that if I was factually incorrect he could send me financials and i would look at them and strike out and correct my statement. Lets face it I'm not right all the time.(although it sure is satisfying/horrifying to be right.) I don't remember getting anything. The firing of the appraiser was a real red flag with me. It just seems so weird that they would hire this top rated appraiser, crow to all their investor/followers that they had and fire them at same time their report was going to be issued. Now Manny did say that they were just moves to another project of theirs, but I don't believe it. 

I'm not sure what will happen to them or if they can recover. Hopefull we can get some input on the situation from some people who may have invested with them. 

I have to say I really disliked their Blue Book, REALLY, REALLY, because it seems to target the person who wasn't too bright or financially astute. Like widows for instance or even orphans each:


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## Mall Guy

Berubeland said:


> Don't forget buildings are selling at 5% cap rates.


Sorry, not THEIR properties! Market bifurcation, and theirs aren't in the 5 cap range, they never were!


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## Mall Guy

This should be a lesson to all the folks in other threads who argue the "private" REITs are above the noise of the market . . . there're NOT . . . especially with some of these guys (IMO, and just look to the US for back up)! Maybe they are above the noise of the market (and I've never been able to see any actual financials), but obviously their banks have ! Good luck with liquidity. 

Charter REIT became Partners REIT under the same management team . . . nobody wanted Charter's assets (even at a premium to market) . . . buyers of last resort ??? I believe Cornwall Square is already back on the market. Wonder how that will turn out . . . no 5 cap there!


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## Berubeland

This should be a lesson to all people who think that *any* REITS are above the market. They are not. 

In fact I would expect that public REITs are in for a much bigger rout. 

Lets just say this about REITs. They put 30% down and get 5% return on that money. Then they get the spread of 2% on the mortgage because the building pays out 5% and the mortgage say cost them 3%. 

How can any REIT pay out more than market dividend to investors? By refinancing their buildings they bought when interest rates were higher or by increasing income in the buildings. Those are the two options. 

When interest rates go up, building values go down. They are inversely correlated. That's when REIT's will start to fall like dominos. That's when banks will start to call in their loans. 

If you are retired I know that REIT's are very attractive for the income they produce. It's ok to keep a percentage of your portfolio in REIT's. But please look at your diversification for your own protection.


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## Mall Guy

Can't disagree, and with the run-up in some of the big names, they now yield the same as some of the banks (who hold those mortgages). REITs are really just a financial vehicle, and should only contain long term stable properties (ie. HR.UN without the noise of The Bow). 

So the caution is for those who are turning to lesser quality names for the "higher" yield (believe I saw something about REITs with market caps under $500M having the largest gains). Look for quality names, and with the current run on price, a good entry point. 

And to the point above, look for a management team that matches lease term to loan amortization.


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## Causalien

Do not touch a REIT when they suspend their dividend.

I've observed them during the great financial collapse and most of them failed once they had to suspend dividends.


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## phrenk

I listened to that conference call, very interest, but very disturbing on numerous fronts :

- A 14% dividend yield is a definite red flag. How was this accompished ? Well, either they leveraged up above 85%, or they were paying distributions from funds coming in from new unitholders, or combination of both.
- They spent 10 minutes to explain the complexities of GAAP to IFRS transition and how they were unprepared. How could they be unprepared, this was known for 3+ year in the industry. In addition, they were not able to mention 1 specific IFRS rule that would do harm to their balance sheet (the obvious one is stating everything at fair market value)
- Dividend yield is not based on NAV value, so i don't understand why they are suspending the dividend. A dividend yield is mostly a function of cash-on-cash yield, which is based on a property's NOI vs. the equity contributed initially. The only possible explanation is that with the new financing they obtained ($40M) to refinance their existing loans, they were squeezed by the lender to suspend distributions until further notice because their LTV is in the 90's.
- They have an enormously complex unitholder structure.
- Why don't they do an IPO ? Because they know that analysts will destroy their balance sheet. They even mention the possibility of a reverse merger, which is what chinese companies did and got the attention of Muddy Waters. It allows them to be public but without all the scrutiny of a well written prospectus.


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## Mall Guy

^ yup, + 1, and I bet you only hit the tip of the iceberg ! Sounds like no new "widows and orphans" are being pushed into this thing, and banks are slowing down on "blend and pretend". Wonder what they still own that I would want to buy!


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## Berubeland

I want to point out that they are still advertising on the internet for new investors. 

This is their google ad.

8% Income Canadian REIT | leagueinvestmentservices.ca
www.leagueinvestmentservices.ca/
Accredited Investors- Monthly Cash Flow - RSP Eligible. Free Blue Book

The link leads to http://leagueinvestmentservices.ca/...mid%3Dgaw%26cid%3Dsearch&rct=j&q=private+reit

It also appears that they are accredited by the Better Business Bureau. :rolleyes2: (look all the way down to the lower right hand corner of the website) of course that appears to be a different and obviously better company.


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## venter

*Centurian REIT did not cut distributions.*



andrewf said:


> Capital appreciation?
> 
> This seems very disturbing. These private REITs advertise heavily on the basis of their yield, and yet they have cut their distributions. Centurion cut their distribution yield to 7.35% from 8%.


They did not cut their distribution! If you had a brain you would see the initial distribution was 8% based on an NAV of $10. Units are now valued at $11.15 (ie: capital appreciation), thus the yield is lower.


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## Mall Guy

venter said:


> They did not cut their distribution! If you had a brain you would see the initial distribution was 8% based on an NAV of $10. Units are now valued at $11.15 (ie: capital appreciation), thus the yield is lower.


Wow . . . little harsh, especially as the private REITs are known for little or no disclosure . . .


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## andrewf

If I recall correctly, Centurion indicated in the past that they would keep the yield at 8% on current NAV.


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## Jaberwock

*League reit*

I once sent for information after reading an advertisement by League. They sent me a copy of the blue book and some financial statements.

I decided not to invest after reading the financial statements


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## mikhailb

*Anyone saved the conf call MP3 file?*

I'd like to listen to the conference call, but the file is no longer available on their website.

A family member asked for advice on this REIT, and I'm getting very concerned as I dig into the details.


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## Mall Guy

mikhailb said:


> I'd like to listen to the conference call, but the file is no longer available on their website.
> 
> A family member asked for advice on this REIT, and I'm getting very concerned as I dig into the details.


Run . . . very fast ! Low quality properties, not a fan of the management team, to light on disclosure, and good luck with redemption . . . which is at their whim ! Go for a quality name, those that discloses what they own . . . these guys are too much sales pitch . . . did I say run ???


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## CanadianCapitalist

Berubeland said:


> This is their google ad.
> 
> 8% Income Canadian REIT | leagueinvestmentservices.ca
> Accredited Investors- Monthly Cash Flow - RSP Eligible. Free Blue Book


And they are still running ads. *sigh*


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## Berubeland

Yeah I keep noticing that too. How do these people actually live with themselves?


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## Jaberwock

*League reit*

I have noticed an increase in advertising by League REIT recently. Their adds seem to pop up on almost all of the financial sites I use.

I am guessing that they are desperately trying to find new investors to bring in cash and delay the day of reckoning


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## Berubeland

Latest news from BCSC 

*BCSC alleges that dealer and two directors sold securities without proper disclosure*

Vancouver – The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. corporation and its two directors promoted the sale of a Real Estate Investment Trust (REIT) without proper disclosure.

The notice alleges that between September 2010 and June 2012, League Investment Services Inc. (LISI), a B.C. corporation registered in all provinces as an exempt market dealer, promoted the sale of IGW Real Estate Investment Trust (IGW REIT) securities through its website, brochures and its Blue Book of Real Estate Syndication. IGW REIT owns commercial properties in Ottawa, Cornwall, Hamilton, Prince Albert, and Victoria. IGW REIT has about 2,200 investors, who as of June 19, 2013 had invested approximately $290 million. 

http://www.bcsc.bc.ca/release.aspx?id=17902

Finally if anyone is interested in a class action I have been speaking to a lawyer with some investors and there will be a conference call next week to further organize. Please feel free to email me at [email protected] for more details.


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## james4beach

Could this also be a sign of bursting national property bubble?

Usually you see the ponzi schemes / frauds / horrible companies being exposed only when the market weakens. As Buffett says: "you only find out who is swimming naked when the tide goes out."


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## Berubeland

I'm not sure to be honest it seems they have a gift for losing money.


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## kcowan

I think they have a knack for lining their own pockets along the way. But for the BCSC to act, it must have been particularly egregious. They seem to tolerate all kinds of Ponzi schemes and pump and dump operations.


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## Berubeland

As I learn more about exempt market dealers and securities laws I start to have even more of an opinion on the problems with the entire system. In fact an argument can be made that it's designed for abuse. 

Exempt securities were never designed to be sold to the masses, originally it was designed for pension funds and high net worth individuals who were very savvy about investments. This is no longer the case. 

So any company can get certification as an exempt market dealer and flog different securities and earn a commission. They are investment advisers and are supposed to fill out the forms to determine your risk profile and advise you for or against different investments just like any mutual fund salesman or even the bank. 

The real problem is that these private REITs are creating their own companies that are not arms length and pushing their own investments exclusively. It's not arms length. Last year OSC did a sweep and there were huge problems with compliance. The fox has been drafted to guard the hen house. It's an enormous conflict of interest. If these exempt market dealers have a number of companies to recommend that's ok, but in both cases of League and First Leaside the exempt market dealer is both owned by the company and only has company products to sell. No outside investment adviser would ever suggest that someone buy these awful products because they would be liable. 

Most of the people I have communicated with did not really have the risks explained well to them. Nor was it explained to them that all the marketing material given to them has a disclaimer on it and in it. The only thing that should be relied on is the Offering Memorandum and even that is not checked by any outside third party for correctness. 

Even the accredited investor provision has enormous problems, people are trying to get "accredited" and come up with the $150,000. In one of the documents I have for one of the Limited Partnerships, they even suggest people should get a HELOC on their house to invest in their company. 

All in all I'd like to see the same rule Australia enacted. All such investments must be overseen and signed off on by your accountant. This at least ensures that people have had time for some sober reflection, are out of the sales process, and have independent professional advice by people familiar with financial statements.


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## fraser

There have been massive losses and frauds involving real estate trusts in Alberta. Names like Concrete Equities, Platinum Equities, Focus Group, and Foundation Capital/Harvest Group come to mind. One article that I read put the losses at $ 2.3 Billion, yes billion, over the past few years.

Unfortunately many of the victims were/are unsophisticated investors, retirees, and many we convinced to empty their RSP accounts or take HELO's thus making their financial situation even worse.


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## kcowan

It takes forever to get the regulators to pay attention to these guys. I credit Rachael with the attention on this one. She did much of the work for them. But at considerable personal risk. These guys and their lawyers are bullies.


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## fraser

Here is a link to a website that keeps track of failed real estate trusts in Alberta. Imagine what the losses would be for the entire country.

http://www.rainbowinvestigations.com/news/story.php?rainbowID=349


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## james4beach

Grr I hate financial fraud. But yes it's rampant. Reality is that when you have a boom or mania, you get a ton of frauds because of all the money flowing around. It happens every time.

I strongly suspect there's a lot of fraud and tricky in Canadian real estate that won't be exposed until housing cools off.


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## martinv

Here is a recent article in the "Times Colonist", Victoria.
http://www.timescolonist.com/work-set-to-begin-next-month-on-1-billion-capital-city-centre-project-in-colwood-1.600038

Drove by the Capital City centre project in Colwood yesterday and all was quiet. Not a worker in sight.
The more I read about this, the worse it seems. Thanks to Rachael for drawing this to our attention.


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## Berubeland

GGrrr to this quote...."What we don’t like are people irrationally or in an unsupported way making accusations that have no basis in reality" 

It's pretty fair to say that Mr Gant's and my reality is pretty different. I consider it a real problem when investors are mislead and promised returns that will never appear. In Mr. Gant's world, if you get someone to sign a disclaimer, it's ok, no one should have a problem with it. 

If he starts meaningful construction on that site I'll donate $500 to the CCLA http://ccla.org/

I'm not ready to concede the point that I should not talk about the $250 million in investor losses in IGW REIT. In fact I feel it is my duty as a human being to speak out about these types of abuses. I am terribly ill equipped to fight a lawsuit in BC Supreme Court for defamation, but I will try but only because the alternative is so completely awful, I can't even stand it. 

IGW stands for Intergenerational Wealth. What complete and total irony. 

I have quite a few emails from people just like the ones mentioned in this article http://www.theglobeandmail.com/repo...estment-fraud-problem/article13938792/?page=1 

It's really sad that we just throw our seniors and vulnerable people to the wolves and blame them for trusting these types of individuals. These are very sophisticated and complex scams and difficult to see through. It's unacceptable. 

The lack of accountability for exempt market dealers is not even close to ok, no one is checking and when they do check they find non compliance and nothing happens. In Australia, they make investors get their accountants sign off on the investment and that they have looked at and explained it to their clients.


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## lonewolf

Berubeland said:


> Berubeland : Iam not sure about using accountants, What if the accountant does not have a clue on what they are doing but just memorizing & repeat what others are saying. If the investor thinks who am I to think & judge if its good enough for the accountant its good enough for me, not realizing the accountant has no understanding the investor might even put more money on the table thinking it is safe. If you dont understand something dont put your money into it. Invest in that which you understand.


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## Berubeland

I understand your point, but currently they are using high pressure tactics to sell these investments. Just getting out and having time to read over the Offering memorandum or having an educated person look it over might be valuable. It's not the best but it's better than letting non arms length companies sign you up for hundreds of thousands of dollars of investment without any time to reflect or even read the wares.


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## lonewolf

The presure is high I came close to putting money on the table. I can read pictures i.e., charts easier then I can read words. I thought to my self I have no idea how to judge if the investment is safe so I must use disapline & not see through the eyes of others regarding investing. So I never invested. They even had a bond agency giving them something like a B rating

Berubeland I appriciate the work you have done in standing tall in the truth.


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## Berubeland

I believe I have a copy of that advertisement. It was run at a site called marketwire. The legitimate site is called newswire. 

That gives everyone a better idea of the kind of unfair marketing practices that are being used. 

http://web.archive.org/web/20121001...-receive-investment-grade-ratings-1336991.htm

Here's the rating agency which only acts for Exempt Market Dealers and when you search on the company in the above news release... http://www.insightemra.com/

On the surface it looks legitimate, but when you dig deeper you find that it isn't what you think is there. 

In actuality an exempt market dealer is supposed to represent you just as well as any other financial adviser, they are supposed to develop your risk profile and recommend suitable investments. Unfortunately LISI which is the company that markets League Units is obviously not arms length I cannot imagine they turn away any clients because they are unsuitable. Many people were assured they could easily get their money out. In fact a Liquidity agreement was listed on their website and I got a copy of it somewhere. In reality it was very difficult for investors to get their money from the very beginning. This is according to what staff who worked there told me. 

I just can't believe the size of these scams and there are so many. In Ontario we currently have a similar scheme working it's way through the courts. http://firstleasidefailure.com/index.html If you go to that site and download the Grant Thornton Report it is clearly explained what is troublesome about their operations. I found it amazing really, both companies even use the phrase Intergenerational Wealth and use KPMG as ,their auditor, very ambitious internal building valuations, profits coming from fees from new investors rather than building operations, comingled loans, really ambitious plans, new buildings, extensive construction that's never on time or one budget. The report is worth a read.


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## martinv

_Our mandate is complete investor transparency," says Emanuel Arruda, Founding Partner of the League Group of Companies._

Wow, where have I heard that before?
Where is David Baines, former Vancouver Sun financial columnist. He did a great job of digging into financial "schemes".


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## fraser

I never missed David Baines' column.

PacPress offered an early retirement package (he is in his early 60's I believe) that was too good to pass up so he retired. 

I hope that he comes back to the media either with another organization or as a free lancer. 

The newspaper here in Calgary has a very poor financial section, IMHO. The entire paper is mostly 'feel good' with very little original work. In fact, when we came back from an extended trip we decided not to bother with a subscription.


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## Robillard

Ironically, I'm seeing "League Investment Services" advertisements on the website while reading this thread.


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## fraser

We will not consider any 'exempt' securities offerings. 

When we want to spend our money we very much prefer travel and vacations. 

It is much more enjoyable and less stressful than throwing away our money in this essentially and fraud infested market.

Not a believer in the quick buck promises of FX trading or real estate trusts.


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## Berubeland

Nervous as hell, I tried to get the hearing done by telephone, but the request was denied the day before yesterday. So we tried again to submit an urgent request to see if we could make it happen but who knows what will happen. 

As we speak the court in Vancouver has begun but I have no idea if the hearing will be allowed by telephone, adjourned or go ahead. I'm sitting here just waiting. 

I could really use a drink :stupid:


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## Berubeland

I made it through http://landlordrescue.ca/league-injunction-hearing-today-thoughts/ 

Judgement is reserved for now.


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## Spudd

That must have been so stressful. Let us know how it turns out. I'm crossing my fingers for you!


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## james4beach

Berubeland: wishing you the best on this. Please keep us updated.

I'm very impressed by your drive to stand up for what's right; good for you! I totally realize this is not easy. And I absolutely hate SLAPP lawsuits.

League is of course totally welcome to transparently show everything about their operation and convince the investing public that all is well. They are welcome to explain their complex structure, the details of the balance sheet, cashflows, etc. Convince me (the investor) -- I'm open minded! As a member of the public I don't simply read one blog and come to a conclusion... your opinion is one data point among many. I personally believe you should be allowed to publish your opinion and I hope the judge sees it the same way.


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## Berubeland

I just got the news... the ruling and reasons will be released tomorrow at 10:30 Vancouver time. Time to queue the bad suspense music.


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## CanadianCapitalist

Berubeland said:


> I just got the news... the ruling and reasons will be released tomorrow at 10:30 Vancouver time.


I hope the ruling went in your favour. Please keep us posted.


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## james4beach

Also keep in mind that if she is muzzled, she may not be permitted to post any updates or thoughts on the matter.

Berubeland: update us if you can, but please adhere to the judge's ruling!


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## Berubeland

Their application for an injunction was denied. The ruling was 10 pages and so I posted it in it's entirety online just a few moments ago. http://landlordrescue.ca/league-injunction-application-denied-pass/

[6]	Ms. Berube and Ms. Barber are self-represented. They rely on the defences of justification, qualified privilege, fair comment on a matter of public interest, and responsible publication. Given the highly technical legal requirements concerning pleadings in defamation actions, their pleadings are rather deficient, but the gist of their defences is evident.


[34]	It follows that the plaintiffs have not satisfied the test for the granting of an interlocutory injunction in a defamation action in relation to the defendants’ description of the REIT as a “Ponzi scheme”.

I have to say that even thought I had no idea what I was doing, I did manage to cobble a response together and that the experience was worthwhile and that the courts did hear my side of the case. For this I was grateful.


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## Mall Guy

Round One Berubeland! Good for you! The stress OMG . . .

I just read the judgement. My take is the judge reserved so he could carefully word the ruling so as to give you a bit of guidance for the actual defamation hearing (sorry to bring that up). I think he was pointing you in certain directions, bases on what legal points you need to cover. The things you mention in "League Injunction Hearing Today – My Thoughts" yes, these are thing to be brought before the court, but need to be done so by 3rd party evidence or at least opinion. A hearing is made up of these annoying little steps A to B, B to C . . . small incremental meant to lay a foundation. The ruling gives you some insight into some of those steps IMHO.

But for now, congratulation . . . your court record is 100% wins 0% losses . . . keep it up !!!


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## Jaberwock

*League*

Congratulations on winning the first round of your fight with these people. I hope they realize that their action has only cost them money and given them only negative publicity, and I hope they don't pursue the matter any further.

Whether they are crooks or simply incompetent businessmen who have lost their investor's money on wild and foolish real estate developments, the end result for the investors remains the same.

A few weeks ago I made a complaint to the BC securities commission about outdated and misleading information in documents filed by League. I have not had any response so far.

Does anyone know the outcome of the hearing on Sep 17th relating to the non-arms length promotion and sale of these investments?


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## james4beach

This is a private company right? Do they make their financial statements and audited reports public, or maybe share them with prospective investors?

Since League is making such a big fuss and drawing my attention with this lawsuit, perhaps it's time me & colleague sit down and analyze the company in more detail. And of course I would love to publish any findings after looking into it, as it could be of interest to investors I work with.


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## Jaberwock

They will send you financial statements if you inquire about investing.

I made such an inquiry several years ago when they were promoting something called League REIT (a forerunner of IGW REIT). It was clear in those statements that funds from operations were significantly less that the dividends being paid by League REIT, and that dividends were being funded out of cash from new investors. I declined the opportunity to invest.

They have filed a prospectus with the BC Securities Commission, in a move towards taking the company public. You can find all of the financial statements for IGW REIT and all of the related companies in that prospectus. You can also find past financial statements in filings made with the BCSC. It will make interesting reading for someone with an accounting background. Money from IGW is loaned to related entities at very high interest rates. The interest is recorded as income, but never paid. The loans just keep getting bigger and bigger. The related entities invest in development of real estate such as the development at Colwood. If that development fails, there is no money to pay back IGW and the whole thing collapses.


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## Berubeland

Of course they do. Their latest available financial statements are available on Sedar under the League Financial Partners moniker. They are not having a good time, they lost their bid to go public with their current prospectuses (prospecti?) and according to the OSC their application is closed. To go public they must refile new documents, it is my understanding that they cannot do so until they are free of the BCSC hearing in June. 

I am impressed with myself getting this far but I am far from confident. The onus for the injunction was on them to prove their case. For the defamation case the onus is on me to prove they are Ponzi scammers. It is a high hurdle but I have a good plan. 

Of course they may well oblige me and go into receivership/stop legal action soon.


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## james4beach

They could harass the heck out of you (legally) and I am truly sorry about that.


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## Berubeland

The Story was in the Times Colonist today http://www.timescolonist.com/business/island-developer-loses-bid-to-silence-online-critics-1.640347


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## martinv

Just read the Times Colonist article and wanted to congratulate you on the result.
This cannot have been an easy time for you but your persistence and belief that you were doing the right thing brought a good result.
As you mentioned, the whole purpose is to make unsophisticated investors aware of the risks.


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## Berubeland

And now...League has applied on October 10th 2013 for CCAA according to PWC website... then it disappeared but I found evidence of it... http://www.pwc.com/en_GX/webadmin/s...wcLang=en&pwcHideLevel=0&localeOverride=en_CA Price Waterhouse Cooper is the Monitor. http://landlordrescue.ca/league-applies-for-creditor-protection/


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## martinv

...... and the saga continues.

http://www.timescolonist.com/financ...-capital-city-centre-project-stalled-1.662174

You do have to admire the "spin" though.


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## Berubeland

Yep, among other problems Colwood is now under a Certificate of Pending Litigation http://landlordrescue.ca/colwood-white-elephant-towers-fubared-immediate-future/


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## fraser

Great work. 

And speaking of real estate exempt investments.....there is lot's of opportunity here in Alberta for your skills in uncovering the facts and making them known. 

Goodness knows our local 'feel good' daily newspaper in Calgary seems to never venture into investigative journalism on the business pages.


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## Berubeland

Haha it would be fantastic to get work shaming these guys for their bad behaviour. It's so awful so so awful. Everyday people call me and it's really sad and it breaks my heart. Our seniors deserve better than to be ripped off by these shameless, psychopaths and then further victimized when they are told they "should have known better" it's complete bull. This is not ok.


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## Jon_Snow

Wow, nice shout out from Garth Turner on his blog tonight.


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## CanadianCapitalist

Story in The Globe today:

League of their own



> As Berube learned more about League, which eventually touted assets under management of more than $1 billion, her doubts were heightened - and she wasn't shy about expressing her views on the website she runs and on other online forums. At her most pointed, she accused League, headed by co-founders Adam Gant and Emanuel Arruda, of running a Ponzi scheme that amounted to "thievery." League responded by denying her allegations and filing a $2.6-million defamation lawsuit in May, 2013.


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## PoolAndRapid

..


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## andrewf

That jumped out to me too.


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## Berubeland

I've been called a number of names in my day, but insane clown posse is new. :rolleyes2: It's kind of catchy though. 

But seriously what he says speaks more to what I have been saying all along. If their business is real estate what does it matter what people say on the internet. Your tenants will still have to pay their rent. If their business is getting grandma to turn over her hard earned dough in her RRSP, then what the internet says really does matter. 

A nice lady called me again today, she's invested $100,000 and it took her 40 years to save that money. She wants to know if I think she can get some of it back. That's the reality. People who have worked their whole lives to do what society tells them to do, they save money, they are good people, they get tricked by these shysters and lose their retirement plans. Then even more of them are ashamed and we tell them it's their own fault. In reality League had every facade of being successful and were even in profit magazine. 

If they can deceive the BCSC an organisation filled with lawyers, accountants who have the stated goal of protecting the public why should grandma be told that it's her own fault that she didn't do due diligence. 

Having said all this, going forward these legal loopholes are currently still wide open waiting for the next potential millionaire to exploit them. What do we learn from this mistake? $370 million is not chumpo change and all these investors lost their money.


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## kcowan

Maybe we need to come up with a new term for what they and others are doing. I agree that Ponzi Scheme is a little harsh because these guys could never do the Bernie Madoff thing.

It is essentially a Capital Destruction Corporation that pays big fees to those in charge.


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