InterGenerationalWealth REIT – Ponzi From Day 1

December 1st, 2013 · 27 Comments · League REIT Updates

fraud-chenjinA wonderful lady I was speaking to yesterday said that if could find figures that showed that League had not made any money and had lost money year after year and kept taking money from investors than that would be enough to prove intent to defraud. Another item that would be useful would be material misrepresentation. One particularly annoying point with many investors is the statement “We get paid when you get paid” clearly not true.

Using publicly available documents I went back to the beginning of League and looked for two simple items.

Income and Compensation of Related Parties (Gant & Arruda)

According to the documents filed with the BCSC as on January 31st 2007 there was $10 in the bank account.

Net Loss 2006  $(1,022,366) Compensation $1,022,952

Net Loss 2007 $(3,300,100) Compensation $2,897,385

Net Loss 2008 $(4,160,008) Compensation $3,433,475

Net Loss 2009 $(131,180) Compensation $5,241,027

Net Loss 2010 $(19,104,524) Compensation $ 7,035,999

Net Loss 2011 $(26,916,631) Compensation $ 6,266,036

Net Loss 2012 $(62,571,109) Compensation $ 6,556,435

Now those numbers are truly impressive in the same way antimatter is impressive. It’s nice to theorize about it but you don’t want any around you or sticking to you. In that way I think we should rename the InterGenerationalWealth REIT to the AntiGenerationalWeath Scheme operated by the inept Adam “Value Destroyer” Gant and the Amazing Disappearing Emmanuel Arruda. They have in 7 short years managed to mislead and take senior’s and vulnerable people’s RRSP’s, pensions, nursing home money, encouraged people to mortgage their homes, and found myriad ways to unjustly enrich themselves all while failing to ever make a profit.

If this isn’t illegal, I’m starting my own country, where it is illegal.

 

photo by: IsaacMao

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27 Comments so far ↓

  • aj

    AND all ‘audited’ by KPMG and OVERSEEN by that wonder, BCSC.

    • Jimmy

      On the investor call last week Faskens said that suing the BCSC would not be an option since they were protected by federal law. They said that going after other parties might be an option but they have not found any evidence of wrongdoing yet although they are still early in that process.

      • aj

        Actually, that isn’t even close to what Grieve said. He said that our government(s) spend a whole lot of money to protect the regulators, so it would be difficult.

        • Jimmy

          When a lawyer says something is difficult they mean it is not a reasonable option!

          • aj

            This is what you said: “Faskens said that suing the BCSC would not be an option since they were protected by federal law.”

            That is not what Faskens said. It is important to be clear.

          • Jimmy

            I think that one thing is for certain. There will be lots of lawsuits and anyone even remotely associated with League will probably have their name on a writ or two. I have no doubt that people will try and sue the BCSC, KPMG, the feds, etc. Lawyers are going to be making lots of money.

          • Rachelle

            Let the suing begin

    • deBare

      Rachelle: The Amazing Disappearing Emanuel Arripoffa may actually need your landlord rescue services?!?! Look what’s available for rent at the address (http://victoria.en.craigslist.ca/apa/4192357626.html) you provided for a piece of property he allegedly bought from League for $150,000 less than then appraised $600,000 value. Maybe one of the many now homeless investors can find shelter from this heartless bastard in one of his hidden assets. BTW the scumbag is so arrogant, he’s actually facebooking (https://www.facebook.com/emanuelfarruda/posts/10153768255435227) and twittering (https://twitter.com/EmanuelFArruda) pictures of from his dogwalker. He’s still got a ‘ucking dogwalker – wow not an ounce of public shame. So if you want to see the smiling face of this sociopath again … check out his Facebook and Twitter accounts and send his good wishes for the new year : /

  • Itsy Bitsy

    Sorry but you ar wrong here. You cannot claim that it is illegal to run a company that raises money when it is not profitable or that it makes the company a Ponzi. 90% of the new tech companies on NASDAQ aren’t profitable yet and they have raised billions. Twitter has been around as long as League and they have never made money either. In addition to tech, pharma and resource companies often take years of fundraising and operations before they ever (if even then) start to make money

    • Rachelle

      It’s not an Internet company, it’s a REIT. A good example would be the gentleman who wanted an investment “like a GIC” for his mom. Material misrepresentation is a problem. Last time I checked Twitter is not offering 14% safe investments. That’s the difference.

      • aj

        And the problem with your correlation is that from day one, these crooks claimed that every investor would OWN A PIECE OF REAL ESTATE. Every investor, every mortgage holder thought that they had an investment SECURED BY REAL ESTATE. There is no defence, so stop trying, Gant or little Manny

  • Itsy Bitsy

    I was responding to the original comment that it was illegal to raise money if your company is not profitable. It is not. Now whether Manny or Adam is a scumbag or not is a different argument!

    • aj

      It certainly is illegal to raise money into a company with complete LIES told to investors from day one. I’ve been raising money for 25 years. This is real estate, nothing else. In real estate there are assets. Not in this real estate firm. It is almost impossible to have ZERO assets after 7 years, unless you were raising money to pay previous investors. That is called a Ponzi. And that is illegal.

  • Bob

    I guess it’s all over. Haven’t seen any updates. I guess Adam and Emanuel are free and can relax now. What a shame.

  • Drake Williams

    its about time people focus on fortress – they are the next big scam

  • klaas van den Heuvel

    Can someone give me a blog address from leage investors..im a investors since 2009

  • Fin

    G&M article today:
    “Arruda has a different take. “Had that credit crisis not happened, and had we not had that insane clown posse of detractors, we’d be in a whole other place right now,” he says. This posse he refers to is the small group of online commenters, including property manager Berube, who raised questions about League’s business on the Internet.”
    Manny just doesn’t get it, does he?! League was a Ponzi from the start.
    Best
    Fin

    • aj

      Manny gets it just fine. To play the innocent dumbass just won’t fly. Eight years of continuing to raise money into a black hole, (and benefiting in a big way) will come home to roost, and if he thinks the PWC accountants are as dim as he and Gant are, this will be one HUGE rude awakening.

    • Anonymous

      May want to watch what you say as Manny and Adam don’t hesitate to sue those who defame them. PWC and Faskens have said that this is not a Ponzi scheme so unless you have proof otherwise … shhhh

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