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On the sniffing.....
I found documents in the Chapt 7 file.
Reiderer seems to be going after everything, even Orr's IRA's.
I was wrong......
Mellon is not our trustee. Reiderer is. There has to be some money, or these guys wouldn't still be arguing:
http://www.ksb.uscourts.gov/images/ksb_opinions/DLS_08-22786-1676.pdf
DATED JANUARY 5, 2011................
The document sums up a lot of what has happened since '08.
I have a million tickets.
A dime nets me $100,000
Average cost is about 1 penny.
I usually hope for 10 cents on the dollar, which is about 33 cents.
I can trade the other plays. This one is only waiting until the ping pong balls fall down the chute.
Thanks to conscientious employees who forced management's hands into reluctantly doing the right thing.
I need to get off of this board, it is making my stomach turn remembering that corrupt organization.
Again, good luck to you. Right now you are holding lottery tickets, which makes this play about the same as 99% of the other penny plays out there.
Two years ago the FBI raided, and took your whole paper trail. No charges have been filed to date.
Send emails, make phone calls, and attempt to pierce the veil?
I am trying, but in a chilled, kick back sort of way. I keep changing my search terms in Google to see where to look, and I found those ones I showed you.
I learned many valuable lessons there. One, if something seems wrong, it probably is...ask questions. Two, if senior management begins putting roadblocks between themselves and important outside players, be suspicious. Third, make sure you leave a paper trail so nothing can be "doctored" later. Four, when a company spends more time making themselves appear successful rather than actually demonstrating success, RUN.
My propostion is usually tied to reported equity. It is hard for me to believe that $93 million in equity just vanished. Of course, short sales and defaults could wreak havoc on a weak porfolio of loans.
My current opinion is based on the court documents and the implication that there was money left after Mellon got theirs, and the implication that ambulance chasers generally don't sue people with empty pockets.
I am just beginning to dabble in pennyland. I am noticing that emotion can run pretty high...and sometimes that might be the clue to unload in the big movers.
As for Brooke Credit Corporation...aka Aleritas, I hope you are able to squeeze out a profit.
All I know is what I discovered when I worked there. Things may have changed after I departed....but doubtful. Loans double, triple and quadruple pledged.....non performing loans pledged as collateral for outside financing without participants knowledge...
It was a shame
Overall, my experience hasn't been that great. I bought Spectrasite for 10 cents, and sold the reorge for about 25. I bought intellysis aviation for a penny and sold for five.
I have had many failures. "At home" was a travesty. I lost a few bucks on Eddie Bauer last year.
Good Luck. My experience is with the company. Not experience in general. I do hope you and others receive something from this. I just know many, many people lost a whole lot here. It was a microcosm of the bubble finance industry as a whole.
Waiting in the wings as well. What else can you do? :)
I have lots of experience as well, and Pacer logon.
I could look up the documents, but the thing ain't trading, and it seems I have nothing to do but wait anyway.
In my last trip to PACER, The Honorable Al Reiderer petitioned the court to allow him to handle Aleritas proceeds for use in the Brooke Chapter 7. It was implied that Aleritas still had money.
Since then, the $12.5 million lawsuit against Aleritas failed.
You don't sue for $12.5 million dollars unless you know where the deep pockets are or have money to burn on Lawyers.
All I know is my experience. Good Luck on receiving anything.
That would be an odd observation, considering Brooke salespeople are recieving payouts from the Liquidation. The only viable asset that Brooke had remaining was the Aleritas Subsidiary.
If the liquidators transfer 60% of Aleritas liquidation into Brooke(and/or insiders), to make such payouts, then 40% should fall to the Aleritas public holders. That would be ethical and equitable. As I said before, I forsee neither, but do hold out some hope.
IMHO, there should be an annual accounting, and an annual distribution. I don't want to recieve a lump sum and have to pay all of tax in a single year. Special treatment seems to be occuring within the crony community. I assure you, that my tax liability would decrease enough to pay all of the shareholders and pay the postage and handling.
There is nothing there. Aleritas double, triple and quadruple pledged loans to participating banks. Aleritas is gone, for good, and there will not be anything left over for anyone, especially shareholders.
Have you read any of the filings?
The last I read in Chapt 11 case, was that the liquidators would collect the money for the estate, and that Brooke, not Aleritas would be slated for liquidation.
The evidence indicates that commissions are being paid to Brooke salespeople as the loan payments are collected. For the money to legally flow from Aleritas to Brooke, a pro-rata distribution to Aleritas holders would morally, ethically, and legally be reserved for us. But then we are dealing with American Lawyers, so maybe we should forget about morals, ethics, and law?
I write this as I look at my framed Stock Certificate from Brooke Credit Corporation on my wall, which serves as a reminder to me that Principles always trumps quick and easy Profit.
Chances of anything being left over for shareholders in this is laughable. I am surprised the crooks who once ran the company are not in prison.
Trust me, your shares are worthless.
No answer. I did a little more digging, and Mellon seems to be trustee for certain other interests, not ours. The other interests held the big loans, which held the equity in Aleritas.
Still......
The indication is that sales commissions are being paid out under the collective aggreement. That should mean that Brooke Companies are getting a pro-rata distribution of Aleritas money after the creditors are paid. We can certainly hope, but it might be a long, long wait.
I just sent a preliminary web inquiry.
If you don't ask - the answer is NO!
If you ask, you have a 50 - 50 chance of a YES!!!!!
Go for it.
I am thinking about contacting Mellon's trust division to see if they can discuss the residual value.
What do you guys think?
thank you too temp!!
I think the writing is on the wall.
The Goverment's TARP bailout is experiencing a good payback, indicating that the overall picture is good. Lots of people tried to sue ARTA, and they wouldn't have tried for those big settlements unless the money was there. I reported the asset petition from another big bank here:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55074048
I just wish they would start some partials. I am starving here.
Thanks for the update temp! I'm still holding my shares too. Hoping to get some money out of them some day.
The log in, and the agreement appear to be for sales commissions as an allocation from the Brooke liquidation. As I said, Brooke probably had no money without Aleritas. In fact, I believe that is why the FBI was looking funny at Orr, if I remember the whole story. Brooke was going BK, and Aleritas still had money.
You just have to have the shares. Easier for Mellon if they are at the broker in street name: They don't have to mail checks, just make a "Liquidating Dividend" distribution.
Do you have to register or just have the shares for payemnt?
How do you log in?
And yes, I have a feeling that I am about to get a big check.
The only way there could be any money in Brooke (to pay the salespeople) is if they got the money from Aleritas loan payments, IMHO. It is "winding up" process that could take a few years because of the loan tails.
Hi temps, Went to site and did not find any sort of logon.
Do you think there is any chance of some pennies on the Brooke or Aleritas shares?
And you don't have to read too well to understand that "Mellon" is the trustee of the entire BK estate. It will be their "fiduciary responsibility" to find and pay ARTA shareholders, if any payments are due.
Found another one:
http://www.brookeagent.com/
Check this out:
"CONFIDENTIALITY AGREEMENT
On March 13, 2009, the Federal Bankruptcy Court for the District of Kansas entered an order (the “Order”) approving the Restated Settlement Agreement (the “RSA”) among Fifth Third Bank, Bayerische Hypo-und Vereinsbank, AG, New York Branch, DZ Bank AG Deutsche Zentral-Genossenschaftsbank, The Bank of New York Mellon, as Trustee, and Albert A. Riederer, as Chapter 11 Trustee and Special Master. The Order was entered in connection with the bankruptcy cases of Brooke Corporation, Brooke Capital Corporation, and Brooke Investments, Inc. (Case No. 08-22786, jointly administered). Pursuant to the Order, the Allocation Agent (as defined in the Restated Settlement Agreement) (the “Disclosing Party”) is prepared to make available to the undersigned (the “Receiving Party” or “you”) certain information from the Allocation Reports (as such term is defined in the Restated Settlement Agreement) regarding sales commissions allocated to your company. As a condition to the receipt of such information as may be furnished to you from time to time, you agree, for the benefit of the Disclosing Party, the parties to the Restated Settlement Agreement, and any other Person or entity with respect to which you receive “Confidential Information” (as defined below), to comply with the terms and conditions of this agreement. This agreement shall be binding on you and your directors, officers, employees, agents and advisors (collectively, your “Representatives”), and references to “Receiving Party” shall include your Representatives."
To actually find out if a distribution is imminent, you need to log on, and then be quiet. (Unless you can get the info without agreeing to the above)
I will read between the lines of the disclosure agreement, and wait. I am not signing anything until the check arrives.
Found a link:
http://www.ksb.uscourts.gov/images/ksb_pdfs/1156_motion.pdf
Dated Feb 10, 2010.
A petition to the court to distribute certain assets.
Apparently, as of Feb 10, 2010 there were still some assets. According to the document, Mellon was being petitioned to release some assets to DZ Bank. It would seem that Mellon is the current administrator of the Chapt 11 case, by inference.
Dissolution filings cost the company a whole $30 to file.
Unfortunately, I could not locate the paperwork which would describe the terms of the dissolution. Because they have no workable business model, the corporation does not need to exist, and the dissolution is practical.
There should be a liquidation trust which handles the legal affairs, but I have not found one. Somebody was collecting the debt payments all along, and that money should have had an earmark for creditors (oops) or shareholders on a pro rata basis. I suspect that they were collecting the debt to pay Brooke's creditors, and that might be worth looking into. If so, they should have a balance payable to us based on the pro-rata. I have a feeling they didn't set that up and might just paying the lawyers and Brooke's creditors.
It doesn't smell good. Most of the lawsuits filed by the debtors seem to indicate the the debt was sold to another party, and they are suing Aleritas because they have to still pay. What do they think? You borrow money and don't pay it back? Can they loan some to me?
Again, the suits likely have no merit because the loan documents would indicate if the debt was transferable.
Being disolved should mean - sold everything?
Patriot filed suit against Aleritas on 6/14/2010
http://dockets.justia.com/docket/court-ksdce/case_no-2:2010cv02329/case_id-76001/
Kansas business entity site now shows "dissolved"
Can't find anything on the terms of dissolution or whether an estate was established to collect or pay. I might have to look in Pacer.
Registration withdrawn by Patriot.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7307093
The wait continues.
And the Dow is only confirming a general bullish trend:
http://stockcharts.com/charts/gallery.html?s=%24mid
http://stockcharts.com/charts/gallery.html?s=ivv
Dow 11,000. Experienced traders might see significance here. The market loves these breaks, and we might see that IPO.
The filing says "Brooke Credit" which was the name before the name change to Aleritas. So the article was no typo. It merely corrected an error in nomenclature. The loan was most likely written before the name change, so the S/1 reflects the original paper.
It would be nice if the liquidators would have some sympathy on us poor starving shareholders and bust out with a nickle while we wait.
Try this:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7027811
Do you think anyone would accept for loan documentation? I sure could use some cash.
wweeeeeeeeeeee .... if they pay
Got a link to that PMG S/1?
THX
I was just looking at the PMG S/1 filing. It states that they owe $11.1 million.
That is 42 cent a share.
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******REGISTRATION REVOKED BY SEC EFFECTIVE 8/31/09********
http://mgalending.com/SpecialtyLending/Index.asp?AdSource=google&~=
http://financingforfuneralhomes.com/FuneralHomeLending/Index.asp?AdSource=google&~=
http://loansforinsuranceagents.com/InsuranceAgent/Index.asp?AdSource=google&~=
Aleritas Capital, formerly known as Brooke Credit Corporation, is a specialty finance company that originates loans to insurance agencies and insurance-related businesses. Loans are mostly sold as individual loans to participating lenders or as pooled loans to investors through asset-backed securitizations. Our company’s philosophy is to provide customers with the capital to fund their dreams of business ownership and the tools to build them.
7400 College Blvd., Suite 250 Overland Park, KS 66210 Main email address: info@aleritascapital.com www.aleritascapital.com
Authorized Shares: 99,000,000
Source: 10-Q ( 06/30/2008 )
Outstanding Shares: 25,849,137
Source: 10-Q ( 06/30/2008 )
O/S UNCHANGED! Per Transfer Agent >>>
2/09/09 Outstanding Shares 26,394,019
FLOAT unchanged still around 3.5 million.
INSIDERS OWN 86.8%
Specialized Business Loans
Having loaned more that $900,000,000 to business owners, we provide our customers with the capital to fund their dreams of business ownership. Owning a business takes more than just capital. It requires knowledge, expertise, and passion. Unlike traditional lenders - who offer the same cookie-cutter, one-size-fits-all loans to most small businesses - Aleritas Capital specializes in understanding the unique challenges faced by insurance and funeral home professionals, and providing lending solutions to meet those challenges.
Introducing LoanPlus
Unlike most lenders who lend money but little else, Aleritas Capital offers LoanPlus -a new and voluntary value-added service available to all customers that's designed to help them succeed by offering strategies and best practices for building their businesses. Services available under LoanPlus are available at no additional cost to customers of Aleritas Capital. Aleritas Capital has contracted with manay of the industry's top consulting firms to provide the following services to its customers:
Aleritas Capital plans to expand the services available to its customers under LoanPlus to include human resources support, legal support, tax preparation services and much more.
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