IGW REIT – a good investment ?

Are IGW REIT’s distributions sustainable ? Is this a good investment ?

I would say: NO.

My opinion: If you have an investment: get out as the units are worth far less than $1 because the pricing NAV is not the real market net asset value (NAV). The money paid to you over the last 2-4 years has been a return of capital and has eroded your asset value. Invest $100,000 and get 9% per year for 2 years, and then get 50 cents back (unless you get out now). What a great investment ! My opinion: get out while a buck is a buck.


I have an accounting background, but it is getting a bit rusty in my old age. Let’s look at

  1. very high fees,
  2. unsustainable distributions from cash-flow,
  3. inter company exposure and
  4. very high interest rates.

Base of analysis and page numbers are here http://www.bcsc.bc.ca/eservices/Inc/ViewDoc.asp?DocNum=V7G3K6IBK7W1M7KEN6Q1J7PDV7K3&s=False

1. The fees are very high:

on page 151: fees of $5.2m in 2009 and over $7.8m in 2010 .. on revenues of about $25m in 2010 and $15m in 2009 (see page 157). Is this a good investment ? Are these fees reasonable ?

2. Unsustainable 9% Distributions

(page 159) shows cash-flow of about $5m, which is around 3% on investor investments of about $167m (page 45). The distribution is sustainable only with asset sales which is happening a lot lately in the IGW REIT.

Page 19 shows that distributions are from re-financing or asset sales to a large degree and not from operations.

Asset sales lowers equity for investors, namely net asset value, yet with League it always goes up, even in a recession ! That is why they use the legally correct term “pricing NAV” which has nothing to do with real world asset values !

Magic ? Deception ? Legal ? A scam ? Or clever accounting ? Or brilliant marketing ?

You decide !

3. Exposure to other LPs / Inter company loans

Exposure to Colwood LP:

Page 152: exchange of a class B units into a note. See here: In January 2010, REIT exchanged its Class B units of Colwood City Centre Limited Partnership for a promissory note. The exchange was recorded at the unit’s fair value on the transaction date; which resulted in REIT recognizing a gain of $7,828,824. The value of the promissory note is $18,432,362 and bears interest at a rate of 10% per annum. An incentive management fee of $1,567,576 was charged on this transaction by League Assets Corp., which is offset against the gain recorded. This fee is recorded in accounts payable at December 31, 2010.

A nice gain for the REIT, and a nice $1.5m fee for League Assets.

See my other post regarding Colwood LP .. with over $56m in unsecured loan outstanding. Using assets of $259m and liabilities (excluding $60m income priority units) of $128M (page 156) I arrive at equity of $131m. Deduct $56m in loans to Colwood LP I arrive at 50-60 cents on the dollar invested.

More meddling / exposure to the condo conversion project in Hamilton (page 151): During 2009 REIT sold Sundel Square, a mixed-use commercial building in Langley, British Columbia, and Wellington Suites and Rosewood Tower, residential apartment buildings in Hamilton, Ontario to IGW Residential Capital Limited Partnership, an entity under common management of League Assets Corp., for total proceeds of $38,407,000. The transactions were settled through the assumption of existing mortgages and establishment of inter-entity loans.

Deduct $10m or more in loans to this LP I arrive at less than 50 cents on the IGW REIT dollar invested.

4. High interest rates on some loans

Page 42:

Item 4.8 Firm Capital Credit Agreement
The Firm Capital Credit Facility of a maximum of $6,234,017.47 was made available on August 30, 2011, under a credit agreement dated August 30, 2011, between Firm Capital as the lender and IGW Public
LP and IGW Public GP (“Firm Capital Credit Facility Borrowers”) as joint and several borrowers. The Firm Capital Credit Facility matures on September 1, 2012, unless extended pursuant to the Firm Capital
Credit Agreement. Interest at the rate of the greater of Prime Rate plus six percent (6%) per annum and twelve percent (12%) per annum is compounded monthly and payable monthly in arrears.

see page 153:

Subsequent to year end, REIT repaid loans payable from an institutional investor of $5,750,000. In order to pay these loans, REIT secured three additional sources of financing. A loan payable of $1,051,000 bearing interest at 11% is secured by units of Partners Real Estate Investment Trust and is due on July 28, 2011. In addition, PSUs of $537,250 were issued, bearing interest at 11% and due on July 28, 2011. A mortgage for $4,000,000, interest only, bearing interest at the greater of 12% per annum and prime plus 6%, secured by first, second and third mortgages on the portfolio, is due in April 2013.

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1,823 Responses to IGW REIT – a good investment ?

  1. paul dunbar says:

    I get a real charge out of that asshole parkinson still using the league web site that still advertises the league projects

    • Allison Barber says:

      I am watching with great interest the BCSC website and all of the new content re: InvestRight. It is as though they took League’s playbook and made a giant list of everything to watch out for (play by play, including the way scams advertise) when ferreting out a scam. Rather than taking the scammers away in handcuffs, they are going to white wash the entire thing, blame it on investors who did not do their d.d., and say ‘we tried our best’. Unfortunately for people like me, League has poisoned the investment well in Canada. It will be a long time before any investor takes a serious look at Real Estate syndication. Believe me, all of the rules are about to get much stricter, and BCSC will be unscathed.

      • Allison Barber says:

        AND, BCSC doesn’t have to use any of their own (taxpayer funded) resources to investigate League thoroughly…the investors are footing that bill. I am sure that just one look at doing what PWC is doing now (and will continue to do for many more months), made BCSC quail. They knew what a mess there was, and they knew how many investors were involved. We must demand far more from this (very rich) Public body.

  2. Pissed Off Investor says:

    I am sure this article will make you sick –

    League Extends Protection for Member-Partners

    VICTORIA, BRITISH COLUMBIA–(Marketwire – July 23, 2009) – League Assets Corporation – the world’s Intergenerational Wealth(TM) Institution – announced today that it has taken another step in safeguarding the capital of its investors and protecting them against acts of internal malfeasance with the purchase of Executive Liability and Employee Fidelity insurance coverage.

    League manages more than $300 million worth of private real estate investments on behalf of its 1,700-plus Member-Partners – its term for private investors. “We acquired this coverage,” said Emanuel Arruda, Founding Partner, “not because we had to do it, but because it was the right thing to do.”

    “We’re all aware of recent cases where certain investment managers have carried out fraud on a massive scale, and have hurt a lot of people in the process,” said Mr. Arruda. “Our insurance will protect our Member-Partners against the possibility of fraud carried out by employees or by parties associated with League. While we have the greatest faith in our employees, these plans will provide our investors with an additional layer of comfort.”

    “What this also means,” added Adam Gant, League’s other Founding Partner, “is that the insurance underwriters, both neutral third-parties, have taken a hard look at our business policies, practices and standards and decided that they have enough confidence in us to insure us.”

    Both insurance policies were obtained from Aon Reed Stenhouse, a global provider of insurance coverage. It has some 37,000 professionals worldwide and provides insurance and human resources consulting services.

    This action, said Mr. Arruda, is fully in accordance with the Credo that guides all League’s endeavors. “We believe our word is our bond. It should always be worthy of trust.”

    “Acquiring this coverage is part of our commitment to our Member-Partners: to do for them, what we would have others do for us,” said Mr. Gant. “If we can further their peace of mind, then we’ll have done our job.”

    Victoria-based League Assets Corp. manages the IGW REIT, one of North America’s fastest growing private Real Estate Investment Trusts, comprising a portfolio of Canadian commercial, industrial, multi-family residential properties with combined assets approaching $300 million. The Trust exists to find, acquire, improve, and manage real estate properties on behalf of its Member-Partners. Combined with its other investment pools, League is currently managing and developing assets with approximate build-out values totaling $2-billion.

    For more information, download The Blue Book of Real Estate Syndication and Company Backgrounder from http://www.league.ca.

    There are risks associated with any investment. Read the Offering Memorandum for requisite disclosure.

    For more information, please contact
    League Assets Corporation
    Emanuel Arruda

  3. sm says:

    I see from the landlord rescue site a steering committee has been formed
    does anyone know how many on this committee and what is their mandate?

    • I think there is 15 people on it. Basically anyone who volunteered. The first goal of the (Interim) steering committee is to get Fasken to share the list so that all investors can be contacted.

      As the Investor Steering committee has not been organized for long, there is no contact information yet I can share. As soon as there is I will let everyone know.

      • sm says:

        would have liked to volunteer for it,however if 15 people is enough then thats fine if more are needed then let me know

        • paul dunbar says:

          Iam totally surprized that You have never supplied a email addess to be notified as like 100 of us already have?

  4. sm says:

    someone commented that gant had let 80% of his staff go…….if this is the case why does he need $500,000 for payroll?

    • Allison Barber says:

      Probably for the executives: Minuttie, Routly, gant, arruda etc.

      • sm says:

        the whole bunch of them put together aint worth a dollar

        • paul dunbar says:

          one would think that guys like Minuttie,wallace,etc would simply move on and find a honest job? why do leaches keep trying to milk the cow and better yet why would a CCAA court deal allow this??

        • Allison Barber says:

          Don’t forget that they are all deeply involved in Partners REIT. Have you been watching the charts on that POS? These people are bottom feeding pond scum, with resumes similar to G and Mini G. Losers, thieves, crooks and liars. Oh, wait, I forgot: OUR WORD IS OUR BOND, OUR HONOUR IS OUR GLORY

        • paul dunbar says:

          well one good thing has come of this mess.we don’t have to read and or be subjected to Aruddas sickning Christmas message

        • paul dunbar says:

          A league Investor emailed a bunch of us investors and has made this claim?? anyone know what the heck hes talking about??
          QUOTE:To date they have been successful in excluding several financially solid League entities from the CCAA proceedings

        • sm says:

          it would seem that they want to ditch the losers and keep the winners, one fund that i think makes them money is their solar fund out of ontario the other 6 im not sure of

        • sm says:

          another one I believe is the segregated debt which if you look gant bought into a liitle while ago

        • paul dunbar says:

          so one has to assume these are all stand alone identitys and do not involve reit or ipu monies?

        • sm says:

          right,I think another one is the eagle landing lp in chilliwack

        • Cherry says:

          We have a small investment in Seg. Debt II and it’s actually made us money (!), but not if we can’t get our principal back. We wonder if this and the other “stand-alone” things will eventually get sucked into the black hole of League, out of which nothing can escape. Who’s in charge of League’s very few viable entities now? Will we ever be able to get our money out?

        • sm says:

          as current management has done a very poor job of running the reit and other entities it should come as no suprise that if the same management is running these other entities the same results will apply

    • paul dunbar says:


  5. paul dunbar says:

    Fasken will NEVER ever give u this list as it will fall under our lame excuse federal privacey laws
    everyone uses that excuse these days

  6. Doubting Thomas says:

    I noticed that the Petitioner switched lawyers from Davis & Co. to Farris, Vaughn et al. Also in last motion to increase the debt on the Quadra properties to over $9.5 million Gant did not swear the affidavit but some person named John Alderson. Maybe Gant has no credibility to his own lawyers.
    That Quadra property is another screw up. It looks like even if full it might generate an net income just enough to cover the first mortgage. If the net income is a little over $600,000/year and you use a cap rate of 5% you get a value of over $12 million but for that property in that area the real cap rate would be over 6 so there is zero equity. What is the cap rate in Victoria for those type of properties? In Oak Bay it is less than 5 according to some sales that I saw but the Quadra has a reputation even if refurbished and is not in a prime location. You supposedly can build another 60 plus units but given construction costs and the rents that is not feasible. Even if the land was free you can not construct more units and make money.
    Allison is right that only secured creditors have a right to contest the CCAA however are not some of the investors in League secured. If so what is the investor’s lawyer doing, fouchez le chien.
    The other thing we need to do is somehow post the court filings. The PWC site only posts the monitors filings I believe. For us to see the actual court records and files we would have to pay so as a group we need to make sure we have access to the court filings not just what PWC discloses.
    Timbercreek should be the secured creditor contesting the CCAA as it has the most to lose.
    Where can you buy a hajib in Victoria?

  7. Jeremy says:

    As Nov 18 (when Gant is scheduled to submit his proposal) approaches, I’m predicting he will say to creditors, “Renegotiate the terms or League files for bankruptcy.” League won’t be able to secure enough, or any, lower interest financing for restructuring, nor will it ever sell another investment product. And League is nothing without sales of investment products. Therefore, the writing on the wall is that League has no future, and even Gant can read that.

    • PissedOffInvestor says:

      As of now League’s web site is down. I read somewhere Gant fired 80% of the staff. May be the IT guy got fired too.

      • paul dunbar says:

        I doubt he had any choice.How would he pay them? He has no money and no sales? so he don’t need staff.He should have payed attention to me when over 3 years ago I quizzed him as to how may people he was hiring and also asked him why they needed the exspensive fancy offices.Guess I saw something he did not

    • Allison Barber says:

      And the Ponzi collapses. As they always do.

    • Pat says:

      Secured creditors get paid first. Everyone else, including investors get a % of the remainder, if there is a remainder.

      A judge will have to order it, along those priorities of “security”:
      1) receiver and appointed reps such as Fasken
      2) DIP loans taken out (debtor in possession)
      3) first mortgage holders, usually in full plus accrued interest, or if insufficient on the secured asset the first mortgage holder gets the asset free and clear (a so called “order nisi”)
      4) second mortgage holders / collaterized debt across multiple properties in second position (aka Timbercreek)
      5) taxes owed to cities, although they too may be in line with the rest

      The rest.

      The receiver will then go after Gant and Arruda personally due to loan guarantees and as directors. They cleverly hid a lot of asset in trust, so they will also file for bankruptcy and pay little or nothing.

      Since the receiver has no incentive to work fast, and since it is such a convoluted mess, the “rest” will be very very small after 2-3 years of receivership work with millions in fees collected. “investors” better assume they get nothing.

      How many folks have reported Arruda and Gant, and the many League securities sales people, to the RCMP for theft, securities violation, gross misrepresentation, etc. ??

      The crown will take this up, eventually, as they did with Ron Aitkens of Foundation Capital in Calgary, but this will take a while. Investors better get their local MLA involved as the BC Security Commission knew about this for 3 or 4 years and did nothing. The “crown” needs a fire under their ass. Doing nothing will yield nothing.

      Enjoy the show. Maybe this is made into a movie one day.

      Investors, of course, are to blame too, to a degree, as this blog, for example, has been up for 2+ years and people invested a large chunk of their savings based on dubious overly rosy promises without reading, let alone understanding the OM. Diversification, i.e. investing perhaps only 10% of your cash into League would have meant you lost only 10% of your investment.

      Why did people invest 50% or more of their savings here ?

      • Jeremy says:

        To Pat:
        Don’t be so negative. It’s uncertain what IPUs can recover, but it’s still likely to be substantial. You don’t know how the receiver will work, so give it the benefit of the doubt. It will take a few years to liquidate all the assets even in the most efficient receivership. The receiver is not out to rip off investors.

        As to why investors invested so much of their capital in IGW REIT, instead of only 10%, that’s because they were mislead into believing it was safe. If they thought the REIT was so risky that they should risk no more than 10%, they would not have invested anything.

        • paul dunbar says:

          jermy. Don’t pay attention to people like PAT. Arm chair quarterbacks are a dime a dozen in these types of situations .Outfits like PWC are not out to rip off investors but they still rub their hands together when they get handed a pile of shit such as the league has become to apllie their “receivership” services

        • Pat says:

          Let’s not confuse reality with negativity.

          Timbercreek ( http://www.timbercreek.com ) is a billion $ firm with talented lawyers, so they will ensure they get paid every cent of their secured loan, collaterized across a large number of assets. Ditto with all first mortgage lenders. Ditto with receiver, a multi-national firm. Investors are last in line, with all other creditors like the City of Colwood, KPMG the auditor, appraisers lawyers as per the PWC list posted.

          Keep dreamin’

        • Allison Barber says:

          Does anyone know what Gant and Arruda will get paid through this process?

        • sm says:

          they will get paid to much nomatter the amount

  8. Allison Barber says:

    Obviously the Know Your Client rule is un-enforceable, or holds no meaning what so ever. BCSC better get off their collective asses and stop this. I got this email today (expurgated):

    So here is my story…….

    I am a senior, and someone who knows nothing about investing. I was contacted by a League Representative, a lady named Jacqueline Raman-Nair. In discussions with her, I made it quite clear that I knew very little about investing…….she kept singing the praises of the League’s investments and telling me that they were good ones. We discussed my investing and she emailed me the Offering Memorandum but advised me not to bother printing it out. It was 80 some pages and that she instead would email just the necessary pages to sign. At the time I thought she was being helpful but I now feel that she was being deceitful and trying to get me to invest without doing any due diligence.

    In our phone discussions, this lady also kept telling me that the latest offering of 10% return was almost sold out and would be gone almost immediately, but she could hold a portion of that for me. In several phone calls, she said things like…..there was another huge amount sold, the opportunity is almost gone now….you have to move quickly, etc. etc. I was led to believe that there were many qualified investors that were jumping into such a good investment. I was also told that unless I got the signed documents to her right away that I would miss out on the deadline to get interest for that month….in other words, I would invest but would miss the interest payment for that month unless I got it in right away. I realize now these are standard tactics designed to convince people to buy without delay…….to make them think that everyone else is getting in and unless you move very quickly the opportunity is lost. Unfortunately I did fall for these tactics.

    I think the most deceitful part was that when I filled in the necessary pages she had emailed, which I might add by the way were already mostly filled in by her…….there was one page that I remember where you put your qualifications as an investor ( something like beginner, experienced, expert, etc.)…….she had filled in that I was experienced. I am not an experienced investor and I had told her that quite clearly a number of times over the phone. So I changed that on the form to represent myself as a beginner with no experience. When she received those signed documents, she phoned and told me that there might be a problem because I had identified myself as an inexperienced investor. She said that would cause delays because my investment application would have to go through some other people for investigation and that I would likely lose out on the opportunity. She said she should change that on the form back to experienced so that there would be no delay, and that I shouldn’t worry about it. So without really understanding what the problem was with me being an inexperienced investor and with some misgivings, I did say ok, because I didn’t want to miss out on the opportunity.

    There was also one page that I had to sign that spoke about risk and that I could lose all the money. When I asked the lady about this…..she replied that this was just standard legal paperwork……that they had to put that in, but that I shouldn’t worry about it, that this was a safe investment. I was led to believe that it was just procedural but didn’t mean that the investment was indeed a risky one.

    Another thing that happened was that I had to get a professional to witness my and my wife’s identification. There was a list of professional occupations that qualified. I was in such a hurry to get this to her before the deadline for the interest that I got a friend that is an RCMP officer to witness our identification information, an occupation that wasn’t on the approved list. Much later, she emailed me that a review had caught this fault and that it was necessary to get the right professional to witness our identification to make our investment legal. I had already come to the point of regretting this investment by this time, so I told her that I would not do that and that if my investment was not right that she should arrange for my money to be returned. She replied that this was not possible and that she would send my answer on the identification issue on to the investigator and get back to me. She never did get back to me.

    So that is my sad account. I invested $50,000 dollars which represents a good portion of my life savings, money I expected to use in my retirement, money that I guess I will never see again. I feel lost, I don’t know what will happen or if there is anything I can do. I also feel outrage that this kind of firm can indeed operate like this in BC and legally scam ignorant people such as myself out of their money.

    • paul dunbar says:

      There was also one page that I had to sign that spoke about risk and that I could lose all the money. When I asked the lady about this…..she replied that this was just standard legal paperwork……that they had to put that in, but that I shouldn’t worry about it, that this was a safe investment. I was led to believe that it was just procedural but didn’t mean that the investment was indeed a risky one.
      The Above quote is “exactly” what ADAM GANT himself told me over the phone

    • Pro says:

      the question is to beg…… Have you lodged a formal complaint with the securities commission against the salesperson?? complain to securities ombudsman????

      • Allison Barber says:


      • paul dunbar says:

        PRO? u obviously have not been here for the last year and reading about whats going on?
        Complaining to BCSC is akin to blowing smoke out your ass. Complete waste of time
        There as useless as tits on a Bull

      • PRO says:

        ok, let me rephrase that , have you registered a suit personally against the salesperson and LISI?

      • Allison Barber says:

        Wayne, whether or not you personally care for anyone in here, it does not matter to anyone. If you don’t like the language, people, or tone, change the channel.

        • Allison Barber says:

          it doesn’t matter who you were responding to. And typing does not require an open ‘trap’. However, thinking and reason require an open mind.

        • Allison Barber says:

          In future, do not respond to me. You have not earned the right to comment on anything I post.

        • Wayne says:

          Just can’t let it go can you?

        • Allison Barber says:

          Why don’t you try to contribute something rather than pontificate and judge what other people have worked hard to do? I have a 160 IQ. What’s yours? I hold 2 four year degrees. What is your education? Anything else you would like to talk about? Like maybe that women should only speak when spoken to, or stay bare foot and pregnant, or wear a hijab? Contribute or change the channel

        • Wayne says:

          Yup, just what I expected. You really believe you are a “special” person. Above everyone else.
          Talking about judgemental…..look in a mirror….or better still…..re-read your last post.

        • Jeff Cohen says:

          Fasken sent an update to investors on Monday
          If you are an investor and did not get it, it means the league does not have you on their
          e-mail list
          To get on this list, I would suggest e-mailing ‘league@fasken.com’
          CC Jessica.Russell@leagueis.ca
          Point being we all need to get on this list b4 we can sue or try to obtain it, since wouldn’t ya know I highly doubt it is current or complete, we should first try to ensure everyone is on it, etc
          I do think it’s a grand idea however at some point for an investor to ask Faskens for it, and then if they will not supply it, why that is so
          That would be a great reason to try and get E&Y in there, if for no other reason, assuming they would give us the list

        • paul dunbar says:

          wayne? do u somehow think your friend” Jesus will save you??

  9. Cherry says:

    OK…so now we HAVE heard from Faskens – had an email from them an hour ago (12.17 p.m. in BC)

    • paul dunbar says:

      me too its a f–king joke in my opinion

      • sm says:

        what exactly is faskens supposed to do for the unit holders?
        other than further dilute any monies left

        • Allison Barber says:

          SM: Faskens won’t do s.b.a. for the unit holders. No one will. You are all hooped. You need to get on board with E and Y, and at least hope that these criminals are put away. That is about all you can do.

      • paul dunbar says:

        absolutely nothing.We need E&Y even more now than ever

      • paul dunbar says:

        exactly what E&Y told u in the email they sent you.Call PWC and say U want them on board.They need numbers to make it work

      • Allison Barber says:

        Somebody needs to get the investor list from Faskens. They will get paid no matter what, so it won’t hurt them to give up the list.

      • paul dunbar says:

        1. Please distribute the attached letter to other investors you may know and ask them to consider, sign and return the letter to the contact thereon at the earliest possible date; and
        2. Please contact Faskens and request that they retain a financial advisor to assist the investors.

        As you are likely aware, the next substantive Court application in this CCAA proceeding is scheduled for November 18, 2013, we encourage you, with the support of Faskens, to develop an investor steering committee as soon as practical to assist Faskens in representing the interests of the investors.

  10. Cherry says:

    I think it’s time we heard something from Faskens, maybe on PWC’s site – some sort of introductory letter telling us what they’re going to do for us. The offer from E & Y should also be addressed – should we, or should we not, go with them, and why. I have emailed John Grieve at Faskens, so they know I exist, but I’ve had no acknowledgement.

    And hey, guys, know the difference between principal and principle – WE have lost our principal, Gant has no principles.

    • paul dunbar says:

      Cherry Good one on the principle.I think we need E&Y These big lawyer outfits and PWC are so arrogant they don’t give a shit about you and I.All it is to them is business as usuall.If anyone thinks they will get any reasonable or personal service from these 2 parasites your very very naive

  11. Doubting Thomas says:

    The investors should use Ernest & Young. It just completed the Aquattro CCAA and worked with Fasken & Martineau . The people at E & Y in Victoria are very familiar with any prospective condo development in Victoria. I also noted its fees were conservative. You should read the Appraisal of the Aquattro property http://documentcentre.eycan.com/Pages/Main.aspx?SID=142
    Once you go through it you will see that Colwood Capital CIty Center will never succeed AND COULD NEVER HAVE SUCCEEDED..
    Also If the investors got hold of the internal cash flow documents for Duncan City Center you would see that the cash generated covers only the first mortgage and not all the taxes. It in no way covers the 2 other mortgages on the property. It would be best to walk on the property and let it be foreclosed as well as walk on the Colwood property. It is mathematically impossible given the construction costs and narrow profit margin of Colwood to even recover the cost of that underground garage let alone any of the mortgages.
    If the DIP financing is approved it is basically an equity strip. Think about it , the DIP financing has priority to everything on all the properties, it can not lose. The investors lose all their equity and then the other mortgage holders lose the value of their loan. Price Waterhouse and counsel also suck the life out of everything.
    Finally as for a Ponzi scheme, Jeremy is referring to a narrow anachronistic definition. In reality a Ponzi scheme is as the others have defined it- paying early investors with the money of later investors by promising a rate of return that can not be achieved by the underlying investment whether there was even such investment or not. Basically sucking in investors by promising unrealistic returns for the purposes of using and keeping the investors money and creating the appearance of returns by using later investors money to create the appearance of returns.
    Rachelle and Allison have a great defense.
    As for putting the boys in prison, you need to find an ancillary act like diverting monies collected for property taxes away from a shopping center and used for something else not related to the shopping center or using corporate funds such as paying the fines at BC SEC or paying for lawyers out of corporate funds for personal purposes.
    As for tracking funds, as the accounting was audited,it should be very simple to pull out of the records the funds removed from the League.

  12. paul dunbar says:

    Jeremy says:true Ponzi scheme has no real operations (Charles Ponzi and Bernie Madoff, for example), Thats not true as Madoff had tons of investment portfolios( real operations)

    • Jeremy says:

      Madoff hadn’t done any trading for years prior to revealing his scheme. The investment portfolios and account statements of his clients were the work of fiction.

      • paul dunbar says:

        I watched the entire Madoff scandal.He had investments lots of them but was spending more than he brought in on personal stuff.He had a lot of those prime mort. certificats and when the chit hit the fan in 207/08 and firms quit repurchasing them his scam surfaced but he did well for over 20 years

    • Allison Barber says:

      So, how long do you think it will take PWC to see the obvious? How much money will they burn through in the meantime?

      • paul dunbar says:

        PWC are happy campers now as they can reap the benefits of being in charge of the CCAA.They really could care less about the lowly investor.this whole CCAA thing is really just another example of government blundering and interference so outfits like PWC take full advantage of it and its all legal and court approved

      • Doubting Thomas says:

        I think PWC just wants the fees, screw the obvious. Remember Gant hired them so it will take a awhile, like a half million in fees, to see the obvious.You can not turn on him too soon.The PWC people need their year end bonuses.

      • Allison Barber says:

        Look. Gant obviously perjured himself. He obviously ran a Ponzi. Somebody needs to have him arrested before even more money is drained. This whole process is Bu*****t. If he had robbed you of your money in any other way he would be in jail, where he belongs

  13. PissedOffInvestor says:

    Below is Adam Gant and Emanuel Arruda’s lie back in 2006. That’s the tactic they used to con people to invest in League. According to what they claimed the way they invested should not have been affected by the 2008 economic crisis. The outcome as we all know is entire different and Gant is using the crisis as an excuse for the shit he created. I know you read this blog Adam and I am talking to you – you 2 con men should be put in jail.

    Syndicate offers principled private investments
    By BE Ad Features
    Published: 03/16/2006 – Vol. 6, No. 6
    Smart investors know that a properly balanced portfolio includes a significant investment in real estate.
    Economic conditions change, equities markets fluctuate, bad times follow on the heels of boom times. But quality commercial and residential real estate rarely loses value over the long term.
    Wealthy Canadians have understood these basic principles for years, and now League Assets Corp. — a members-only investment syndicate — is allowing like-minded investors of all experience levels to enjoy the same opportunity as their ‘sophisticated’ member-partners.
    Specialists in the development, re-development and syndication of high-income investment properties, Emanuel Arruda and Adam Gant have helped League’s member-partners to take full advantage of the lucrative commercial real estate market within an innovative investment structure that supplies regular monthly income, capital appreciation, and superb tax savings.
    “Our definitive goal is to supply investment opportunities that produce the best returns possible without risking our member partners’ capital,” explains Gant during an interview from League’s head office in Victoria, B.C.
    “Even when the market fluctuates, we’re still able to get a good income. We never allow ourselves to be in a position where we have to sell.”
    Buying ‘right’ means League can always hold on to that property, continuing to generate reliable rates of income, until the market returns to health.
    League Assets Corp. provides passive investments that generate monthly cash flow, equity buildup, and capital appreciation, with preferential tax treatment – all with minimal risk and no liability for debt.
    Here’s how the model works.
    League Assets, along with their partner-investors, help finance down payments to initiate the purchase of large residential and commercial income properties …
    apartment buildings and shopping complexes, for example.
    Later, mortgage lenders supply the remainder of the purchase price by approving and finalizing financing arrangements.
    As Emanuel Arruda points out, League tends to scout for assets that have been overlooked by the market at large. Either these properties have been undervalued or they have been under-managed in the past.
    So, the idea is to acquire these properties at bargain prices and, second, to address – and correct -the issues that led the market to ignore them.
    ” We pursue strategies that decrease the sensitivity of our assets to changes in interest rates, the turn over of tenants, and fluctuations in the economy,” says Arruda. “This way we maximize the income realized from our overall strategy.”
    Adds Adam Gant: “We don’t like to push our luck. By being creative in the way we structure our mortgages and negotiate our acquisitions, we’re able to give our investors solid performance and peace of mind.
    “Our formula is straightforward: We produce a product that entails low risk and high reward — which is exactly the mix for we are looking.”
    Potential partners will also value the ethical component of the League Assets business plan – you can see League’s Credo at the corporate website, http://www.league.ca.
    It’s founded upon the Golden Rule, with an entrepreneurial twist.
    As Arruda explains: “We don’t get paid until the rest of our member-partners receive an increase in their investment returns.
    “As a result, we have a vested interest in making sure that we buy the right properties. We call it our philosophy of positive-interdependence.”
    This is a structural strength of the plan that sets League Assets Corp. apart from its competitors.
    “Where everyone else is looking for way to accrue profits to themselves, we’re looking out for the interests of our investors.
    That’s why so many of them continue to come back and re-invest with us,” adds Arruda.
    “Our roster of partners has grown exponentially” says Arruda.
    “They know that we require no minimum investment and that we’re in this for the long haul.”
    League Assets is continually developing new investment vehicles custom tailored for both beginning and sophisticated investors.
    To find out more, download their eBook “The Blue Book of Real Estate Syndication” from http://www.league.ca, call 1-877-772-8836 (toll free) or e-mail Emanuel Arruda at emanuel@league.ca or Adam Gant at adam@league.ca.

    • sm says:

      in my opinion gant is USELESS and why he is still around is beyond me

      • Allison Barber says:

        D Thomas called it months ago. Gant would take the pile of shit into bankruptcy and get paid his fat fees. Don’t forget that smarmy little snake Arruda. I called BCSC today, and they are still singing that old song, we are doing what we can within the law. BULL.

        • sm says:

          the sad truth is like politicians all these companies involved are like pigs in a trough,they dont give a damn about any of the investors and are like vultures attacking a carcass all the legalities that must be followed are all just to the benefit of these companies
          who initially determined that pwc should be the ccaa monitor?

      • paul dunbar says:

        I think PWC is also useless. its just like you say SM just a bunch of god dahm pigs at the trough.Just like walin,duffey,harb etc

  14. Allison Barber says:

    Their website, what’s left of it, appears to be down.

  15. Mick says:

    This forum is about League. If you want to devote a site to attacks on individual posters then please start one. I have zero interest in reading drivel/drama between you and the two ladies. If everyone else on this website does, then please correct me.
    Rachelle and Allison are not always right. They do not always choose the best way to make their points. Unlike you, they use their real names and are willing to pay the price in Court if their use of the term PONZI was wrong. Everyone can make up their own minds about their credibility and at this point it is more helpful if commenters focus on substantive issues rather than bad mouthing others on matters that have. Been raised before. Whether Allison was a VP years ago in a firm League invested in does not matter to investors today. Can we bring the focus back to discuss things that matter.
    For example, the use of Ernst and Young, pros and cons? Seems like it was a good idea for Harvest Foundation investors. On the other hand it looks extremely expensive. What is wrong with counting on PWC to do the same job?

    • sm says:

      pwc and league are working hand in hand to restructure what is in the best interests of league not necessarilly what is in the best interests of the unitholders e&y is offering to work for the unit holders,more expensive yes but maybe with better results for us?
      I agree with you keep the focus on league and not on individual dissagreements

    • paul dunbar says:

      MICK !!! You are 100% correct. IF IF IF we would have listened to these two galls 2 years ago we may not be in the spot we are in(lost our investments).I think stuart needs to focus on Gants and Aruudas illeagal activitys and not worry about what AJ may have been involved in years ago as it has no bearing on the league and its current ugly situation

    • Mick says:

      The way I see it, PWC has every reason to want to extend the CCAA as that’s how they get paid the most. I have not heard anyone to date provide any fact-based rationale for how investors get back more in a “restructuring” where equity is consumed by professional firm fees, than if the League was to sell off its assets and return any equity to investors. Does anyone think Gant should continue to manage?
      I have heard the comments about how a quote fire sale of assets will destroy value. I don’t believe that auctioning the properties would be worse for investors if they are properly marketed.
      Seems like a CCAA is not appropriate for a company whose main problem is losing money from ordinary operations. Continuing to allow them to get more financing through DIP just increases the secured debt and puts investors farther in the hole.
      If you think about it, the DIP they just got simply adds another million six that comes ahead of investors. Can they really add that much value when they have no track record of ever having been profitable from operations?
      I’d be inclined to say yes to EY so investors are represented by a firm that IS NOT the Monitor, but that’s just my uninformed view.

      • sm says:

        it is incredulous to me that they keep gant on
        how stupid can everyone be to (pwc) see him still paid this is the main reason we are in this situation today yet he continues to be paid and we do not?
        there is no way current management can repair what has transpired so why keep him on?
        Fire his ass with no severence and bring in someone competant ,in my opinion it is our only hope yet I have not heard or seen anyone from pwc or the law firm bring this up.

        • Allison Barber says:

          Not one single soul in here has any say in how this will turn out. Only the secured money has any say.

    • Allison Barber says:

      I still don’t think there is any equity in any of the properties. I still think they over paid for them, created their own NAVs, raised money into them, never did anything to create value, and the ones they have sold they sold at a loss. If there is any equity, believe me, PWC will suck it out. Look how much they charged tax payers to go through Pamela Wallins expenses. They have a license to print money. Your money.

    • Mick says:

      One million dollar investment years ago is not going to change anything for anyone, correct? What I’d like to talk about is the decisions that face investors today. This whole he-said, she-said between you and Allison is not productive for the rest of us. Maybe you two have some history together as you have said, but I for one am not interested in it.

    • Mick says:

      I agree with you that to the extent there is any equity, it may very well be consumed by paying fees. If there is equity, and I believe there is, investors need to make sure it does not get burned up in financing a so-called restructuring. That is why I am inclined to have E+Y. So investors aren’t just along for the ride.

    • Allison Barber says:

      I mean, why didn’t they take all of the companies into protection? There are a few that are actually solvent. Why shouldn’t the investors, who were duped from day one, have a shot at those assets?

    • Allison Barber says:

      I understand what you are saying. The fees are outrageous, all round. I would like a court to say that no more money can be spent until the fee situation is corrected and is equitable for unsecured money.

    • Jeremy says:

      League filing for bankruptcy would be the best news for unit holders. The only card Gant can play is to take on more debt to delay bankruptcy, at the expense of unit holders. Gant will play this card until there is no more money to borrow (eroding unit holder value notwithstanding). No sensible lender would lend to a distressed company, so I don’t know what the DIP financier is thinking. Between liquidation and Gant’s continuing mismanagement, I’ll take my chances with liquidation any day.

    • I want to be crystal clear, Stuart, I have never done any business or been associated with League in any way. EVER. I wasted 2 hours of my life reading the Blue Book and found the IGW REIT Cease Trade Orders on the BCSC website and I knew they were a scam. The only surprise to me is how crooked they are with their 105 companies and how little the authorities are doing to stop them and punish them.

      Why do I think investors should use E&Y as financial advisors?

      1 – The investors are not a cohesive group, they need help forming steering committees to help represent their interests
      2 – The investor list. The investor list. The investor list. The courts will force League to give it to the the Investor financial committee.
      3 – Do you go to your lawyer to do your taxes? No, then why would you expect your lawyer to explain the kind of complex financial engineering that League structured?
      4 – This is primarily a financial/accounting nightmare and the first order of the day is to get forensic accountants on board figuring this mess out.

      Why E&Y in particular? Their work on the Harvest Group of Scam, and their willingness to do the work. Other than that I would suggest Grant Thornton, which is winding up a similar scam here in Ontario called First Leaside.

      I am a self employed property manager, this means that I don’t have anyone who “invests in my business” and if I don’t make money for people I get fired. Since the entire bullshit of me getting sued by League happened this spring, I have spent countless hours learning how to represent myself in a BC court of law, I mounted a defense to their claim and I, unrepresented, beat their highly paid and trained lawyer in an injunction. I said that they were a Ponzi over 2 years ago, and stood behind that. In September of this year, I said on this very blog they would go bankrupt in October. October 10th I broke the news they were filing for CCAA prematurely, and the filed on October 18th.

      Furthermore in a troubling coincidence, the auditor’s letter with League’s most recent financial statements, stated that there were serious doubts the “League was a going concern” That was dated July 19th 2013 but it was only released to the investors in September. Adam Gant, did perjure himself when he swore his affidavit in my case on August 8th that League and IGW REIT was in good financial health. By September 11th when my hearing was held, it was even more obvious that the group of 105 companies was in decline and on the verge of failing, and finally filing for CCAA on October 18th.

      Do you think that a reasonable person might consider it substantially true that a company who has managed to lose up to $350 million in investor money might be called a Ponzi? Because that is the test for defamation.

      Do you think that a filing for CCAA might have changed the Justice’s mind about how League’s reputation was damaged by people warning the public about this company?

      It’s not much that I am winning the case but rather that Adam Gant is losing. I accept that.

    • Jeremy says:

      To Rachelle:
      For your defamation defense, you just have to show that League had income losses in each and every year (see note below), and that with consistent losses, the de facto business of League became not the receipt of rent and interest, but the sale of investment units. The cash flow of League relied so heavily on the sale of units that, without it, League had to file for CCAA in one month.

      Should anyone raise the issue that a true Ponzi scheme has no real operations (Charles Ponzi and Bernie Madoff, for example), League’s operations were only secondary to the sale of units in terms of cash flow importance. Good luck with your defense.

      Note: There were net losses from 2007 to 2009 totaling $7.2M. Net income in 2010 was restated as a loss in 2012 and again in 2013 ($3.4M gain became $3.3M loss then $4M loss). Net loss in 2011 was restated as a bigger loss in 2013 ($6.8M loss became $7.8M loss). In 2012, the biggest income loss of $35.6M was posted, and it was bigger than all previous years’ losses combined. From 2007 to 2012, League recorded income losses totaling $54.6M.

  16. Allison Barber says:

    Gant really plays it like a republican: when you are found out, start taking down your websites:


  17. Allison Barber says:

    I am not, nor ever was, involved in Londondale or Cygnet, or any other project that touched you or your crappy companies. The end. Don’t try to implicate me in your rats nest. I am going to ask Suzi to have you banned from this forum. You do nothing to advance the investors; but then, your job as Value Destroyer precludes that, doesn’t it, GANT….you clown.

    • Allison Barber says:

      This is familiar: re Rand Paul and Rachel Maddow

      “…this is a classic. When you’re getting attacked for something, just accuse your opponent of being guilty of the same thing. Whatever the attack is, if it’s sticking to you, just apply those words in a substantively meaningless way to whoever’s saying it about you, so at least it starts to seem confusing to people or the words lose their meaning.”

      Which is a strategy Republicans often use. They seem to constantly accuse others of doing the very thing they are doing. They claim Democrats are the “big spenders,” yet they run up giant deficits every time they control the White House. They claim Democrats are for “big government,” while they push for Constitutional Amendments that would ban same-sex marriage. Republicans are almost constantly accusing others of doing the very things they are doing.

  18. PissedOffInvestor says:

    Just received this email from Ernst & Young today. I don’t know how they got hold of my email address. They want to be the financial advisor in the CCAA proceedings, not legal advisor. Does anybody see any benefits in that regard.

    Dear Sir/Madam,

    I refer to this office’s previous correspondence regarding the possible retention of Ernst & Young Inc. (“EY”) as financial advisor to the investors of League Assets Corp. and associated entities (collectively “League”) in the CCAA proceedings.

    As you may be aware, on Friday, October 25 2013, Fasken Martineau DuMoulin LLP (“Faskens”) was appointed as representative legal counsel for the investors of League by order of the Supreme Court of British Columbia. Faskens has set-up an e-mail address for investors to contact them directly:


    We have been speaking with Faskens, and other legal counsel involved in the League restructuring, about assisting the investors in a financial advisory role. As you will appreciate, these proceedings are complex given the array of project and other entities involved (more than 105 entities), and the detailed financial assessment and advocacy on behalf of the investors requires sound financial analysis, whether by EY or some other financial advisory firm. Right now EY has NOT been formally retained to assist the investors in a financial advisory capacity. In this regard, we are continuing to look for support from the investor community. There are two ways you can continue to support us:

    1. Please distribute the attached letter to other investors you may know and ask them to consider, sign and return the letter to the contact thereon at the earliest possible date; and
    2. Please contact Faskens and request that they retain a financial advisor to assist the investors.

    As you are likely aware, the next substantive Court application in this CCAA proceeding is scheduled for November 18, 2013, we encourage you, with the support of Faskens, to develop an investor steering committee as soon as practical to assist Faskens in representing the interests of the investors.

    We thank you for your continued support.

    Kind regards,
    Ernst & Young Inc.

    • I’ll be honest with everyone, I seriously think a forensic accountant is required more than anything. More than a lawyer, more than a monitor. I also want the Altus Heyer appraisals from several years ago to come out.

      • Stuart Little says:

        Looking at the creditor list I think it is quite obvious that the reason why Altus stopped doing appraisals was because League didn’t pay them as opposed to any nefarious purpose.

    • Stuart Little says:

      I think that this is a little unprofessional of E&Y. The monitor and Faskens are refusing to recommend them so they are trying top do an end run. I can’t see how investors are complaining that their funds are being used up by PWC and Faskens and then want to have yet another firm come in.

      On the call PWC discussed that their mandate was to determine what happened before the CCAA filing and where funds went. I don’t think at this point we need another accounting firm doing the same analysis.

  19. Cherry says:

    What I don’t understand is why last year Timbercreek would grant a mortgage of $82 million on the Westlock property, when it was clearly worth about $3 million. Was it part of a blanket mortgage? On the Title there’s nothing to that effect ( see the end of Gant’s Affidavit #3).

    • Doubting Thomas says:

      It is a blanket mortgage for over $23 million advanced of which it appears $18 million is secured on Partners REIT shares. It is confusing

  20. Jeff Cohen says:

    Yes, some people may have hired a lawyer for 30% of their principle though I would guess that lawyer would have to petition the court to be able to represent those investors and so far I have not seen anything as such on the PWC website

    Others have asked E&Y about representing them but again no such petition has either been filed or at least agreed to in court

    My assumption, for now, is that Faskens solely represents all investors in these proceedings but if some investors are not happy with the end result they will re-consider having their own counsel

    Of course some may disagree with my assumption

    If other(s) here have gotten personal legal advice it’s not something that has been readily shared on this forum, not should it, all the investors have differing concerns, depending upon the type they invested in, and the timeframe, etc, and the moment investors think their principle is actually gone, it’ll change the dynamics

    • Allison Barber says:

      If the non-equity in Gant’s personal residence is any indication of the assets that are left after PWC determines there is no equity anywhere in this mess, where did the money go? I understand the extremely high overhead in Vancouver and Victoria, and lord knows where else, and all of those minions on the payroll, but I just can’t believe that $300M has vanished. It has to be somewhere. I maintain that they knew what they were doing in 2007, and structured this thing to be profitable for only two people.

      Buy high sell low, do it with other people’s money so you have no skin in the game, and take ridiculous fees all along the losing path. Some business plan. I think I’m gonna get me a coat of arms.

      • Doubting Thomas says:

        Alison; could you forward that KPMG analysis of the non feasibility of League to
        Heather M.B. Ferris

        the Export Import Bank is carrying the motion to set aside the CCAA order and I think if she sees that KPMG questioned the League years ago maybe she can wrap her mind around the assertion that it is a Ponzi scheme.
        Open a conversation with her because if she can show the court that it is a Ponzi scheme it only helps the defense of the defamation case.
        I think that the Hong Kong Securities Commission needs to be advised that Harris & Fraser is now controlled by an insolvent company and its directors have plead guilty to securities violation. There is no legitimate reason for any League money to be used to complete the purchase of Harris & Fraser if it can not operate it and that goes for the purchase of Forbes which is a licensed investment adviser in Ontario.Ontario SEC needs to be informed too. It looks like League wanted those companies in order to get control of the investors portfolios and then sell them the League POS

      • Allison Barber says:

        Thomas: done. You are absolutely correct about all of these sharks taking control of the process, and spending far too much money doing it. It is simple. It was a scam (A BIG SCAM), and it is the sort of scam that we as citizens should be protected from by our government. BCSC had better step up soon. They had to have known the depth of this. If they didn’t they aren’t doing their jobs. But, I have no faith at all in government. Talk about blood sucking sharks.

      • Stuart Little says:


        The KPMG “analysis” is clearly a doctored document. Two documents have been pasted together to look like one. They don’t even properly reference each other and the letterheads are different.

        By all means pay a lawyer to tell you that but I wouldn’t be relying too much on them.

      • It’s not a doctored document, it is two documents. One is the analysis by a company called Genesisland by Arthur Wong and the other is emails between Arthur Wong and Dennis Auger of KPMG (Senior Partner). What is most shocking to me is that neither one of them seems concerned that League is not profitable in it’s core business and that their source of income is fees from investors. What they go on to discuss in their email is the complicated tax reduction strategy employed by League and discussed in the Genesisland document.

        The proof is in the pudding. The report is there and KPMG had it. Did KPMG do their job as auditors? Not until July 19th of this year.

      • Allison Barber says:

        Stuart, you are absolutely wrong. Again. The communications are between Genesis Land (a REAL developer who creates VALUE) and a senior partner at KPMG discussing the tax implications of IGW, the viability of the business plan, and the past record of the partners (none, except that they lost money). Nothing has changed except little league got out of control before all of the investor money was lost.

      • Allison Barber says:

        Implicit? No. complicit? Likely. Shut up gant.

    • Stuart Little says:

      Some investors have either banded together and/or hired legal council and have been added to the notice list that PWC is maintaining. At this point most REIT investors have similar issues and claims, that is why the court appointed council to represent everyone. At some point that may change and investors can hire their own council. I really doubt that any lawyer will take this on straight contingency. I am seeing lawyers asking for 30% plus fees of $5K or $10K to start but that is not the same thing. Having a lawyer doesn’t get you treated any differently then anyone else in the same class as you.

      It is fairly easy to see where the $300M went. Read the financial statements and you get a pretty good idea of what was purchased and what salaries are paid. Unless I am missing something, I don’t see any huge chunks of funds un-accounted for or in offshore accounts.

      If I was Gant I wouldn’t be building up lots of equity in property that I had leveraged and secured to the hilt either.

      • paul dunbar says:

        I agree its fairly easy to see where the 300 million went:.50 million in fees,75 million to colwood and Duncan, 30 million in losses,23 million to PAR.UN, etc

      • Doubting Thomas says:

        Nobody has seen the books for the GP’s that charged millions in fees for supposedly running everything so nobody can say that millions were not skimmed- millions as in a few million not massive millions.
        Why hire an independent lawyer when you can make your court appointed representative answer questions. He should be happy to respond to investors as the more hours he spends the more he makes.It would be unfair that he could not use the CCAA like the monitor and its lawyers to burn through investor equity.

        here is a quote from an investor in the Foundation Capital Harvest case in Alberta:

        The cow has already been milked. Like I said we are over $18 million in fee’s the land is probably only worth about $80 million (for all the investments). How can a standard CCAA with boiler plate documents, a copied plan, cost that kind of money? The Monitor has way overstepped his bounds, and is milking faster a his hands can milk. Court appointed and $1250/hr that is criminal for simple accounting… A forensic audit is only $100,000.00 if we did that on all the projects that is only around $1,200,000.00. Around 1/5th of our recovery is going to the CCAA “Professionals”, how does that make you feel after being victimized for the first 70%
        The “Professionals” have conveniently placed themselves in the drivers seat of a well oiled and financed machine they themselves over time have created, the hard work and savings of the investors that brought us here to this point notwithstanding. If they are THAT broke in their businesses that they need these obscene rates, then perhaps they should move their businesses and Skype to the back seat of an old Dodge car and start over. I don’t mind paying for good and reliable service, but if these rates are what you suggest, then I like the others demand results.
        The League lawyers and their B.S. OM’s created the mess and now the CCAA will reward them again.

      • Stuart Little says:

        League had 130 or so staff. Assume $50K average salary plus 40% overhead costs and that is $9M a year right there. 5-6 years and $50M gets spent pretty quickly.

      • paul dunbar says:

        its becoming more apparent every day that these guys have lost money from day one
        no doubt in my mind as I look things over daily.They made some money on some stand along LP ventures but those were of no benefit to IGW what so ever.Iam starting to think that maybe this was in fact a PONSI scheme

        • Jeff Cohen says:

          Not so sure Paul all of us will come to that conclusion but it does seem apparant that as real estate investors they made a series of poor choice(s), that whatever criteria they used was faulty

          However if they had kept to investing in income generating real estate, the losses would only buildings they had sold for less and mgt costs, we could all walk away with something, if not 75% of our collective principles

          I’ve been saying all-along their worst ‘crime’, their worst investment decision, is still loaning nearly a 3rd of the pool for private projects, that did not return cash, nor generate income, has anyone ever considered that maybe the whole idea of league was set up just to finance these projects, in a sense we were a big bank, and our funds were used to prop up all the other mortgages, etc

          Personally, I think we’d all have an easier time proving this, because the loans look ‘funny’ than anything legally criminal from the get go, though IMO loaning a REIT pool for one own’s projects borders on a case of humungous mis-representation if it can in fact be proved

      • Stuart Little says:

        The League plan was to invest in 3rd tier strip malls and commercial properties with high leverage, clean them up and then flip them. If the properties increase in value by 10% they double their initial investment. Problem was that if the properties decreased by 10% then they lose everything.

        Colwood and Duncan were likely ill advised based on the original plan.The OM’s gave them broad discretion on how to use money raised in IGW REIT and they appeared to have relied on that heavily.

        • Jeff Cohen says:

          Ok Stuart, but it’s not just Duncan and Collwood, it’s also Ft St John, another property in Vaughn, etc, there is a pattern of diverting the IGW & IPU pool funds away from safer income generating 3rd tier strip malls to much riskier grandiose projects, none of which the REIT own(s)

          My point is they published marketing material telling investors one thing but in practice they were actually using more than a third of the REIT, if not half, to fund finance personal ventures, and unlike banks and mortgage co’s whom require balance sheets etc, there was no accountability concerning the loans

          IMO (right or wrong) that’s the ‘crime’ here….

    • Allison Barber says:

      So now, Stuart, tell us how you got to see that document.

      • Allison Barber says:

        Go away, Stuart. You have NO STAKE in this, if anyone believes that you got your money out. DO NOT refer to the ‘we’ in this unless you are a stakeholder. Your constant attempts to side track the discussion make it patently obvious who you are. You have no conscience, no morals, no integrity and no…well we all know the end of that sentence.

  21. kam says:

    has anyone here gotten any legal advice?

  22. Doubting Thomas says:

    Stuart: on pages 5 & 6 of the Monitors Report, the Partners Reit shares are listed as having a value of $23.9 million and $18.1 million of debt secured against them, which is Timbercreek’s charge, leaving $5.8 million of unattached equity. As the use of and loss of that equity does not affect secured creditors only IGW Reit unit holders, the secured creditors would want the DIP lender to take that equity as security for the initial advance of DIP financing.

    • Stuart Little says:

      The value of the Partners shares varies of course based on the stock price. On the PWC call the point was made that there are so many cross guarantees between entities that it is going to take a while to sort out what is what.

      I took a brief look at the motion materials filed today and it looks like the DIP lenders are taking mortgages on a number of properties as security. The court appears to have ordered that these mortgages and Faskens debt take priority over other secured debt.

      Turns out Maxam only organized the funding, there are 3 seperate entities providing the money in traunches. Also looks like Faskens have been authorized to spend up to $150K for now and not $250K as they wanted.

  23. sm says:

    so stuart if you were an investor were you able to get all your money out?

  24. sm says:

    so stuart did you and arruda have a falling out?
    you were so close for so many years,did you kick him out or did he quit?
    how many millions do you think he took with him?
    are you still in contact with him?
    you once said on this blog you are not gant are you lying? a few people seem to think you are

    • Stuart Little says:

      Only Allison thinks I am Gant. Gant posts under his own name. If anyone took 5 minutes to read my posts then you would know I have been just as critical of League over the years as anyone else – I just don’t call people criminals.

      You may not agree with my comments and that is fine, check my track record of predictions though. The most recent was that Faskens and DIP would be in and E & Y out.

      Unlike Allison and Rachelle, I was an investor and have an actual education. I tell you what is going to happen and what the risk are without all of the drama and defamation.

  25. Jeff Cohen says:

    I’m wondering how many people here listened to the PWC phone call? – One thing no one hasmentioned was that our PWC rep accidently mentioned why the league sought protection – Two creditors wanted to foreclose – So in fact the League is not doing any of this, no matter what Adam or anyone else claims because they want too and or it’s good for investors, they had no choice, and that’s why unless PWC satisfies those two creditors in the next 30 days, it’s over, in fact I’d say those 2 creditors likely decide how this all plays out

    • Stuart Little says:

      It is good for investors in the sense that if the secured creditors foreclose and force a liquidation then the investors and unsecured creditors will get very little if anything. League would have had to initiate the CCAA protection so in a sense Adam is correct.

      Moot point anyways, PWC states on their website this morning that Faskens has been appointed and the DIP financing is approved. No doubt a few people wanted to force a liquidation but the court saw otherwise.

      • Doubting Thomas says:

        It will be interesting what the DIP financing looks like. On the PWC site under Motion Materials here was an affidavit filed as the share price of the Partners Reit shares. Wonder if that supposed $4 million plus of Partners Reit share value was used as security for DIP.

      • Stuart Little says:

        The Partners shares are worth about $30M – not $4M. The DIP financing will sit in priority to all other debt.

  26. sm says:

    het stuart old buddy sm here haven’t heard back from you on that offer to sit down and have a beer,
    but that’s okay I have a better idea
    why don’t you and me jet on down to brazil and hook up with your buddy arruda? or did you once say you had a place in belize?

    boy I bet the stories ,you can tell we can all have a good laugh
    so give me an e mail and let me know!!!!

    • Stuart Little says:

      Sorry, not into S & M

      • Investor says:

        I am investor in both Colwood and IGW REIT. For some reason when I log into my account, my IGW REIT CLASS AAA shares now show a value of .83 cents, down from .94 after that whole Nav thing.

        Just wondering if anyone noticed this?

    • Allison Barber says:

      If Stuart isn’t Gant then he is someone on that creditors list. I have a couple of educated guesses as to who that might be.

  27. Doubting Thomas says:

    Stuart: The Romspen judgments are registered against the individuals separately not jointly with the League and as Gant and Arruda are not part of the CCAA personally the creditor can proceed to collect individual judgments irrespective of the CCAA.They get no protection.It is also a question if creditors can act on other guarantees that typically say banks can go after the guarantor and not the actual borrower

    • Stuart Little says:

      Thanks for the explanation DT. I haven’t read the guarantees so I don’t know how they were structured. I would be suprised if action can proceed against a guarantor if the debtor is in CCAA unless that was contemplated in the agreement.

      I am suprised that the court proceedings are taking so long today. Must be some of the secured creditors raising a fuss.

    • Paul Dunbar says:

      I will tell u guys a true story.I looked at a ROYAL Bank foreclosure on a building In salmon arm.There were 3 mortgages on it.IT was about a two year period from start to finish so dont exspect anything here to be done at a reasonable speed.This Guy for over 3 years never paid the building taxes and for two years never made a payment
      YET and get this as this is unbeleivable.He collected the rent money to the tune of 65K PY and the royal Bank never did a single thing to stop the guy.I wrote out a written complaint to Royal head office and asked them where there brain was in this thing?
      BIG surprize here though. I never received a answer.got the old we cant comment as of privacy laws Blah Blah Blah.I was pissed off because every time I go get a business mortgage or line of credit etc they want to charge me like 4K for a application fees etc saying it cost them X number of dollars to process and office costs etc etc and yet these assholes(royal bank) can waste money wantingly on this deal,Makes no sence.

    • Pat says:

      Secured creditors get paid third, after receiver takes their enormous fee. Second would be CRA if they have a charge on title. Not paying GST or judgments eventually means jail time for Gant and/or Arruda, as they both are directors and had personal judgements against them. But this will take some time, likely years. Secured creditors means all mortgages. Thus, first mortgages get paid after receiver and CRA, then second mortgage i.e. Timbercreek or Rompsen. Then everyone else. Due to the size and inter-corporation mess this will take two to three years I’d say, especially since some second mortgages are secured by the fairly large IGW REIT. IPU investors might get pennies on the $s. Might. Equity investors will get nothing.

      However, there are two to three large entities with billions in assets that a civil lawsuit can go after, and settle: KPMG, the auditor, that did not value the Colwood loan to IGW REIT properly under IFRS, and did not disclose the true risk properly as a going concern. Possibly also the BC government as the BC Security Commission did a shoddy job of regulating and cease trading League despite evidence for years by dozens of individuals. Possibly also Colliers for an inflated appraisal on many of the assets, especially the construction site Colwood.

      Arruda, as one of the two actors, will watch the finale of this production from Brazil, with millions of fees collected. Does Brazil have an extradition treaty with Canada ?

      • Stuart Little says:

        I find it amazing that people with so much to say about this process REFUSE to listen to the PWC call. PWC CONFIRMED that at this point the financial statements appear to be accurate and that the $82M in equity shown in IGW is correct. They said that Colwood equity of $120M was likely overstated but that was because it was recorded at book value and properties under development are usually worth a discount to book.

        That opinion may change as we proceed through this process but I don’t see how you guys keep jumping to the sue KPMG and sue the Government angle.

      • Paul Dunbar says:

        PWC CONFIRMED that at this point the financial statements appear to be accurate and that the $82M in equity shown in IGW is correct.
        OK but is not up to PWC to account for where the other 208 million was spent?? we know where a lot of it went should they not do a accurate account so we know for sure?Also I dont like the term “appear to be accurate”??? Based on what?? they have not had enough time I dont think to be able to do a proper independent present day value estimate on all IGW holdings.
        I SERIOUSLY SERIOUSLY doubt Colwood is worth even close to 120 Million.Should they not be out there getting independent appraisal
        I mean if it is that,s a feather in our Hat so to speak cause i,am under the impression its only worth like 30–50 at best???

      • Allison Barber says:

        shut up gant

      • Jeremy says:

        To Pat:
        If you think IPUs will get pennies on the dollar, then you should doubt whether all secured creditors will be fully repaid, because that is a narrow margin. According to the 2013 balance sheet, after the secured creditors are repaid, and all the Colwood and Duncan loan receivables are written off, and the remaining assets are sold off at 60% of book value, IPUs will still recover 70%. I agree that no matter the outcome, common shareholders (equity investors) will get nothing. (Paul Maclean at League head office even confirmed that common shares are worthless.)

      • Stuart Little says:


        At this stage nobody really knows what anything will be worth. Need to wait until the 18th when PWC reports back for a better idea.

      • Jeremy says:

        To Stuart Little:
        I agree that any calculation of what IPUs can recover has too many assumptions at this point. The only assumption I’m confident in is that restructuring is impossible, because there is no new lender for League, and existing secured creditors are better off with receivership than rate concession. Gant said that IPU holders have the most to lose in receivership (and I know you side with Gant on that statement), but I think IPU holders have more to lose if Gant continues to run the company (into the ground).

        • Allison Barber says:

          Gant has never done anything but run companies into the ground. He has NO education, NO experience, NO morals and NO problem taking money he has no right to. He has done it in such a sickeningly convoluted manner that the top accounting firms in Canada are having trouble untangling this disgusting, stinking rat’s nest.

      • Stuart Little says:


        The PWC site stated today that the DIP lending has been approved so $31M is being loaned to League. I didn’t say that the IPU holders have the most to lose, I said that Faskens and PWC both said that everyone loses in a forced liquidation occurs because assets will get sold at firesale prices.

        An important point made by PWC on the conference call was that there are many types of loans and debt and that they haven’t sorted out where each class ranks yet.

      • Jeremy says:

        To Stuart Little:
        League has obtained DIP financing to pay taxes and payroll, but for restructuring, League must lower its interest expense, and that is what it can’t do. League can’t avoid being crushed by high interest burden, and Gant is learning he can’t build an empire on debt. That is why liquidation is the only way out (unless IGW REIT is bought out by another REIT).

      • Jeremy you are exactly correct. The DIP financing is the lowest interest mortgage I have seen on any of their properties. The first step to League restructuring in any meaningful way would require Adam Gant to step down. The financial markets have spoken to him and have been speaking for years. We see you as a risky risky guy and even if you have secured the mortgage we will charge you the same rates as we would charge an average Canadian for unsecured credit credit cards. I have a TD card at 12%. It’s utter insanity.

        If they found a manager with some real background in the industry with some real chops, they would likely get better rates with better lenders based on reputation alone.

      • Stuart Little says:

        Sophisticated investors will decide whether to do business or not with a company to some extent based on the team running it, but interest rates are based on the risk profile and assessment. Even if League brings in a new CEO I wouldn’t expect creditors to just drop their rates as a result.

        Now CCAA provides some options and creditors may decide to take a reduction in their debt as a result of the process.

      • Speculate all you like about what the outcome will be for banks and other secured money. IMHO, if the investors are not made whole, then an entire system has failed them, not just one megalomaniac and his side kick.

        (You got some splainin’ to do, Manny.)

        • sm says:

          during any restructuring one of the first things to look at is upper management as past performance is usually indicative of future performance,one of the best things to do for us is to bring in competent management
          just look at sears they are restructuring with new management

      • Stuart Little says:

        Not arguing with you on the need for a fresh look at things. Sounds like Manny is already gone so at least you should be 50% happy!

  28. sm says:

    the only way investors are going to be able to figure this all out is by using a forensic accountant
    wether it is pwc or e&y doesn’t matter and I don’t mean just looking at their financials which they provided
    it boggles the mind how much money these guys seem to have lost
    we need an accurate assessment of all this written out so the average person can understand it all.
    not only were they not paying investors it looks like they weren’t paying anyone
    absolutely unbelievable to me

  29. Cherry says:

    Sorry, sorry – I see it now. I thought it would be available online, but it seems that you have to dial it up.

  30. Cherry says:

    Where is the recording of the conference call? I can’t find it on PwC’s site.

    • Paul Dunbar says:

      CHERRY?? Ray Charles could have found this on the web site:
      To follow up on yesterday’s conference call, we advise that a recording of the call can be listened to by following these steps:

      Dial 1-855-859-2056
      Passcode for the call is: 90525848

      The call will be available to be listened to until October 30, 2013, at 9:00 pm PST.

      • Allison Barber says:

        Be nice, Paul. It makes no sense to beat other people up. This is all very new to most.
        Unless of course, you want to beat up Stuey.

      • Paul Dunbar says:

        Thats just me being my funny person today.relax
        I will be out of the office from Friday nite till tuesday morning so if I dont come on here and give anyone crap thats the reason “Elvis has not yet left the building”

  31. Doubting Thomas says:

    Rachelle: Thanks to Allison I could finally download the trade creditors. You are going to piss in your pants- Crawley Meredith and Bush, the lawyers responsible for the defamation lawsuit are owed over $78,000. Also all the other many lawyers that League used for its nefarious purposes are owed over $1.7 million and finally KPMG is owed over $1.4 million.
    A whore in any brothel knows better to collect from the John before he leaves the building. The lawyers need a field trip to a brothel to see their counterparts and learn about making money.
    As for Manny, his lips better be on the other side of a glory hole making money. Gant will not go down alone and when Gant’s examination is taken on the affidavit he will give up Manny. Gant’s wife will be tracking down Manny when their house is sold to pay the judgments. This is a great story for reality TV.

    • Paul Dunbar says:

      why were u having trouble downloading the list of trade creditors.Its pretty simple act to follow??? (downloading)

    • I saw that myself Thomas, other than reading Stuart’s posts, that one line item caused my great joy. I even sang a little for the first time in months.

      What blows me away is the amount of credit people are willing to extend to Mr Fancypants Gant. Everytime I call a lawyer they want my money first, work second and they tell me that “the fund” will need to be replenished periodically.

      • Paul Dunbar says:

        well I guess for now we wait Till Nov 18 and see what,s presented and go from there
        No matter who I scream at or call a crook its the same ugly situation at the end of the day.One thing that dismays me is the amount of people I know invested and most seem to think they will get there money back and actually beleive Gants last email Rant to investors about how all thats wrong is cash flow.that just kills me

      • Allison Barber says:

        The judgements are in favour of Romspen

      • Paul Dunbar says:

        Allison Barber says:
        October 25, 2013 at 6:22 pm
        The judgements are in favour of Romspen AJ? what post is this in reference to??

        • Allison Barber says:

          Thomas said that the people who have the judgement’s should put the pressure on, because they will be able to find the assets.

      • Stuart Little says:

        Listen to the call. The CCAA process suspends all collection and enforcement actions. There is no pressure to place on anyone. Wait for November 18th.

    • Stuart Little says:

      Now here is the part that will warm your cockles. Faskens was the firm that worked on the Eron deal. At the end of the day the founder of Eron was charged with fraud and the investors received some of their money back. Although nobody has proven any fraud in this case and that may or may not ever happen, I don’t see Gant walking away from this unscathed. Unless he magically finds a way of restructuring this deal such that everyone comes out near whole, I think that the sheer magnitude of the amounts invested and the number of investors will force regulators and the courts to make him to give up at least some of his gains. Manny may in fact be long gone so who knows what will happen there.

      The Allison and Rachelle sideshow nees to stop as it is just harming the actual investors at this point. I pray that the two of you don’t show up at investor meetings and try to distract the issues any further.Let the process run its course and on November 18th we will get the recommendation of the monitor and Faskens and know what to do.

      I think that anyone who actually listened to the PWC call and still thinks that they should have Allison and Rachelle represent them instead of PWC and Faskens needs their head examined. The two of you remind me of the robot on Lost in Space running around in circles.

      • Allison Barber says:

        Shut up Gant. Nobody ever suggested that we ‘represent’ the investors. Jeeeeeeees you are one serious dumbass

      • Doubting Thomas says:

        I see Allison and Rachelle rallying the troops and have done a good job. I do not think they want to represent anybody but just keep the pressure on.
        After Paul got details on Gant’s house I take back my assertion that they moved money offshore.If you are a developer who has not protected your house for your wife and kids from business creditors then you are too stupid to have moved money around and the more I look at what these clowns did, they are inept at doing things correctly.
        They spent about $1 million in fees on that Partners proxy vote and wasted about $2 million buying Partners shares and accomplished accomplished nothing in the long run. What is worse the unpaid fees are now part of the claims of trade creditors which are expected to be paid by the investors.That is true idiocy.
        We need those 2 creditors who have judgments against them to start aggressive collection activity . That process will locate assets now.
        As for criminal charges, the only way they will be convicted if it is shown that they diverted money unlawfully from one project to the other. I see the Indians are owed about $1 million for taxes on Duncan. That money was collected by League from the tenants to pay taxes. If the money went into the League account for Duncan and then was used to pay Duncan expenses and that caused the shortfall , no criminal intent. However if money left the Duncan project and was spent elsewhere then no matter how you frame it, theft.
        I can see the Indians making it real tough to put DIP financing in place on Duncan. As for Gant saying that the funds were held back to force the Indians to get a service agreement with Duncan, well Maxam appears willing to do a refinancing without such agreement and where are those funds that were held back. I think white man speak with forked tongue and Indians have a clear shot at forcing a criminal investigation. Gant is about to scalped.

      • I think Gant’s assertion that he “withheld funds” from the Natives is a little facile. Wouldn’t it make more sense that Mr Gant stopped paying the natives and they refused to deal with him anymore? This is as most people are prone to do. Frankly, most of the business people start out very positively with Mr Gant and then end up either suing him or being sued by him.

  32. sm says:

    I think stuart little is a stand up guy
    he fully understands the turmoil that the executives at league are going thru
    his no nonsense explanations of the problems that management is going thru bring a swelling in my chest of the pride I have to be able to read his brilliant and thought provoking responses to many of the ills that investors claim to be going thru
    lets go have a beer and talk about how you understand management
    just send me your telephone # and lets get this ball rolling ……..OK

  33. Stuart Little says:

    Listened to the call.

    PWC and Faskens were excellent in my opinion. Lots of experience and definitely on the ball. We will all have to wait until November 18th for the first report to the court to get the full picture. Adam also mentioned that the $500K people here have pick up on is the payroll for all of League and not his salary.

    • Allison Barber says:

      Shut up Gant. You crook. Gawd you make me sick

      • Stuart Little says:

        I would encourage EVERY investor to listen to the call on the PWC website and make your own determination. PWC and Faskens make statements and provide supporting documents which are the polar opposite of what your are being told here by the people who wish to represent you. Perhaps PWC and Faskens are liars and crooks as suggested but you need to draw your own conclusion.

      • Paul Dunbar says:

        I agree where did anyone say they were Crooks? Not sure if i spelled Crooks correctly as I saw it spelled this way GANT in one place and this way in another ARRUDA so not sure of the correct spelling? anyone know which is correct of the 3 ways?

      • Stuart Little says:

        Sorry. Got my crooks mixed up. Gant is the crook and PWC are just fools. Straight now.

    • Paul Dunbar says:

      payroll of 500K ? but how many of these people actually worked for the league and not LISI etc.or whoever? Here in again lies the same problem.Money in the bank,Income from properties etc is being used to finance NON league investor issues .These Guys Took 48-50+ million in fees and they charged all operating costs to the IGW reit investors.Interesting because 3-4 years ago when Gant was Bragging about the new upgraded fancy offices they were moving into etc i questioned him where all the money come from to pay for this shit that in my opinion was not needed.he said that it was all paid for from fees etc.and the investors were not billed for this.BS just more BS

      • Paul Dunbar says:

        Forgot to mention this was after they reneged on the advertised investment returns promised me when i signed up 10-11-12-13-14% never went over 10 and reduced to 7.28 and yet they had tons of dough to build lavish offices etc

      • Allison Barber says:

        Paul, check your email, please.

    • PissedOffInvestor says:

      Stuart Little / Adam Gant,

      You have no credibility and you said you are not defending anybody. You liar.

  34. sm says:

    if everything goes according to plan,gant should be living under a bridge when all the creditors are done with him
    or maybe he will move in with arruda and the 2 can fantasize about how great they were

    • Paul Dunbar says:

      I talked to a Investor out of vancouver today.He calls me once in awhile when he wants to vent and iam a good listener.He phoned Gant and asked where Arruda is? He said he,s out of the league completely? I cant understand how that is possible?Also I can not see any monitor letting that debt claim by Arruda ever being honored
      that would add insult to injury but all one has to do today is read the news and read about that asshole conservative senator Don Plette out of winnepeg actually has the gall to stick up for the Fat Pig duette of Walin and Duffy so one never knows what another persons view is when in power to be the judge of such things

      • Stuart Little says:

        Liek anyone he is free to quit if he wants. Good news is that he doesn’t get paid anything. If he owes money to League then the monitor will make sure that he pays it like any other debt.

      • Paul Dunbar says:

        hes claiming hes owed money the way i read it?

      • Paul Dunbar says:

        besides he can not quit.Its not that simple.he is as liable as Gant is.

      • Paul Dunbar says:

        Actually its a mortgage claim for $356484.00 and a creditor claim for $8736.00
        Interesting as there a creditor claim by a Guy Grant for $3000 out of kelowna where Gant was from

      • Allison Barber says:

        Manny cannot get out that easily. He is a guarantor on loans, and signed everything that went out of that rats nest. He is probably gone, as I said over a month ago, but he is not out, as gant wants you to believe.

      • Stuart Little says:

        Even better then. Arruda gets no more salary and won’t likly get all that he is owed either.

        • Allison Barber says:

          How can he be OWED anything you moron? He took half of over $300M!!!! You really need help Gant. You are so delusional it is pathetic.

      • Stuart Little says:

        Just so we are straight, you saying Manny stole $150M? This went to his offshore accounts presumably?

      • Stuart Little says:

        So Allison you want the monitor to fire Manny but if he quits then that is a problem? I just assumed he quit, if all we know is that he isn’t there it is just as likely that he was fired. Happy now?

      • Allison Barber says:

        Shut up Gant

    • Paul Dunbar says:

      I sent a long detailed email to this guy to tell him whats really going on with the double dipping of fees and money lent without a payment return stream etc Be interesting if he replys

  35. Our friend Mr Gant was in the Times Colonist today…
    I’m glad he’s going to change. A good first step would be foregoing payment for his “services” to fix his own mistakes.

  36. Allison Barber says:


    • Paul Dunbar says:

      heres another deal. The IPU holders and IGW reit holders are getting screwed big time as most all the debters are owed money on the colwood project which has nothing to do with us other than we via poxey so to speak lent them unsecured loans

      • Allison Barber says:

        Has Maxam agreed to the DIP?

      • Doubting Thomas says:

        Paul; You can now see why DIP is a way to rob the innocent. You need to get the investors appointed lawyer and E & Y and scream . That lawyer is about to suck up $250,000 from the DIP too. Why not sell the Partners REIT shares if there is over $4 million unsecured?That would have created all the liquidity needed. Something is wrong here

      • Allison Barber says:

        You are correct DT.

      • Stuart Little says:

        I think that investors are better served with legal representation at this point even if it costs $250K. E & Y will cost multiples of that and there is already a monitor in place. I understand that a number of people are desperate to try and prove fraud and hope that E & Y will do that for them, but the existing monitor is also charged with that as well.
        In any event, the DIP and Faskens deal are going through and E & Y will not as there is no motion to the court to bring them on.
        You are right in that the DIP lender is in a great position. If League successfully restructures they get paid. If League moves to bankruptcy then they effectively get first dibs at the assets as they have first charge.
        To answer my own earlier question, E & Y of course is the accounting firmed with the $900M suit against them for their involvement in the Madoff Ponzi.
        Every accounting firm has issues from time to time.

  37. Allison Barber says:

    Go through their list of “trades” that they owe money to. Have they ever paid bills, or are they just going to start now? I sure like that they haven’t paid their lawyers, or Norgaard, or E&Y, or PWC or even KPMG! Pretty long list. Where did the fees go?

    There are lot of small businesses on the list, and these scammers will likely bury more people. Why is there a line item for Arruda? and a line item for Gant?

    • Doubting Thomas says:

      Allison: What Exhibit has the tradespeople? That list will foreshadow who will fail like the excavation company at Colwood. It takes a long time to open the exhibits from the PWC site.
      I note that the IGW REIT would loan money to failing Colwood and Duncan then the League would charge fees to the LP and withdraw the funds loaned to the LP as payment for fees. Creative way to get paid. As to where the funds went- bloated overhead. One of B.C.’s largest developers with sales in the hundreds of millions has less than 15 employees while League has an army of people.
      Also find out who owns Gant’s house and post it. He needs the public pressure. Others lose their homes for investing in this but he keeps his. See what is owed on it too

    • Allison Barber says:

      And over $1.8M to Farmers construction. I remember when they were “pleased to announce a ‘partnership’ with Farmers”. They did that phony partner crap all the time.

      I wonder if Farmer’s paid their workers and have to eat this?

      • Paul Dunbar says:

        Ok here,s the skinny. Gants house is in his name and his wife,s name.There is a mortgage against it from Bank of Nova scotia.A judgement lien by Romspen Investment corp and a judgement by TCC Mortgage corp.
        Whats weird is its assessed value in 2009 was 2.6 million and yet in 2013 its only $863965.00 . makes no sense to me? I think it must have been subdivided into two seperate propertys

        • Allison Barber says:

          Another scam. How does a property depreciate after you build on int?

          For me this is just more proof that there is no money in Canada.

        • Allison Barber says:

          When you think about it, it makes total sense. This exactly what he has done to the entire business! Just doing his job as a Value Destroyer. Took a 2.6M dollar property and, 2 judgments later it’s worth 1/3 what it was when he bought it. If it wasn’t so frightening it would be funny.

      • Paul Dunbar says:

        allison? your sounding like a quak(crazy) talking nonesence.Judgements do not effect the value of a property nor the assessed value applied.

      • Allison Barber says:

        You are missing my point.

      • Paul Dunbar says:

        OK enlighten me as to the point I missed

        • Allison Barber says:

          How can somebody who makes the kind of dough this guy has taken out of every deal, and have mortgages and judgements against his property? There is no way it was subdivided; it’s all one address.

      • Paul Dunbar says:

        Stuart Little says:
        October 25, 2013 at 3:11 am
        Anyone in an urban area in Victoria can apply for hobby farm status if they sell $2,000 or more a year in goods. Lots of people have stands for eggs, flowers, etc in that area

        ???Stuart PLEASE. your assessment is not based on Farm status. SURELY your not that dumb?? Your tax cost may be
        Your property does not go from 2.6M to 900K because you now sell eggs <

      • Paul Dunbar says:

        well U know he has a judgement against him for 1.5 million? this most likely what the one is for and and WE all know who TCC mortgage is so?not hard to figure

      • Paul Dunbar says:

        c,mon SM get with the program buddy TREZ Capitol Corporation owed 17,000,000.00 thats (million)

    • I must admit the $78,000 owed to Crawley, McKewn, Bush warms the cockles of my heart.

  38. Allison Barber says:

    I wonder how Gant managed to get such a low tax assessed value on his house. 13 acres of ocean front property and a huge new house…for under $895K???

    • Doubting Thomas says:

      Allison: could be assessed as farmland? also in whose name is it registered?

      • Paul Dunbar says:

        13 acres of ocean front would not be farm land and so what if it was? assessed value of 13 acres of ocean front would be higher than that and it does matter whos name its in assessed value is assessed value name has no bearing
        Iam wondering if thats a pre house assessed value? although even that sound,s extremely low

      • Allison Barber says:

        $863,965 $16,965 $847,000 The zoning is farmland, but even so, 13 acres for $17K?

        I don’t have the registration, but it is likely in Gant’s wife’s or father’s name

      • Paul Dunbar says:

        Most likley Family trust would be my assumption but if U dont know whos name the property is in how did you ever get a BC assessment read out?

      • Paul Dunbar says:

        Of course.I should know that by now as i have used the BC assess site what is the actual address? and by the way Ahmen

        • Allison Barber says:

          It is really hard to find, like an awful lot about Gant. I will send it to you via email. If somebody shoots that f****r I don’t want to be held (too) responsible.

        • Allison Barber says:

          For a second I thought it was on Indian land lol.

      • Stuart Little says:

        Anyone in an urban area in Victoria can apply for hobby farm status if they sell $2,000 or more a year in goods. Lots of people have stands for eggs, flowers, etc in that area

      • Allison Barber says:

        So I have this mental image that makes me smile…Gant selling eggs on West Saanich Road. Haaaaaaaaaaahahahah. Now I can sleep

      • Paul Dunbar says:

        as posted his name and his wifes name

  39. Allison Barber says:

    apropos quote regarding the JP Morgan settlement:
    “People know that if they rob a bank they will go to jail,” Kaufman said. “Bankers should know that if they rob people they will go to jail too.” Can we hear an amen on that? Not yet. But the complaint Kaufman voiced repeatedly is now on the table. “At the end of the day,” the senator warned, “This is a test of whether we have one justice system in this country or two. If we do not treat a Wall Street firm that defrauded investors of millions of dollars the same way we treat someone who stole $500 from a cash register, then how can we expect our citizens to have any faith in the rule of law?”

  40. Doubting Thomas says:

    Looking at the cash flow analysis supplied in the PWC Monitors report, the League is going to burn through about $3 million in 30 days, $1.67 million for operating overhead and $1.4 million for CCAA expenses which will be financed by the DIP financing of $1.6 million and not paying any of the mortgages on any of the properties- basically burning equity. None of that is sustainable. The holders of the mortgages will object to the MAXAM DIP financing as MAXAM wants priority to current first mortgages. I think either I do not understand or the the Monitor does not understand the Timbercreek financing as the report shows only about $18 million owed against the Partners REIT shares valued at about $24 million. I think Timbercreek is owed about $29 million and has security as to all shares. Also the supposed equity in the income producing properties is supposedly at $76 million based on book. Having gone through a market valuation of the assets recently, because of Duncan which is on the books over $50 million and a few others held at grossly inflated values, I believe that it is doubtful if the equity is more than $30 million at best.
    The investors need their own accounting firm of E & Y now and own lawyer.However someone needs to allocate expenses as the projects and investments should not share expenses equally. Basically many investors who had nothing to do with Duncan are now bearing reorganization and DIP expenses for it and that could be the same for Coldwell. Meanwhile Gant continues to burn off equity in continuing operations and this CCAA which is a screen to hide the failure. An orderly bankruptcy liquidation would be fairer to most investors and save the equity burn of the CCAA and continued operations.

    • Stuart Little says:

      I trust that PWC has done a proper analysis on Timbercreek. They likely have access to documents that we do not. DIP financers always get priority in these types of arrangements, just like the monitor and court appointment lawyers do – this is not a unique deal here.
      I don’t think any of us know enough to determine whether CCAA and bankruptcy is the best way to go at this point. Each costs money and each has its risks. The monitor needs to report to the court each 60 or 90 day period and if the restucturing is no longer viable they will state that.
      You make a very good point about the allocation of expenses. My guess is that everything will be charged to LALP and then it will pay the expenses from the DIP loan and proceeds it receives from the various entities and Partners as its normal course of business. It would be a good question to ask the monitor though.
      Your point also raises a good point about E&Y. Presumably it is the IGW REIT, Duncan and Colwood unitholders who are asking for E&Y yet those are 3 of 150 companies in this proceeding. The other 147 groups of shareholders could argue the reverse which is that they don’t want to pay for an accounting firm for 3 companies!

      • Doubting Thomas says:

        You can expect all the mortgage holders on any of the properties to fight the DIP financing if it in any way impairs the security. The current application appears to only secure the DIP financing on Duncan.The investors in Duncan need to ask the lawyer being appointed to obtain the 12month income and expense budget for Duncan and every other revenue producing property that League already has for each property. Particularly Duncan as in 2012 Duncan ran at a multi-million dollar loss. Basically Duncan can not be saved if 2013 has the same losses and if Duncan continues in this CCAA then its ongoing losses drag down the IGW REIT because of DIP financing. I think E & Y is needed. PWC et al have a great revenue source and no reason not to use up the DIP financing

      • Paul Dunbar says:

        DUNCAN LP Mall is a dismal total failure.Part of the accrued debt is the 10 or 11% interest accrument that is owed IGW REIT.Just another useless blow smoke up your ass gant deal(reit loan to duncan)

  41. Jeremy says:

    Accounting firm Ernst & Young is offering to represent investors in League’s CCAA proceedings. For more information, get E&Y’s letter to League investors.

    • Paul Dunbar says:

      yes we all know that thanks .been talking about it here for a couple days

      • Stuart Little says:

        Unless 2,000 of the 3,300 investors sign on, the court isn’t going to appoint another accounting firm to oversee the work of the first accounting firm. The goal is to try and maximize a return for investors, not incur another million or two in accounting fees.

      • Paul Dunbar says:

        Stuart not sure whats required in terms of numbers but Ernst says it normal practise to have a lawyer firm and a accounting firm representing investors in these situations
        PWC are the captain of the ship so to speak and dont represent one side or the other

      • Stuart Little says:

        I could be wrong on this but what I was suggesting is that the court would be unlikely to appoint a specific firm unless a lot of people asked for them as ultimately the investors are paying the fees. I think that it is different with Faskens as all of the other classes of creditors have legal representation so it made sense to appoint a firm to make sure that the unit and IPU holders were fairly treated.

  42. Hello Everyone,
    I too was a little confused by the appointment of Fasken Martineau, they are appointed legal counsel to the investors and E&Y want to be financial advisors, basically they are forensic accountants. So E&Y is still a good option for investors.

    The biggest problem I see right now is Adam Gant because the people who provide the financing have zero confidence in him. The 8% interest rate being offered to him is the lowest interest rate I have seen in League documents and that’s only because the monitor is involved. That’s the lack of confidence. It’s epic. When I called him a “value destroyer” I did not come up with that name, a very highly placed person in finance did. I stole it because it fit so well.

    If there is any chance of getting the company restructured, the first thing to tackle would be those sky high interest rate mortgages. I have credit cards with lower interest rates than League’s mortgages and that’s just nuts.

    To compare the average cost of mortgages in Centurion REIT is 4%

    Frankly in a REIT that wasn’t a Ponzi it wouldn’t matter one single iota if people were defaming them. The tenants pay rent, the rent pays the bills and the investors, everybody profits. I’m sorry but landlords are far from a popular group, if they are making their money from their buildings it honestly doesn’t matter what people think. Haha if it did they’d all be dead by now, me included.

    That’s not League’s business model, they make money from fees from investors and suck any extra equity out of their projects to unjustly enrich themselves at the expense of their investors. So they need the internet free and clear of warnings so they can get those Google ads going full speed ahead and prey on any seniors or widows or orphans that are unwary.

    • Stuart Little says:

      PWC went out to 11 firms on the DIP financing and 4 responsed with offers. Presumabley the Maxam offer was the most attractive one.

      If you read the Centurion OM dated August 2013, they are selling REIT units at $11.66 paying $.82 per annum. That is an interest rate of 7.03% they are paying. Not far off the 8% League is being asked.

      I can send you the link if you need it.

      • Paul Dunbar says:

        skyline Commercial at 9% ROC is a Much better deal in my opinion.If your gettting a 7% return and its considered interest the income tax will kill you.If thats how they treat it.Iam not saying they do

      • Stuart Little says:

        In fairness I didn’t check whether Centurion paid interest or a dividend. I was just making the point that you can’t just look at what a company pays in first mortgage charges. League had many first mortgages at 3.x% but it was the REIT units and other loans that ultimately sunk them.

      • Paul Dunbar says:

        Actual truth as i see it that sunk the league was 3 fold.1)Greed on the part of Gant and Arruda 2) 1/2 the money invested in League was spent on non income producing
        ventures and management(unsubstainable fees) 3) the amount promised investors via 7/8/9 % returns was not substainable because the actual investment propertys producing income did not make enough to cover these amounts plus league overhead
        Therefore now when one see,s the whole picture its very clear they were taking NEW investor money and paying existing investors with it .I can clearly see this now as the legague failure really only came to lite in the last year where there was very little new money coming into the league and of course there exspence,s got bigger

        • Allison Barber says:

          Can I get a loud Amen?

          That is the very definition of Ponzi, and I think that the authorities should also finally see it.

    • I can’t believe I’m answering this guy again, but here it is.

      I am not talking about what Centurion REIT pays investors but what they pay for mortgages.

      The multimillion dollar mortgages every single REIT public or private have.

      Do you realize that most REITs out there pay their investors more interest than their mortgage company. They use the investor money for the down payments on their property and they finance the rest using a mortgage that costs 3-4% sometimes more for a shopping center. But that money is necessary to buy new buildings because the bank will not finance 100%.

      League promises their investors 10%? in their marketing, then sells them secure “GIC like” investments for 5% and pays mortgages of 14%. Anyone who doesn’t understand that failure is inevitable in this context has no understanding of the fact that buildings operate on profit margins of 2% and sometimes less.

      • Stuart Little says:

        The point I am making is that you cannot point to one mortgage in an entire portfolio and make decisions only on that. What Centurion or League pays in mortgage interest on a few high interest mortgages pales in comparison to what they have to pay unitholders who hold hundreds of millions of dollars of even 7% notes. Almost every private investment out there advertises higher than normal yields, even Centurion is showing 12% – 15% on their marketing documents. They have to find a way of doing that or else people wouldn’t invest.

        • Allison Barber says:

          Shut up Gant. If League’s advertised returns were true, it would be a different story. LIES LIES LIES FROM DAY ONE

      • Stuart Little says:

        Allison I can post the links if you need them. I am not the one that has difficulty proving what I say.
        Here is a point that you will like however. Everyone keeps mention Madoff here. Who do you think was the accounting firm that was sued $900M for allowing the Ponzi to occur?

        • Allison Barber says:

          Shut up Gant. I don’t need your links. Fact is you advertised, until just a few weeks ago, 18.5% ROI. Just shut up.

  43. Allison Barber says:

    And keep in mind, and if necessary go back through all of Stuey’s posts, that his greatest FEAR is that criminal charges will be laid. That would really cost him.

    • Stuart Little says:

      100% agree with you. If Gant or Arruda committed a crime then they should be charged. They should also have any personal assets seized to the extent that those assets were proceeds of a crime. All we need is someone to go to the RCMP or local police with evidence of a crime.

  44. Thank you for registering for today’s 1:00pm PST Conference Call.

    To join the call, please dial either of the phone numbers listed below.

    Toll free: 855 223-7309
    Toronto: 647 788-4929

    Once dialed in, your Event Conference ID is: 90525848

    The call will last for approximately an hour, with the majority of the time dedicated to answering your questions. We will be recording the call in its entirety and the recording will be made available to investors and creditors at: http://www.pwc.com/car-leagueassets

  45. Allison Barber says:

    The League Group of companies will be making an application in Court on Thursday, October 24, 2013 to request an Order for interim financing. A copy of the Notice of Application and an Affidavit from Adam Gant are filed under the Motion Materials tab. The Monitor is currently preparing a report to comment on the application for interim financing, and that report is expected to be posted on this website on October 23, 2013.

    The Monitor will also be bringing on an application to have representative counsel appointed for all the investors. The proposed counsel is Fasken Martineau DuMoulin. The Monitor’s application materials contain a letter from Mr. John Grieve, counsel at Fasken Martineau DuMoulin which we draw to the attention of all interested parties. The Monitor’s application can also be found under the Motion Materials tab.

    A mailing to creditors and investors is currently underway, and copies of the mailing materials can be found under the header “Creditor and Investor Communications”.

  46. Stuart Little says:

    PWC has an update on their website.

    Looks like League has $31M in financing committed to pay off the Duncan mortgage and finacne the business in the short term. Faskens has been appointment to represent all investors.

    May be hope for you yet on Duncan Paul.

    • Paul Dunbar says:

      well there,s about 63 million owed on Duncan and it has a retail value of 38 million roughly so Iam not hopefull at all
      I wonder just How much PWC will suck out of us before this is over

      • Jeff Cohen says:

        I know very little how bankruptcy protection works seeing as though I’ve only have closed two co’s ever, and both times paid my debts off in cash, but I’m wondering if PWC insisted on this route in order to ensure getting paid?

      • Paul Dunbar says:

        Jeff your most likely correct.Iam PWC went in and saw what GANT and ARRUDA were up to and said our way or the highway

      • Paul Dunbar says:

        Here is My opinion on things.1)I want GANT GONE GONE GONE 2) I want COLWOOD Gone 3) we need to see where all the money is or is not as were all guessing at this point 4) I am willing to let anyone try and make league viable with existing propertys
        and slowly sell off at reasonable prices rather than fire sale
        IF any of what I said would get me some money back.All Iam interested in is trying to salvage some of my ill advised invsetment capitol.I could care less what happens to gant or arruda at this point in time

    • Pat says:

      PWC is seriously letting a person that has a court order against him for not paying GST in charge of this file ?

      Investors will get hosed as lawyers, auditors, Adam Gant, receivers walk away with millions in fees trying to control the onslaught of lawsuits, mortgage holders, IPU holders, Partner’s REIT, contractors and employees.

      The sooner Adam Gant is removed, and the sooner assets are sold to pay off high interest rate loans the better. At the end of the day, IPU investor may retain some assets with industry typical mortgages and actually get some money back, in addition to monies received from civil lawsuits or settlements against Adam Gant, the EMDs that sold these products, the appraiser Colliers, the auditor KPMG and/or sales people that sold unsuitable investments to seniors.

      • Paul Dunbar says:

        I agree KPMG and Colliers all turned a Blind eye as did the CCO the CEO the COO
        also the head of wealth manager,s is also to Blame as he would have been right there with full knowledge of day to day failures.

    • Allison Barber says:

      You are so full of it Gant. There is no update on the website for starters, and you are ONCE AGAIN trying to sideline this conversation away from focusing on the facts. YOU have spent all of the money. YOU over-leveraged some crap propertiesusing other people’s money, and now the investors lose. YOU should be in jail

      • Paul Dunbar says:

        Jail only happens in USA. So far we have no police investigation and therefore no crimminal charges and I personally beleive you will never see any.I wish we would but I dont see it happening.You know we beat up on Gant But that little prick Arruda is also to Blame.If you read the the preface on the DUNCAN OM written by Mini G and saw the promises and claims and now see what they did, man if thats not a outright fib I dont know what is

        • Allison Barber says:

          Ian Thow did time. I maintain, and have said all along, that this thing is an elaborate Ponzi scheme whereby money is raised for supposed real estate investments, investors are promised monthly distributions, and everything is fine until they cannot raise new money to pay old investors. That is criminal; difficult to prove, yes. Impossible, no. Gant made a big mistake when he took money from a grandma whose son is a cop. There are a whole lot of people who have been burned, or who know someone who has been burned. I still think they will not get away with this blatant rip-off.

        • Jeff Cohen says:

          A credible source say’s PWC has suggested John Grave at Fasken Martineau has petitioned to represent the investors – Who knows how many will petition?

          Speaking to Pat’s last point I do know at some point IPU’s investors will be pitted against IGW, because most IGW do not want this wound down as some IPU’s people do, nor will they want assets sold off, again there are those here who want to see it fail, and others who actually want to revived under different management so we can potentially see some principle back, no different than say the Obama-Romney opinions on the worthyness of saving GM, just saying….

      • Stuart Little says:

        Again Allison you run your mouth without even looking. Read the first paragraph and then open the document it mentions. I was going to point out that the document says Duncan has value in excess of its debts but then I knew that Paul would be upset.

      • Stuart Little says:

        oops here is the link. http://www.pwc.com/ca/en/car/leagueassets/index.jhtml
        Potential good news for investors yet you are unhappy about it.

        • Jeff Cohen says:

          I have said this many times, and will keep doing so, they are people here who prefer to see the League fail than say re-organize and survive, that’s fine, everyone has their own objectives and opinion(s), and it may all be over on Nov 18th anyway but it does seem like a number of investors make posts and threaten actions here continually against their own self-interest

          I’m still hoping it survives, as an IGW REIT investor it’s the only way my wife and I will ever potentially see any of our principle, and that interest(s) me more than revenge and or menacing words against Adam Gant or anyone, at least for the time being, in the short term

          I think the next big question, do we trust PWC, and the lawyer they appointed, or are we better served with someone from E&Y or elsewhere?

      • Paul Dunbar says:

        Stewart?? Your post quote:
        I was going to point out that the document says Duncan has value in excess of its debts but then I knew that Paul would be upset.

        If for some unbelieveble situation that Duncan has Value in excess of its debt(which it does not) how would that upset me?

      • Paul Dunbar says:

        Jeff i hear what your saying and thinking and dont blame you but till we get an accounting of this whole mess its hard to say what will happen as far as PWC appointing?? a lawyer? It reads as :The Monitor will also be bringing on an application to have representative counsel appointed for all the investors. The proposed counsel is Fasken Martineau DuMoulin so I see it as these guys have applied to PWC
        its not written in stone(yet). Iam all for it as I have already said to reorganize and survive if it would see you and i and others get some money back.I just dont see where or how this could happen.There,s like 160 million gone in fees, bad loans and bad investments out of 300 million invested.Take all the over leveraged propertys etc where do u see any money that you may get back? I dont see any

      • Paul Dunbar says:

        again stuart please explain this statement??

        “Duncan has value in excess of its debts but then I knew that Paul would be upset.”

        its worth maybe 38 million(maybe) and has 63 million in debts???

      • Stuart Little says:

        I was teasing you Paul. Obviously you would like to get your money back.

        I have no problems with people taking a position for or against League. What amazes me is that the people who want League to fail are the ones trying to organize lawyers and accountants for the investors who obviously want League to succeed.

        Fasken will be the lawyers. These types of motions are slam dunks unless someone files a brief in opposition right away.

        The new PWC documents state that the total amount invested is now $342M which is a little higher than what we thought previously.

      • Paul Dunbar says:

        OK thanks(haha) i kinda new i was missing the punch line somehow there
        343 million? thats a little better for sure

        • Allison Barber says:

          People, you need to stop paying any heed whatsoever to this Stuart. Think about it:
          1. who railed against Rachelle for posting the CCAA link last week?
          2. who said that no one should pay attention to it, if it isn’t there on the website
          3. who had prior knowledge about the PWC documents…and why?
          4. who is the only person in this entire blog who EVER sides with League
          5. who sidelines every commentary…constantly…

          If I was doing this for some crazy malicious reason, the question is, why? What do I have to gain? What do Rachelle or Suzi have to gain? Diddly squat. AND, no one has ever offered any of us a red cent to do the work that we have done and continue to do on behalf of the investors.

          On the other hand, think about what that Gant creature has to gain if ALL of you buy into the BS yet again. He will take his fees, his commissions, his salary, keep his house, keep all of the trust money and on and on.

          Follow the money. And find that Arruda creature.

  47. Allison Barber says:

    No conference call?

  48. Pissed Off Investor says:

    Both Adam Gant and Emanuel Arruda are on Facebook, Twitter and LinkedIn. Sign up and follow them. Send them reply and spread their dirty deeds and lies worldwide. They cannot lie to people and pretend their backgrounds are clean.

    • Pat says:

      Apparently they can as proven by their activities over the last few years.

      Watch the movie “Catch me if you can” about the pilot con-man that cashed Pan-Am cheques for years, or the movie “Chasing Madoff” which shows that even when evidence was available and in the newspaper the SEC and investors did nothing. The Bernie Madoff scheme collapsed only once Madoff himself alerted authorities (perhaps due to threat by some very dangerous Mafia type investors).

      More on Bernie Madoff and a similar scheme by Allan Stanford is on google.

      As a % of assets lost, roughly $200M, as a % of BC’s population, roughly 4,000,000 the League case is similar in size to Bernie Madoff’s: $50 per BC citizen (using 4,000,000 BC residents as an example) or 350,000,000 Americans or $18B in Bernie Madoff’s case.

  49. Cherry says:

    The number of League companies seems to be either 104 or 105. Which is it? And what happened to League Dubai?
    I find this site so so slow – anyone else have the same problem?

    • Paul Dunbar says:

      what matters? 104 105 106 etc DuBai said goodbuy?(maybe) hopefully as just another waste of money. Seriously Iam sure it shut sown or hey maybe that,s where Arruda ran to(hahah)?? Site speed seems normal to me.Lots of stuff for it to load

      • Jeff Cohen says:

        I hate to interrupt the Adam Gant ‘lovefest’ but has anyone yet rec’d the phone number for this conference call, it’s 1:00 Toronto time and nobody I know has yet rec’d anything

        I think it would be prudent for an investor to ask PWC what can be done to end all funds for litigation purposes with regard to any non-defensive action(s) since IMO our money should not be spent on suing the likes of AJ and Rachelle, nor anyone else

        • Wayne says:

          Just spoke with PWC.
          League is hosting the call.
          “The call-in information will be issued “just before” the time” is the only answer I could obtain from the spokes-person.

      • Paul Dunbar says:

        Jeff not sure but the entry deadline was only 17 minutes ago so I assume they will start contacting people shortly there of?

      • Stuart Little says:


        Adam and Manny have sued AJ, Rachelle and the others personally so even if League backed out it wouldn’t necessarily stop anything. I think that the monitor would have to determine whether ongoing comments were continuing to hurt the company and its prospects for restructuring and make a decision on that basis. I would think that if they felt it was no longer a concern then they wouldn’t want to keep paying lawyers.

  50. sm says:

    gant says he will step down if asked ,ok im asking
    best news Ive heard in a long time
    can he be believed?
    what about arruda?

    • Allison Barber says:

      I think Arruda pulled up his skirts and ran weeks ago.

    • Paul Dunbar says:

      Iam all for that.The main thing I want to see is he takes no more money or fees at this time and hes not involved in signing checks or oking payments etc. He may(For FREE) help them sort out the mess he created but without any authority at all to buy,sell,trade nada.

      • sm says:

        I believe that this is a necessary first step(gant leaving) in a long process of maybe just maybe resolving this mess,hopefully the creditors will see current management replaced and not being in such a hurry to shut everything down,,after all they want their money and dont really want to be saddled with properties

        • Wayne says:

          I also am in agreement. I am not a lawyer.
          If you read the CCAA submission (S-137743), it repeatedly uses the term “Petitioners”. Not a single person(s) is identified (only Schedule “A” – which is Corporations, Limited Partnerships, and one Trust). So it appears that this process, CCAA, is only to identify the entities.
          In the “Plan of Arrangement” section, #3 states “The Petitioners will have the authority to file and may…..”
          In #4, “….Petitioners shall remain in possession and control of their current and future assets, undertakings, and properties of every nature and kind whatsoever…..”
          These are just two examples of the use of the “Petitioners” term. The 17 page document if full of this reference. There is only a “monitor” who is supposed to apply any controls.
          My point, I don’t know who the “Petitioners” is/are, but I can guess this to be Adam Gant and/or current managers. I would also want to know who this “monitor” is or will be.
          It appears most agree there would be a problem with keeping existing management.
          Personally, I do not trust anything Adam Gant is doing now, nor what he may have plans for in the future. I don’t believe one person can be the cause of this failure in management, so I would also have to include my mistrust in those managers around him.
          So what is the process to have the existing management group changed to the investors satisfaction?
          I am reluctant to post this because everyone inside League can read this and start working on a rebuttal.

        • sm says:

          I have been in business for over 30 years and one of the main rules of running a business is to make more money than you spend.
          If you cant do this then you should not be in business or get someone in who can make you profitable not everyone is capable of running a profitable business

      • Paul Dunbar says:

        SM what u say is so true.Here,s what I fail to understand IF gant was as earnest + honest as he like to protrey himself which in my opinion he is not, why would he take such huge fees over the last few years especially in the last two when he saw things starting to fail.WHY would he take money from Investors and try and ressurect a previously failed project (Now colwood) that he knew full well would never ever be able to pay the 10-12% interest on the loan never mind ever see principle returned?Obviously he saw League starting to fail over 3 years ago when they reduced the 10% to 7.28% to Zero on reit units YET he still was like a PIG at the trough when it came to Him and his midget sidekick.Same deal with Duncan. WHY did he take money and do the same(similar on smaller scale) thing.Hes like a stock gambler.U buy a stock and u screwed up so U keep investing good money after bad on the same stock to average down and before u know it you have no good money left ,But u still have the same bad stock,only u have only more of it.

    • Paul Dunbar says:

      The first thing PWC needs to do is shut down all those useless fancy offices that we are supporting across Canada and get rid of 100 of 120 people working for the league.One normal office in Victoria and staff to manage our existing properties is all we need at this point in time

      • Paul Dunbar says:

        Does anyone know the Harris/Fraser deal at all? Is it able to pay its own way>? who responsible to pay the 3.7 million owed?where are its offices located?maybe just give it back to the guy and walk away at this time?

    • Pissed Off Investor says:

      sm, where did you hear or read that?

  51. Stuart Little says:

    Not suprising but many of my linkedin contacts have quietly dropped any reference to any employment with League from their profiles!

    • Tammy Carswell says:

      Employees have been told their pay cheques due Friday are now being delayed until next week.

      • There are going to be a lot of victims of League. Employees were also encouraged to invest.

      • Allison Barber says:

        Oh boo hoo. How in the world could you work in that place and not know what was happening?

        • Jeff Cohen says:

          I’m just a dumb investor but really these question(s) blow
          Why will no one ask the obvious one
          Why did the TSX refuse the listing?

        • Allison Barber says:

          My take on it is this: The prospectus revealed the true nature of this ‘business’. It was in black and white for all to see. However, Securities think they (and a whole lot of other people) are going to look really bad when it all comes out, and I don’t know about you, but I think the onus is on them for knowing that there were 105 insolvent companies (not the 70 or so that we thought). The judge looked at the same paperwork. So did OSC. Securities know that this should have been stopped years ago. If heads don’t roll, they should. Again, I am warning everyone that there could be a white wash of the whole mess. This BC government can’t afford any more bad press; neither can the Federal government.

        • Jeff Cohen says:

          No arguement
          I still want to hear it from a 3rd part like PWC…

        • Jeff Cohen says:

          I’m interested to see what PWC ends up recommending – At the end of the day I’m afraid what us average investors think, or say, or rant, isn’t gonna make a difference anyway, IMO the creditors will decide whether this thing fold(s) or gets re-organized

          I did however feel real bad about the last caller – He did not seem to fully grasp that his IPU payments were not to continue anytime soon, he rambled a little incoherently but he was also the only one to get a nice shot at Adam with regard to league mis-management and blaming only the 2008 credit crisis

          I will remind everyone PWC seemed open to questions via e-mail, no reason why some the questions posed here over the last two years, like my question re why TSX refused, and or the O/S loans, can not re-directed via this 3rd party

      • Paul Dunbar says:

        well for one thing the prospectus time limitations expired (and that has to be refiled) before they satisfied all the TSX requirments.Iam sure there is more than meets the eye on that though and I,am sure it will all come to lite here some day soon

      • Paul Dunbar says:

        Besides all that there has to be a viable market for the stock and to me there was none and i,am sure the TSX boys read into this also.TSX wont allow u to list worthless paper based on phonie or suspect financial,s (as I read them and my opinion)

      • Paul Dunbar says:

        Jeff quote:
        At the end of the day I’m afraid what us average investors think, or say, or rant, isn’t gonna make a difference anyway
        Jeff thats why its SO important that we have Ernst or whoever represent us
        “Ernst & Young Inc. would like to act as financial advisor to the investors (through the steering committee) during the CCAA proceedings. We want to ensure that the investor interests are served and protected during the proceedings.

        • sm says:

          sent in my info to e&y today
          hopefully they can inform us whether the reorganization they come up with will sink or fly

      • Paul Dunbar says:

        SM just so u know or maybe I misunderstood your post just now as there (ernst)not involved in the reorganization proposition.Their there to montor things and most likely make suggestions etc on our behalf if they dont agree with PWC whom is the one doing the proposel

  52. Paul Dunbar says:

    Interesting day.I get home and have phone message from A guy I have known for 30 years
    Turns out he,s also got money in the league.Lives in same town as me.$300K in IPU
    Not a clue as to whats going on till last couple days.He called the league and they told him all is well and nothing to worry about.I laughed in his face and told him the true story.Hes a pretty sad dude as I type. He said they acted like it was all business as normal.

    • Stuart Little says:

      You think that they would have had the guts to tell him the truth knowing that it would be all over the media.

      • Paul Dunbar says:

        denial is the healing medicine for all shisters is what i have seen in my life so far

      • Stuart Little says:

        I expect them to deny responsibility, I didn’t expect them to deny that they were in CCAA.

        • CL says:

          That’s not how I read the article, Stuart. He was asked if there would be changes at the executive level and said:

          ““All of that is on the table for review. There’s nothing that is sacred. What we are doing is coming up with best game plan, which includes how we staff, manage and run the business going forward. All of those things are up for evaluation,” Gant said. “If there was somebody better, that was more committed to getting the most out of this and better to execute the plan, like I said, there is nothing sacred for me.”

          He started his “if” statement and didn’t end it. He is only conceding that everything is up for review. He doesn’t finish his thought on what would happen if someone better or mor committed was identified.

    • Paul Dunbar says:

      Iam not 100% certain they either denied or did not denie CCAA they just made it sound like thing,s were being worked out and all was well

      • Paul Dunbar says:

        QUOTE: “He doesn’t finish his thought on what would happen if someone better or more committed was identified. ” That is exactly how GANT operates.He talks but never defines his talk so after talking to him you will walk away with more questions than answers.I have been down that road several times with him.
        Someone Tell me.IF GANT was the go to guy now to run league in CCAA what does he now know that he did not before??

        • Allison Barber says:

          He now knows he can snow people even better than he thought. He couldn’t manage his way out of a paper bag. This liar who claims to be an ‘expert real estate evaluater’, and claims to have 10 years management experience…all at League where he managed to take 105 companies to the brink of bankruptcy. Lord. If PWC cannot get that they are morons, too.

  53. Allison Barber says:

    AND Surprise surprise,
    Also in 2003, BC Hydro privatized the services provided by 1540 of its employees in its Customer Service, Westech IT Services, Network Computer Services, Human Resources, Financial Systems, Purchasing, and Building and Office Services groups. These services are now provided under contract by Accenture.[15]

  54. This company name is also not on the 105 company list. I found this in an email dated September 9th 2010.

    League Expands Global Reach into Middle East Region

    We are pleased to announce an international expansion with the opening of a League regional office in Dubai under the name League Corporation Group FZ LCC Dubai. This opens the potential for increased investments from abroad in communities across Canada, and so much more.

  55. PWC is having a telephone call from investors

    Status of file as of October 21, 2013

    Further to the status update of October 18, 2013, should you wish to partake in the conference call slated for 1:00 pm PST, please register to take part in the call, so that the company can address any technical issues prior to the call. The deadline to register for the call, will be at 10:00 am PST, Wednesday October 23, 2013. Register through this link:


    As many investors need to register as possible.

    • Stuart Little says:

      Thanks for the info Rachelle. For the sake of the actual investors here, I hope that you don’t try to dominate the call with accusations and criticisms and instead let PWC run their process. With so many people potentially on the call they may decide not to allow questions at all if things start to break down.

      • Paul Dunbar says:

        My main worry is that Because Gant is as slick as he is that Him and PWC dont start to bond so to speak and he will try to make himslelf the victim in this deal let me make that clear.Thats Gants Bigest problem.He thinks hes done no wrong
        I hope PWC keep a distance from him where they run the show and not him

      • Stuart Little says:

        That is a legitimate concern Paul. The guy is a good salesman. He will be trying to sell himself to PWC as the guy to run the show. I am hoping that PWC is shrewed enough to see through anything like that and appoint the best person to support recovery for the investors.

      • Paul Dunbar says:

        Stuart my gawd we actually agree on some things.Ernst&Young want to be retained as a CCAA financial advisor for League investors. good bad or indifferent anyone??

      • Allison Barber says:

        Paul, I still don’t see any money in there for anyone but secured notes. E&Y will charge big fees, and I think that the route Rachelle and DT have suggested (the lawyer who got the investors into the queue for that crooked ‘pastor’) is the way to go. He knows what he’s doing, and got the assets seized and the pastor is in handcuffs! You really all need to go that route, or there won’t be anything left.

      • Paul Dunbar says:

        Lawyers suing someone and Financial advisor overseeing a CCAA to me are two different things.We need to see how much money is there,where its going,what we actually own if anything,whom has secured first and second mortgages etc
        I think this is a must have for us to be financially represented at the CCAA hearings
        yes I realise their there to make money but one cant represent himself

      • Stuart Little says:

        AJ do you even care if what you post is true or not? Nowhere in the article you posted does it say that the Pastor was arrested or even charged for fraud. The assets were not seized they were frozen. What this is is a class action lawsuit with investors claiming that the Pastor and others took funds from the company. There has been no criminal action pursued unless you can show otherwise.

      • Paul Dunbar says:

        sounds like he should have been arrested? sounds like hes 10X as crooked as the league gang? Kinda surprized he has not been charged though.

    • Paul Dunbar says:

      Boy does this ever sound oh so familiar ??
      FCAA alleges, close to $13 million was diverted to two other companies under Aitkens’ control between 2007 and 2008 without ever informing investors.

      Aitkens then signed a series of promissory notes from another related company, Harvest Capital Management, promising to pay Legacy a total of $20.1 million, plus interest.
      I think they may have spelled it wrong? its spelled Colwood/Duncan (hahaha)

      (purpose of the notes was to invest the money on Legacy’s behalf, but the FCAA said the money has never been paid back.)

      • Jeff Cohen says:

        IPU and IGW REIT investors should be getting communication from the League re the bankruptcy protection – League is calling this a ‘cash flow problem’ stating there are no issues with the balance sheet – Oh Vey

      • Paul Dunbar says:

        yes I read that show how sick this puppy really is? also states there lots of asset value left? ok where is that? maybe he means their family trusts(haha)

        email Kevin.B.Brennan@ca.ey.com to get form etc to sign up for representation on the CCAA steering committee at the hearing

      • Stuart Little says:

        Look if there is any evidence that Gant or Arruda stole money or are hiding assets then by all means get together and explore your legal options. At this stage hiring lawyers and accountants to go looking for fraud is in my opinion a huge waste of money and just duplciating what PWC is already doing with a full team. Let them do their jobs and then make a decision after you read the report.

        Rachelle and AJ have already reviewed thousands of pages of material. If they have found any evience of fraud then Gant and Arruda would be in cuffs and you would have lawyers lined up to take this case on contingency without ANY COST to the plaintiffs.

  56. Doubting Thomas says:

    I agree with Stuart that Rachelle has done a great job but should hold back the rhetoric against everybody. Rachelle may be right in her assessing blame but many can not face reality and it turns them off. It is like calling Bush & Cheney war criminals- on all facts they are- but the crowd goes against you if you try telling them that. Many do not understand what happened to them and are still drinking the poisonous Kool Aid.Tthey can not cope with the rational position that they got screwed and thereby stay on the side of the person who screwed them. Shouting the obvious does not change their mind and turns them against you.
    I see no reason to keep Gant. There are many competent managers who could replace him tomorrow. I have been involved with other receivers in more complex real estate work out deals and best thing that happened is that prior management gets the boot on day one. Remember there is a controller and other senior managers I also do not believe PWC will have a cogent solution. There is no equity left and Timbercreek will be pressing that point as it could lose money if there is delay in liquidation.Even after Timbercreek takes the Partner shares, it believes that it is facing a shortfall, despite having a blanket debenture. There are several properties where the mortgages are past due so the banks will also be pressing and have rights that the CCAA can not stop from being exercised. Duncan will go to holder of the first .Colwood will go to the first and to Timbercreek to whom the first appears to have subordinated.

    • Stuart Little says:


      Your assessment may very well be right. If nothing else it may be that Gant has lost so much credibility with everyone that he needs to go even if he is of use. One thing is certain and that is that the longer this process goes, the more will be eaten up in fees. If there is a way to clean this up quickly then that is best for everyone.

      For what it is worth my bet is that Gant and Arruda wind up losing everything anyways – not because they will be sued by unitholders but because they have written personal guarantees everywhere and creditors will get their money.

    • I can’t help thinking you may have missed the blog post today on Greater Fool http://www.greaterfool.ca/2013/10/20/carrion/#comments I don’t really travel in the “politically correct speech” circles.

  57. Paul Dunbar says:

    Doubing Thomas quote:
    If I were Partners I would be sweating it if the League has been collecting rents on Partner’s properties and has all the funds in a League account. There are going to be a lot of expensive lawyers going against the CCAA.

    Now I really find this extremely interesting because i never realized all the rent money from Partners reit went in a Gant run Bank account Holy shit what if? (no dont go there)
    PAR shares did a big tumble today

  58. Paul Dunbar says:

    Question I presented to EX league salesman:
    I find it Odd that the broad that was the CCO is not being raked over the coals on this league deal>Did u ever engage her in league business and whats going on?

    Answer from a actual EX salesman at league:
    She drove me nuts. The biggest bitch ever and totally rude. Also under qualified. It was always an issue with her. She wouldn’t return messages and ignore us. That’s a whole other issue though.

  59. Doubting Thomas says:

    Rachelle: The Unsecured Credit Committee in the Harvest CCAA did one important thing in its short existence- it convinced the receiver/trustee Ernst & Young that Ron Atkins who ran Harvest had masterminded a fraud. Once that happened E & Y took a different approach and began to document the wrong doings. The material E & Y uncovered helped in the Harvest Litigation. So I repeat get the Unsecured Creditors Committee. Gant will no doubt be kept in place as SM suggests but that works against him if PWC views this as a fraud as it then asks questions and looks for who took the money. That was the basis in the Harvest case as E & Y could demonstrate the wrongful taking and then the need for seizing assets could be shown to the court.The good thing here that all the mortgage holders on the various League properties including Partners will be attempting to demonstrate that League does not qualify for CCAA .Also they will want to obtain special orders based on the rights in the mortgages. If I were Partners I would be sweating it if the League has been collecting rents on Partner’s properties and has all the funds in a League account. There are going to be a lot of expensive lawyers going against the CCAA.
    I saw your comments on your blog about who is to blame. The KPMG opinion is interesting as all audited statements from 2008 onward should have contained an opinion that the League business was not sustainable. I think BCSC is negligent as whenever an exempt distribution is reported to BCSC on the required form it discloses to BSCC the buyer. All BCSC should have been doing is randomly calling various buyers and asking if they received the OM, did they read it, what other sales material was presented and what does the buyer understand. BCSC would have discovered the fraudulent sales pitch and shut the League down. If that KPMG tax adviser could not understand it or saw the problems with the business model then any other adviser would see the same. Finally as for that lawyer you encountered, the ignorance of a lawyer of reality always prolongs litigation. Get sued a few times or sue people, lawyers generally are not that bright.

    • Stuart Little says:


      I really doubt that League, or any other property manager for that matter, deposits rent cheques for properties that they manage into their corporate operating accounts. All of those accounts are under the control of the monitor in any event so League isn’t going to be cashing anyone’s rent cheque. Partners is down in price because of the prospect of having 15% of their shares hitting the market at fire sale prices.

      You are right in that all creditors are going to be jockeying for position. The role of the monitor is to make sure that all creditors are treated fairly but everyone needs to watch out for themselves, attend the meetings and read the documents.

      The role of the BCSC is not to call investors and ask them if they read OMs. Perhaps the rules should change but that is not what they say today.

      Should professionals involved in this process have done a better job of gatekeeping – damn right. Should they have notified the BCSC or authorities if they found anything questionable – sure thing. Does that mean that everyone involved was on the take – you can answer that yourself.

    • I completely agree that the Unsecured Creditor Committee is an essential first step, Ernie told me that is how the investor list came out into the public as well.

  60. First I would like to categorically state that I will no longer be responding to Stuart Little because he is carefully diverting attention from real issues and being negative and misleading.

    Second I called Ernie Callow today, and he shared his experience with me, the next step is to get a unsecured creditors committee recognized to oversee Price Waterhouse Cooper and the League group of companies. A lawyer will be required.

    From what Mr Callow said it didn’t take too long before the unsecured creditors committee was required by court order to communicate with the investor list. That made the UCC ineffectual

    Next the Harvest Litigation group was formed and they have now certified their class action. It’s been very expensive with the group being run by all volunteers and the funds collected being used solely for litigation. They have managed to seize the “pastor’s” assets which is the first step to recovering the unjust enrichment received by these people. All investors have kicked in 1% of their invested amount toward recovery.

    Before I post my official complete recommendation, I need some more investigation.

    • Stuart Little says:

      The investors didn’t seize anything. They had the assets frozen while the case was being heard. Big difference.

      What investors should do is listen to the PWC presentation and come to their own conclusions. PWC are experts at this and their role is to act in the best interest of the creditors. What you need to do is read the materials, ask question and make sure that all classes of creditors get treated fairly. A lawyer isn’t going to get you preferentail treatment by the monitor. If you can prove fraud or unjust enrichment then a lawyer might be able to get personal assets included in the funds available for distribution but as Rachelle said that is a time consuming, expensive process and investors could be forced to pay Gant and Arruda out of pocket if their lawsuit fails.

      In fairness to you Rachelle you have done a good job organizing information and people, My concern is that you will form a group and then it will be derailed by your defamation charges and lawsuits.

    • Jeff Cohen says:

      I am personally not big on lawyers, not sure why the investors can not form a committee without one, but regardless the key here is one has to have a unified voice, and be representative of all the investors, or the judge and PWC will not recognize or take the UCC seriously

      Here’s where I likely differ from most investors here, truth is if the league can use PWC to get financing at Collwood and Duncan to replace our loans, that solves the biggest issue dogging the value of the IGW REIT, we do stand a larger chance of getting our principle back, in that sense, Adam might the best person, short term, to manage this moving forward, but only if there is a newly devised ‘investors and PWC’ check and balance system, where it is recognized future decision(s) are required to be approved by investors, in or der to satisfy their best interest(s)

      If you disagree, fine, but I would ask some here to check one’s emotion(s) and think like a business person, IE what’s best to way get the best percentage of your principle back, not what’s best to force this whole thing into permanent bankruptcy, where in fact the lawyers will get paid the majority of our principle

      • Stuart Little says:

        I think that everyone here can agree that the best outcome is that League survives and investors see a return on their investment.

      • Paul Dunbar says:

        JEFF the Number one thing your missing here. Colwood debt is at least 4 times what its net asset value is? Who would lend anyone say (eg) 75 million dollars on a property with a rusty basement worth maybe 20-30 million dollars at best.I have read and seen figures on Colwood and they all seem to be in this area.Anyone know what its worth? Its like Gant figures Duncan,s worth 50+ million.I can Guarantee you it wont sell for 38 million

      • Stuart Little says:

        Why would you care who lends them money? If they can get money in and you can get money out then you should be happy right?

      • Paul Dunbar says:

        Does anyone really beleive even if the league survives there will be money for the investors? on what do u base that wild ass assumption? They took in 300 million.They have sucked over 50 million out,We lost over 30 million last year on bad investments. we will lose 20 million on Duncan we will lose 75 million on Colwood
        CCAA will cost a couple million,the failed IPO cost a few million, PAR shares are most likely lost to a loan guarantee . Properties we own can not even support themselves.Who knows how much H+F cost us to buy 5-6 ,million never mind hidden cost and aquisitions.They(properties)also are most likely worth barely whats owed against them.

      • Allison Barber says:

        Jeff, that is exactly what Gant wants you to think: only HE could possibly move this thing forward. You believed him before.

      • Paul Dunbar says:

        your right I dont care who lends them money I have to agree.I just can not see anyone in their correct mind would lend them a red cent .If there was money and people out there ready and willing it would have happened by now.

    • Collwood is a non issue due to the injunction by Grizzly for GST. No one can do anything with it until Grizzly is paid or the lawsuit finishes. Grizzly has registered himself on title as well. I have the files and can send to anyone who will email me. That is my layman’s understanding of the files anyways.

      I cannot form a group or be a meaningful part of it except to share every single piece of information I have because I am not an unsecured creditor. Many investors have been looking to me for ideas/answers and I take that trust very seriously.

      • Stuart Little says:

        That is not how it works. The CCAA process will take precedence over a pending lawsuit / lein. Even if he is successful, Les will become an unsecured creditor.

  61. sm says:

    anyone who agrees to keep these 2 on during or after a reorganisation deserves to lose their money
    anyone and I MEAN ANYONE could/would do a better job
    If you want any chance of getting anything back you need to kick existing management to the curb and get fresh experienced help,for 500,000.00 I am sure we could get knowlegable and experienced management
    this may be the one and only chance

    • Stuart Little says:

      Easier said than done as unit and IPU holders are not shareholders so they are not entitled to vote anything. Best you can do is vote against any restructuring or offer made as creditors.

      An ironic twist is that Partners had planned to fire League in December and replace with internal management but now they cannot due to the CCAA action. As a result League will continue to act as manager for partners for the foreseeable future.

      • sm says:

        then vote against the restructuring, does anyone really want more of the same down the road?

      • Stuart Little says:

        Everyone should at least hear PWC out and find out what the options are. Like it or not Gant, Arruda and the other execs are likely going to be retained for some period of time and paid for their services. It is possible that the monitor will parachute someone in like they did at bear Mountain but the reality is that the structure is so complex that it will likely only be Gant that can run it properly. All expenses will be controlled by the monitor.

      • Stuart Little says:

        Let me restate that as you are right in that he has done a lousy job running it. He is the only guy that understands the structure.

        • sm says:

          to keep him on because he is the only one who understands the is a fallacy
          given a short learning period new management could figure it out
          I say again keep him on and your going to get more of the same

      • Stuart Little says:


        Hard to argue that the people who sank the ship should be the ones to sail it again. I am sure that we will hear more on Wednesday. Hopefully they allow investors to ask questions and it doesn’t break down into chaos.

    • Paul Dunbar says:

      I have to agree with SM. Gant has to be removed for any thing of any good to go the way of the investors.This whole mess is caused by The Incompetence of two rodeo clowns called G and Mini G

      • Paul Dunbar says:

        I wonder if KPMG signed off on financials that they knew were inaccurate and painted a rosier picture than reality and could be sued?

        • sm says:

          hope springs eternal
          If pwc can do this
          if colwood can get financing
          if duncan can be resurrected
          if,if,if……….get real

        • Jeff Cohen says:

          I’m all for suing everyone and anyone at the point our principle is lost, but I would try and refocus everyone’s energy on what we can do as investors to protect our interests and see if PWC can help us get our principle back, or a large pct of, without the need for lawyers and legal action

          Stuart is correct, we need to stop acting against our own interests, and do what we can to see the league survive, that’s our best chance to get out fully or partially redeemed, and or get back distro
          until we can be redeemed

          As Rachelle and AJ would say, consider those older investors of which this investment was their life savings, we owe to them, if not to us, to try and salvage what we can for them, alot of them do not have our insight, or the means, or even an internet connection to speak for themselves

          Just saying….

        • sm says:

          I would totally agree
          I want my money back as much as anyone here
          but the investors need to have a say in matters from here on in and not let the current management continue on this reckless course
          I would be in favor of letting existing management stay but only with investor oversight

  62. Paul Dunbar says:

    THis one really really kills me.
    Our assets remain strong, but unfortunately we have insufficient cash flow to meet our ongoing operational needs. As this is a cash flow issue and not a balance sheet issue, we found it necessary to initiate the CCAA filing in order to rebalance the Company’s operations.

    Our assets reamain strong???????you take 300 million from investors and have
    like 100 million in questionable assets and you call that strong??
    rebalance?? well try returning the millions you have received (taken) in fees? what ever happened to we dont get paid till you do. these guys I swear to Christ himself are on on crack

  63. Paul Dunbar says:

    Adam Gant claimed that ” More recently, a number of investors asked to redeem their units, something League attributed to these individuals being “more interested in higher-risk investments with higher returns.”
    This f–king prick is a real legend in his own mind is he not? Did he seriously beleive that people wanted to redeem their league investments to be able to buy higher risk/better reward investments?? Going to Vegas and playing craps would give you better odds than anything this dink ever offered as an investment
    unbeleivable he had the balls to say such things

    • Stuart Little says:

      I agree with both you and Jeff. I suspect that most people choose to redeem when League stopped paying distributions. No doubt that some people choose to redeem when they read on blogs that League was running a Ponzi and that Gant and Arruda were siphoning money offshore.

      • Paul Dunbar says:

        Does anyone know this? they were siphoning money offshore? really?

      • Stuart Little says:

        Of course not but it is a claim being made on this board.

        I see that Rachelle has finally gone on tilt. Not content with one lawsuit she has now started swinging at everyone remotely involved in the whole sad League affair accusing regulators, accountants and lawyers of “backroom deals”, “supporting a scam”, “fabricating reports” and raking in lucractive fees at the expense of investors.

        Now I know Paul that your reaction is going to be “if the shoe fits” but holy smokes talk about swinging for martrydom. By the time lawyers finish with her she will be filing for bankruptcy alongside League. You guys are all going to kick into her legal defense fund right?

      • Paul if you look at the proposed prospectus, one of the new companies was incorporated in the British Virgin Islands. For now lets just say that a full forensic accounting will track where the funds ended up.

  64. Jeff Cohen says:

    I agree with you POI – In that interview Adam is showing he does not understand his so called ‘member-partners’ aka investors

    The real truth is that investors signed up in droves to redeem commencing June 2012 because we stopped getting paid and or a return on our investment as promised

    The big question is how are some of us going to inform PWC and or the judge how the investors really feel about this investment or are we going to leave it to Mr Gant to speak for us

    • Allison Barber says:

      You need to get with Rachelle right away. She is trying to connect with the lawyer who represents investors in this suit below. The ‘pastor’s’ have been frozen.

    • Stuart Little says:

      Every investors should be on that call. It will be the first chance to get an honest assessment of where things are at and cut through all of the BS.

      Read the bottom of the link you posted AJ. Every class action member had to sign an undertaking to agree to compensate the defendants if it was determined that their actions caused undo hardship. Seems like a pretty bad idea to me. Not only is the lawyer not taking the work on contingency, the investors could be out even more money if the judge rules against them.

  65. Pissed Off Investor says:

    Adam Gant claimed that ” More recently, a number of investors asked to redeem their units, something League attributed to these individuals being “more interested in higher-risk investments with higher returns.” Adam if you read this blog you know you are lying. Investors want out because of your mismanagement and lies. People put money in a private reit know damn well in advance it’s not a liquid investment. We want a stable investment with regular distribution which you failed to provide per your own credos and that’s why we want our money back. Not because we want to put money in some other higher risk investments with higher returns as you claimed. You Liar.

  66. sm says:

    if stuart liitle is adam gant as some claim then don’t you think your time would be better spent getting a return for investors rather than wasting your time posting here?

  67. Allison Barber says:

    Why did you never answer my questions regarding Pratten, Stuey?

    • Stuart Little says:

      How would I know what Pratten owns – you were the one that worked for him.

      • Allison Barber says:

        Just curious…because he took at least three companies into bankruptcy, and I think the authorities might like to know if he had assets he didn’t disclose. Everything these guys learned, they learned from him. He was just caught earlier in the game. It isn’t much wonder if I confuse Gant and Arruda and Pratten and Stuey, actually.

  68. No Listing For You! says:

    Garth Turner has a great expose of the collapse of the League REIT here –


    Garth notes that they are continuing to pump their product on their website, even though the CCAA filing claims they must stop selling securities. No cease trade order yet from the B.C. Securities Commission.

  69. sm says:

    had I known about this file 5 years ago I could have saved myself a lot of money

    • Allison Barber says:

      League was very facile in having every negative opinion about their shyte investments shut down, and very facile at creating public drivel: their ages, their experience, their education, all of it.

      • Stuart Little says:

        Well you can ask the board operators why they shut down their sites and it goes like this. People like AJ started posting allegations of fraud and criminal activity on the boards. They were asked to provide evidence to back their comments and they did not. The site operators, who for the most part are volunteers operating the sites for free, decided that it wasn’t worth paying for an expensive legal battle out of their own pockets so they blocked further comments.

        You can start by asking the good folks at vibrantvictoria if you don’t believe me.

      • That is not true the law is very clear in this regard, site operators are not liable for comments posted by people on the board. Otherwise Yelp and other review sites would be dead. What actually happened was the Adam Gant purchased advertising on the Vibrant Victoria site and a condition of the lucrative advertising contract was to police the board and remove any negative commentary regarding League. I say this and I also have in my possession a copy of an email offering me advertising dollar on my site as well. An offer I refused.

      • Allison Barber says:

        I was never, ever asked by ANY one at VV to provide ANYTHING. Gant and Arruda bought ad space and any comments regarding the financing of CCC were erased. I think it was shameful on their part(s). The 5 year old comments (very informative) are still on the site; they didn’t erase those (which were all about the financing). But, after they paid for ads, nothing new was allowed.

      • Stuart Little says:

        Rachelle. This is another instance where you know a little bit of information and misconstrue it. Site operators ARE responsible for the content on their sites. There is a provision however that provides safe harbor if you remove offending material once you have been made aware it exists. This is precisely how Youtube and Yelp and others operate.

        The issue that VV was that people were posting defamatory material continuously which made the role of moderating the forum a full time job. You were asked on many occassions to stop posting the material and you refused which is why the moderators shut down the forum.

        Don’t take my word for it, ask Mike at VV.

        • Allison Barber says:

          Wrong wrong wrong. Really Stu, get your facts straight. I was asked not to post things that were off of the topic of construction. Period.

      • That is true for copyright infringement, not for policing of opinion. What you have at Vibrant Victoria is a forum owner who cannot be bothered with informing themselves about free speech issues and too intimidated to fight back. That’s why they call SLAPP suits the chilling effect of libel. Basically he bent over for Gant. I hope he feels ashamed now that he made his deal with the devil and helped Gant rip off seniors by silencing others who might have spoken out. At no risk to himself I might add. I can’t post links but search this for more information baglow-v-smith-removing-the-defamatory-sting-in-internet-debates

      • Stuart Little says:

        So the VV folks should spend their own hard earned money defending your right to defame someone? VV ran a forum on League for many years before you and AJ came along. There were hundreds of comments warning people of high risk investments and the technical issues with various REITs. Then you come along and start calling people criminals and scammers and get the whole thing shut down and you think that is a service to unitholders?

  70. There are a lot of professionals who should be extremely ashamed because they are complicit in their silence and were happy to collect their fees and whore themselves out to Gant and Arruda to deceive investors.

    They are like like the guards at Auschwitz watching the investors retirements being put to death by Gant and Arruda.

    This is a report that went to a senior partner at KPMG Dennis Auger in 2008

    Early Fees Payable are Substantial- The property acquisition fee is 3% of the property purchase price by the REIT/LP; this is not inconsequential, especially early in the life of the LP when profits appear to be very sparse.

    Internal cash and subscriptions are paving for distributions – The past records show that
    disbursements to the unit holders are coming out of subscribed cash vs. earned profits (since there usually is none or very little). This is obviously not sustainable. There is not enough information on the rental portfolio to analyze the net profitability of the properties.

  71. Paul Dunbar says:

    another thing I have seen or received any feed back on is HOW COME were not also pissed at the CCO? (chief compliance officer) This person had they been honest and ethical and doing their job should have seen underhanded things being done months if not years ago??

  72. Doubting Thomas says:

    Rachelle: The investors need to form an Unsecured Creditors Committee.You do not need Ernst & Young, just a good lawyer. A lawyer named David Mann who is in Calgary at the international law firm of Dentons- offices in Vancouver- did a great job in the Harvest Litigation /Legacy Communities CCAA case in Calgary. Same massive losses by fraud. Someone should contact him 403 268 7000 or 403 268 7097. They will have same law practice in Vancouver. That law firm is not conflicted as it does not represent any other parties or mortgage holders.
    Somehow corral a group of investors and get a leader to start this. The fees of the lawyer for the Committee can be taken out of the CCAA case.

    • Paul Dunbar says:

      Its not effecting them at all.They just want to get there ducks in a row because they would love nothing more than to be able to rid themselves of Adam Gant and company.

    • Allison Barber says:

      (from the Financial Post) Pending a resolution of the CCAA, at least one analyst has changed his status on Partners REIT. “At this point, the full facts of the situation and the implications to Partners are unclear; therefore, we are moving our rating for Partners to Under Review,” said the note.

  73. Paul Dunbar says:

    Looking back at a email exchange with Gant on Duncan LP.its almost amusing his answers
    Quote question to Gant”:On Oct 20, 2012, at 1:28 PM, “paul dunbar” wrote:
    Have you two guys got any logical explanation how the DuncanLP estimated by you at 26 million total(rounded figures) and 2 year time frame and now its been 4 years and over 53 million in costs and rising?
    GANTS REPLY: We built an additional shopping centre which increased the asset base (London Drugs anchored – Duncan Village)
    Have you seen the shopping centre lately? It might be worth a trip down.
    Adam Gant
    League Assets
    (250) 920-8003
    My Reply:On Oct 20, 2012, at 2:33 PM, “paul dunbar” wrote:
    seriously why would I be interested in driving to duncan to look at a mall that i so far have been fucked out of a 1/2 million dollars that was used to built it? to me thats would add insult to injury. you may have built additional buildings to increase the asset base but it sure as fuck did not benifet any LP unit holders and in fact hurt them(us)
    Paul Dunbar
    GANTS Rely:
    Paul – it seems that no matter what answer I give you the response is always further anger. These email exchanges have not been productive for either of us and I am starting to feel like we are doing the same thing over and over and expecting a different result. In the short term relying on the update letters that go out every six months will likely be the most meaningful for you.
    Adam Gant
    League Assets
    (250) 920-8003

    funny no Duncan Mall Updates ever after this that I recieved?

    • Seriously, AG and TLC did such a poor job of managing the property that he lost half a million dollars of your money, yet doesn’t understand why you might be angry about that. What a goof.

      • Paul Dunbar says:

        Yes what a goof.Like he really exspected me to dive 600 miles round trip plus ferry coats to look at a building of which I lost all my invested money. But thats his mindset
        I have lots of nonsensical emails from him.Hes not playing with a full deck in the sense he still thinks all will be well in the end.

  74. sm says:

    it is true they ran a very slick and colorful campaign ,and I am really pissed at myself for getting into this
    but then I think of all the smart people who fell for the Nigeria money in the bank scam(and still do)
    have been talking with ex employees who also questioned the way the company was being run to bad more of them don’t come forward

  75. sm says:

    the name of the game if you are going to invest is diversification
    never put all your eggs in one basket as the saying goes

  76. Paul Dunbar says:

    Looking back now if I would have bought “Skyline” I would still be a millionare.Man that company is just booming along. Extremely well run and extremely honest.
    What there doing and have been doing for the last 8 years is what Gant originally told me the “LEAGUE” was all about.Its also funny when I look back about how phonie I really thought the Blue book was the first day I read it.I should have been smart enough to realize then it was all smoke and mirrors

    • sm says:

      another very well run company is centurion reit

      • Allison Barber says:

        Personally if I had money in here I would be taking some serious action. Time for crying is over.

      • What initially started this whole saga for me was an interview I did with Greg Romundt. Last night I ended up looking over his Offering Memorandum with new and more suspicious eyes and I’m happy to report that even after all I’ve learned about fraud, Centurion REIT still looks as stable and ever and makes money from their buildings to pay their expenses and investors. If I were to invest the only other thing I’d do is check out their actual buildings and see if they look well cared for.

      • Paul Dunbar says:

        Appears very solid. MER is higher than Sky and ROR is less 7% verses 7.75% and 9% on sky commercial .pros and cons iam sure on both sides.

      • Stuart Little says:

        Since Skyline Apartment REIT is now claiming at 30% return for investors (since Feb 2013) it is by far the best deal out there now as well – right Paul?

    • Paul and other investors as well, do not blame yourselves for being deceived by League, you are far from the only people who have been. There have been very well respected employees, CFO’s galore, salespeople, trustees. Then all the lenders who have lent money into this mess thinking the company was a going concern. Then Profit magazine and Times Columnist. Next there was the Press Releases, the paid for analysis by professionals, the case studies that were designed to deceive.

      After all if the BCSC and all the other securities commissions can’t see through them, how can the widows and orphans, and regular people ?

      • Allison Barber says:

        BCSC has one job to do: regulate the markets. They are staffed with lawyers and accountants, not regular people.

  77. Doubting Thomas says:

    Rachelle; Use your wine to enjoy a good meal and not to look at this mess.I looked at the filings and the business operations and concluded Gant & Arruda were idiots. I have built shopping centers, office buildings and warehouses and at no time did any of my projects have a negative cash flow 60 days after completion. Currently every project they did is losing money. I have followed this blog since Suzie started the blog thinking I could buy some of the properties along with a group that I have once League collapsed but none of these League investments meets any investment criteria,
    No other time needs to be spent by anybody looking at this League CCAA motion.
    I believe that Trez Capital also known as TCC who holds the first on Duncan will spend time and effort to document and to show that there is no possible way for League to come up with a proposal in the CCAA to resolve the losses and to continue.Also all the mortgage companies on all other properties will work to grab the rents and show that the League can not be resolved by a CCAA. TCC can show money was collected from the tenants at Duncan to pay property taxes but the funds were used elsewhere. I think what everybody needs to do is is force TCC to investigate and prove that League collected money from the tenants at Duncan and that the money that was supposed to pay property taxes but instead was used by League at the direction of Gant for other purposes and converted and League used the tenant’s money for other purposes, also known as criminal conversion. Now the RCMP are generally useless but dress in those nice uniforms(costumes) for gay parades but they might just see that League collected property taxes from the tenants and used the funds for other purposes. You will never get Gant & Arruda for securities fraud but criminal conversion of tenants funds-looking like probably yes until further notice.
    Gant is saying that League never paid the taxes to the Indians because of the argument about the lack of a service agreement with the city of Duncan. So great, pay the funds collected from the tenants that were supposed to pay property taxes into the court. You know as well as I that the funds are gone and there is no way that League can pay.
    I repeat,the investors need to have a creditors committee in order to control PW who acts independently of the League.
    I heard the construction crane at Colwood is being dismantled. Too bad as it could be used to string up Gant & Arruda.Maybe they can be hung in effigy.
    I note that it looks like local Victoria contractors are owed over $8 million on the Colwood parking garage. What a destruction of innocent companies. Hopefully I am wrong.However it shows even prudent businessmen can get sucked in.

    • Allison Barber says:

      Thanks Thomas. The words “criminal conversion” should be music to investor’s ears.

    • I am very familiar with buildings and financial statements for buildings and how to make them pay and fix them etc. I too am shocked at the complete lack of fiduciary responsibility, they don’t seem to make money at all from their buildings. That was striking to me from the get go. They also have an embarrassing amount of leverage.

      I had a lady approach me from E&Y to represent the investors. We need a steering committee first from what I understand to try and get as much value as possible from the assets. Is that what you mean? Are there other companies who do this kind of work?

      • Allison Barber says:

        I am even more convinced than ever that the only way investors are going to get a dime is to have criminal charges laid. You need to find a good criminal lawyer.

        I’ve also been thinking that there should be some responsibility for investors losses on the parts of the banks, of course BCSC, insurers, and other institutions that had to have known what a hideous mess this thing has been for years. Remember people that we have just in the past few days seen what BCSC has known all along. IMHO they must be held responsible.

      • Allison Barber says:

        Rachelle, there are no assets. There is only debt.

    • Paul Dunbar says:

      I agree with Thomas on the securities fraud as iam pretty sure BCSC would have laid charges already if there was enough evidence

      • Allison Barber says:

        BCSC is a typical bloated bureaucracy getting paid fat salaries and pensions (YOUR money, once again) that don’t want their own boat rocked. Imagine how bad they will look when this all comes out. They need to step in soon, or I will personally take it upon myself to start a campaign to have them taken out of business.

  78. sm says:

    seems strange that arruda seems to have *disappeared”*
    makes the mind seem to ask if some comments here are correct
    what do you think stuart?

  79. Paul Dunbar says:

    what i want to know is where is that little cunt Arruda? no one seems to be blaming him or shout at him and hes as much to Blame here as Gant

  80. Paul Dunbar says:

    You can’t draw the conclusion that because someone sets up a family trust they are trying to hide money offshore. STUART???? are you really that fucking stupid as to beleive that statement????

  81. Allison Barber says:

    Has anyone but Thomas tried to wade through that petition? It’s making me sick. They made me sick before, but this is just beyond belief. It is a thousand times worse than I thought.

  82. Doubting Thomas says:

    Alison: I located the WESBROOKE OM on the B.C. Securities site- it is spelled Wesbrooke . Looking at it, the League et al has no obvious interest in it other than as GP. So why was it involved in the first place, just to earn fees? However it appears to be the best project completed probably because the other participant Allegro knew what it was doing and had management input. The limited partners put in $5 million and the project is valued showing over $10 million in equity of which 80% goes to the initial investors, the remaining 20% to Allegro. Also it does not appear that the League is owed any money because a new first was put in place in early October to cover all prior loans.This requires further investigation.It is too amazing to be true, surely the League must have screwed it up somehow.
    As Quest Mortgage has a first and second on Colwood, it would be interesting to see if it used an appraisal other than Colliers when it did the loan and it it did were the values a lot lower than Collier and was that shared with Gant. Basically if he knew of a lower value by a third party then you have the basis for fraud in any OM that used the Collier value or a NAV of any higher value. Hopefully the Quest Mortgage appraisal gets released in the CCAA, especially if Quest pursues the foreclosure..

    • We could always ask Altus Heyer, remember years back in a great fanfare they were appointed League’s bright new appraiser…

    • Allison Barber says:

      Here’s my favourite so far: There are several LPs that were created with Gant and Arruda as owners….this was an oversight.

    • Allison Barber says:

      If Quest is first and second, where is Firm Capital? I know they bought $30M in units in the REIT (not sure which one it was; this was last July, just prior to the distro stop). Firm was on the CCC site a couple of weeks ago. Story is they are easy to get money from, but they turned Gant down cold.

  83. Doubting Thomas says:

    Rachel: You have basically won because Gant in his affidavit does not blame a blogger for defaming League and causing its collapse. He blames other matters so therefore you caused no damage according to Gant’s omission of blaming you. What he should be forced to do is to admit is it was an investment scheme whereby they could not find new investors fast enough to pay off old investors which was required because of paying interest on loans for raw land, the continual need to loan money to poor investments and bloated overhead, that is, it was a Ponzi scheme.
    As for the movement of assets offshore, the ownership of all their interests in a family trust is indicative is an asset protection plan used by persons to escape personal guarantees. Coincidental to the trust will be another offshore trustee and offshore bank accounts. Obviously a good lawyer set it up years ago and I am sure he would have instructed them to keep other personal assets offshore. Nothing illegal if done years in advance which is what occurred here.
    I will reiterate, the investors need as a group to get a lawyer, form a creditors committee and take over or at least impose conditions.
    One thing to note is that Westbrooke Retirement LP is not included. It appears to be the one good investment with maybe $5-6 million in equity. In other words they are keeping it for themselves.

    • sm says:

      so let me get this straight
      us investors have to keep paying the guy who got us into this mess in the first place
      but now we have to pay a monitor to watch him?
      anyone can lose money I dont understand why he has not been replaced

    • Allison Barber says:

      Can we track where the money came from for Westbrooke?

    • Stuart Little says:

      99.9% of family trust are not set up offshore. Protecting assets is one aspect of a family trust but so is something simple like avoiding probate fees.. You can’t draw the conclusion that because someone sets up a family trust they are trying to hide money offshore.

      In defamation law the plaintiff generally has to prove damages as you suggest. The exception to that is when the accused claims a criminal act in which case damages are presumed. The criminal act claimed here was that the plaintiff was running an illegal Ponzi scheme and was defrauding investors.

      • Your entire point is moot. The company has claimed CCAA and the rot will soon be revealed.

      • Allison Barber says:

        Yup, they were running a Ponzi. It collapsed. Like all Ponzi’s eventually do.

      • Stuart Little says:

        I don’t see how a company filing for CCAA protection makes it a Ponzi scheme, fraudsters or money launderers. The only issue at stake will be whether a judge accepts your definition of the various terms or the legal ones. At least AJ has the common sense to try and settle the case and move on.

        • Allison Barber says:

          Stuey, since you are so in the know, can you tell me where Pratten sits in all of this? Does he still have a stake in Londondale and other LPs?

          And, BTW, I never heard from the lawyers, so there is no retraction.

        • sm says:

          paul you are just wasting your time with stuart little he is just looking for an argument

        • sm says:

          why will gant get 3.5 million?

      • Paul Dunbar says:

        Stuart there seems to be a lot of things that are obvious to everyone concerened except you.Do u post just to read your self serving drivel? or what?
        regarding Skyline if one bought the apartment reit shares when they sold for 10.00
        and now there worth 13.25 along with the Dist paid monthly then yes U would have easly made 30%.20 % on unit growth and a constant 9+% distribution.A grade two student could easly understand that.There is more upside to the commercial side of things I feel but most likely a little more risk. But its certainly not a good deal for a asshole like you.

      • Stuart Little says:

        We know League didn’t accept your settlement offer. All I said was that you were smart enough to try and settle. In my opinion they should have taken your offer to shut this site and just focused on Rachelle. Two dumb moves on League’s part in my opinion.

        • Allison Barber says:

          Stuey, you really need to stop displaying your ignorance. I have no control over this site.

      • Stuart Little says:

        Remember the Canadian Financing Forum AJ? You posted under Suzie. Need to keep all of your aliases straight. Besides, League has all of your IP addresses from WordPress.

        • Allison Barber says:

          Wrong again. I posted under my own name. Why would I bother to try to hide? Stuey, you really need to come clean. Only an insider would know about what IP addresses Gant has.

        • Allison Barber says:

          I only have one IP address, and despite being coached in how to hide that, I prefer to be open, honest, above board, real, human, and all of the other things that GANT is completely incapable of being.

      • Stuart Little says:

        AJ half the aliases used on this board are yours. You only started using your own name once League found out who you were.

        • Allison Barber says:

          Gant. Your attempt to sideline the discussion yet again is just pathetic.

        • Jeff Cohen says:

          I’m sure most of us are avoiding taking any ‘sides’ in the legal dispute between Rachelle, AJ, and the league, and most of us have to come to different conclusions than Rachelle and AJ as to why the League is failing, however despite all this it should be noted, most of AJ’s and Rachelle prognosis has turned out to be correct, and most of the League’s promises to it’s investors has turned out to be incorrect, that was once was just an opinion, voiced on numerous blogs and websites, but now based on the recent filing and bankruptcy protection and the halt in distributions of both IPU’s and IGW, it’s becoming a fact, that at a minimum the League has not done well by a majority it’s current member-partner’s, if it has prove us wrong…..

        • Jeff Cohen says:

          REMINDER to INVESTORS re PWC conference call

          A conference call for creditors and investors has been scheduled for Wednesday October 23, 2013 at 1:00 pm during which additional details will be provided and investors will have an opportunity to ask questions. Conference call details will be posted on this website on Monday October 21, 2013.

  84. Paul Dunbar says:

    IF Jurisprudence were brought into this equation in this situation these guys(scum bags) would be staying in the same hotel as Bernie madoff

    • Paul Dunbar says:

      Iam not avoiding anything.They in my mind have simply outed two bad ass people and For the most part i think they also both turned out to be mostly correct on everything.Had I read this blog two years ago and absorbed what was being conveyed I would have saved at least 300K or more.

  85. Doubting Thomas says:

    Rachelle; Even though you have been sued do not aggravate the situation, be conservative but keep up the humor.. I bet the law firm that acted for them is a creditor and will be withdrawing from the case. for non payment. The moment they do saw write a letter putting them on notice that if the case is dismissed or not pursued you will be suing them for malicious prosecution and seeking $2.6 million in damages and copy it to the provincial law society stating that as it is the insurer you will be seeking compensation from the law society.The astute law firm will negotiate.to have you go away.

    • Why would anyone want me to go away? I’m charming, witty and have a scintillating personality. And modest.

    • Stuart Little says:

      If Rachelle was rationale or listened to lawyers she would have stopped posting as soon as she was served. All she is doing is providing ammunition to the opposition by making claims which can then be used in court against her.

      The other thing her lawyer would have told her is that now that she considers herself the lady who took down League, not everyone might be as happy about it as she is. The grandma who read her post and didn’t invest is likely happy, but one or two of the 3,300 who have money at stake might blame her for their loss. Posting your picture, name and address online is probably not a very wise thing to do.

      • Allison Barber says:

        That sounds like a threat to me.

        • Jeff Cohen says:

          Sorry Stuart

          No rational thinking human being could possibly assign blame to AJ or Rachelle concerning why the League parent co is seeking bankruptcy protection

          Even the League itself in its own filing assigned blame to the credit crisis of 2008, clearly that and bad investments choice(s), including bad loans, and a faulty structure that could not sustain the 2008 crisis and investment choices are the primary reasons

      • Paul Dunbar says:

        stuart your nothing but a blabber mouth spewing your unwanted opinion amoung people whom have been badley burnt by Gant and arruda.No one like,s you nor values your useless bloviating opinions here.

      • Allison Barber says:

        Stuart, this is going to shock you. Not everyone is a stupid as you think they are; yes, even some women are smarter than you. I know how hard you have tried to have this thread shut down, to no avail. Now all of your skid marked tidy whities are out there for everyone to see. You are referred to in the market as a Value Destroyer. You are considered a joke. A clown in cuff links. When I first heard the story of you running down the street in your pointy toed shoes to escape an investor’s questions, I had you pegged for the crook you are. It is my fondest hope that you see jail time. I told Manny he was lucky he didn’t pull this crap down south. You better kiss the Canadian ground you are standing on.

      • Stuart Little says:

        Gimme a break. Even Garth referred to Rachelle as dumb on his blog, is he threatening her too now?

      • Too funny Stuart and you are making me laugh

        Garth wrote:
        Sometimes bloggers get sued, especially those dumb enough to post under their own names. With their pictures on the top. Who try to speak the truth.

        Garth is being sarcastic and employing tongue in cheek humour. Garth and I both use our real names, and have our photos on our blogs. I am a big fan of Garth’s and I am thrilled to be mentioned in his blog.

        Stuart, you are a comedian, but you don’t even know it. That’s what’s funny.

  86. Paul Dunbar says:

    Quote: I think that the requirement is that an OM be available for investors to review if they choose.??

    But is it not a leagle requirement that thier investor be told of such document and thats available for review? and what it pertains to and reason why it should be taken and read through.I for one was never made aware of such doucuments,I was Never offered one and never received one EVER thats a fact.I will sign a affadavid and swear on a stack of bibles in front of supreme court judge of canada on that one if i had to
    I read one subscription agreement the other day i signed and saw where after the fact there is a notation saying I was sent a OM 2 months later.This was a photo copy because they had never sent me my signed copy in the first place.I got this about 1.5 years later

    • Stuart Little says:

      The OM were posted on the securities websites.

      • Allison Barber says:

        Not all of their OMs were on the securities sites. Come on Stuart, do you just open your mouth to change feet?

      • Stuart Little says:

        You only a require an OM where you are soliticing funds from non-accredited investors. Name an LP or REIT that you believe accepted funds from non-accredited investors and did not have an OM available?

  87. Thomas, I am already sued, I don’t have to avoid saying anything. I won the injunction and the right to say what I want. Will they continue a defamation suit? As you mention when people do not have any money, it is scarcely worthwhile. I have never hidden the fact that I don’t have “money” in that sense. I probably would have taken their initial letter more seriously back in January if they hadn’t written their claim for $ 2.6 million.

    I do you see your point about what I said, and you are right of course. However, the authorities have a way of finding ways to charge people if enough pressure is put on them.

    • Stuart Little says:

      Will League continue the suit who knows. Your credit report probably shows an action for $2.6M against you so you may want to clear this up one way or another unless it doesn’t make any difference to you.

      • Stuart,

        Let me clarify back in January I received a lawyer letter from Theresa Tomchak and that was for $2.6 million. This current lawsuit by Kate McGrann is for an unspecified amount. Maybe more or less, that is unknown at this time. What is known is that currently Allison and I are owed costs for the injunction that we won.

        We won so somewhere in there, we must have mentioned something that swayed the judge. We won even thought we were self represented against a top law firm. I would bet that if it comes to that, we would win the case for defamation as well especially in light of this new evidence, that they are insolvent, a point we hammered home to the Judge many times in the hearing.

        Even when Jeremy asked me when they would file for bankruptcy, I wrote that it would be in October and here we are on October 19th and they filed for CCAA.

        I do not regret anything, and I’ll gladly have a judgement against me if it means that one grandma bypassed this mess and has her retirement fund still intact. The only reason any of us have rights at all is because some of our ancestors got brave and fought tooth and nail for every single little inch of progress. I’m proud to be part of that tradition in my own little way. I’d rather lose and owe $2.6 million than be a milquetoast coward that lets people with no integrity and no morals bully me.

        There are worst things than owing money.

      • Stuart Little says:

        Thanks for the clarification.

  88. Doubting Thomas says:

    Rachelle; I see your argument but never comes to fruition.Tthe problem with your contention is that the104 companies failing is because of the inter links between companies, There are not 104 separate instances. As for the number of investors, again you need to show a link between projects and that involves who developed the sales pitch and who failed to disclose facts in the OM.Hard to support your case although it is very logical that it happened. In any event there is no money at the end of the rainbow because they arranged various trusts offshore and onshore to shield assets. In other words not worth suing. You might get the lawyers who created the OM but then you need to show the lawyer suppressed facts or failed to uncover facts. Very expensive to sue lawyers. At one time Gant et al mentioned insurance for employee misfeasance and it would be interesting to get the actual policy to see if it covered negligent misrepresentations. Then there would be money to be collected. Sadly to say the investors are screwed. It is interesting to note that you and Suzie foresaw this. I like the ironic humor in your headlines but you should be more cautious in your language to avoid lawsuits although I admire your courage but lawsuits are emotionally draining. Gant appears to be one of those motherf###ing evangelicals who have a stick up their ass and believes his sh## does not stink. I think it is abusive to have gone after Suzie as she correctly analyzed in a very logical manner what occurred.

    • Stuart Little says:

      How do you know that Gant and Arruda have moved money offshore? Do you have proof or are you just guessing?

      • PissedOffInvestor says:

        How do you know they have not? You ask other people for proof but you provide no proof. Just empty talk.

      • Paul Dunbar says:

        Iam willing to bet that they have moved millions offshore.They have taken more than 50+ million in the last 4 years plus wages and exspenses

        • Jeff Cohen says:

          Two things, from someone who knows little how banckruptcy protection works

          I wonder then if Rachelle and Allsion should not petition to be recognized as creditors if in fact you are potentialy owed funds on the courts first decision

          I wonder if the IGW investors could not petition to submit a formal request that Gant/LLIS not be given $500,000 and dismissed as manager(s) since it can be clearly proven they have not done a good job managing the pool

          Us dumb investors, in both LP’s, IPU’s and IGW are likely not aware what rights we have in this process if any


          There will be one of those infamous League/PWC Conference calls starting Oct 23rd, another opportunity to ask Adam and PWC the hard question(s) about Collwood, Duncan, the loans, etc

      • Stuart Little says:

        So po’ed I can call you a crook and it is up to you to prove that you are not? Gimme a break. The only “evidence” offered is that they have family trusts which obviously makes them crooks and they must therefore hide funds offshore. The dots all connect.

        AJ and Rachelle were not awarded costs on the petition. “Costs were to the cause” which means that costs will be paid by the ultimate loser in the case.

  89. I just want to make a point here regarding fraud and non-payment. I’m not the police so I cannot lay charges in any case. However, I believe the following points are still valid.

    1 – If I have one NSF check that is not illegal, but if I have bounced 100 checks there is pattern of intent.

    2 – If I have one company that claims CCAA that is not illegal, but if I have 104 there is a pattern of intent.

    3 – If I take money from one investor and my company fails that is not illegal, but if I deceive thousands there is a pattern of intent.

    3.5 – If one investor says they did not ever get an OM that is one thing but if 100 do that proves a pattern of deception and intent.

    4 – The bar for civil proof are lower than for criminal proof, OJ Simpson was acquitted from criminal charges, but he was found guilty of civil charges.

    • Stuart Little says:

      If you have one NSF it is illegal if there was no money in the account at the time the cheque was written. I could be wrong but I don’t think that the requirement is that an OM be delivered to an investor. I think that the requirement is that an OM be available for investors to review if they choose.

      In any event there may very well be cause for a civil action for misrepresentation. I don’t think anyone here is stating otherwise.

  90. Doubting Thomas says:

    Paul: You need to show Gant and Arruda had actual knowledge of what was being said to allege any type of fraud. If you look at how everything is structured you can see they insulated themselves in order to blame people below them. However if you can find a couple of sales agents who can say Gant and Arruda were present at a meeting and the sales pitch was discussed or there were complaints previously and they knew of the sales pitch, fine. Just owning or managing the company will not make you responsible for a sales person’s fraud, the culprit must somehow actively be involved with the sales pitch. The thing about the OM’s is not what they say but what they do not say, such as the inter company loans to develop property. That can be fraud by omission but then it becomes hard to say that at the time you bought the investment if it was in the OM you would have acted differently. Basically a fraud action is hard because the person listening to your complaint says you should have asked more questions and you the victim are responsible. I know it makes no sense but that is how it goes. In any event no use laboring the point, their money is well protected so quit harping on it. Get a group together, get a lawyer, form a creditors committee and see what can be salvaged. Arruda is probably in a place where he can tax shelter his profit and keep the assets away from the court. Gant’s money is in a family trust protected from creditors. You can examine Gant on his affidavit and ask about Arruda plus PW has bank records and you will be able to see money moving out of the businesses to Arruda and where it went so wires to foreign accounts can be found.
    The complexity of this is mind boggling as well as the gross incompetence- building a shopping center with no services contract, starting construction of a major project with no financing;borrowing money on raw land with high interest and revenue no return,lying about GST, lending money prematurely to the seller- think about that- in two instances they lent money to the seller prior to closing. a golf course in New Brunswick.This is beyond belief and now Gant wants a $500,000 priority lien in order to to stay to manage.

    • Paul Dunbar says:

      Doubting Thomas? based on your very detailed reply to me which i read with Interest if what you claim is all true does that not show intent was there to defraud if things went as bad as they have? I also agree the $500K lien he wants is hard to beleive our court people would allow such passage

    • 42ndstreet says:

      whats this about wanting half a mil? from who? from where?

      • Paul Dunbar says:

        Gant wants a $500,000 priority lien in order to to stay to manage.

        who the F–K wants this POS thief to stay and even manage even the shit house??

  91. Allison Barber says:

    The Mayor of Colwood just described the bankruptcy as “a little glitch” on the news

  92. Paul Dunbar says:

    anyone have any idea how and why Gant has 104 companies involved in what we knew as the league.ca

    • Jeff Cohen says:

      Paul asks a great question

      Perhaps we should all call our League sales assoc or contact Monday and ask the same question?

      Perhaps we should also ask why the funds we lent and or invested were used to loan to other co’s also owned or managed by the league and or Adam or Manny personally and not used to buy existing cash generating real estate

      We should also ask when we all be informed of the impending banktruptcy

      This blog sometimes is great and very informative but we’d be further ahead if some of the better questions were directed to the source, say Adam and or his staff

      • Allison Barber says:

        Seriously? What makes you think Gant is going to start telling the truth now? The ‘staff’ is leaving, left or being sued, and Manny is long gone.

        Managing one good company can be a challenge for someone who is experienced and knowledgeable. It was all done to be as convoluted and complicated as possible in hopes that no one would take the time to figure them all out. He was almost right.

        • Jeff Cohen says:

          Gossip is Tim Kildaze at Globe and Mail broke the story today either on-line or will in paper Saturday. Google if you care to find

      • Stuart Little says:

        It is not at all uncommon to have individual properties set up under their own corp shell. Anyone in development would tell you that. It is done to try and isolate liability between each entity. Now if the parent fails then …

  93. Paul Dunbar says:

    THOMAS?? U SAY :TAlso quit using the term fraud in the criminal sense as to them on this site. Misrepresentations maybe. The frauds were by the selling agents as those agents sold you the junk and it appears many investors were conned by the agents.
    REALLY NOW?? Gant and Arruda were the selling agents the way I understand things

  94. Doubting Thomas says:

    Does anyone know how to post as an attachment the League Asset Petition for CCAA? I downloaded it but do not know how to share it on this site but everybody needs to read it. Basically it is bull sh## and a clusterf###. Things like they built the Duncan Mall on Indian lands but then discovered the Indians had no utility service agreement with the City of Duncan- like gross negligence on the investors. The first mortgage on Colwood was due last year but despite that they built the garage and started the tower -like dumb and dumber. They are asking for a $500,000 directors lien in priority over other claimants- really who needs the morons. Also they want to pay out on the purchase of those 2 investment advisory businesses they bought. It should be tough luck for the seller.
    It has to be noted a limited partnership (LP) can not claim CCAA protection but they are asking the court to protect the LP. This is just one big litigation mess that the mortgage holders will attack that concept in opposition to the motion..
    The investors should ask for $20 million of key man life insurance on each of Gant and Arruda with a suicide waiver- quid for pro. if you are so valuable to this deal then give the investors life insurance.. That is the only money the investors will see
    The investors need to get together and pool funds for a lawyer. Quit squabbling as you are about to get screwed over in this CCAA matter..

    Also quit using the term fraud in the criminal sense as to them on this site. Misrepresentations maybe. The frauds were by the selling agents as those agents sold you the junk and it appears many investors were conned by the agents. Suzie was kind enough to set this site up and she does not need the hassles of litigation

    • Allison Barber says:

      The links are on Rachelle’s blog. Tell me, please, what is the difference between an agent selling this load and being possibly held responsible for the fraud, and Gant directly selling this load, and NOT being fraudulent? It makes no sense to me.

    • Suzie is already in litigation, so that particular horse has left the barn and frankly I hardly see that League is going to pursue a lawsuit in which they cannot possibly collect any money. Only stupid people do that and now that they are in creditor protection, it seems obvious that we were all right to voice our very valid concerns and warn the public about these scammers. So Adam could be as butthurt as hurt as he wanted to be and sue who he wanted to sue when he was in control but now that the monitor is in control of the purse strings I doubt this foolishness will continue.

      Furthermore, now that this entire mess is unraveling and the rot is starting to be revealed, all the shit is going to hit the fan. And it isn’t going to be pretty or smell good and it is my sincere belief that by the time this is over Mr Gant and Mr Arruda will be wearing metal bracelets.

      I hope he gets the cell next to Ian Thowe and the CEO of First Leaside.

  95. Allison Barber says:

    Partners REIT’s general partner is IGW Pub. IGW Pub is the sole shareholder of LAPP GAM who asset management and property management to Partners REIT. In other words, Gant controls Partners REIT.

    • Stuart Little says:

      Gant doesn’t control Partners the Trustees do. IGW Pub is a contractor to Partners and can be replaced if and when required. Partners has already signalled their intent to replace IGW in December.

      • Allison Barber says:

        Right. And we all remember how much power ‘trustees’ have against Gant.

      • sm says:

        are the par shares not already being used as collateral for other loans?
        and again if partners is dumping igw in december why would they provide loans to an insolvent company,this whole thing is so convaluted that I dont think anyone really knows what is going on and that includes the principals at league and pwc

        • I believe the PAR.UN shares are being used as security for the $40 million Timbercreek loan. Also the dumping of the manager was an action brought forward by the old trustees. I am not clear on if this position was reversed by the new trustees. Of course Adam is nowhere near Partner’s now, he has been completely removed by the company in their documentation.

        • Jeff Cohen says:

          Us dumb investors likely know very little about high finance and commercial real estate bank mortgages so I personally appreciate all the educational posts, even if it’s gossip and conjecture

          Regarding fraud and intent, I will say this, I agree with Stuart, the issues the majority of us have with the league seem rooted in civil law than criminal law, the emotions aside of potentially losing large sums of money

          Where I continue to disagree with Stuart, is that I still believe we all have a potential civil case of gross mis-management and mis-representation

          We thought our investment was being used to buy existing commercial retail ‘malls’ and buildings earning annual cash returns as their promotional material indicated but in reality it’s looking more and more like our principle was diverted to replace what the banks would no longer fund post 2008 and used by the League to secure bank loans for the trustees and mgt co’s own interest ahead of the interest of the IGW unitholders

          A civil suit claiming fraud may be a waste of time, ditto a suit claiming one lost money, but a suit against the league that forces them to defend their investment choices and explain to a judge how they were supposed to benefit unit holders, and why they loaned our money, to other co’s they also oversaw, instead of purchasing 3rd party real estate may in fact be a winning proposition

        • sm says:

          i have to agree with you 100% that is exactly what I thought we were investing into

      • Stuart Little says:

        If you could demonstrate that Gant or Arruda used company proceeds improperly for personal gain then you might have an argument to try and extend liability to them. Rachelle states that she has thousands of pages of documents yet I have heard no suggestion that she or AJ have found any evidence of that or fraud in general.

  96. Allison Barber says:

    I am afraid that I have to disagree with Stuart regarding League’s intent. Five years ago people were wondering how a 25 year old kid with no education or experience was coming up with NAVs on property he was ‘purchasing’ with investor money and then leveraging. The NAVs were extremely overstated. Most people wouldn’t know that, but it went on for a very long time, until Gant finally realized it could get him in trouble, and hired Colliers (or someone) to do evaluations, and they didn’t last long. From the inception of League it has been smoke and mirrors, with Manny using that smarmy language he is so fond of to placate investors. I think there was PLENTY of criminal intent. AND, I think it is provable. Gant loves to sue. He is suing several of his former employees (who also had money in the deals). He needs to be stopped.

    He believes his own BS.

  97. Allison Barber says:

    These are banks that already have money in the deals and want to protect it. Here is the announcement (which had to be amended once):


    • Paul Dunbar says:

      thats for PAR.UN Nothing to do with us directly other than we own 4.4 million shares
      money can not be used for CCAA of league no way no how

      • Allison Barber says:

        Really Paul? You still don’t see the big picture.

        • Paul Dunbar says:

          sorry.No I dont as Gant has NO controll over Credit available for PAR that would allow him to stop up any league affairs using this avenue.Just will not happen.I,am sure he would like to try though

        • sm says:

          see thats what I dont understand,league does not own partners reit so why would they jeapordize their company so give money to another reit that is insolvent?

        • Stuart Little says:

          League gets $$$ every in distributions from Partners plus whatever management fees they get paid as well. Their 4.4M shares are also worth close to $30M which can be used as security.

        • Allison Barber says:

          Partners REIT’s general partner is IGW Pub. IGW Pub is the sole shareholder of LAPP GAM who provides asset management and property management to Partners REIT. In other words, Gant controls Partners REIT.

        • Paul Dunbar says:

          NO gant does no controll PAR Infact he was not Voted back as a trustee last time.Its true hes involved in the management company that runs PAR but iam 100% positive
          he would never be allowed to use bank credit for PAR to bail out the league

  98. Paul Dunbar says:

    Can anyone even Grasp the magnitude of this fraud?? One Hundred and Four companies under Gants operation filed for CCAA yesterday thats 104!!!

    • sm says:

      nobody and i mean nobody knew there are 104 companies except gant
      wheres that prick arruda

    • Stuart Little says:

      If you have proof of fraud then I suggest that you file a complaint with the local police.

      • Paul Dunbar says:

        Stuart give it a rest Nobody cares about what you say or think.Your one man stranded on a Island here. and Like SM says i too wonder where that Prick Arruda is

      • Paul Dunbar says:

        You lend money to a thing called the league and find out there,s 104 companies none of which are disclosed to you at time of investment and you says that,s not fraud??

        • sm says:

          the magnitude of this just boggles my mind even pwc must be scratching their heads
          who would possibly lend 20 million dollars at this point?

  99. Allison Barber says:

    I think that Stuart has more than a small stake in this, or he wouldn’t bother. He is likely a broker, and has some clients in this thing. Shifting blame and shifting focus is his main objective in here.

    Stuart, do you think it’s alright if Les Bjola loses again? Sure seems like you don’t care who loses, as long as it isn’t you…and you could lose big time if you got people into this crap. And that obsequious veiled threat of investors turning on the people who brought this mess to light for them? Give it up.

    • Stuart Little says:

      All I am saying is that in litigation you need to consider both sides of a story. If one party has filed similar actions in the past and the judge completely dismisses them as not being credible then you have to wonder about the merit of subsequent claims.

  100. Pissed Off Investor says:

    This is the reply to Stuart Little’s post on Oct 17 which didn’t get posted.

    Stuart Little you are wrong. Read the OM before you defend League. The redemption limits apply to common units and IPU that’s not yet matured. There is no retraction limit on matured IPUs. They should be paid within 45 days after maturity according to the OM. I have an IPU that’s matured early 2013. It has not been paid out. AG lied to me several times about paying. I can openly call AG a liar because I have the emails and the retraction notice to prove it. I am sure there are many more investors with matured IPUs and not been paid. He is a liar and League is a trap. The major reason for League to go public is to not pay back investors money. The other reasons like to simplify the corporate structure is minor in my opinion. According to you if a court would defer to the OM then League has breached the retraction contract and has committed a crime. Just this fact alone should stop you from saying good things about League and sounding neutral and reasonable because you are not.

    • Stuart Little says:

      I am not defending anyone. What you are talking about is redeeming your note and not a retraction. You loaned League money and they didn’t pay you back. In some countries that is a crime but not in Canada. You have a breach of contract so your recourse is to sue them. If Adam lied to you about paying you back then he is a scumbag but not a criminal.

      • Pissed Off Investor says:

        Your are defending League and you don’t know what are talking about because you are not an investor. I have an IPU RETRACTION NOTICE in hand stating that League is to pay me back after maturity. It’s DEFINITELY a retraction, not redeeming a note like you said. As I said I have the retraction notice and emails in hand so I know what I’m talking about but you don’t. He is a criminal in my mind because he used all the credos, coat of arms etc. to entice people to buy the IPUs and not paying them back per the OM when mature.

      • Paul Dunbar says:

        Stuart you say and I quote:
        If Adam lied to you about paying you back then he is a scumbag but not a criminal.

        I disagree with you hes a scum bag AKA crimminal

        • Stuart Little says:

          What we call him makes no difference. Go to the Victoria police department and tell them that you want to file a criminal complaint and they will tell you it is a civil matter. The exception would be if you could prove beyond a reasonable doubt that League had no intention of paying you back when they took your money. Not that they couldn’t pay you back or were unlikely to be able to pay you back, but that they had the mind that they were not going to pay you back even if their business was a success.

        • Allison Barber says:

          I am afraid that I have to disagree with Stuart regarding League’s intent. Five years ago people were wondering how a 25 year old kid with no education or experience was coming up with NAVs on property he was ‘purchasing’ with investor money and then leveraging. The NAVs were extremely overstated. Most people wouldn’t know that, but it went on for a very long time, until Gant finally realized it could get him in trouble, and hired Colliers (or someone) to do evaluations, and they didn’t last long. From the inception of League it has been smoke and mirrors, with Manny using that smarmy language he is so fond of to placate investors. I think there was PLENTY of criminal intent. AND, I think it is provable. Gant loves to sue. He is suing several of his former employees (who also had money in the deals). He needs to be stopped.

          He believes his own BS.

  101. Allison Barber says:

    League et al is 104 companies? A good, experienced manager struggles with five! How can this NOT be construed as obfuscation? That is more than 17 new companies a year.

  102. Allison Barber says:

    Then perhaps it is time for you to stop commenting on companies Stuart. I believe that when a company is founded on a pack of lies and a scheme to manipulate investor’s money, it is fraudulent. We are able to prove all of the lies, from their respective published educations and backgrounds right up to the lies in the CCAA affidavit (there is only one; Gant’s.) We also know that in discovery we will be able to get the proof of manipulation; from ‘shareholder’s votes’ to ‘proxy votes’.

    Obviously Manny has run scared, likely to Brazil, with all of the money he ‘earned’. Gant is sick, and really needs help. In fact, according to his affidavit there are a thousand more investors than we thought.

    Their facile use of technology closed down all of the early warnings, and for very good reason: they succeeded in sucking almost three hundred million dollars from investors. The extreme vitriol in one particular one (from the Pro-League side) was frightening. I was in the middle of it, and was very afraid, because they knew who I was. I have it in print for the courts. I am convinced that League would never have been possible if investors had been able to search online and find the sophomoric and hateful language they used. I also believe that Canada was the perfect place for this to play out. Talk about target marketing! That snake oil salesman knew exactly who he wanted to snare.

    For a few years I didn’t give them much thought. When they created the REIT I thought maybe things would turn out alright. I still didn’t trust them at all, but I thought the investors were safer in that structure. Ha!

    This is a far larger issue than a little defamation action against two women. This is an issue that will create ripple effects throughout Canada. People are going to lose their homes. Banks are going to own a whole lot more real estate. The false valuations on the properties that are ‘managed’ by Gant are going to tank the commercial market.

    Trust will be wiped out.

    So, again, I think the whole thing will be white-washed. That way the banks won’t get hurt; they never do. The underwriters will own the negative assets (there could be some opportunity there). They will spend god knows how much more money to only find out that they can’t be restructured.

    There might be a chance of having Gant fired as the GP. If anyone with a legal background could speak to that, it would be good.

    For several months I have begged people to check the titles on the Colwood deal. No one did. I think that point alone constitutes fraud.

  103. Pissed Off Investor says:

    To the monitor of this blog – how come my reply to Stuart Little’s Oct 17 post does not show up. It’s a legit reply with no swearing.

  104. League filed for CCAA today. Download the court documents over at my blog.

  105. I got the CCAA documents and posted them over on my blog if anyone wants to check it out. You can download it.

  106. I just got the CCAA documents and I was wrong they were filed today the 17th of October and not the 10th although I did see them on PWC site. Anyways I will post them as soon as I can.

  107. Paul Dunbar says:

    UPDATE :after a lot of email conversation,s we have a ex league employee whom wants the league held accountable as badly as we do.He too has lost money in the league and was forced out after asking G and MINI G the same hard questions we have been asking.He also says no one knows where Arruda is and his name is not on league letterheads anymore as of late.
    what he said to me
    I too am an investor of League and you are wrong. We did not know. I started to question what League was doing and because I questioned there ethics I quit/forced to leave. I actually just got a letter today from there lawyers saying that if I say anything they will take legal action against me. All I have done is show there financials which are a nightmare they are facts so I’m not sure what they are talking about.

  108. I heard a rumor that League did not make payroll and so many employees are leaving.

  109. I heard a rumor today that payroll was not met and that the employees are leaving.

  110. Stuart Little says:


    I am not a lawyer but I don’t believe that the Blue Book or web based marketing materials would be considered in the same light as a subscription agreement or offering memorandum. From what I recall, redemption rights have always been detailed in the OM as being subject to available funds and a monthly redemption limit. I think that a court would defer to the OM rather than a marketing document but I could be wrong.

    It is also my belief that in order for an act to be considered fraudulent it has to be intentional. You would have to argue then at the time that League made representations about redemption times and interest rates that they never intended to honour those. I think that League could make a strong argument that factors outside of their control arose between the time they made the representation and when the policies changed which necessitated the changes.

    There may have been misrepresentations made but I don’t believe that any fraud occured. This would mean that there might be civil recourse but not a criminal one.

    I have said since day 1 that this is a high risk investment. I share with AJ and Rachelle 95% of their concerns about who this product was marketed to and the claims that were made early on. I agree that without financing Colwood will likely fail and that it will likely have serious reprecussions for IGW. I don’t believe that Manny or Adam started out to deceive investors or cheat people out of money. I believe that they were two young guys with a plan who got in over their heads when markets went south in 2008. This last point is where I disagree with the others here.

    • Paul Dunbar says:

      Stuart ?? so your telling me that the bullshit contained in their Corporate Backgrounder and Corporate Philanthropy/social responsibility brochures never mind the insane Blue book has no bearing on their greedy investment inititives?and bears no responsibility?? and the OM absolves them from any crimminal wrong doing?? These guys never offered a OM nor sent me one in the 6 years years I invested with them so where does that leave the OM.I cant rely on something that I do not even know exists???How can u say the OM is the Bible and all else means nothing when in FACT they used their Bullshit advertising brochures to do the selling and hide the OM as much as possible? and thats not dishonest ? Gimmie a break here..The OM that you seem to rely on Try reading the Duncan LP one.That was so full of holes and bullshit its rediculous ,its not even close to what transpired. Take 2008 which is 5 years ago and a ton of money they took from investors and invested in Ultra high risk adventures. means nothing as they continued on the same high risk path after that.,COLWOOD reminds me of when i buy a stock and it drops 50% in value but I still think a miricle will happen and I will at least break even, so I buy the same amount as before but at 1/2 price and so on.Never seems to work out.I know you think you know it all and i dont know shit but some day u may be surprized.

    • PissedOffInvestor says:

      Stuart Little YOU ARE WRONG. I am an investor and I read the OM. I know about the risk, redemption rights etc. The redemption rights you mentioned is for common units and IPUs that’s not matured. Matured IPU has no limit and is payable within 45 days per the OM and 30 days per the retraction notice. CHECK THE OM BEFORE YOU DEFEND LEAGUE. I have an IPU matured early 2013 and so far have not been paid out. AG lied to me personally several times about paying and I have the emails to prove it. This person is a liar and League is a trap. I am sure there are other investors with matured IPUs but not paid out like myself. So far League has breached the matured IPU contract. I am not a lawyer and I don’t know whether that’s a criminal offence but I’ll find out. The major reason for League to go public is to not pay back investors money. As I said I have the emails and the yet to be paid retraction notice to prove AG is a liar. Just this alone should stop you from defending League and try to sound neutral and reasonable which you are not. If a court would defer to the OM like you said then AG has committed a crime against matured IPU holders.

      • Jeff Cohen says:

        Sorry, it’s not ‘criminal’ not to pay someone money you owe them if you do not have it to pay

        It’s only criminal if you can prove they took your funds and never intended to make good on the payment or they abscounded the funds personally and or broke a local, provincial, or federal law

        I hope you get paid soon, if not, and you think it’s a criminal act, by all means report it to the police, and or the RCMP. Let us know what they say and when someone gets arrested

        This is why I have not been running out to hire lawyers or join action groups even though it’s clear none of us may ever see our principle again, as there can be on sports and music and political blogs, you have a lot of misplaced anger and venting, and sometimes irrational thought, why anyone wants to be a part of that, I do not know

        Such as the average Leafs blog today after that horrible horrible winning goal off the boards last night, if that makes you feel better, fine, release, but unfort it adds nothing to the conversation

        Call Adam a criminal if you will but you will better served if you can actually prove it and are willing to follow up on it, in this regard, you have to respect Rachelle and Allison for their efforts even if I may disagree with the premise of their assertion(s)

  111. Allison Barber says:

    Victoria is a very small, parochial town with a gossipy, insider only money community, mostly old boys. I’ve been invited to the private clubs, the mansions, the fund raisers. I guarantee that Stuart is not from Victoria. He has a bit of financial background, and comes by good information, which might place him in government or maybe a school somewhere. I also guarantee that Paul is not Pratten.

  112. Protea says:

    Warning just received this today an ex.Wealth Manager at Lisi who has surfaced with this sales pitch. He even got hold of their contact email information ??? buyer beware.


    I’ve got an investment that came across my desk that is the best deal I’ve seen this year. It’s a assisted living facility that is being build in Creston B.C. It’s offering 10% for 36 months annualized return paid monthly with the principle returned to you at the end of the term. Here are some facts about the project.

    1. 10% for 36 months

    2. Debt free property with foundation already built so no mortgages ahead of you

    3. Over a year waiting list to move into the facility

    4. Third party feasibility study done by ( Colliers Int’l) which I can send you.

    5. 84 unit project with government contracts available furthering the safety of the project.

    6. Fully zoned and approved by the township of Creston

    I’ll include the one pager for you. I have financials, slide deck and that feasibility by Colliers.

    I’m in the Vancouver area so if you would like to meet please let me know and I can give you a call for us to set up a time to meet.


    Patrick A Dunn
    President Wealth Management
    Tel: 778.558.9166
    Fax: 778.371.3401
    ” Institutional Real Estate Investing”

  113. Allison Barber says:

    Stuey, even you aren’t stupid enough to sue your own investors.

    • Stuart Little says:

      Filing a suit was a dumb move. There were 3 people who read Rachelle’s blog and not more than 10 who read this one. All League did was draw attention to themselves.

      • Ha Stuart…. while my blog does not see the traffic that Perez Hilton’s blog does because I do write about landlords in Ontario, you might be surprised at how much traffic I get daily.
        About a thousand uniques per day. I’m pretty sure that there’s a lot of authors that would like it if 1000 people per day read their stuff.

        • Stuart Little says:

          I was helping you out! How many people visit your blog and read what you post would be directly tied to the amount of damages that League would seek for your claims.

          I see your comment this morning that League failing would end their lawsuit against you (and others). This is where we disagree on tactics. My goal was to educate people about the risks of these types of investments whereas yours and AJ’s became putting League out of business. Now I don’t believe what any of us posts on a couple of blogs materially changed the outcome here, one could argue that if the claims made against League proved to be false and/or malicious then you just added 2200 new parties to the claim against you.

          I have been commenting on companies for a long time and frankly it is a thankless job which is why I remain behind the scenes. Now that we enter a new stage (CCAA) I think that we will find that the tenor of people who lost money starts to change.

        • Allison Barber says:

          Then perhaps it is time for you to stop commenting on companies Stuart. I believe that when a company is founded on a pack of lies and a scheme to manipulate investor’s money, it is fraudulent. We are able to prove all of the lies, from their respective published educations and backgrounds right up to the lies in the CCAA affidavit (there is only one; Gant’s.) We also know that in discovery we will be able to get the proof of manipulation; from ‘shareholder’s votes’ to ‘proxy votes’.

          Obviously Manny has run scared, likely to Brazil, with all of the money he ‘earned’. Gant is sick, and really needs help. In fact, according to his affidavit there are a thousand more investors than we thought.

          Their facile use of technology closed down all of the early warnings, and for very good reason: they succeeded in sucking almost three hundred million dollars from investors. The extreme vitriol in one particular one (from the Pro-League side) was frightening. I was in the middle of it, and was very afraid, because they knew who I was. I have it in print for the courts. I am convinced that League would never have been possible if investors had been able to search online and find the sophomoric and hateful language they used. I also believe that Canada was the perfect place for this to play out. Talk about target marketing! That snake oil salesman knew exactly who he wanted to snare.

          For a few years I didn’t give them much thought. When they created the REIT I thought maybe things would turn out alright. I still didn’t trust them at all, but I thought the investors were safer in that structure. Ha!

          This is a far larger issue than a little defamation action against two women. This is an issue that will create ripple effects throughout Canada. People are going to lose their homes. Banks are going to own a whole lot more real estate. The false valuations on the properties that are ‘managed’ by Gant are going to tank the commercial market.

          Trust will be wiped out.

          So, again, I think the whole thing will be white-washed. That way the banks won’t get hurt; they never do. The underwriters will own the negative assets (there could be some opportunity there). They will spend god knows how much more money to only find out that they can’t be restructured.

          There might be a chance of having Gant fired as the GP. If anyone with a legal background could speak to that, it would be good.

          For several months I have begged people to check the titles on the Colwood deal. No one did. I think that point alone constitutes fraud.

        • Stuart Little says:

          No point arguing definitions as you have your own meanings for words. What I saw in the filing yesterday was that there are sufficient assets to cover all secured creditors and that all employees are being paid. That at least is some good news. If the entire operation was a sham and there were no assets to cover the short term plan then they would not have been allowed to file for CCAA and would have been forced directly into receivership.

          I would not get too excited about the Grizzly claim and lein against the Colwood title. Grizzy is controlled by Les Bjola and he made a claim for $22M (if I recall correctly) against Bear Mountain when it entered into CCAA. A judge later dismissed his claim in its entirety.

        • Allison Barber says:

          They just borrowed $20M to stay in operation. BORROWED. That is not an asset, at least not in my world.

        • Paul Dunbar says:

          whos they? and where did 20 million come from?

        • Allison Barber says:

          It is bank money; a revolving loan. and the banks control how it will be spent.

        • sm says:

          how could they ever pay it back?
          we investors have been royally had
          I sure hope the saying what goes around comes around applies in this case

        • Stuart Little says:

          The banks can control whether they loan the money or not but do not control how it gets spent, PWC will oversee that. IGW was loaned money because they have assets in excess of the secured loans according to PWC. Unsecured holders will likely see a % of the dollar returned while secured holders appear to be in good shape for now.

        • Paul Dunbar says:

          IGW has Assetts in excess of secured loans.What crock of horseshit that is? based on whos evaluations? I find it extremely hard to beleive that comment

        • sm says:

          it just makes me sick to hear that he wants $500,000.00 ,whatever happened to being responsible for your actions,any money paid him should be unsecured like everyone else or pay someone else to do the job,
          I am just so fed up with this system

        • Stuart Little says:

          The statement is in the legal filing. If there was no money and no hope of salvage then the court would not allow the CCAA proceeding to continue.

        • That is untrue, any Company who applies gets 30 days to present a plan and basically unlimited stays.

        • Stuart Little says:


          If you have $1.2M invested as you say and PWC is stating in a legal document that League has hard assets, has equity in those assets and has the potential to be restructured then I would think that you and other investors would be estatic.

        • Paul Dunbar says:

          BUT Iam not paul? remember what u claim my name is and I dont trust PWC as obviously Gant lied to KPMG and they beleived him so whos to say PWC is not also stupid enough to believe his values

        • Stuart Little says:

          So PWC and KPMG are crooks as well in your opinion?

        • Paul Dunbar says:

          stuart in kind of a weird way over the years Iam sure these two have done things that are not totally above board in the scheme of things.Iam sure there are a few changes of the ink so to speak .But I certainly dont think for a second that either identity is responsible in any way for the terrible situation that ARRUDA and GANT has put investors in

        • Paul Dunbar says:

          Below is an example of why I cant beleive BCSC and others never stepped down on these crooks.First they buy Class B notes In Colwood with IGW money and charge fees.Then they exchange these notes for a unsecured loan to a project with no income to make any payments?They also post a suspect gain and again charge Big Fees. I mean think about this for a moment? Your in charge of Investors money.You have a project that you unwisely invested our money in.Its now failing so u switch around our money from semi secured debt to unsecured so U can get a mortgage lending company to lend u money that now can be secured against this property and on top of this have the gall to actually charge us Fees on a investment that in reality we had already paid the investment fee??and of course we now have like 80 million of wasted money in this POS that they charged us fees every time they took our money and invested it their project.Kinda funny in a way that aguy can be in need of money,Take money thats not his and virtually lend it to himself and actually charge us fees to do this????????

          age 152: exchange of a class B units into a note. See here: In January 2010, REIT exchanged its Class B units of Colwood City Centre Limited Partnership for a promissory note. The exchange was recorded at the unit’s fair value on the transaction date; which resulted in REIT recognizing a gain of $7,828,824. The value of the promissory note is $18,432,362 and bears interest at a rate of 10% per annum. An incentive management fee of $1,567,576 was charged on this transaction by League Assets Corp.

        • Stuart Little says:

          Have to agree with you Paul. Although technically this may have been legal, on the surface it appears as though it is an abuse of the role. If in fact League received fees for transactions between related parties, I believe it should not have been permitted.

        • Paul Dunbar says:

          well it says right there that they received over 1.5 mill in fees ? whats one to think? they really did take money from us and lend it to themselves so to speak. and then charged us to do the so called “investment” The way i read things anyhow?
          as usual its extremely hard to follow the money here for sure. I may have misunderstood this deal though?
          The value of the promissory note is $18,432,362 and bears interest at a rate of 10% per annum. An incentive management fee of $1,567,576 was charged on this transaction by League Assets Corp., which is offset against the gain recorded. This fee is recorded in accounts payable at December 31, 2010.

          SO who Paid this Fee? IGW or Colwood? Sounds like IGW to me?

        • Amused says:

          And Arthur Anderson wasnt either huh?

        • Allison Barber says:


        • Paul Dunbar says:

          who,s Arthur Anderson

        • Allison Barber says:

          Arthur Andersen LLP, based in Chicago, is a holding company and formerly one of the “Big Five” accounting firms among PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG, providing auditing, tax, and consulting services to large corporations. In 2002, the firm voluntarily surrendered its licenses to practice as Certified Public Accountants in the United States after being found guilty of criminal charges relating to the firm’s handling of the auditing of Enron, an energy corporation based in Texas, which had filed for bankruptcy in 2001 and later failed. The other national accounting and consulting firms bought most of the practices of Arthur Andersen. The verdict was subsequently overturned by the Supreme Court of the United States. However, the damage to its reputation has prevented it from returning as a viable business, though it still nominally exists.

          One of the few revenue-generating assets that the Andersen firm still has is Q Center, a conference and training facility outside of Chicago.[1]

          The former consultancy and outsourcing arm of the firm, now known as Accenture, which had separated from the accountancy side in 1987 and renamed themselves after splitting from Andersen Worldwide in 2000, continues to operate and has become one of the largest multinational corporations in the world.

  114. Stuart Little says:

    So have you been served with the court documents yet or are you still hoping that League doesn’t find out who you are? Why do you think that they sued the WordPress folks – to get the IP addresses of everyone who posted perhaps?

    • Paul Dunbar says:

      I am who I say iam am.I use my real name unlike you and i speak what i feel in my mind and heart is the truth.I feel that i have been lied to and cheated by these guys and iam out 1.6 million dollars of which i doubt i will ever see.
      Why should I be nice to people like them ? I have done nothing illeagle.I have voiced my opinion of the situation based on what has happened to me.Its not hears say and its not so and so said this.Based on direct conversations and written literature by theses guys regarding my league investments I say I was badley mislead by the league and I stand by that accusation.what do people think iam about to say.Oh gee Adam and manny are outstanding people and have always been upfront and forthwith and I just have to accept that my money was invested wisely but they meant only the best for me and oh well these things happen??

      • Jeff Cohen says:

        I agree with Paul, swear words aside, I am also who I am, fairly high profile, and in the news quite often, the League already has my e-mail and personal info, and by nature of what I do it’s easy to get a hold of me anyway, etc, so nothing too hide here either

        I’m just one of 2200 investors whose taken to the internet to try and find out why my distro stopped and why I cannot redeem my principle, since I’ve found out so much more information online that the League does not tell it’s so called ‘member-partners’

    • Paul Dunbar says:

      Yes stu how did you figure it out? Iam surprized my bad and should have told u before

  115. Stuart Little says:

    Like it or not but this is how the BCSC and other securities commissions operate. They will receive your complaints and may ask you for follow up information but THEY WILL NOT UNDER ANY CIRCUMSTANCES discuss details of any companies or investigations. Canada’s privacy laws prevent them from doing so and why I have said here many times that comments about people claiming to be getting inside info from the BCSC are malarky.

    • Allison Barber says:

      Stuey: 1. when did anyone in here ever claim to be getting inside info? 2. when did you ever say anything regarding that? Never. and Never.

      I think that rather than making things up, which appears to be what you are exceedingly good at, you should take the time to answer the investor questions asked of you.

      • Stuart Little says:

        AJ you have said several times that you have talked to BCSC investigators about League and they have told you further actions are coming.

    • Paul Dunbar says:

      stuart ?? you obviously completely misread my post as per usual.I never asked for information>This paymour goof ball was bugging me to send him information.I sent it to him as u can well see via my post and all I asked was they acknowledge that they were receiving my emails Thats all i asked.He then turns around and tells me He,s
      not specifically assigned to receive complaints regarding League. WTF? this asshole contacted me asking for me to send him information.
      DO U NOW UNDERSTAND Stuart or whoever the f–k you are
      and answer the question about this:
      Stuart Little says:
      October 13, 2013 at 12:37 am
      Actually the filings are all online. Check the board, we have been posting them for years. WHO is WE and WHAT BOARD??

      • Stuart Little says:

        Grizz / Solid / Paul

        I have never been rude to you. Two posts back you commented that the BCSC never responded to your complaints. I am telling you why plain and simple and that they don’t respond to anyone.

      • Paul Dunbar says:

        Stuart you moron answer the question we have all asked you several time:
        October 13, 2013 at 12:37 am
        Actually the filings are all online. Check the board, we have been posting them for years. Again we ask WHO is WE and WHAT BOARD??What filings online??
        Also you moron for the third F–king time I never complained about BCSC not responding to my complaints I simply wanted to make sure the complaints were being Viewed. thats it you f–k ing moron

  116. Paul Dunbar says:

    I have not (nor has anyone else at the Commission) been specifically assigned to receive complaints regarding League.
    BCSC is not interested in any complaints with regards to the league EOS

  117. Allison Barber says:

    Try calling and ask for Sidney Lansdowne. Also, answer the questions that I posted earlier, and send them to her…address above

    • Paul Dunbar says:

      Will do but iam starting to loose faith in BCSC. This Payam Fouladianpour guy was bugging me a year ago to give him my opinion etc on league and how my dealings went down etc.I have sent them several emails with information and not one reply. I finally get a reply today and its not pretty
      QUOTE:Mr. Dunbar,
      I acknowledge receipt of your email below and previous emails sent to my attention on August 22, 2013. August 23, 2013, October 9, 2013 and October 16, 2013. Unfortunately, I am not able to comment on this matter beyond my acknowledgement.
      You may continue to send me information, but please note that I have not (nor has anyone else at the Commission) been specifically assigned to receive complaints regarding League. Complaints of this nature are typically handled by our Inquiries Group.
      We will contact should we require additional information.
      Thank you.
      OK so why did this guy contact asking for any all complaints I had in regards to the league

  118. Paul Dunbar says:

    anyone here get anywhere with BCSC? I have filed many complaints and never received even a respecful yes we read your mail , we are looking into your complaints+ nada nothing

  119. 42ndstreet says:

    So, which salespeople / member services managers have left? Anyone know ?

  120. Allison Barber says:

    I believe that this is their ‘too big to fail’ card. It is because too many institutions are going to lose on their deals, including the reputations of securities. They will prop up this crap for as long as is necessary to get out with as little fanfare as possible.

    They are going to white wash the whole thing.

  121. Allison Barber says:

    This is really interesting: Bryce Maxwell, CA
    Manager of Financial Reporting at League Assets Corp.
    Vancouver, British Columbia, Canada
    PwC, Office of the Auditor General of BC
    CICA In Depth Taxation


    • Paul Dunbar says:

      kind of hard to beleive that a guy that worked for Auditor general of BC could not see the crookery behind the league

  122. Allison Barber says:

    Maybe I should say ‘should’.

  123. Allison Barber says:

    It will take the court five minutes to see that the company(s) have no value and do not function as a business.

  124. Paul Dunbar says:

    What is the CCAA?
    The Companies’ Creditors Arrangement Act (CCAA) is a federal law allowing insolvent corporations that owe their creditors in excess of $5 million to restructure their business and financial affairs. The main purpose of the CCAA is to enable financially distressed companies to avoid bankruptcy or foreclosure or seizure of assets while maximizing returns for their creditors and preserving both jobs and the company’s value as a functioning business. CCAA proceedings are carried out under the supervision of the Court.

  125. Allison Barber says:

    It is just mind-boggling how you can think that holding an unsecured promissory note gives you some sort of priority. Every investor is screwed. There will be no priorities. There will likely be nothing for anybody but secured note holders, and then not very much. The properties were all over-stated with fictional NAVs. They were then over-leveraged. None of the work required or promised was ever done (except for a pathetic attempt on Quadra in Victoria where they slapped a little lipstick on a roach infested pig and are trying to rent it). In the case of Duncan they said they ‘purchased’ land. You cannot purchase Indian land. It has been one pile of BS on top of another for the past 6 years, and it is just pathetic that so many people bought into it all.

  126. Paul Dunbar says:

    I often wonder how Pat Minogue Chief Compliance Officer has got through all this so far without a big fine and honourable mention??? Is she not legally responsible for making sure clients are properly informed and that the salesman did a KYC application etc etc which is pretty obvious to us that that was never done and that the head crooks followed what they promised in the OM??

  127. Pissed Off Investor says:

    League (LISI) has removed the web page where they listed all their so called wealth managers in various locations. I think some real bad news is coming down the pipe.

    • Protea says:

      Pissed off investor. Their own words talking to a wealth manager (salesperson) admitted they have zip to offer for sale. They have had a couple of resignations as the salespersons were being ground down by hearing from pissed off investors. So the reason for making it difficult to even call your contacts.

      I am a note holder (prommisory note in Duncan) would like to speak or be in contact with any other innocent victims in this Loan note. NB I am not referring to the LP investors. If you are a loan note investor their have been some massive irregularties and I feel on this one alone we can go after them.

      Want to hear from someone in the same situation.

      • Paul Dunbar says:

        Protes I too am a little surprized about you being so mis and uninformed regarding DUNCAN LP.The Original OM was was big fraud or lie ?thats for you to deside.I know what i know.There is no money.You will receive ZERO?? I don,t understand by now how you still do not seem to realize that equation in the Duncan mess.They spent around 63 million dollars(who knows where) iam sure the crooks took a few million.The mall is not worth even 40 million and thats IF they could find someone dumb enough to buy it .its a total failure Money wise but hey it sure looks good

  128. Paul Dunbar says:

    I believe the lack of replies tells us exactly who and what this persons motives were and are

  129. Let’s all be kind to each other, this is a very stressful time for everyone. I can assure Stuart and everyone else that I am not imagining anything about the information I received. I did see them listed on the PWC website and the search link is there. We’ll all get more information in the coming week. I hope everyone is having a decent Turkey day despite the news.

  130. KD says:

    Yeah I’m not sure what Stuart is talking about – but clarification would be helpful. While it is important not to jump to conclusions, there is a reason that LALP is in the link. It is unlikely someone just “messed up”, pulled that name from thin air and posted it on the PwC site. If someone jumped the gun then fine, but that in itself tells a story.

    • Paul Dunbar says:

      Yes I agree with you KD but still highly suspicious of the statement
      “Actually the filings are all online. Check the board, we have been posting them for years.”
      If stuart would post to clarify what this statement means or was ment to mean we could move on

      • Mick says:

        The person calling her or himself Stuart has a pattern of stirring the pot and not responding to questions. She never answered Jeff Cohen in his repeated requests. She/he enjoys winding up AJ a little too much to be considered objective. Now it is about Rachelle imagining documents. While I agree that it was unwise of Rachelle and AJ to use terms with very specific legal definitions like Ponzi, Rachelle has never posted about imagined documents in the years she has been following League.
        In any event there is nothing overly surprising about a League company filing for creditor protection. Given their historical cash burn and the lack of new investors it was only a matter of time. Because of how convoluted their organization is and the difficulty in tracing cross guarantees, I don’t know for a fact but would speculate that there will be fallout in other League entities resulting from one defaulting.

        • Jeff Cohen says:

          Mick is correct – Stuart has avoided answering any of my direct questions about both league mis-management, trustee mis-management, making loans to other co’s also managed by league, and or with the same trustee’s, loaning funds which do not serve the best interests of IGW and IPU holders, but primarily interest other co’s also owned or managed by the league

          I’ve found it fascinating that Stuart knows so much about everything and yet never comments on all the above – lol

  131. Paul Dunbar says:

    Jermey says and i quote:
    stuart Your statements are factual and well written.

    I must say Jermey that your POST should really say “IN MY OPINION” because thats all it is
    your opinion and is not fact.!!

  132. Paul Dunbar says:

    Stuart Little says:
    October 13, 2013 at 12:37 am
    Actually the filings are all online. Check the board, we have been posting them for years. Maybe LALP is in CCAA and maybe it isn’t. Nobody has seen a document

    Yes stuart ?who is “WE” and where have you been posting “the filings are all online.”?????

  133. Paul Dunbar says:

    It’s all legal as long as the disclaimers are there I’m told. That’s the largest pile of horse shit I’ve ever heard.

    ME TOO what Judge in their correct mind would allow shisters to screw people from thier hard earned money based on that pretense???

    • They walk such a fine line between legal and illegal; and in fact have been fined and CTO’d and had judgement’s over and over for their crossing that line. I bet there is more that we don’t know about, yet.

      • Paul Dunbar says:

        well when one does an extensive search one can sure see that lawsuits do not phase GANT at all as he,s has had many and has currently many against him over the years
        So i,am sure he knows the difference between what is what we feel is ileagle and what is in the eyes of a judge

  134. Nope, it was a leak from an impeccable source. The PWC website was just secondary confirmation. The official announcement is going to be very soon.

    Also I am not locked into a bitter lawsuit with League, lets be clear, they decided they should sue 12 people and I was one of them. Those people are RACHELLE BERUBE, ALLISON BARBER, JANE DOE a.k.a. “suzie”,”suziel941″ and “Suzie Sanders”, JOHN DOE a.k.a. “Beware the Ponze”,”Henry Longmire”, “Jim”, “PeteSmith”, “Dean”, “John Doe”, “Grizz”,”Innocent Bystander”, “42nd street”, “Charles Baysin” , and AUTOMATTIC lNC.

    They cannot win what they want, simply because the courts will be unable to go back in time and remove all the people who had negative experiences/things to say about them. I was told that that they thought I was the webmaster of League Reviewed. Unfortunately I was not, nor was I willing to be victim of their bullying. I have an absolute right to my opinion, I have a right to warn other people and I am willing to fight for my rights.

    I may lose in court, but in the meantime untold people have been saved from foolishly investing in this. If I lose my right to speak about League, it won’t be because of cowardice, or because it’s too hard, or because I didn’t try. Chances are my complete lack of understanding of legal proceedings will be my undoing not the verity of my arguments.

    Their goal was to sanitize the internet of people who had legitimate concerns about them so they could continue with their fundraising. In short this blog and all the comments on it. The thread I started on Canadian Money Forum is also very high in search. Their ploy has backfired immensely, their own documents condemn them.

    More importantly perhaps I have become aware of the commonality of this very occurrence, seniors and vulnerable investors being stripped of their nest eggs by unscrupulous and misleading marketing. It’s all legal as long as the disclaimers are there I’m told. That’s the largest pile of horse shit I’ve ever heard. Due diligence can only go so far when dealing with this kind of targeted deception. I’m working to make sure that other investors are protected from future scams.

  135. Paul Dunbar says:

    I think everyone knows Mick? at least i do(what u meant)

  136. Mick says:

    Extremely unlikely but if you have some sort of personal interest go to the Court and ask. These filings are not online real time but available on site as I expect you know.

    • Mick says:

      My post was meant for Stuart as her or his comments appear to be designed to derail productive discussion.

    • Stuart Little says:

      Actually the filings are all online. Check the board, we have been posting them for years. Maybe LALP is in CCAA and maybe it isn’t. Nobody has seen a document, what they have seen is a link to a page that doesn’t exist. The responsible thing to do is to wait until the document appears and not to be trying to scare people on the Friday of a long weekend when they know the information can’t be confirmed.

      Rachelle is very late to the League party, others inlcuding myself have been pointing out the risks for 7 years not 2. The only difference is that most of us don’t call people criminals and get sued for the effort. You call that heroic and others would call it stupid. Even if you don’t have any money a judgment hangs over you for a decade and can be renewed for even longer.

      • Paul Dunbar says:

        stuart The LINK exists as we have all seen it? what aprt of theat dont u understand?? I posted it right here ?? Ray Charles can read the link and if we would have listened to Rachelle 2 years ago and realized we were really dealing with criminals we would all be better off

      • The facts are that investors most of whom are seniors, have been ripped off for millions of dollars. Surely if we can’t agree on the semantics of my speech, we can agree that if their scheme isn’t criminal it certainly should be.

        In the First Leaside scam it played out like this

        1 – Grant Thornton was called in as Monitor in CCAA
        2 – Receivership
        3 – Viability report on company
        4 – OSC waits for 19 million in more investor’s monies to be given to First Leaside
        5 – OSC shuts down First Leaside
        6 – Charges are laid against First Leaside founder and salesman
        7 – 14 million of 300 million is recovered from bankruptcy proceedings.

        If you read the Grant Thornton Report, it will remind you of League and they even use the phrase “Intergenerational Wealth” It’s like a blueprint of League and any investors should look it up if they want to understand what the forensic audit revealed in a similar company structure. There are many commonalities.

      • Who is “we” Stuey?

      • Jeremy says:

        To Stuart Little:
        Why would LALP filing for CCAA be scary? Without sales (or sales staff), League Assets will soon run out of cash, so CCAA or receivership is inevitable. Receivership is the only natural course for IPU holders to recover anything, and filing for CCAA is a prelude to that outcome.

        I agree that LALP filing for CCAA cannot be confirmed at this point. Despite criticisms against you, I find you are a voice of reason. Your statements are factual and well written.

  137. Paul Dunbar says:

    Current Insolvency Assignments
    …League Assets Limited Partnership CCAA 2013-10-10

  138. I was alerted that League had filed for CCAA and went to the PWC website and saw League in their list of Insolvent companies effective Oct 10 2013. A few minutes later the link was removed. You can find proof that it was there on their site by using the search function on their website. Search for League.

    It looks like someone at PWC dropped the ball with the website prior to the official announcement.

  139. Look at the prospectus.

  140. Go to page five of the prospectus. The structure is laid out there. It also says that all entities are wholly owned by LALP.

    • Anonymous says:

      I am looking at the most recent IGW REIT OM and it states that LALP only owns the management company.

      • Stuart Little says:

        You are wasting your time. The only person who claims to have seen the PWC documents is locked in a bitter lawsuit with League. Even the link on her website to the claimed CCAA documents doesn’t work. It would stand to reason that if no court database shows the action and the PWC website doesn’t list anything then perhaps Rachelle is imaging things.

      • Paul Dunbar says:

        the link works for me and the PWC website shows LALP has applied for CCAA

      • Hmmmm. “Locked in a bitter lawsuit…” Sounds like some Mini G hyperbole.

      • Stuart Little says:

        So this is the link on the website http://www.pwc.com/ca/en/car/index.jhtml and you are saying that it shows LALP as being in CCAA?

      • Mick says:

        Stuart appears to be trolling, in my opinion. She or he has stated contradictory opinions on this board and clearly enjoys derailing discussions with personal attacks. Rachelle is one of the few individuals who saw the risks and pitfalls of League years ago and is putting her real name, reputation and time into helping investors. All without pay. I highly doubt she is imagining having seen a document and the link from Paul proves it. If Stuart has done anything to assist investors perhaps she or he can speak about that or hold her tongue about someone who has.

  141. Paul Dunbar says:

    Heres another thing Iam not clear on and anyone has clear answer please post
    League Assets Limited Partnership is the one with the CCAA appilcation.That,s not IGW REIT is it?

  142. If there was any equity anywhere, PWC would have found it, and found a way to restructure. If there was even hope of equity anywhere, they could have found another underwriter. Firm Capital was on the Colwood site a couple of weeks ago: they underwrite almost anything, and they turned Gant down.

    PWC knows what is at stake. Nobody is going to come out of this looking good, from KPMG to BCSC to the banks. I believe they were all very well aware of the investor’s stake and how they were being manipulated and deceived.

  143. And another shoe drops.
    For people who have signed up for the Gatineau Centre Development Limited Partnership between the dates of April 30th 2013 to the present, you will have an offer to get out of jail free and get your money back. Considering that they either have or are on the verge of declaring CCAA (Creditor Protection)

    The direct link to the Order


    To:British Columbia Securities Commission the “BCSC” And
    To:Alberta Securities Commission the “ASC”

    Re:Partial revocation of cease trade orders dated July 22, 2013 and August 7, 2013 issued by the BCSC and ASC (the “Cease Trade Orders”)against Gatineau Centre Development Limited Partnership (Gatineau LP) Gatineau LP hereby undertakes to the BCSC and the ASC that it will

    provide a copy of its non-offering offering memorandum, prepared in the required form, and an offer of rescission (the “Rescission Offer)to any investor, in any location, that purchased securities of Gatineau LP after April 30, 2013 in reliance on section 2.9 of National Instrument 45-106 Offering Memorandum (the Investors) within 10 business days following the partial revocation of the Cease Trade Orders;and
    file a letter with the BCSC and the ASC upon completion of the Rescission Offer identifying:
    (a)the Investors to whom the Rescission Offer was made;
    (b)the Investors who accepted the Rescission Offer, or who failed to respond to the Rescission Offer and were deemed to have accepted the Rescission Offer; and
    (c)the date the Investors’ funds were returned to them following acceptance of the Rescission Offer.
    DATED as of the 2nd day of October, 2013.

    Gatineau Centre Development Limited Partnership,

    by its general partner,Gatineau Centre Development General Partner Inc.

    Per:Adam GantPresident and Director

  144. This makes it more urgent than ever. Rather than email everyone this list of things to do from BCSC, I will post it here.
    If anyone needs any help, let me know.

    Hi Allison,

    As per our conversation, when individuals file complaints with the British Columbia Securities Commission (BCSC) with regards to a possible violation of the Securities Act, we request they answer the following questions:
    What company did you purchase your investment from?
    What is your relationship with this company?
    Who sold you the investment?
    What is your relationship with this individual?
    What representations were made to you that caused you to make the investment?
    When you made the investment, was there anything said to you that was untrue?
    Did you receive an offering memorandum? If not, do you know if an exemption was relied upon for you to invest?
    If you received an offering memorandum, did you read the offering memorandum or consult with legal counsel in regards to the document?
    How is what’s happening now different than what you understood would happen at the time you made the investment?
    If you have any questions, please let me know.

    Sydney Lansdowne
    Senior Information Officer, Corporate Finance
    British Columbia Securities Commission
    PO Box 10142, Pacific Centre
    701 West Georgia Street
    Vancouver, BC V7Y 1L2

  145. According to very reliable information, League Assets Limited Partnership has filed for CCAA on October 10th 2013. Until a moment ago you could see it on the PWC website but the info disappeared,

    • Paul Dunbar says:

      I seriously challange that as they have not been out of dough long enough to show cause and file.I do not beleive they have filed

      • They have. It was posted on PWCs website, but was removed. I will send you a snapshot

      • Paul Dunbar says:

        if so what ever made them think they had money enough to hire PWC just to tell them their done like dinner?? makes no sense none of this

        • they thought they were going to raise more; either through new investors, or by going to the market. My connections in the market think Gant is a clown in cuff links.

      • They may have hired PWC to help them go public but PWC was unable to do so and PWC told them so and so they filed for CCAA. Didn’t it seem strange to you that telephone representatives were telling people if they didn’t go public they would go bankrupt?

      • Paul Dunbar says:

        actually heres my take on things.They knew 2 weeks ago and when they said they were hiring PWC to look into the league.What they meant is they were hiring PWC to oversee their bankrupcey application.its more than obvious to me now that i see whats going on.They never planed ever to hire PWC to do a analysis.They knew full well they were broke and PWC would be the assigned trustee in the bankrupcey

      • Stuart Little says:

        CCAA protection is not bankruptcy. If League has filed for CCAA protection, and it is not listed on the PWC website, then the intent usually is to seek time to restucture debts. Many companies eventually wind up going bankrupt but that is not always the case.

      • Mick says:

        The CCAA proceedings are public, so anyone can go to the Court and get a copy of the application. In most cases it means the Applicant was unable to pay a debt and filed for CCAA protection to avoid their creditor enforcing their right to realize on their security. In order for the Court to approve a stay that prevents creditors from enforcing, the Applicant has to show a 13 week cash flow projection with enough funds to cover the business needs. The secured creditors will be in Court to either support or contest this plan. This is also public and anyone can attend including the press. As I am not a securities lawyer I do not know if a cease trade is automatically placed on the sale of equity to the public during this process. I do not wish to sound cynical but the Securities Commissions might sit back and do nothing as this implodes. The Commercial Court and creditor processes work a lot faster than our Commissions do. Maybe because there is actually some oversight and accountability in the Court process, while it seems the bureaucrats in the Commissions do not have any requirement to act quickly.
        It is time to join the lawsuit.

      • Once again, if investors ‘join the lawsuit’ they will be left with nothing. There are no assets, no cash flow, just a big black gaping hole of debt. The only assets are those they have placed off shore or their personal properties. The only way to get at those things is with a criminal complaint. BCSC told me yesterday that they can instruct the RCMP to seize their passports. Everyone needs to start their case of fraud.

        There is no sense in tip toeing around it any more. They set out 6 years ago with nothing but some smarmy marketing, and have managed to bilk investors out of almost $300M. They don’t give a good god damn about any of you. I picture them laughing at every single one of you; even the disabled woman who put her last $100,000 in; even the young widow who put her dead husbands entire life insurance payout in League. They are laughing because they think you are all stupid. They played the system well.

      • Stuart Little says:

        You are right Paul. I checked the OM and LALP does not own IGW or Colwood so this action, if true, does not appear to effect any of the unitholders or IPU holders. LALP owns the manager and LISI only.

        There is no mention of any CCAA filing on the PWC website or in any court documents but my guess is that a loan was coming due and this is a pre-emptive measure to delay collection.

      • Mick says:

        If LALP filed for creditor protection then the filing will be at the Court. Whether it is on PwCs website is not relevant. It is very relevant to IPU and common shareholders as there appear to be numerous inter company guarantees of third party debt throughout the League entities. Many secured creditors will have taken cross guarantees from multiple entities. A default within one company can easily set off a chain of defaults through others. My point is that it makes sense to press forward with legal action now as the equity holders could be very much affected depending on whether there is indeed any equity left in the entities. If AJ is correct and there is no equity value then of course there is no point in engaging in the creditor process. If that is the case then proving fraud is the only hope for equity holders to recover value. On the other hand if there is equity value then acting now to protect it is essential.

  146. There were lots of brokers. One was Marvin Quiring, who League used in their marketing as a ‘case study’. Lots of brokers made commissions

  147. If anyone got into this investment through an Investment Adviser, please email me.

  148. sm says:

    how many people here could sell a shopping center for less than they paid for it?
    I COULD ……….now pay me.

    • Paul Dunbar says:

      thats what really really gauls me. They get paid when they buy shit we dont want or need and they get paid to sell the same shit that did not want or need.

  149. sm says:

    wheres my email thanksgiving card from arruda?
    I mean really what did I pay these people for?

  150. sm says:

    happy thankgiving
    so this weekend while gant and arudda and their families are feeding their faces ,the poor schleps who gave these people money dine on macaroni and cheese……welcome to Canada
    happy thankgiving

    • Paul Dunbar says:

      SM now thats a true story for sure.I remember that sick sick thanksgiving message those guys laid on me last year and its still makes me puke

  151. ANY one who has money in any part of League et al, who is NOT an accredited investor, please email me immediately. ajmbconsulting@gmail.com

  152. Paul Dunbar says:

    In a perfect world here is what would(should) happen.BCSC steps in +Seize controll of league and all Gants and Arruda assetts and I mean all.They immeadiatly disallow any more fee charges by these 2 parasites.They appoint a manager to oversee day to day current league operation.They immediatley put colwood in a for sale as is situation.They do the same for Duncan. They make peace with Timbercreek and get the PAR shares back in our bank account.Once things stabilize and we get a unconvuluted clear picture of the league and where we stand we slowly liquidate and get what we can.pay off debt holders and pay back investors as much as we with whats left. Force gant and arruda into bankrupcie
    Of course my controlled commen sense approach is not doable the way our laws and BCSC work but I love venting

    • There goes what’s left of any unencumbered properties, but at least the banks will control the purse strings:

      A correction from source is being issued with respect to the Partners Real Estate Investment Trust release that was issued October 04, 2013 at 12:07 ET. The first paragraph stated that “a .25% fee on the undrawn portion of the maximum facility committed” but should have read, “a .45% fee on the undrawn portion of the maximum facility committed.” The correct document follows:

      Partners Real Estate Investment Trust (TSX: PAR.UN) (the “REIT” or “Partners REIT”) announced today it has extended and amended its existing revolving credit facility (the “revolver”) which is provided by a consortium of Canadian chartered banks consisting of Royal Bank of Canada, Bank of Nova Scotia and Laurentian Bank of Canada. The revolver has a formula-based maximum not to exceed $40 million, bearing interest at the bank’s prime rate plus 1.0% per annum or the Banker’s Acceptance stamping fee plus 2.25% per annum, along with a .45% fee on the undrawn portion of the maximum facility committed. The amended revolver is currently secured by five of the REIT’s properties and can be expanded up to an additional $20 million to a $60 million maximum with the securitization of additional unencumbered properties. The revolver can be utilized for general operating purposes, including the acquisition of additional assets.

      The amended revolver also now includes a $5 million carve out tied to the Partners REIT’s bank account to efficiently managed daily cash inflows and outflows. The revolver will mature in March of 2015 and may be extended for one additional year and each year thereafter, subject to lender approval.