Thank you Trey. I’ll join in signing in support of the objection
Troy Rendon
3512 E Mill Plain Blvd
Vancouver, WA 98661
360.281.4216
Sent from my iPhone
On Jul 2, 2019, at 4:28 PM, treytennyson3 <treytennyson3@xxxxxxxxx> wrote:
Good afternoon, fellow investors. My name is Trey Tennyson. My mother and
I have very large investments in the AEM 600 fund, but no others.
I am a recently retired trial attorney from Vancouver. As I relocated to
Arizona a few years ago, I hired Vancouver attorney Tim Dack to represent my
interests in the AEM receivership.
After reviewing the legal documents (pleadings) that American Equities filed
with the court to start the receivership, I became convinced that the
receivership had been improperly started. The documents that were filed with
the court showed that American Equities (as Manager of each of the different
funds) had made what is called an assignment of assets to the Receiver in
favor of its creditors. This is a fancy way of saying that American Equities
simply transferred our assets to a third party who will now act as our new
fund Manager. Unfortunately, this new Manager (the Receiver) wants to be
paid $500 per hour and wants its attorneys (((Miller Nash) to be paid $500
per hour. These fees are well in excess of the .50 percent management fee
we were paying to American Equities.
As you all know, each fund is set up as a separate Washington Limited
Liability Company(LLC). The investors in each LLC became its members and
also its creditors. LLCs in Washington are governed by statutes. The most
important statute relates to member voting rights, and provides that ALL
members must consent to any dissolution (dissolving) of the LLC or to any
action of the LLC Manager which is outside the ordinary course of business of
the LLC. The receivership would effectively dissolve each of the LLCs and it
is clearly not part of the normal course of the business which is managing
real estate investmen
Last week, Tim Dack filed an objection to the Receiver`s request for
compensation (including attorneys fees, receivers fees, accountants, etc) on
the grounds that the LLC investors did not vote to approve the receivership
and it is therefore illegal. We also onjected on the grounds that the
receiver and his attorneys were requesting that they be paid different
amounts of money from each LLC for work that they claimed benefitted each
fund equally. This could cause some funds to pay far more than their fair
share and hurt the investors in these funds.
My mother and I were the only investors to file an objection to the Receivers
request for compensation. However, I am sure many of you share these same
concerns and would agree with these positions. None of us voted to set up an
expensive receivership. What we need is a new Manager of the LLC funds who
is competent , will work for a reasonable fee and can gradually liquidate the
funds in the way that returns the most money to the investors.
As a result of our objection, the Receiver will have to file a legal motion
and set a hearing in front of Judge Gregerson. This will be done in the next
week or two and the hearing will likely be in late July.
The Receiver has also scheduled a hearing in July where he is requesting
approval from the Judge to sell property owned by all the LLCs. We are
objecting to this request because the receivership was not properly approved
by the investors.
My attorney has requested that I find other investors in the AEM 600 fund and
the other funds who will join in writing and support our objections. This
will show the Judge that many investors object to the receivership and the
sky high fees that come with it. If you are willing to sign such a
statement, please email me with your name, address and telephone and either
myself or my attorney will contact you. With our combined effort, the
Receivership can be terminated and a new Manager properly appointed that will
return a much larger amount to the investors.
Trey Tennyson
treytennyson3@xxxxxxxxx
Sent from my Galaxy Tab A
