Belinda Franke and Barbara Fite. This is my mother also. My entire retirement
is in this fund. We both have investments in these funds and will sign580
364-6592Atoka, Oklahoma
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-------- Original message --------From: treytennyson3 <treytennyson3@xxxxxxxxx>
Date: 7/2/19 5:28 PM (GMT-07:00) To: aem-vanc@xxxxxxxxxxxxx Subject:
[aem-vanc] Status of current objections to Receivership
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 Tennysontreytennyson3@xxxxxxxxx
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