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Post by maryanne on Jan 24, 2020 20:48:07 GMT
I recently requested my (last)2012 KYC from them and noted my "liquidity needs" for 6-10 years as 50% and 11-20 years as 50%. can't get that if they suspend redemptions. Also, I noted that they had hand-written that they changed my "risk tolerance" from low to medium (with agreement from me). I talked with OSC compliance dept this morning and they have opened an investigation on my behalf. Did you e-mail Sean Dwyer?
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harry
Junior Member
Posts: 15
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Post by harry on Jan 24, 2020 21:36:55 GMT
yes.
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Post by Moderator on Jan 28, 2020 16:31:52 GMT
Another long time investor has given us permission to circulate his email to Tim Dwyer - sent yesterday:
"Hello Tim,
I've been biting my tongue for long enough.
In all of your messages since HarbourEdge suffered losses and a high %age of non performing loans/mortgages, some 45% to be exact, maybe more but you won't provide that information, you've done nothing but place blame on the "minority group" of investors. You're even blaming them/us for the lack of performance due to the fact you're not able to invest the cash on hand.
Tim, with all due respect, I, being part of that minority group, don't want you to invest anymore of that cash because of HE'S performance with the cash we've already invested. It seems the due diligence that you suggested you do/did is not really the case. You should have seen the red flags on properties down east when they were willing to pay such exorbitant rates. Yes we enjoyed those rates back then but were never aware at the time as to how risky those loans/mortgages were. Where was the due diligence then? I don't have to tell you we are in the biggest real estate boom in the history of the world and HarbourEdge investors are sucking air!
Now look at where we are! The fund has been virtually locked for some 4yrs now. Several investors bailed back when you offered the 85 cents on the dollar (I wish I had) at a time when the rules were still in place that an investor could get ALL of his/her money out within 90 days of his/her request except that YOU decided to reduce that to 85% and then close the door completely. It took those investors a couple of years to finally get their 85 cents on the dollar.
HarbourEdge did and still does advertise on its website that your LTV (loan to value) never exceeds 65%, I believe it used to be 60%. Does that mean the properties that are in trouble/in default have already lost more than 35% of their original value?
Tim if you're that pissed with this minority group, give just us our money back and you'll never hear from me/us again. If that doesn't work for you then I suggest you go with the "minority group's" proposal (2 MIC'S) as it makes a lot more "cents" than your proposal that will take years to unwind. I'm 76 in March and don't feel I have a lot of time left to mess with your lack of attention to other proposals and lack of response to pertinent questions. I have estate plans to make!!
I was not prompted by anyone to write this email but felt I had to get it off my chest. I think I know what kind of response I'm going to get from you and am ready for it. I didn't copy Larry but know that you will.
From a HabourEdge Investor to Tim Dwyer - sent by email on January 28 2020"
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Post by disgustedbeyond on Jan 28, 2020 16:50:00 GMT
As we all feel . Why I haven’t spoken to either of them for a long time . Previous conversations were Thx for leaving ur $$’s in , all will be ok Blah Blah . He / they have broken the faith . Should be absolutely ashamed of themselves . Obviously there is no regret or remorse . “ it’s just business “. And get off this minority group of investors crap ! Bottom line is the amount of shares . Full stop . A day of reckoning is coming , DO what is morally and ethically right . 😡😡
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Post by maryanne on Jan 29, 2020 20:39:08 GMT
HE view re: suitability obligations: “The investor suitability was accessed at the time of purchasing their shares in a mortgage investment.” For HE it seems enough to convince people to invest presenting their product as a reliable income source carrying Medium risk, then the business can change into anything, once the investors are "in" as they lose their right to decide what to do with their funds.
Our view: If HE sold us shares in a MIC, they should have sold the properties in excess to 25% and preserve the product we were suitable for (MIC). Instead HE effectively changed the product without suitability analysis and the result is a different product that has devastating consequences for many of us. And here is when HE first admitted this change: “Concurrent to our commitment to complete the ELO, we have been working with our outside advisors, including Ernst & Young, to devise a restructuring plan for HMIC to recognize that we now effectively have two different business segments – mortgage lending and real estate development. (Nov 2017 MDA)”.
That's a huge gap between these two views, I hope OSC will respond and clarify who is right?
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Post by maryanne on Jan 29, 2020 21:01:00 GMT
Another good one from their last update: "We truly believe this Plan gives the best balancing of the interests of those that want “out” and those that want to maximize recovery; providing greater oversight, governance and communications throughout."
Why doesn't feel like my interests are being balanced with others? I cannot picture the "out" of this, the "improved plan" doesn't say anything about how properties will be sold and how the payouts will come to us and when? Before or after my passing?
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Post by maryanne on Feb 11, 2020 20:18:32 GMT
Going again through KYC and updating it at my request (please, do the same, it is your right), it just occurred to me that, as a result of HarbourEdge transforming part of our funds in real estate assets, we are NOT suitable and qualified for prospectus exemptions, as our Net Financial Assets might go below $1,000,000
Value of Net Financial Assets excludes real estate assets that we own, and HE pointed out to us a few times that investors "already own the real estate" (45% of our HE investment is now illiquid)
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