The news keep getting worse for investors in Victoria-based League Assets. And the financial disaster is still not getting adequate media coverage.
Back in November, I predicted massive losses for the investors League, which promised investors security and great returns through real estate investments.
Based on the latest filings from PWC, the news is even worse than I expected.
League Assets, the creation of Adam Gant and Emanuel Arruda, is broke and filed for protection under the Companies� Creditors Arrangement Act. PWC is being paid to manage the mess.
The best estimate, in November, was that League�s properties could be sold off and net $227 million.
But there are $186 million in mortgages, PWC reported in its latest filing, and $6.3 million owed on outstanding property taxes and liens. They get paid first.
Some 460 trade creditors are owed $19.5 million. They get paid next.
Which leaves about $15 million for League�s investors, who entrusted the fund with $370 million of their money - retirement savings, money set aside for children�s education and the like.
There are 4,280 investment accounts, which means an average investment of about $86,000. Blogger Rachel Berube has shared case studies from the company�s sales material, which include investors who talk about mortgaging their homes to invest in League and counting on the investments for their retirements.
Based on the PWC reports, those investors will be lucky to get back four cents on the dollar. A typical $86,000 investment entrusted to League will be reduced to about $3,400.
It�s extraordinary. Investors put $370 million into League based on promises, and now $15 million is left.
Money doesn�t disappear, and many creditors are asking where the missing $355 million has ended up.
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