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State investigating Koenig, AREI
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The California Attorney General's office confirmed today that its agents are searching the offices of Asset Real Estate & Investment Co. (AREI), the Redding-based firm accused of defrauding investors.
Amid a flurry of lawsuits from investors, Jim Koenig, who founded AREI in the late 1990s, announced earlier this month that he was seeking bankruptcy protection and closing the firm.
Gareth Lacy, Attorney Generals' office spokesman in Sacramento, said that California Bureau of Investigations agents were searching AREI offices today after initiating an investigation "for some time." Lacy could not confirm that agents had also searched Koenig's home today.
Koenig has deferred comment on the lawsuits to his attorney, who has declined to return phone calls.
AREI has controlled nearly two-dozen assisted living and memory care centers nationwide, in which it offered tenants-in-common investments and tax shelter property exchanges. These senior care centers have included Oakdale Heights and Sierra Oaks in Redding.
The firm also offered shares in a San Joaquin County golf course and a $55 million corporate note issued without collateral. AREI has defaulted on the corporate note after issuing greater debt to pay off prior promises of a 12-percent annual return -- a classic Ponzi scheme, one of the suits charges.
Koenig and his partners own at least a half-dozen other firms that charged investors processing fees, brokerage fees, loan processing fees, property operating fees and other fees. Koenig did not disclose to investors that he and his partners own these firms, the lawsuits allege.
Investors in some of the senior care centers have not received base rent since November and have faced foreclosure on their properties, the lawsuits charge.
However, Sierra Oakdale Property Management LLC and Oakdale Heights Senior Living, which run the Redding care homes and are plaintiffs in one of the lawsuits against Koenig and AREI, have said their mortgage payments are up-to-date and payroll is current. They plan to refinance their properties.
Koenig in 1986 was sentenced to two years in prison and ordered to pay $5 million in restitution to investigators after he and two partners were convicted of fraud in a gold selling scam, court documents show.
Lacy said the Attorney General's office is asking any investors who lost funds to send copies of their documents to the agency's Public Inquiry Unit. Documents should show the nature of the investment, what promises were made, where the sales occurred and how much was lost.
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Posted by jacks66vette on June 30, 2008 at 5:24 p.m.
Well it loks like its time to lock him up for awhile longer this time.
Posted by Ultra_Conservative on June 30, 2008 at 6:23 p.m.
wonder if he'll be housed with Courtney?
Posted by gamerjohn on June 30, 2008 at 6:56 p.m.
Who is Courtney? Courtney Cox from Friends on TV? Courtney Love from the band Hole?
Typical Record Searchlight. Print what the cops say. Ignore the other side. Print the law suit. Ignore the defenses to it.
Hang the accused and then when the truth comes out, oops, sorry about that. The accusations are on the front page, results on the back page of the last section.
Posted by 42 on June 30, 2008 at 9:03 p.m.
gamerjohn:
The Record Searchlight doesn't know half of what this scumbag has done to people. When the truth comes out, it should be oops, sorry we let this guy out of jail. Any defenses he has are totally self serving and a smokescreen intended to hide the truth of what he has done to hundreds of people across the country with his scams and schemes. The RS probably would print his comments, but watch as he hides behind a parade of tight lipped lawyers.
How come we aren't hearing from his last attorney, Rob Harding? My guess is he's putting as much distance between his firm and Koenig as possible. Same for his previous lawyers - Reese, Smalley
Posted by mustangsally on June 30, 2008 at 9:07 p.m.
in response to gamerjohn
gamerjohn, Read the article about the Redding women who were fired at... I guess Courtney is thier drug dealer.
Posted by crosemeyer3 on June 30, 2008 at 9:43 p.m.
I believe the article says,
"Koenig has deferred comment on the lawsuits to his attorney, who has declined to return phone calls."
So, do you have a reccomendation as to how reporters should get the "other side" of the story?
Posted by blacksheep on July 1, 2008 at 12:18 a.m.
in response to jacks66vette
.... or we'll see him elected president next round.
Posted by EdRussell on July 1, 2008 at 1:16 a.m.
Either Gamerjon is an idiot or he IS Jim Koenig. If he isn't Koenig, then I would say that he doesn't know anything about the inner workings of Koenig's operation. Anybody who does, always knew that that eventually his house of cards would cave in on him. That company was nothing but cash cow for supporting his lavish sudo rich life style. The company only rarely made a nickle or a dime legitimatley. Just wait until the Feds get into the middle of it.
Posted by bluefox on July 2, 2008 at 9:54 a.m.
hmm. reminds me of the x governor in az., who stole millions from investors then got off all the charges.
Posted by gamerjohn on July 3, 2008 at 11:09 a.m.
Sure everybody is an expert about everybody else. Everybody is so negative and unAmerican, hating the Constitution and the protection from abusive cops and courts.
Like many around here, I don't know Koenig, but I know people who have worked for him. EdRussell might think that fair minded people are idiots, but I am willing to give him a break, just like I am willing to give Koenig a break. I don't have any money invested anywhere.
I am offended by people so quick to hang people based on bad reporting and jealous posters. Remember you get judged by the judgment you show others.
Posted by dontmesswithtexas on July 3, 2008 at 6:42 p.m.
Hmmm that name sounds familiar to us here.
Doesn't he also own Lake College on Bachelli Lane?
Posted by EdRussell on July 4, 2008 at 7:36 a.m.
Gamerjohn, generally I would completely agree with you. In this case the only bad reporting is that the RS has only scratched the surface of a horrible abuse of investor money. My opinion has not come from these recent articles, mostly because they haven't reported anything.... yet.
Posted by ord on July 15, 2008 at 9:03 a.m.
EdRussell is absolutely right!! Lots more to come.... Bet on it!
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