On September 29, 2008 my group entered into a loan agreement and security agreement with Mr. John Kosolcharoen and his company, Premier Funding USA, Inc. (a California corporation). The general terms of that agreement were for my group to loan Mr. Kosolcharoen up to $2,000,000 USD so that he may enter into an investment strategy utilizing a Collateralized Mortgage Obligation (CMO) and the subsequent leveraging, or monetization, of that instrument in order to obtain above average returns. My group performed quickly by raising $1,688,000 through private investors Mr. Kosolcharoen, according to himself, personally provided an additional $312,000 to fulfill a $2,000,000 sum. In exchange for that loan, Mr. Kosolcharoen contractually agreed to return to our investor members a 100% return on investment, plus the equivalent in capital fees being paid through a third party. The particular CMO, known as CUSIP# 74922KAY1, was pledged in the agreement as collateral for the loan. Furthermore, as stated in the agreements, my group would be the recipient of monthly interest payments (approximately $54,000 per month) derived from the CMO if the original 30-day strategy did not work or was delayed. Though the original loan agreement states a 12 month term both parties executed a 30 day term addendum at the outset. Mr. Kosolcharoen and Premier Funding USA, Inc. have been in default of that agreement for over six months and have been notified as such by my group, as well as our legal counsel. Though there have been repeated attempts, so he claims, by Mr. Kosolcharoen to perform on the contract, not one dollar has been returned to the investors. It is our belief now that Mr. Kosolcharoen is participating in fraudulent and potential criminal activities either on his own, or as is more likely, with a Mr. John Benson of Mondiaen Capital (a Netherlands asset management company), a Phoenix, AZ resident.
Mr. Benson's role in this transaction, though not named in our loan agreement, is significant. He claims to be the owner of the KAY1 CMO, which Mr. Kosolcharoen has been attempting to monetize. It is his agreements with Mr. Kosolcharoen that were to enable Mr. Kosolcharoen's performance on the terms of the loan with my company. Mr. Kosolcharoen paid the money we loaned to Premier Funding USA, Inc., $1,688,000, to Mr. Benson in order to obtain all of the necessary rights to the CMO to enable him to employ the CMO strategy. Mr. Benson in turn used that money for, as he states, other investments and commitments. Additionally, Mr. Benson indicated that his company, Mondiaen Capital, is the recipient of the monthly interest coupon derived from the KAY1 CMO and that those monies would be transferred to Mr. Kosolcharoen and, in turn, to us as stipulated in the loan agreement. On several occasions, there have been written and verbal assurances made by both men that the monthly coupons due to my group were being deliveredeven as far as stating that the wire was being sent right now, or within the hour. We have yet to receive any money from either party and the excuses are far too many and way too outlandish to go into in this context.
Because of the myriad excuses, delays and misrepresentations, it is our belief that Mr. Kosolcharoen and Mr. Benson are co-orchestrators of what may be an even more elaborate scheme that may involve, but may not be limited to money laundering, Ponzi activity, securities fraud, internet fraud, tax fraud and loan fraud. We have filed or are in the process of filing formal complaints with the FBI, Securities and Exchange Commission, California Attorney General's Office, Arizona Attorney General's Office, California Mortgage Brokers Association, California Department of Real Estate, Better Business Bureau and the National White Collar Crime Center. We are also notifying the necessary authorities and regulatory agencies in The Netherlands and London.
Charlotte, North Carolina