10 Example Stories: Direct and in the words of the victims as to personal devastation suffered as a direct result the IFFL/Merendon Scam. There are literally hundreds of other similar situations. Victim Story #1 Anne….70 year old widowed woman/Canada I would have to check my day timer to give you the exact date I met Milo Broche (sp) but it was in the fall of 2002 that I met him face to face for a presentation of a company called Capital Alternatives. Almost two years later, after much thought and what I thought was due diligence, I placed my third ‘pot’ of money with Capital Alternatives. “Pot” one came from a refinance of my home – which was, at the time, paid off. The way that was structured was that I would borrow $125,000; hold back one year of payments, and then the investment would make the payments beginning in the second year. The second “pot” came from $50,000 of RRSP’s, which at the time of the original presentation could be taken directly over through the RRSP route and invested. As it came time to request the transfer of the money into the investment, that route of investment closed and I eventually had to cash out my RRSP’s in order to make the investment (the sweetener being a higher interest rate that would make up the difference in the tax that had to be paid on the withdrawal). The third “pot” was from my $112,000 pension account. Any pension account cannot be cashed out so I had to move it from the pension plan to a LIRA account. This was the last pot of money to move because a way had to be found to move it – it was moved via Arbour Energy share purchase. The strategists had successfully helped me to identify every possible dollar I had available to invest in my future well-being. I was confident I would be comfortable in my old age (and I wasn’t far from retirement). The total money put toward the investment, with holdouts for payments and taxes for one year so the investment would grow, was $287,000. In return, I was to have been getting payments for the mortgage and growing a secure financial future of roughly $20,000 per month, depending how and when I took money out. I was growing the legacy I had long dreamed of growing – I certainly didn’t require 20K/month to live, I would be able to donate and leave behind something of value to my community. I was content. I had one year with no payouts of any kind to build the investment back up to it’s original amounts after the administrative fee had been taken off, and the exchange rate had been accounted for. The next two years I was withdrawing an approximate average of $2900 every quarter to cover the mortgage payments while, the investments in all of the vehicles were doing well, just as planned. Then at the beginning of 2007 the quarterly payments stopped being available (a long story) and I then had to create the money to make the mortgage payments. I was told this was a temporary state so I didn’t immediately panic or take action. As time passed however, it became very apparent that this “temporary” withdrawal situation would not pan out exactly as had been planned and that if I was to go into my ‘golden years’ financially solvent, I had to find another way to do it. Thus began the real estate adventure with my daughter. I paid, with lines of credit and credit cards, for four real estate programs and the entire ancillary costs of travel, hotels, and food for both of us. As well, I purchased their selling programs (websites, call centres, back office calculation tables, etc.) so that we could purchase real estate and begin to rebuild the loss I had taken with IFFL and a future for my daughter as well. After 9 months of great effort, many coaching calls, and finally the veil lifting for us to see that what we had been taught/sold wasn’t really for Canada, my daughter returned to her work and I had to refocus again onto something I could do by myself in my time. We had purchased one property and when we sell that, I won’t even see the return of cost of the courses. That brings us to now. Tomorrow I am going to the bank to apply to refinance my property so that all of my debt can be put into a lower interest vehicle and the money that is earned can be used toward moving forward in a website coaching program instead of interest on credit cards. If that is unsuccessful, and there are a few possibilities beyond the bank, I will have to sell the property to pay off the debt and put myself into a workable situation – that is, I will have to continue to work until I either find an investment that is secure and can pay for my retirement, or until I die. I have tried other forms of business ventures since the IFFL payouts ceased, I did not feel it was important to mention them. At the time of this writing, they too have not materialized in any really large form. The return of my investment in IFFL will do nothing toward my future life (that is, there will be no retirement money flowing) but it will alleviate the debt load and make it possible to ‘begin again’ in creating cash flow. This is not what I bought into when I began my relationship with IFFL, however this is my reality Victim Story #2 Jacob E ~ Alberta. He sold his restaurant business to put the funds into this story, together with all other cash that he had available. ( 800 K) As he saw his retirement, as outlined by the Structurists, right now vs. later in his life. His aged wife and self are now living with their son as their house and home is gone, they have borrowed money and used up most of their friends & other family members to literally survive now as their whole life is in this. The marriage is on very rocky roads. They are in their late 60's and on old age Government Pensions and hand to mouth with no other resources. They are deeply concerned about the money they have borrowed from others and even should there be a successful recovery they do not have the ability to make well the loans outstanding AND have much left to plan anything for themselves in old age. Victim Story #3 Robin C. ~ Hawaii Robin is a Dental Hygienist and her husband (Hoppy) is a construction worker ~ they have a young teen daughter. They used to own their house. When cash flow died in this story (they were some of the few right at the end and had only taken $ 4,100.00 back in cash flow) they had already experienced the turn down in the dental industry and the construction industry with people just not spending money as they used to. Now, after trying to sell their home (unsuccessfully) they have it rented out, with the mortgage now just being covered. They live in about 30 % the floor space (rental) of what the family once had and are living with borrowed money from family members to meet rent, etc. Had they NOT involved themselves with this IFFL story, the times we are living in would have had them in tough times alone. Now with their wealth in the hands of someone else and the down turn of the economy; like so many, they do not see a way out of the debt that has come about because of this situation and a positive outlook to their future. They are just day-to-day, hand to mouth and doing what ever they can to keep their daughter well in the world. Victim Story #4 Elderly Albertan couple (names withheld at request.) When engaging with this situation, he (age 75) and his wife (age 67) had 5 properties and 4 of them were paid for at the time. The Structurist convinced them to lien all of the properties and let the cash flow form the situation cover the new mortgage payments. Until cash flow stopped, things were working relatively well. Today they are both working jobs paying under $ 15.00 an hour (in their 70's of age ~ gosh), all of the properties are gone (repossessed by the banks) and they are hanging on for dear life to keep their home. The reality of these property liens is about how mortgages work ~ in that, little of the principal is touched for years (as you well know) ~ so, nut shell . . . although there may be cash flow to cover mortgage payments (when cash was flowing) the principal owing stays up there for a number of years. These people and many others were just not in the "game" long enough to do anything other than offer up their capital to these bad guys, and get SOME of their own capital back in the cash flow. They are now left with debt that they have no way of covering as their wealth is in the hand of the bad guys ~ bankruptcy is close at hand for these people and they do actually own their own home. In life style, they have gone back to the beginnings of their marriage (over 50 years ago) when they had nothing and young children. Victim Story #5 Suicide-Edna Coulic The worst of it (of course) is suicide ~ we have three in total and 2 of them wish privacy and won't engage at any level. The one from October 2008 is Edna Coulic ~ young woman who brought a large group of friends and acquaintances into this IFFL story that all went badly. She lost everything and her family has lost mostly everything as she led them to the trough. She was NOT a Structurist; however sent them all to her Structurist. In departure she left notes to her family members & friends begging for forgiveness and that she could not continue. Victim Story #6 Elderly man-Richard Riley death believed contributed to by... Riley late 60’s in age, invested all his savings and did re-finance his home. The loss of cash flow forced him back to work, and then stress was the main contribution to his death. His wife is close to destitute and in process of loosing the matrimonial home now. Victim Story #7 Suicide Watch The reality check here is that the most of the people in this story are seniors and they are feeling deep shame and humiliation. We spoke with one man today who is watching two people and staying very close to them, as he believes that they are both suicidal. Yes, the guys who is watching and paying attention does know of our suicide help lines here and is doing his best around that in encouraging these people to call and receive help. As seniors they are very reluctant to do that. Victim Story #8 Denis L.-65 years of age Sold his bottle depot business and put the money into this story (he has over 1 M + on the table) and he is now in the midst of loosing his home. He is 65 years old. Victim Story #9 A. Stevens-74years of age Forced to sell her home (to survive) as had invested all of her life savings, and is living with friends and relatives (moving around) and has almost worn out her welcome in most places. Her daughter gave birth recently to a set of twins and they have given her some hope in the world again. When with the twins she is fine ~ otherwise not. Victim Story #10 Michelle Mallano and Patrice Mallano Invested total $170,000.00 in USD. Our units assigned were 150 under the number PB11315. Patrice Mallano: I am Patrice Mallano of Rancho Palos Verdes, California. I invested a total amount of $130,000.00 in USD. My funds were taken from my retirement principle investment which was earning monthly and I was utilizing the earnings for monthly living expenses. Other cost to me since I have invested are: (My family home is 47 years old requires/demands updates and costly repairs). 1- I need a full roof replacement and the funds that I had been saving to replace the trussels and total roof on my home are now being utilized for monthly living expenses. The roof is a problem as I need to replace the slant of my roof, to prevent future damage to the structure of my home. 2- I have four 10-foot double sliding glass doors. I mention this because the expense of total replacement and the leaks cause large utility bills monthly. I placed these funds from my principle savings into the investment that you’re now attempting to recover. This is a huge expense per set of glass doors and I don’t have the funds as I expecting to receive by this time. 3- I thought I would be receiving funds by this time to take care of the bid of $65,000.00 for repair of my homes foundation and the drainage issue. 4- My transportation (car) is 22 years old and on it’s last legs. I was in hopes of being able to replace it instead of repairing as it is becoming costly since I don’t have excess funds and lost the earnings totally which used to sustain me. I have been drawing on my principle of the little investment that I have at this time and really do need my investment funds returned as soon as possible. 5- I (Patrice) am 74 years old. I am living on a fixed income and considered to be on the spend down time of my life which means I don’t have any way to earn the funds that I lose. I have been expecting to be receiving funds from my investment to support me into my older years and fear that it will not happen prior to my passing on in life. HOME