As the Democratic Senatorial Campaign Committee adds the weird Northern Beef Packers–Epoch Star offshore funding deal to the pile of stinky EB-5 business on Mike Rounds's doorstep, Denise Ross adds another shady player to the game: Maverick Spade.
No, Maverick Spade isn't the stripper at young Mrs. Joop Bollen's bachelorette party. It's an asset management company, run by Myung-Kyu David Kang, that played some role in facilitating the $30-million bridge loan from Epoch Star that kept Northern Beef Packers afloat in summer 2010.
Why Northern Beef Packers needed yet another mystery company reaching into its cookie jar is anyone's guess. But the loan agreement between NBP and Epoch Star handed out a lot of cookies. Section 5.7 entitled Maverick Spade to a $2.5 million "success fee." Maverick Spade and Northern Beef Packers apparently didn't enjoy a successful relationship; on July 17, 2010, they signed a settlement to resolve an ownership dispute that says NBP would pay Maverick Spade $950,000 in addition to $300,000 already paid. (Ross says Maverick Spade ultimately received $950K, but my reading says that amount is in addition to the previous $300K. I invite correction.)
Tucked into the NBP-Epoch Star loan agreement (Section 2.6) is another $240K in gravy (sorry, "placement fee") for Quintus Asset Management Limited, a Cayman Islands firm that appears to be related to Quintus Investment Management (HK) Ltd., which operates from the same Tower 1 of the Lippo Centre in Hong Kong that Epoch Star listed as its address.
Bits and Pieces:
- Northern Beef Packers and Epoch Star signed their loan agreement on March 18, 2010, three and a half months before the South Dakota Banking Commission ruled that Epoch Star was not a bank and did not need to open its books for a lending license application or pay bank franchise tax.
- Sections 4.5b subordinates all new liens to Epoch Star's claims. White Oak Global Advisors wrested the same subordination for its $35 million line of credit to NBP in September 2012. NBP secured $65 million in credit that shoved its EB-5 investors to the back of the line and ensured that if the plant went bankrupts, the middlemen and not the original investors would get whatever assets were left.
- Like the credit agreement that Joop Bollen imposed on Northern Beef Packers in November 2010, the NBP-Epoch Star deal forbade NBP from investing money in any foreign accounts. That stricture, Section 5.6, applied to new and outstanding investments. Funny that an offshore lender was interested in erasing all of its new American friend's previous offshore transactions.