It may sound weird, but my days in the banking world would tell me that they likely had a cash call at some point early this year. What that may be is pure speculation, from as jwfacts said legal cash reserves, to the rumors of the Ponzi schemes having a cash call is immense. Either way what we do know is that:
1) In May - they said they needed funds to build KH's.
2) Herd now says they will build if the funds are contributed by the friends. - At least I interpret this to mean that if you want a hall now you need to pony up.
That tells us that either the contributions did not come in (which would be at odds with the July? broadcast), or that the money that came in earlier was spent on something. I clearly remember on the D&B that they had financing that was Secured (meaning debt to assets), but that was only 1 of like 13 affiliated companies. (I still wonder why they have a branch in San Dimas, CA? - like Bill & Ted's but that is a side note).
Overall, it appears that all money taken is earmarked, and that money is an issue. So many pieces of the puzzle are missing here. Even if one was building a war chest, the reactions are showing desperation on the epic corporate levels.
Maybe Cedars article on the money was closer than I thought. I guess I was wrong on that.
