Watch Out! McQuitty-Raeder Have the Video Tape

 

Unbeknownst to “sass654789@yahoo, ” CapitalWerks' Mark McQuitty is an old time radio “hard boiled detective mystery” buff.  Put him together with Jim Raeder,  a street fighter who is not afraid tos pend a lot of money to “ get even,” and you have a powerfulduo.

“sass654789@yahoo” we cannot name at this point as all the “legal positions” are being finalized,  but we can relate the situation. 

  from Jim Raeder, CapitalWerks/Preferred Leasing: 

“This email written by an employee of a competitor, and in my opinion directed by their executive management is once again completely false.  There is neither a formal, nor informal relationship with any of these vendors listed.   This embittered and frustrated competitor will be revealed shortly after consulting with our legal council. 

“To avoid the same liability of libel and slander, as has been subjected on CapitalWerks by this organization, we will be sure to have irrefutable evidence revealing the identity of this individual and organization.   In reference to the absurd statement that we have repurchased transactions from GE, we have not had a single loss with GE nor any other lender since inception.  

 “I could go through each and every charge and categorically provide proof these statements are false. However, there is no point as every statement listed here is absolute lunacy and far from the realm of reality.     Our competition has reached a new, all time low, in mudslinging which will ultimately prove to be their undoing.  “ 

  The Last of a Series of E-Mails:

“Return-Path: <sass654789@yahoo.com>
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Date: Fri, 27 Aug 2004 12:54:19 -0700 (PDT)

From: George Georgey <sass654789@yahoo.com>

Subject: Capitalwerks

To: angiebauer@hp.com, scrane@bankofthewest.com, jnewell@bankofthewest.com,

        john.j.callaghan@citigroup.com, knordendahl@bankofthewest.com,
        kralph@bankofthewest.com, pgreen@bankofthewest.com,
        pateb@balboacapital.com, vipulp@balboacapital.com,
        clysne@balboacapital.com, swehner@bsbleasing.com,
        rwehner@bsbleasing.com, newsletter@efj.com, kwheeler@efginc.net,
        dcoleman@efginc.net, info@efginc.net, amfnyc@aol.com,
        mfleming@elamail.com, aholmes@elamail.com, tereyj@finpac.com,
        tbrownrigg@finpac.com, kitm@aol.com, rick.hanson@usbank.com,
        brad.peterson@themanifestgroup.com,        paul.meyer@themanifestgroup.com,
        admin@themanifestgroup.com, bsickel@marlincorp.com,
        Broker@marlinleasing.com, CustService@marlinleasing.com,
        info@naelb.org, dcole45@mindspring.com,heatherv@caladesicapital.com,
        chaselease@aol.com, reo@oblfinancial.com, bob@independentleasing.com,
        law@jgbesq.com, lhrafter@monitordaily.com,
        dgalloway@netbankbusinessfinance.com,
        celmore@netbankbusinessfinance.com, rviola@netbankbusinessfinance.com,
        cleas@ofccap.com, LearLease@aol.com, Bob.Robichaud@PFFB.com,
        johnb@pioneerfunding.com, reidst@sbbt.com, PaulM@sbbt.com,
        newsline@uael.org, advertising@uael.org, membership@uael.org,
        ethics@uael.org

MIME-Version: 1.0
Content-Type: text/plain; charset=us-ascii
X-AOL-IP: 66.218.94.59
X-AOL-SCOLL-SCORE: 0:0:0:
X-AOL-SCOLL-URL_COUNT: 0 

“Dear Leasing Professional,
You have fraudulent deals in your portfolio. If you
have not already, you will soon have serious portfolio
problems. A scheme is being perpetrated on your company
that is potentially larger than NorVergence and which
will result in tens of millions of dollars in
portfolio losses. You are at risk if you are either
working directly with Capitalwerks/PreferredLease the
company responsible for the fraud or; if you have any
of the following, but not limited to, vendors in your
portfolio-EcoTech, Trynetics, Delta Services, Sebrim
Systems, I-Systems, Infinity Services, MacroTech, and
Add-on Computers. We even have a DBA of
Capitalwerks/Preferred Lease set up to legitimize
these transactions- Working Capital Technologies of
America.
This is how it works. Capitalwerks/Preferred Lease
identifies a company looking for a working capital
loan through one of their thousands of cold calls. The call from Capitalwerks/Preferred Lease starts with an inquiry about an equipment lease but then takes a turn when the potential lessee says they have a need for a loan but they do not have any equipment needs. Not a problem, this is normal. Capitalwerks/Preferred Lease
specialty- making up equipment.
Mark McQuitty, Jim Raeder, and Tim Lewison have set up
a vast network of computer vendors that falsify
invoices (they are even part owners in a few of these
vendors).Why would the vendors participate in this
fraudulent activity? Easy money! The vendors, primarily
computer vendors, simply create dummy invoices (either
no equipment exists, the equipment is already owned by
the company- sale-leaseback, the equipment is old, or
the equipment is on your restricted list).These
vendors receive the funding proceeds from you and they
then cut a check to Capitalwerks/Preferred Lease less
their commission, which usually is half the profit.
Capitalwerks/Preferred Lease mainly targets sending
this fraudulent business through smaller equipment
lease brokers. We employ this strategy in order to keep
our own portfolio relatively clean. When the fraudulent
deals blow up they won't be linked back to us. The
broker will keep quiet because he knows he has help
perpetrate the fraud. This scam is getting extremely
sophisticated so just because you have done an
inspection on lessees of the above mentioned vendors;
don't think you are out of the
woods. Capitalwerks/Preferred Lease will actually ship
dummy equipment (typically computers).They ship the
dummy equipment and then once the inspection is done
they instruct the lessee to send it back to them. When
the inspector comes in he sees the boxes of computers
in the lobby and will sign off that the equipment was
there.

”So you ask, what is the big deal about not having any
equipment? You probably have a policy on soft
collateral (software, etc.). Why not a working capital
loan?pan>You don't have equipment but you have a
lessee that would have qualified for a lease had the
lessee had an equipment need? Two reasons- first, a lot
of the deals have had their credit scrubbed and second
a request for a working capital loan shows desperation
on the borrower's side (the credit reports just
haven't picked this up, yet).Both of these issues will
lead to a default rate that will be substantially
higher than normal.

”Don't take my word for it. Check to see if you have
any of the vendors mentioned above in your
portfolio. Ask your brokers if they are accepting
applications from Capitalwerks/Preferred Lease and
order a follow on inspections on any lessee with the
above mentioned vendors (make sure the inspector-
obtains serial numbers, turns on the computers, and
checks the processor speed and memory to see that it
matches the invoice. Also, independently verify the
value of the equipment).?.more laterI  I'm out, The modern
day Upton Sinclair
P.S. - This will be the next New York Times story.
P.S.S.- Was Jim Raeder in New York last week?
P.S.S.S- Ask us about the deals we are buying back
from GE.”

 

---   

The email was not only broadcast to the people named in the original e-mail, but to others. 

Jim Raeder responded to the first one: 

His latest to those addressed:

 “You recently received an email from an individual claiming to be an employee of CapitalWerks.   The information provided in this libelous and slanderous attack couldn't be further from the truth.  This coward whom believed could hide behind a thinly veiled anonymous email address has been identified and is in fact not an employee.  The letter has since been removed from Leasing News as the information was proven false and misleading.  This individual whom works for a competitor will find that his attack on our character was a costly mistake.    

“I realize by reading the message boards of every public company that each and every CEO and CFO are under attack from people that are jealous and envious of their accomplishments, or have bet on the companies stock to go down.   I believe we will continue to be a target as long as we work in this highly competitive and lucrative industry.    

“It has been a difficult last four years for most leasing companies including ours to survive the difficult economic downturn.  There's enough business for all of us out there now and to focus on the negative vs. the positive results in less then optimum results.  Thanks for taking the time to listen to the truth and thanks again for your continued support.”   

  J. Raeder

 Yahoo and others realize they have liability, so when a person signs up from a “free mail account,” they agree to terms and conditions.
Violation of them allows they to “share” information.  In this case, the original e-mail was traced to a Kinko's address.  The person came and rented a computer from Kinko's, evidently paying cash, and feeling quite safe that in this anonymity.   So they could register the Kinko's computer as the yahoo “free mail address.” 

As part of the agreement with Kinko's, violation of the agreement of allows them to share information, including the video surveillance of the store and the use of their computers.  With the exact date to the second of the internet use, the video shows who the person is.  Plus both Yahoo and Kinko's have records of all the e-mail sent by this individual as all of it is saved for legal liability purposes.