Incorporated May 21,2000 Editorial

Lawrence C. Menkin, Publisher * Christopher Menkin, Executive Editor Advisory Board Members Bob Baker, CLP. Wildwood Financial Group, Ellisville, Missouri Edward Castagna Nassau Asset Managmnt, Roslyn Heights, NY. Steve Crane Bank of the West, Walnut Creek, CA. Phil Dushay Global Financial Services, Manhattan, NY. Ken Greene, Esq. Larkspur, California Dan Janal Great Teleseminars, Shorewood, Minnesota T.M. Kabot, CLP Kabot Commercial Leasing, Seattle, WA. Robert S. Kieve Empire Bradcasting, San Jose, CA. Bruce Kropschot Kropschot Financial Services, Vero Beach, FL. Fred St. Laurent MSI International, Atlanta, GA. Andrew Lea, M.A. McCue Systems, Inc. Burlingame, CA. A. L. Mills, CPA San Diego Business Journal, San Diego, CA. Steve Reid, CLP Santa Barbara Bank & Trust, Santa Barbara, CA. B.Teichman, CLP Teichman Financial Training, Sausalito, CA. Paul B. Weiss ICON Securities, N.Y., N.Y./San Francisco, CA. Ginny Young Brava Capital, Orange, CA.

 

Amicable, Generous Settlement

Enough has been written for all Leasing News readers to know about the NorVergence Scandal. There is no doubt foul play is involved and those who directed the misdeeds will ultimately be brought to justice. The victims have been not only the direct users, but telephone companies and lessors.

Leasing companies should follow the example of GE Capital who reached a settlement in the State of New York with their lessees; that it was negotiated by the attorney general is political fodder. Individual leasing companies have already made individual settlements with well over several thousand of their lessees caught in the NorVergence “Equipment Rental Agreement” trap.

The collection and legal departments have been generous in their willingness to “work with the lessee.” Leasing News now calls on all the leasing companies involved with NorVergence to make a generous, amicable settlement for the betterment of the industry.

Such action should not reflect any admission of error or responsibility or misrepresentation or any wrong doing of the lessor, nor should it acknowledge the responsibility, admission of error, of those who signed the leasing contracts. It should be viewed as a gesture of good will and hope, a peace offering.

In reality, Leasing News believes it is a better "business decision" to end the conflict right now, take the financial losses right now, than continue this through the systems of courts and the news media.

The process can only go on for years, even winning in court, will make the leasing industry losers in the public eyes.