Balboa Capital, Irvine, California
Bulletin Board Complaint

From O’Grady Milner, CEO, Tekhnikos Solutions, Inc. dba NetBoundary dba Carrollton, Texas (an internet security company.)

(click image to view larger)

“You can see from the attached leases and the clip below that the section 3 regarding electronically or ACH has been crossed out. However the have slipped some language in to the last sentence of section 2. This right can only be exercised if I give them authorization and the ACH information. Not at their will and not from information they took off of past checks. They changed their collection practices and start doing this after looks like 15 days. The problem is that we had mailed checks to make payment at the same time that they were drafting our business accounts. They never told us they were doing this, they never told us that they had done it and they kept the check that we had mailed and applied them to other payments.

“When we were trying to figure out what was going on and felt that we had over paid and asked for an account statement as well as executed copies of the lease since we had never received them the collectors were rude and told us that they don’t have to give us anything until we paid up. Which turns out that we were in some cases paid in advance due to their illegally drafting out accounts.

“They are claiming that the last sentence in Section 2 ‘’Term of Lease’ gives them the right. It starts with ‘We have the right, but not the obligation, to electronically withdraw funds from your back account…).’ Not sure why they put this sentence in the Term section. But then again I think I am sure ;-)

“This was used when we would fax them a check for payment. Thus, my position, they only have the right when I give them the routing information and my authorization!

“Their position that they are maintaining is that this sentence gives them the right to pull the routing information off of a check that I had previously sent them for payment and withdraw funds electronically without my authorization and without notification before or after that they had done this.”

---------

Mr. Milner also was told that being in default, he lost his option to purchase at the end. Balboa also threatened to take him to court in California, not Texas, and make it more expensive than should he not acquiesce to the ACH payments.

In reading the contract, the default paragraph basically said that if all the payments were not made, the purchase option could not be exercised. Being late was perhaps in default, but did not change the option to purchase if all the payments were made.

Balboa President Phil Silva said he would look into it on March 9, 2010,

Email emails to he and Chairman Patrick Byrne were not returned.

In a discussion with the FDIC, Leasing News was told: "The customer can dispute authority, and the customer's bank must honor that dispute and send back to Balboa's bank. That’s in the Code, the Uniform Commercial Code, Articles 3-4. A complaint may also be lodged if not resolved."

Classified Ads---Credit

Atlanta, GA 9 Years experienced small ticket Credit Analyst seeking full-time position with equipment broker/lessor. Resume available. Email at StuartJablonski@aol.com or www.linkedin.com/in/stuartjablonski

For a full listing of all “job wanted” ads, please go to:
http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm

Other e-Mail Posting Sites:
http://www.leasingnews.org/Classified/Posting_sites.htm

Operation Lease Fleece---April Up-Date

In 2007, the FBI investigation dubbed "Operation Lease Fleece" indicted over 23 in their roles in a fraud scheme that allegedly caused more than $20 million in losses to several lending institutions that believed they were financing equipment leases. Many were disguised "sale/leasebacks" or leases that exceeded the "soft costs" such as software and installation.  More were indicted and two alleged ringleaders were indicted and a trial set for November 9, 2010.

"ORDER TO CONTINUE Sentencing by Judge Cormac J. Carney as to Defendant James Raeder. Sentencing hearing continued from 4/12/2010 to 4/11/2011 11:00 AM before Judge Cormac J. Carney. (mt) (Entered: 02/22/2010)"

May 20, 2008 Mark McQuitty pled guilty 18:1343: Wire Fraud before Judge Cormac J. Carney. ORDER TO CONTINUE SENTENCING by Judge Cormac J. Carney as to Defendant Mark McQuitty. Sentencing continued to 1/10/2011 at 10:00 AM before Judge Cormac J. Carney. (nbo) (Entered: 01/11/2010)

Adam Zuckerman pled guilty with the jury trial date of July 8, 2008 at 8:30 a.m. as to this defendant only. There were questions regarding his plea. Currently Sentencing set for 7/19/2010 before Judge Cormac J. Carney. Plea agreement as of December 7, 2007 is sealed. He has allegedly gone on a cruise, and with permission traveled to Israel, but has now turned in his passport. STIPULATION to Continue Sentencing Hearing from July 13, 2009 to July 19, 2010 filed by Plaintiff USA as to Defendant Adam S Zuckerman (Attachments: # 1 Proposed Order)(Waier, Jennifer) (Entered: 05/04/2009)

The latest indictments are Shant (Chant) Vartanian, president of ISystems Technology and Solutions, 3650 East Olympic Boulevard, Los Angeles, California, and his brother, Sarkus Vartanian, Vice-President, Marketing, as individuals. They claim innocents. They are still in business, working with several Southern California leasing companies, including one company where the individual was the top salesman for CapitalWerks for five years, now a CLP and Best Practice Broker. The Vartanian Brothers trial Date has been moved from March 9, 2010 to November 9, 2010.

Ironically, the judge who has been handling this is

Hon. Cormac J. Carney, UCLA Football wide receiver Rose Bowl MVP, who after graduating from UCLA, played one season with the Memphis Showboats of the United States Football League. He reportedly passed up San Francisco 49er overtures so he could attend Harvard Law School on an NCAA Post-Graduate Scholarship. (1)

Los Angeles attorneys have told Leasing News both he and his wife remain very popular in the Los Angeles area, almost as when he was top man on the UCLA campus.

Three have been sentenced:

James H Breedlove: “12 months and 1 day imprisonment, with credit for time served. Pay $100 special assessment. Pay total restitution of $391,976.25. The defendant shall be held jointly and severally liable with convicted co-participants Mark McQuitty (Docket No. SACR 07-00236-CJC) and James Raeder (Docket No. SACR 07-00237-CJC) for the full amount of restitution ordered in this judgment. Interest on restitution ordered waived. 3 years supervised release under terms and conditions of US Probation Office and General Orders 318 and 01-05.”

Mark Castleman indicted for mail fraud and November 19, 2008 pled guilty. “April 23, 2009. Hearing held before Judge Cormac J. Carney as to Defendant Mark P Castleman. Defendant Mark P Castleman (1), Count(s) 1, 1 day imprisonment, with credit for time served. Pay $100 special assessment. All fines are waived. 3 years supervised release under terms and conditions of US Probation Office and General Order 318. Bond Exonerated. Sixty (60) hours of community service with the first six months.”

Nohad Mousa pled guilty to 18:1341 MAIL FRAUD before Judge Cormac J. Carney. “JUDGMENT AND COMMITMENT by Judge Cormac J. Carney as to Defendant Nohad Mousa (1), Count(s) 1, 6 months imprisonment, time served. Pay $100 special assessment. Pay total restitution of $94,775. Interest on restitution ordered waived. Defendant shall be held jointly and severally liable with co-participant George Simon (Docket No 8:07CR00246) for the amount of restitution ordered in this judgment. All fines are waived. 3 years supervised release under terms and conditions of US Probation Office and General Orders 318 and 01-05. Signed by Judge Cormac J. Carney.“

Plea Agreement:
http://leasingnews.org/PDF/NohadMousa.pdf

The majority are basically under "house arrest." Although many get permission to travel, it must be specifically approved by Judge Carney. While out on bail, they are not permitted to engage in financing or leasing in the State of California, particularly, as well as other states. According to California Finance Lender Law, no party may own 10% of a finance or leasing company if convicted of a felony. Rader is in the "rental" and "leasing business" in Colorado, perhaps under his wife's name only.

Anthony E. Watson pled guilty before Judge Cormac J. Carney.. Documents sealed. Latest: new sentencing hearing is set for September 20, 2010 at 10:00 a.m. (rla) (Entered: 02/24/2010)

Chance Nell Weaver Jury Trial originally sent for 6/16/2009, Jury Trial continued to 5/25/2010 09:00 AM before Judge Cormac J. Carney. Status Conference continued to 5/17/2010 09:30 AM before Judge Cormac J. Carney. (mt) (Entered: 12/07/2009)

Michael Scott Grayson trial originally sent for June 16, 2009.The trial in this matter is continued from December 8, 2009 to May 25, 2010 at 9:00 a.m. and the status conference is continued to May 17, 2009 at 9:30 a.m. (mu) (Entered: 12/01/2009)

Lourey McComber before Judge Cormac J. Carney. Sentencing set for 6/14/2010 at 10:00 AM before Judge Cormac J. Carney. (mu) (Entered: 12/04/2009)

Leigh Dorand pled guilty 18:1343: Wire Fraud before Judge Cormac J. Carney. ORDER TO CONTINUE Sentencing by Judge Cormac J. Carney as to Defendant Leigh Dorand. Sentencing set for 6/7/2010 at 10:00 AM before Judge Cormac J. Carney. (mu) (Entered: 12/04/2009

Harold Gold pled guilty to 18:1343: Wire Fraud (1) before Judge Cormac J. Carney.ORDER TO CONTINUE SENTENCING by Judge Cormac J. Carney as to Defendant Harold Gold. Sentencing continued to 5/10/2010 10:00 AM before Judge Cormac J. Carney. (rla) (Entered: 01/19/2010)

Jeffrey Greenough pled guilty to 18:1343: Wire Fraud (1) 18:2: Aiding and Abetting and Causing an Act to be Done before Judge Cormac J. Carney. Sentencing by Judge Cormac J. Carney as to Defendant Jeffrey Greenough. Sentencing set for 6/14/2010 at 11:00 AM before Judge Cormac J. Carney. (mu) (Entered: 12/04/2009)

Lourey McComber pled guilty to 18:1343: Wire Fraud (1) 18:2: Aiding and Abetting and Causing an Act to be Done before Judge Cormac J. Carney. ORDER TO CONTINUE Sentencing by Judge Cormac J. Carney as to Defendant Lourey McComber. Sentencing set for 6/14/2010 at 10:00 AM before Judge Cormac J. Carney. (mu) (Entered: 12/04/2009)

Paul Arnold pled guilty before Judge Cormac J. Carney. New sentencing hearing is set for August 23, 2010 at 10:00 a.m. (rla) (Entered: 12/17/2009)

Kirk A McMahan: ORDER CONTINUING sentencing by Judge Cormac J. Carney as to Defendant Kirk A McMahan. Sentencing continued to 1/3/2011 09:00 AM before Judge Cormac J. Carney. (rla) (Entered: 11/24/2009)

May 20, 2008 Mark McQuitty pled guilty 18:1343: Wire Fraud before Judge Cormac J. Carney.ORDER TO CONTINUE SENTENCING by Judge Cormac J. Carney as to Defendant Mark McQuitty. Sentencing continued to 1/10/2011 at 10:00 AM before Judge Cormac J. Carney. (nbo) (Entered: 01/11/2010)

Troy Worrell pled guilty and ORDER TO CONTINUE SENTENCING by Judge Cormac J. Carney as to Defendant Troy Worrell. Sentencing continued to 7/12/2010 10:00 AM before Judge Cormac J. Carney. (rla) (Entered: 01/19/2010)

Leo J Najera pled guilty before Judge Cormac J. Carney. ORDER TO CONTINUE SENTENCING by Judge Cormac J. Carney as to Defendant Leo J Najera. Sentencing continued to 7/19/2010 11:00 AM before Judge Cormac J. Carney. (ln) (Entered: 02/04/2010)

Les Spitzer also known as Guy Amsalem pled guilty before Judge Cormac J. Carney. ORDER by Judge Cormac J. Carney as to Defendant Les Spitzer: continuing Sentencing Hearing to 6/15/2009 10:00 AM before Judge Cormac J. Carney. (mt) (Entered: 11/25/2008)

Geoffrey Silver to the charge of conspiracy to appear before Judge Cormac J. Carney 6/8/2009, ORDER CONTINUING SENTENCING DATE by Judge Cormac J. Carney as to Defendant Geoffrey Silver. Sentencing continued to 1/24/2011 11:00 AM before Judge Cormac J. Carney. (rla) (Entered: 03/08/2010)

Brian Sime also known as Joe Turner also known as Tonga Title 18:1014 FALSE STATEMENT TO FINANCIAL INSTITUTION: 18: 2(b) CAUSING AN ACT TO BE DONE (1) Public Defender reassigned. Documents sealed. ORDER CONTINUING SENTENCING DATE by Judge Cormac J. Carney as to Defendant Brian Sime. Sentencing continued to 1/24/2011 10:00 AM before Judge Cormac J. Carney. (rla) (Entered: 03/08/2010)

(1) Hon. Cormac J. Carney: Operation Lease Fleece judge
http://www.leasingnews.org/archives/June%202008/06-27-08.htm#judge

Operation Lease Fleece Stories:
http://www.leasingnews.org/Conscious-Top%20Stories/Lease_Fleece.htm

((Please Click on Bulletin Board to learn more information))
(Leasing News provides this ad “gratis” as a means
to help support the growth of Lease Police)

KeyCorp to Build on Community Banks and Leasing
By Nick Gorski

KeyCorp is looking to expand businesses that have synergy with its community bank, such as its equipment leasing business and some products offered through the capital markets business, executives said in a conference call after the company's quarterly earnings report.

Chairman and CEO Henry Meyer Ill, speaking during the April 21 conference call, noted that the company opened eight branches in the first quarter and plans to open an additional 32 branches before the end of the year. "[W]e also created 157 business-intensive branches, which are staffed to serve our small business clients," he said. Key moved to 15th in 2009 among the country's major lenders in the SBA's small business financing program, from 21st in 2008, Meyer said.

Christopher Gorman, recently named the head of Key's national banking business, said the commercial business is refocusing with an emphasis on smaller business, which will align better with the retail market.

Beth Mooney, vice chair and head of the community bank, added that the deleveraging that has taken place on both the commercial and consumer side should begin to reverse as the economy improves and borrowing grows. Mooney also said Key's expansion is targeted on markets in its Western franchise, such as Seattle and Portland, Ore., as well as the state of Colorado, where opening branches can help boost market share. The bank is looking to meet the needs of middle market and small business clients in addition to increasing retail share, she said.

Longer term, the company has set a number of target metrics that will signify success. CFO Jeffrey Weeden, also speaking during the call, said the company wants to secure high-quality revenue streams, targeting a net interest margin of at least 3.50% and a noninterest income to total revenue ratio of at least 40% .The Company also wants to have a return on average assets between 1.00% and 1.25%.

Weeden said the company's balance sheet when it meets those targets would not be "materially different" from Key's current size, around $90 billion. Performance will be driven by the funding side of the business "[u]ntil we see loan demand start to come back," he said.

Weeden also said the company expects net interest margin to continue to rise through the remainder of the year, rising 5 basis points in the second quarter. "Keeping some pressure on the margin is the higher level of short-term liquidity and the general lack of loan demand," he said.

Key is still not predicting when it will repay TARP, and Meyer said the company's current goal is to achieve sustainable profitability. He noted the improved earnings trend from the fourth quarter and said if the trend continues, the company will achieve that position "sooner rather than later.'

Leasing Industry Help Wanted

Sales

We are looking for experienced business development  professionals with established vendor / client  contacts in general manufacturing equipment,  road maintenance, material handling , radio/TV broadcasting and other hard collateral. We have openings for in-house business development positions  and Independent Sales Associates. Contact or send resumes to: John Martella SVP 800 800 8098 ext 5209 or direct: 248 743 5209 jmartella@leasecorp.com

Please see our Job Wanted section for possible new employees.

EFLF April Confidence Index Up

(EFLF Chart)

The Equipment Leasing & Finance Foundation (the Foundation) released the April 2010 Monthly Confidence Index for the Equipment Finance Industry showing confidence in the equipment finance market is 65.4, a significant improvement from the March 2010 index of 60.1.

April 2010 Survey Comments from Industry Executive Leadership:

Depending on the market segment they represent, executives have differing, but improving points of view on the current and future outlook for the industry.

Small Ticket

Jerry Newell, Exec. V.P.
Bank of the West
San Francisco, California

“We are starting to see improvement in both new production activity and portfolio quality metrics -- both lower delinquency and losses.”

Middle Market

Rob Stowers, Managing Director
Altec Capital
Birmingham, Alabama

“We are finally seeing more activity with smaller customers, a very good sign that work is filtering down to the small business sector.”

Large Ticket
(Large-ticket CEO)

“The near term outlook is stronger than anytime during the last 18 months,”

“Lease and loan activity will begin to increase during the 2nd Quarter, as demand grows for replacement assets or expansion,” Russ Nelson, President, Farm Credit Leasing predicted. “Modest improvement in the U.S. and global economies will drive customers to shift from maintaining/building higher liquidity positions to engaging more historical spending/investment patterns as the economic recovery gains momentum.”

When asked to assess if their current business conditions would remain the same over the next four months, 65% of executives responding said they believe business conditions will improve over the next four months, up significantly from 45% in March. 5% believe conditions will get worse, and 30% believe business conditions will remain the same over the next four months.

In April, 35%, compared to30% of respondents in March, believe their company will increase spending on business development activities during the next six months. 65% believe there will be “no change” in business development spending.

The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that provides vision for the equipment leasing and finance industry through future-focused information and research. Primarily funded through donations, the Foundation is the only organization dedicated to future-oriented, in-depth, independent research for the leasing industry. Visit the Foundation online at http://www.LeaseFoundation.org.

Little Rock, Ark.    Meet and learn from Mr. Terry Winders, CLP Leasing #102 columnist for Leasing News, long time educator and trainer Sales and Operations click here for course information and to register June 9, 10, until Noon on the 11th Little Rock, Arkansas Hosted by Arvest Equipment Finance $395.00 Paid in Advance for first person from company $345 with each additional attendee  "Certified Leasing Professionals attending this seminar will earn CPEs (Continuing Professional Education) Credits toward their recertification"

(This ad is a “trade” for the writing of this column. Opinions
contained in the column are those of Mr. Terry Winders, CLP)

ELFA MFLI-25 Shows April Jump

(Leasing News Chart, in the “quarter” charts the average is on top
and the total of the three months on the bottom.)

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), reported new business volume increased by 34 percent, from $3.2 billion to $4.3 billion. It declined 9% from the previous year, and the first quarter over

(Click chart to view larger - ELFA Chart)

Talk about the leasing street is business is up with new inquiries and better credit making the inquiries. Out of the marketplace for the last year and a half have been the better credits, perhaps waiting,using their reserves, but the change is for the better.

(Click chart to view larger - ELFA Chart)

 

David Schaefer, President, Orion First Financial

“We are seeing delinquencies begin to stabilize and losses have been improving over the past six months," David Schaefer, President, Orion First Financial, LLC, Gig Harbor, Washington, a back office company, said. "While the economy and leasing industry are both a long ways away from getting back to where they once were, it appears that business and consumer confidence is building.”

(Click chart to view larger - ELFA Chart)

Ralph Petta, ELFA Interim President

“Signs of lower credit losses are encouraging,” said Ralph Petta, ELFA interim President. “While the level of new business volume continues to reflect rather sluggish demand for equipment financing, we are nevertheless optimistic that the economy will continue to strengthen, providing a more favorable climate for businesses to invest in productive assets.”

(Click chart to view larger - ELFA Chart)

(Click chart to view larger - ELFA Chart)

(Click chart to view larger - ELFA Chart)

Copy of ZRG Group Newsletter:
http://leasingnews.org/PDF/March2010ZRGHiringindex.pdf

ELFA MLFI-25 Participants

ADP Credit Corporation
Bank of America
Bank of the West
Canon Financial Services
Caterpillar Financial Services Corporation
CIT
De Lage Landen Financial Services
Dell Financial Services
Fifth Third Bank
First American Equipment Finance
GreatAmerica
Hitachi Credit America
HP Financial Services
John Deere Credit Corporation
Key Equipment Finance
Marlin Leasing Corporation
National City Commercial Corp.
RBS Asset Finance
Regions Equipment Finance
Siemens Financial Services
Susquehanna Commercial Finance, Inc.
US Bancorp
Tygris Vendor Finance
Verizon Capital Corp
Volvo Financial Services
Wells Fargo Equipment Finance

 

Three Class Action Suits re: Brican America

Technically there appear to be three filed lawsuits, although two other sets of attorneys have stated they have filed, but copies were not recorded in Pacer.

Kenneth Catanzarite of Anaheim, California filed one naming only one defendant, Vijay Patel, who leased the Exhibeo System presented by Brican America, Miami, Florida, through Professional Solutions Finance Corp., a subsidiary of Professional Solutions, Des Moines, Iowa, including services from Viso Lasik Medspas and their affiliates, based in Miami, claiming the lease-sales program was "nothing more than a fraudulent Ponzi scheme." Viso Medspas are Lasik eye surgery centers that defendants (founders of Brican) Jean Vincens and Jack Lemacon's established in at least four states, according to the complaint.

Leasing News has written about the case between Brican America and PSFC and the claim about knowledge of a side letter that said if advertising payments did not come in to make the lease payments, Brican America would make the payments. What happened, they stopped, and various internet blogs brought both optometrists and dentists together to form class actions suits.

First to file was Ron Gossett of Gossett and Gossett, Hollywood, Florida, according to Pacer. At present he has 475 dentists and optometrist signed up with each paying a $1,000 retainer. There is a court filing in California with 50 name plaintiffs, who also have been assigned to Gossett. One of the main blogs started by Dr. Steve Bank, DDS, Port St. Lucie, Florida, called Brican Viso has 975 registered to date with both an internet and telephone phone tree contacting others. Stories are appearing in local dental and optometrists newsletters and the professional associations are getting involved.

There are also other attorneys who are taking cases in Illinois and other states, plus another class action suit under way lead by David H. Charlip, Hollywood, Florida. Originally Michael Witt, West Des Moines, Iowa was a co-counsel with Ronald Gossett, but has withdrawn due to the appearance of a potential conflict of interest.

Catanzarite Filing:
http://leasingnews.org/PDF/Brican_America_Calif.pdf

Gossett Filing:
http://leasingnews.org/PDF/brican_complaint310.pdf

California Filing (assigned to Gossett):
http://leasingnews.org/PDF/CalifCourtGossett.pdf

Brican America articles:
http://www.leasingnews.org/Conscious-Top%20Stories/brican_america.htm

Fernando’s View
By Fernando F. Croce

“Death at a Funeral” and “No One Knows About Persian Cats” provide a contrasting double-bill of comedy in theaters, while DVD watchers can check out a colorful fantasy (“The Imaginarium of Doctor Parnassus”), a plush period piece (“The Young Victoria”) and an overlooked Marlon Brando classic (“The Fugitive Kind”).

Death at a Funeral (Sony): Better known for his dark psychological studies (“In the Company of Men,” “Your Friends and Neighbors”), director Neil LaBute lightens up a bit with this energetic ensemble comedy. The story unfolds as a family gathers at the funeral of the patriarch, which goes from bad to worse as the relatives snap at each other’s foibles and the wrong corpse turns up in the casket. At the head of the family are Aaron (Chris Rock) and Michelle (Regina Hall), who are struggling to keep everything together in the face of shocking revelations, exposed emotions, and unexpected guests like the enigmatic dwarf (Peter Dinklage) who’s privy to some secrets. Featuring brisk comic twists and a supporting cast that includes Danny Glover, Martin Lawrence and Tracy Morgan, it’s an agreeable new direction for the usually serious LaBute.

No One Knows About Persian Cats (IFC Films): One of the greatest aspects of movies is the way they can take us to corners of the world audiences would rarely ever have access to. In this rousing musical comedy-drama, director Bahman Ghobadi takes us into the unique netherworld of Iranian musicians, people who risk their lives for artistic expression in an oppressive society. Negar (Negar Shaghaghi) and Ashkan (Ashkan Koshanejad) are Tehran musicians with plans for a concert in London. Such a trip would require a visa from the government, which brings issues of censorship into the project. Can they find other band members and evade scrutiny, or will they end up in jail? Combining concert footage with insightful critique, Ghobadi offers a gripping yet light and humorous celebration of courage and talent of these people. With subtitles.

Netflix tip: “No One Knows About Persian Cats” may give audiences a rare peek into Iranian cinema, but the truth is that that country has for the past two decades offered some of the world’s loveliest, most human pictures. Netflix offers an ideal opportunity to catch up with this profound cinematic wave with such remarkable titles as “Close-Up,” “Gabbeh,” “The Taste of Cherry,” “A Moment of Innocence,” “The Wind Will Carry Us” and “Offside.”

New on DVD:

The Imaginarium of Doctor Parnassus (Sony): No stranger to behind-the-scenes travails, visionary director Terry Gilliam (“Brazil,” “Twelve Monkeys”) makes inspired use of difficult projects. His latest film, an extravagant fantasy about a theatrical troupe headlined by the ancient Parnassus (Christopher Plummer), was virtually doomed to be shut down following the untimely death of star Heath Ledger. Never one to let difficulties get him down, however, Gilliam forged ahead and crafted a colorful, endlessly inventive movie that makes deft use of cameos and special-effects to tell a tale of salvation in and out of dream worlds. A visual feast as well as a moving tribute to perseverant artists, it serves as both a summarization of the director's obsessions and a moving tribute to the late star's talents.

The Young Victoria (Sony): Queen Victoria has been the subject of several previous films (including “Mrs. Brown”), but few have shown much interest in depicting her young life before she became the Dowager Queen. Emily Blunt shines in this lavish costume drama, giving the character both fierce intelligence and vulnerability as the monarch finds herself the ruler of 19th-century England following the death of King William (Jim Broadbent). In between dealing with the machinations of the Duchess of Kent (Miranda Richardson) and romancing Prince Albert (Rupert Friend), the young Victoria proves to be a resourceful leader, indeed. Starchy historical pieces are a dime a dozen, though Jean-Marc Vallee’s movie surprises with its sprightly pacing and Blunt’s fetching performance.

The Fugitive Kind (Criterion): Marlon Brando revolutionized screen acting with his performance in “A Streetcar Named Desire,” yet his acting in this underrated 1959 drama, which is getting a belated Criterion release, is just as impressive. Like “Streetcar,” which was also based on a play by acclaimed playwright Tennessee Williams, it’s a story of passion full of gothic Southern atmosphere and played by a fabulous cast. Brando stars as Val Xavier, a mysterious drifter who becomes torn between two women, the married Lady Torrance (Anna Magnani) and the free-spirited Carol (Joanne Woodward). Will their secrets and obsessions bring these outsiders together, or push them apart? Directed by a young Sidney Lumet (“Serpico,” “Network”), it’s a little-known hothouse sleeper worth discovering.

Puget Sound Leasing, Bellevue Up-Date

First Sound Bank, Seattle, Washington suit with Larasco, the Secords, and other banks over the sale of Puget Sound Leasing, Issaquah, Washington is set for a jury trial on May 17th before Judge Thomas S. Zilly. With all the attorneys and depositions involved, it has been expensive for all sides.

Puget Sound leasing articles:
http://www.leasingnews.org/Conscious-Top%20Stories/pugent.htm

Another War Story: Advanced Execution of Acceptance Certificates

You’ve been warned many times before: don’t allow delivery and acceptance certificates to be signed before actual delivery. The reason is well-known: if the equipment is defective and the lessee stops paying and can prove that the certificate was pre-signed, then the lessee could argue that the Hell or High Water clause in the lease is unenforceable, even though the lessee is partially complicit in the “lie.”

But now here’s a second and far more pragmatic reason for not allowing the advanced execution of acceptance certificates: Sooner or later you're going to make a mistake. Shortcuts never work 100% of the time, and even an error rate of 1% can cost you plenty.

Here’s a case in point, a true story: Vendor ABC prides himself on being efficient. “Minimal human touch” is his driving principle. A new leasing customer is in Vendor’s office on June 5 to sign the lease . . . . so why not just have the Lessee sign the acceptance certificate too, even though delivery can’t be scheduled until June 28? That’s the efficient thing to do, right? Everyone else in the business does it. It's a little “white lie.” No one gets harmed.

Delivery goes forward on June 28. Lessor funds Vendor on June 29 and files its UCC-1 financing statement the same day. Lessee files for bankruptcy the following year. Unrelated Creditor, who has a blanket lien on all of Lessee’s assets, convinces the court that the lease is not a true lease but a secured loan instead. The Uniform Commercial Code requires a purchase-money lender to file its UCC within 20 days of equipment delivery in order to take priority over a blanket lien holder. Therefore, since Lessor filed its UCC-1 within 20 days of the actual delivery, Lessor takes priority over Creditor, right?

Wrong. Unfortunately for Lessor, Vendor was a little too efficient, too expeditious, in having Lessee sign the acceptance certificate in advance. He forgot to tell Lessee to leave the date on the certificate blank, and when he submitted the documents to Lessor, he didn't notice that Lessee filled in the true date on which he signed all the papers—June 5. Therefore, the Court ruled that Creditor had priority over Lessor because the acceptance certificate was dated more than 20 days before the Lessor filed its UCC.

“But wait a minute,” Lessor pleaded with the judge. “The truth of the matter is that the equipment was delivered on June 28, not June 5. I can prove this to you, judge, by this other receipt I have here. Surely you won’t let this little error overrule the real truth.”

The judge would hear none of it, and probably rightly so. He said, in so many words, that it was too late to tell the truth.

Michael Witt was Managing Counsel at Wells Fargo & Co and Senior Vice President and General Counsel of Advanta Leasing Corporation. He is now in private practice in Iowa.

witt-law@live.com
Michael J. Witt Law Offices
4342 Oakwood Lane
2nd Floor
West Des Moines, IA 50265
Tel: (515) 868-1067
Web: http://www.witt-law.com

Previous Columns:
http://www.leasingnews.org/Conscious-Top%20Stories/witt_desk.html

(This ad is a “trade” for the writing of this column. Opinions
contained in the column are those of Mr. Michael Witt, Esq.)

### Press Release ############################

Evans Continues Net Lease Write Off/Profits Up 1stQ

Evans Bancorp, Hamburg, New York, reported “first quarter net income increased to $1.45 million from a net loss of ($1.25) million in last year's first quarter, which included a $2.9 million provision for lease losses and $2.0 million goodwill impairment charge associated with the Company's discontinued small-ticket commercial equipment leasing business.

The Company had net income of $1.45 million, or $0.51 per diluted share, in the first quarter of 2010, compared with a net loss of ($1.25) million, or ($0.45) per diluted share, in the first quarter of 2009. The significant increase in net income was largely due to a lower provision for loan and lease losses and the $2.0 million goodwill impairment charge related to the Company's small-ticket commercial equipment leasing business taken in the first quarter of 2009. The return on average equity was 12.29% for the three-month period ended March 31, 2010.

David J. Nasca, President and CEO of Evans Bancorp, stated, "This quarter reflects the strong core earnings momentum we have built through a very difficult year which included our exit from the national leasing business. This is our third consecutive quarter of positive net income growth and is a true demonstration of the earnings power inherent in our core businesses. We also continue to receive benefits from expanding our market share and gaining greater wallet share from existing customers as well as from the 2009 Waterford Village Bank acquisition."

Gary Kajtoch, Executive Vice President and CFO of Evans Bank, noted, "We are taking active and aggressive steps to collect the remaining direct financing lease portfolio. Of the $26.7 million remaining lease balance, we anticipate running off $11.5 million in 2010 and another $10.2 million in 2011. We have $3.9 million of coverage for uncollectible leases, or 13.1% of the remaining principal balance. This consists of $3.1 million from the remaining adjustment initially made last June, plus an additional $0.8 million in allowance added in the current quarter."

Full Press Release:
http://www.marketwatch.com/story/evans-bancorp-reports-2010-first-quarter-net-income-of-15-million-2010-04-21?reflink=MW_news_stmp

Lakeland Reports $5.4 Million Year-end Loss
http://leasingnews.org/archives/Jan2010/1_21.htm#lakeland

Lakeland “The list”
http://www.leasingnews.org/list_alpha_new.htm#lake

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Sandy Springs Report $0.7 million loss

Sandy Spring Bancorp, Inc., Olney, Maryland, the parent company of Sandy Spring Bank, reported a net loss available to common stockholders for the first quarter of 2010 of $0.7 million. The provision for loan and lease losses totaled $15.0 million for the quarter compared to $10.6 million for the first quarter of 2009 and $21.1 million for the fourth quarter of 2009.

The first quarter of 2010 included a provision for loan and lease losses of $15.0 million.

"Our cautious optimism was further confirmed by our first quarter results. As we continued to aggressively address and resolve our problem credits, we concurrently executed well on fundamentals such as sound expense control and continued improvement in our net interest margin, all of which were strong drivers of our results for the quarter. This was particularly satisfying considering the decline in loan balances compared to the prior year due to weak customer demand and our prudent application of conservative underwriting standards," said Daniel J. Schrider, President and Chief Executive Officer."

"The loan-loss provision declined for the second quarter in a row, largely due to a reduced level of net charge-offs and a stabilizing level of non-performing loans. These encouraging developments are mainly related to our residential real estate development portfolio, where the majority of problem loans are concentrated," said Schrider.

"We are extremely pleased with the market reception to our recent common stock offering, which was substantially over subscribed and resulted in net proceeds of $95.6 million. Repayment of TARP remains one of our highest corporate priorities for the proceeds of this offering," said Schrider.

Full Press Release:
http://www.marketwatch.com/story/sandy-spring-bancorp-reports-first-quarter-results-2010-04-22?reflink=MW_news_stmp

Sandy Springs “The List”
http://www.leasingnews.org/list_alpha_new.htm#sandy

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GATX Reports Profit First Quarter

GATX Corporation, Chicago, Illinois reported 2010 first quarter net income of $18.7 million or $.40 per diluted share, compared to $27.6 million or $.56 per diluted share in the first quarter of 2009. The 2010 and 2009 first quarter results include negative after-tax fair-value adjustments of $0.8 million or $.02 per diluted share and $11.6 million or $.23 per diluted share, respectively, related to certain interest rate swaps at GATX's European rail affiliate, AAE Cargo (AAE).

Brian A. Kenney, president and chief executive officer of GATX, stated, "As we expected entering 2010, our markets have stabilized at relatively low levels. While there are some signs of recovery, they are inconsistent, and we expect to experience revenue pressure until there is sustainable improvement in the global economy.

"In Rail, utilization was 96.0%, compared to 95.9% in the prior quarter. Our commercial team is effectively deploying cars despite significant idle railcar capacity in the industry. GATX's Lease Price Index (LPI) was negative 15.2% during the quarter, reflective of the ongoing challenges in the marketplace.

"Results in Specialty in the first quarter were in-line with our expectations, as our marine joint ventures continue to operate in weak markets. American Steamship Company (ASC) started its sailing season in recent weeks and is expecting improved operating results in 2010 due to an increase in iron ore demand."

Mr. Kenney concluded, "First quarter operating results, and the generally slow pace of recovery in our markets, are consistent with our expectations. Therefore, our 2010 full-year earnings estimate remains unchanged at this time."

Full Press Release:
http://www.marketwatch.com/story/gatx-corporation-reports-2010-first-quarter-results-2010-04-22?reflink=MW_news_stmp

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1st Source Corporation, South Bend, Indiana reports net income of $9.68 million for the first quarter of 2010, up 54.84% compared to the $6.25 million reported in the first quarter a year ago.

Christopher J. Murphy III, Chairman and Chief Executive Officer, commented on the first quarter by saying, "Our first quarter performance was one of steady progress. Our net interest margin rebounded to 3.50% in the first quarter from 3.27% for the fourth quarter of 2009, and 3.03% a year ago. The structures we put in place from better pricing control to modeling seem to be bearing fruit."

Mr. Murphy continued, "On the credit side, our non-performing loans and leases may have peaked at year end 2009 at $101.01 million as they declined to $95.97 million as of this quarter end. Our ratio of nonperforming assets to total loans and leases slowly backed down to 2.98% this quarter end after reaching 3.15% at year end 2009. Our annualized net charge-offs to average loans and leases were a manageable 0.63% for the first quarter. Of course, it is too early to conclude that the economy is in a sustained recovery, so we could experience further deterioration or continued improvement as time goes on."

"We remained focused on helping our clients make wise choices during what is still a difficult time for many. Our efforts were concentrated on delivering outstanding client service, providing straight talk and sound advice, maintaining excellent cost control, and of course, keeping a close eye on credit quality. Additionally, we were pleased during the quarter to be identified as number 8 out of the Top 150 Best Performing Banks in the Country by Bank Director's Magazine among banks over $3 billion in size. All in all, it was an improving quarter and a good one for 1st Source," concluded Mr. Murphy.

Full Press Release:
http://www.marketwatch.com/story/1st-source-corporation-earnings-increase-in-first-quarter-cash-dividend-declared-2010-04-22?reflink=MW_news_stmp

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TCF Financial 1sQ Up

TCF Financial, Wayzata, Minnesota reports net income for the first quarter of 2010 was $33.9 million, compared with $26.6 million in the first quarter of 2009 and $19.5 million in the fourth quarter of 2009.

"TCF is reporting its 60th consecutive profitable quarter and has announced its 88th consecutive quarterly dividend payment," said William A. Cooper, TCF Chairman and CEO. "Strong net interest margin performance, a reduction in net charge-offs for the second consecutive quarter and good expense control resulted in improved quarter-to-quarter results. Unemployment continues to challenge consumer credit across the country, including TCF's primary markets. But we are starting to see consumer spending activity improve in the markets we serve as evidenced by our increase in card revenue. With head winds easing, it's clear that based on TCF's high-quality capital, strong balance sheet, conservative banking philosophy and core profitability, we are well-positioned for future success."

Full Press Release:
http://www.marketwatch.com/story/tcf-reports-60th-consecutive-quarter-of-net-income-earns-26-per-share-up-529-percent-2010-04-22?reflink=MW_news_stmp

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Puget Sound Bank reports $290,000 profit

Puget Sound Bank, Bellevue, Washington, reported earning $290,009 in the first quarter of 2010 compared to $6,413 in the first quarter a year ago.

The press release on the first quarter noted:

• Credit quality remains appreciably above average, with zero Nonperforming loans and no past due loans.

• Local deposit growth generated an impressive 32% increase in total deposits to $187 million from $142 million.

• Total assets increased 27% year-over-year to $213.9 million, compared to $168.5 million.

"We posted another strong quarterly profit while building capital and adding to reserves for any potential loan losses," said Jim Mitchell, President and Chief Executive Officer. "Our ongoing deposit growth contributed to a higher net interest margin, and our credit quality continues to be one of the best in the state." Puget Sound Bank has no traditional brokered deposits, as its deposits are entirely from its customer base.

Puget Sound Bank's total assets at March 31, 2010, were $213.9 million, up from $197.2 million at December 31, 2009 and increased 27%, or $45.4 million, from $168.5 million a year ago.

"Asset quality continues to standout against our peers. We still have no nonperforming loans on our books, including no non-accruals and no past due loans," said Mitchell. The ratio of NPAs to total assets is 0.00%, the same as it was a year ago. Nonperforming assets (NPAs) consists of nonaccrual loans, accruing loans 90 days or more past due, restructured loans and other real estate owned

Full press release here:
http://leasingnews.org/PDF/Puget_Sound.pdf

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Rancho Santa Fe---Adopt-a-Dog

Candy

Terrier mix | Female-spayed |
42 lbs | Estimated DOB:7/1/2009

Helen Woodward Animal Center
6461 El Apajo Road
Rancho Santa Fe, CA 92067
(858) 756-4117
adoptions@animalcenter.org
http://www.animalcenter.org

Dogs for Adoption:

http://www.animalcenter.org/adoptions/animals.aspx?Type=Dogs

Adopt-a-Pet by Leasing Co. State/City
http://www.leasingnews.org/Conscious-Top%20Stories/Adopt_Pet.htm

Adopt a Pet
http://www.adoptapet.com/

Mortgage rates edge higher
http://www.bankrate.com/finance/mortgages/mortgage-rates-edge-higher.aspx

Lease Syndication Transactions: How Do You Do It?
http://www.accountingweb.com/blogs/brianstrahle/state-and-local-tax-360/lease-syndication-transactions-how-do-you-do-it

Microsoft profit jumps on strong sales of Windows 7
http://seattletimes.nwsource.com/html/microsoft/2011677794_microsoft23.html

In Sour Home Market, Buying Often Beats Renting
http://www.nytimes.com/2010/04/21/business/economy/21leonhardt.html?src=me&ref=business

You May have Missed---

The World's Most Expensive Stuff 2010
http://finance.yahoo.com/family-home/article/109345/the-worlds-most-expensive-stuff-2010?mod=family-love_money

 

Sports Briefs ---

Sharks rout Avalanche, take 3-2 series lead
http://www.contracostatimes.com/news/ci_14942287

'Long shot' pays off for Sam Bradford as NFL's No. 1 pick
http://www.usatoday.com/sports/football/nfl/rams/2010-04-22-sam-bradford-no-1_N.htm

Tim Tebow headed to Broncos after big surprise in NFL draft
http://www.usatoday.com/sports/football/nfl/broncos/2010-04-22-tim-tebow_N.htm

49ers make two bold draft picks to help bolster offensive line
http://www.examiner.com/x-2712-San-Francisco-49ers-Examiner~y2010m4d22-49ers-make-two-bold-draft-picks-to-help-bolster-offensive-line

 

California Nuts Briefs---

Supreme Court rejects Schwarzenegger furlough consolidation
http://www.sacbee.com/2010/04/22/2698701/supreme-court-rejects-schwarzenegger.html

California Assembly confirms Abel Maldonado’s nomination as lieutenant governor
http://www.latimes.com/news/politics/la-me-maldonado-20100423,0,6776646.story

“Gimme that Wine”

Schug Winery celebrates 30 years
http://sonomanews.com/articles/2010/04/21/news/doc4bcd02a5b4e8a770393934.txt

Calistoga Wineries Celebrate New AVA
http://www.winesandvines.com/template.cfm?section=news&content= 73371&htitle=Calistoga%20Wineries%20Celebrate%20New%20AVA

Napa Valley cult vintner and humanitarian Dick Grace speaks at wine festival
http://www.citizen-times.com/article/20100421/NEWS/304210049/1251/ADVERTISING

Free Mobile Wine Program
http://leasingnews.org/archives/Feb2010/2_26.htm#mobile

Wine Prices by vintage
http://www.winezap.com
http://www.wine-searcher.com/

US/International Wine Events
http://www.localwineevents.com/

Winery Atlas
http://www.carterhouse.com/atlas/\

Leasing News Wine & Spirits Page
http://two.leasingnews.org/Recommendations/wnensprts.htm

Spring Poem

Three Spring Notations on Bipeds

by Carl Sandburg (1920)

            1

The down drop of the blackbird,
The wing catch of arrested flight,
The stop midway and then off: off for triangles, circles, loops of new hieroglyphs—
This is April’s way: a woman:
“O yes, I’m here again and your heart
knows I was coming.”

            2

White pigeons rush at the sun,
A marathon of wing feats is on:
“Who most loves danger? Who most loves wings? Who somersaults for God’s
sake in the name of wing power in the sun and blue on an April Thursday.”
So ten winged heads, ten winged feet, race their white forms over Elmhurst.
They go fast: once the ten together were a feather of foam bubble,
a chrysanthemum whirl speaking to silver and azure.

            3

The child is on my shoulders.
In the prairie moonlight the child’s legs hang over my shoulders.
She sits on my neck and I hear her calling me a good horse.
She slides down—and into the moon silver of a prairie stream
She throws a stone and laughs at the clug-clug.