Archive, August 20, 2007

“Bloodbath at Marlin”
by Christopher “Kit” Menkin

That's the way one employee described it, a "bloodbath." Three key people were let go, but it was the manner that Marlin Business Service handled it that seemed to be the upsetting influence. As required by Sarbanes-Oxley, any major change in the operation must be reported:

"The Company today announced the dismissal of two of its sales managers. They were terminated for actions inconsistent with their duties to the Company. An investigation of this matter is ongoing."

Contrary to what was officially written to the SEC, there were three key individuals let go. Certainly Marlin wishes they didn’t’ have to report this news or hear the industry repercussions. Over
a dozen readers sent e-mails this weekend: “Did you hear about Marlin’s latest troubles?”

Leasing News attempted to reach officers at Marlin Business Services on Friday, even though we have been told in the past any statements to the media will be solely made through Security Exchange Commission filings.

In April, a reliable source told Leasing News that Dominic Janney was next after Mike Bennie, the former vice-president of the leasing broker division, who was fired April 2007. Both Janney and Mancini reportedly thought they would be next and allegedly started working on a business plan to start a small ticket leasing company on their own. Bennie started working on an investor plan right away instead of looking for employment elsewhere. He told Leasing News then he did not want to work for a large leasing company again such as Marlin or Advanta. The rumor that Janney, Mancini, and Gallo would join Bennie in a separate company was not true.

In two separate meetings last week, all the employees were called in and told that Vice-President Dominic Janney, Tom Mancini, and Joe Gallo were let go because they were recruiting Marlin employees for a new leasing company, according to five highly reliable sources.

Marlin reportedly was “sent” a copy of the investor proposal that Janney and Mancini were working on in the evenings and weekends. In reality, they were doing exactly what CEO Dan Dyer did when at Advanta in forming Marlin Business Services.

Today only two are left from the original group that he helped form while at Advanta. Dan Dyer, CEO, and Bill Waddell, National Sales Manager, Broker Services Division. By the way, Waddell reportedly works from home and is rarely seen in the office. His main role, Leasing News is told is to build relationships with large accounts to get Marlin endorsed as the lessor of choice.

Gone are:

Gary Shivers, former president of Marlin.
Gary Kester, former VP of credit services.
Mike Bennie, former VP in charge of broker services.
Mike Witt, former director of legal.
Mark King, former director of credit.
Brian Cornell, former director of sales.
John Forsyth, former jack of all trades. (Sales, syndications, major accounts, etc)
Marcel Gilbert, former VP of IT (considered one of the best in the business)
Dominic Janney, former VP in charge of retail sales.
Tom Mancini, former VP in charge of copier sales and residuals.

The reported thrust today at Marlin Leasing appears not to be factoring, and actually leasing is not the main item, but unsecured business capital loans from $10,000 to $50,000. Marlin supposedly sees this as a necessity in today's money market and that is what they are pushing. The factoring operation is no longer being emphasized and unsecured business loans is the main mission, Leasing News was told. Broker business had been their main stay, although played down in their quarterly filings. By the way, included in the broker business are large "broker/lessors," reportedly such as Five Point Capital, San Diego, California, who does a minimum of $1.5 million a month and has had highs of $2 million a month, three highly reliable sources told Leasing News. Their unsatisfactory Better Business Bureau report is evidently not a deterrent to the Marlin credit department.

Dominic Jenney had been with Marlin for nine years. In December, 2002, he was promoted to Director of Retail Sales, Southeastern Division.

The December, 2005 press release stated: "Gary Shivers, President of Marlin Leasing Corp., has worked with Janney for many years and is confident in Janney’s ability. Dominic is professional, enthusiastic and very knowledgeable in the industry. I am confident that under his leadership our Southeastern Division will exceed its goals.”

He later became vice-president of retail sales. It was rumored he would be the next president of Marlin, who has been without the position since December when Gary Shivers reportedly resigned.

Marlin Leasing Corp., Dominic Janney, Gerri D'Elia, and Mike McGinley (second and third from the left and third from the right) join LaVonne Still, Rachele Martin, Donnell Connor, and Alaiah with Bierria.
www.crossroadsprograms.com
(only photograph of Janney, none available for Mancini or Gallo as well as Bennie.)

An insider told Leasing News, “Dominic was the one that could walk into any office, recruit quality sales people, train them, motivate them, and watch the sales grow. He turned Atlanta around. He ran his departments firmly yet fairly.

“Tom Mancini was responsible for much of the sales recorded, running the office equipment division, that the SEC filings show a good percentage of leasing business for Marlin. He had been with Marlin for nine years. On all the FMV leases, he always got many extra payments, extending the leases and handling the lessees happy to make payments while they thought about replacements or purchasing or would shop around, forgetting they were still making extra lease payments than the original term of the contract.”

It is important to note that the Marlin 12/31/06 year-end financial
statement reports 21.32% of their business was copiers, 2.19% office
furniture, all the responsibility of Mancini (see SEC filing below.)

An insider told Leasing News:

“Tom Mancini was a VP and head of the copier division. On any given month, Tom Mancini and Mike Bennie’s (broker) divisions produced over 70% of monthly lease volume. Tom Mancini was very high up at Advanta and recruiting Tom was actually Gary Shivers biggest blow to Advanta. Tom was a genius in managing leases in renewal. His knowledge of copier leasing and residuals was always essential to Marlin’s success. Make no mistake. This is HUGE news. Marlin is now officially a sinking ship.

“Joe Gallo was with the company for over 7 years and worked directly for Joe Dyer (Dan Dyer’s identical twin brother). He was in the finance department, actively involved in securitizations."

Another insider said, "Mancini is a leasing wizard. Tom had been with Marlin since late 1998. This is a wrong time for him to be out of work as he and his wife are expecting twins."

It appears all sales report directly to attorney George Pelose, who reportedly walks directly to his office every day and is not seen again. Pelose appears to have been in charge of himself as an attorney and has had little management experience. Insiders say he treats everything as if he is putting together a legal case for court.
 
As for CEO Dan Dyer, they state the Leasing News description of a sales personality like a bee sting fits him. They state with a spread sheet he is a wiz, but as for sales, he doesn't like people.

At the meeting announcing the dismissal of Janney, Mancini, and Gallo, several sources told us employees were seen crying. One present employee confirmed this. Several reportedly were frightened at the procedure and the legal repercussions about recruiting others for employment somewhere else. Allegedly Dominic Janney, Tom Mancini, and Joe Gallo had an investor portfolio making the rounds.
They were doing this on their on time, had not even rented a space, let alone considered hiring anyone.

Leasing News has been contacted by Human Resource personnel for telephone numbers of those we write about who have left various companies. Recently a human resource person for a major New England funder said he was very interested in hiring anyone who had left Marlin or wanted to leave.

Comparison of Marlin Business Services/Advanta
Marlin vs. Advanta 5 year glance. Advanta up 275%. Marlin is up zero.

MBS SEC filing
("The Company today announced the dismissal of two of its sales managers. They were terminated for actions inconsistent with their duties to the Company. An investigation of this matter is ongoing."
http://leasingnews.org/PDF/Marlin_Aug17.pdf

Recent Marlin Leasing Articles:
http://www.leasingnews.org/Conscious-Top%20Stories/Marlin_1st_qtr.htm

Marlin 2006 Year-End Report:
http://www.snl.com/Cache/3525390.pdf?FID=3525390&O=3&IID=4089372&OSID=9

Current Articles on Marlin Business Services
http://www.leasingnews.org/Conscious-Top%20Stories/Marlin_Leasing_2008.htm

 

Classified Ads---Sales

Cherry Hill, NJ College grad seeking entry level sales position for equipment leasing and financing in small to mid-size ticket markets. Have 6 months experience in the industry and self-motivated. Contact Matt at 609-280-2178 or email at mkuzan@gmail.com

California Aggressive, competitive self-starter with vendor/direct equipment leasing and asset-based lending experience. Success in business banking sales and financial planning. Email: dsp559@hotmail.com | Resume

South Central, FL Years of exp in mid-ticket niched leasing. Not currently in leasing. Seek entry or other position with direct lender. David34983@att.net

Minneapolis, MN 16 years leasing experience from micro to large ticket market, variety of equipment. Most recently calling on vendor telecom dealers in Upper Midwest.  golfadm@yahoo.com

Montgomery, AL Individual with 10 years advertising sales exp. & 7 years insurance sales exp. Wants independent contractor situation in Alabama. Work with leasing company or broker. 334-590-5133 E-mail: billmcneal2003@yahoo.com

Orange County, CA 20+ years in leasing sales & sales management. Have estab. existing remote office with Lessee /Vender following. Looking for a partnership w/funding source. shermbp@gmail.com

Philadelphia Metro Area - 30 Years experience Healthcare sales/ management- 3 years experience newly create "small-ticket" healthcare division. Good success - Mitch Utz 215-460-4483 Email: mitutz@msn.com

Philadelphia, Pa 16 years small to large ticket sales exp., variety equip. w/vendor & direct. Top performer, building new and existing territories. Email at phillylease@hotmail.com

Pittsburgh , PA Aggressive self starter looking for leasing position w/10 plus yrs sales exp., plus banking experience 814-227-4592 mwiser500@hotmail.com

Pittsburgh, PA Over 25 years of leasing experience including Captive, Dealer, Broker, and Third Party. Multiple equipment types. Seeking a Territory or National Sales position. vsiegel2@aol.com

San Francisco Bay Area: Business Development “Hunter” with transferable book of business in multiple segments: commercial construction, technology, fitness, etc. Years of managerial experience: can also be a “player/coach”. E-mail: VdrPgmBizDev@aol.com

Texas/Oklahoma 15 year lease vet looking for plact to take business.great references. all major equipment types. open to compensation. please contact if interested. E-mail: bankingdallas@yahoo.com

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

Leasing Industry Help Wanted

San Diego, California Base pay of $25k plus uncapped commission potential small to mid-size ticket. Send resume: recruiting@fivepointcapital.com Second decade of business, providing sales incentives that require a commitment and passion for driving sales success. www.fivepointcapital.com

Looking for experienced vendor reps. across the country. A book of business is a plus... Our value proposition is unmatched in the industry. contact: mscritchfield@homecoastcapital.com www.homecoastcapital.com

Sales Account Executives: Jacksonville, FL/Philadelphia, PA. Small ticket funder with broad funding and exceptional vendor service capabilities. E-mail resume to: garyshivers@navitaslease.com Navitas Lease Finance Corp is an innovator in the Small Ticket Leasing Industry. We offer solutions to small-to-medium-sized businesses looking to acquire and finance equipment.

 

Territory Managers Originate FMV leases for IT/Communication equipment. 10+ years direct origination required. For more info, click here tipcapital.com

We offer great funding capacity, strong, experienced back office, keeping established vendor relationships happy. Looking for a home and have 5 years experience, contact: Jeff Rudin (818) 843-8686 x14. About the company: Quail Equipment Leasing 17 years in business with the ability to develop specialized programs for vendors and unique industries: $10K to $24MM.

www.quailequipmentleasing.com

Please see our Job Wanted section for possible new employees.

FASB: No More Walking up the Residuals
Shawn Halladay

“Under the new rules there will be no more walking up of residuals. The only income recognized will be at the end of the lease,” Shawn Halladay told Leasing News. We asked the leading Alta Group accounting author, Leasing News Advisory Board member, and well-respected lease financial expert for a synopsis of the FASB proposal. We asked him to keep it “short.” He said he could have added another five words for each one word.

Shawn is managing principal of The Alta Group's Professional Development Division and has authored or co-authored eight books on equipment leasing, including A Guide to Equipment Leasing, An Introduction to Leasing and The Handbook of Equipment Leasing.
http://www.thealtagroup.com/north-america/about/shawn-d-halladay

Exposure Draft on Accounting for Leases

It has been a long and painful process getting here, but the Financial Accounting Standards Board (FASB) finally has issued its highly anticipated Exposure Draft on how to account for leases. There were no big surprises, as most of its provisions have been discussed and expected. The Exposure Draft does, however, clear up some issues and allow us to get a clearer view of its impact on the equipment leasing industry. This article will highlight the major provisions of the Exposure Draft and postulate some potential business consequences.

Highlights

The Exposure Draft applies to leases of property, plant and equipment. Under the proposals, lessors and lessees are to apply a right-of-use model to account for their leases. Leases that represent financed purchases are excluded from the scope which means that, although the four criteria of “FAS 13” are gone, you still will have to run tests to determine if the deal qualifies for lease accounting.

Lessees

Lessees will initially recognize an asset representing their right to use the leased asset and a liability for the obligation to pay rentals. These amounts will be recorded at the present value of the estimated lease payments discounted using the lessee's incremental borrowing rate. As a result, lessors that are willing to offer residual-based products will be able to create product differentiation through some form of off balance sheet financing.

The major change for lessees is the requirement to measure the lease term and estimated payments based on a probability-weighted methodology. This means that all options must be considered and evaluated as to their likelihood of occurrence – the more options, the more work. Payments for this purpose also will include contingent rents and residual value guarantees. Lessors also must perform this analysis. Fortunately, purchase options are not required to be capitalized.

Once the right-to-use asset and obligation are capitalized, the lessee will amortize the asset and obligation over the life of the lease, which is similar to capital lease treatment under “FAS 13.” The kicker here is that the lessee must reassess its estimate of the lease term and payments if it perceives there has been a significant change to its liability to pay rents. Again, more work associated with lease financing option.

Although an effective date has not yet been established, all leases on the lessee’s books will have to be converted to the right-to-use model as of the transition date. This will have minimal effect on capital leases but will prove burdensome for customers that have operating leases with multiple options.

Lessors

The requirements to measure the lease term and estimated payments based on a probability-weighted methodology and periodically reassess these assumptions also apply to lessors. Lessor accounting, however, will change significantly, and not just due to the elimination of leveraged lease accounting.

The Exposure Draft requires lessors, once they have determined that a transaction qualifies as a lease, to account for the lease under either a Performance Obligation Approach (POA) or a Derecognition Approach (DA). The POA is required for leases in which the lessor retains significant risks or benefits associated with the underlying asset.

When the lessor uses the Performance Obligation Approach, it records the present value of the payments as a right to receive payments and an obligation to perform under the lease. The physical asset remains on the books. Over the term of the lease, the lessor recognizes interest income, income from the performance obligation, and depreciation expense. Needless to say, this methodology creates some interesting income patterns, even though all amounts will be netted. There is no separate residual value under the Performance Obligation Approach, as it is captured in the net book value of the physical asset.

The Derecogniaton Approach requires the lessor to record the present value of the payments as a right to receive payments and then offset this amount against the book value of the physical asset. This approach is somewhat similar to direct financing lease accounting under FAS 13. Again, there is no separate residual, as it is represented by the net of the lessor’s right to receive payments and the book value of the physical asset. Income under this method will be recognized as interest income but the residual income only will be recognized based on the lessor’s activities at the end of the lease, not over the lease term as currently is the case.

Impact

There is no doubt that these new rules will create a diminution in volume for that certain set of customers that actively seek off balance sheet financing. The additional evaluation and assessment requirements of the Exposure Draft also are a factor that will cause lessees to revaluate their usage of leases. The primary reasons for leasing, such as cash flow, tax reasons, and asset management, still exist, however, and will continue to drive leasing volumes. For example, a recent survey of CFOs suggested that more than 60% would not alter their lease financing strategies based on these new rules.

The partial off balance sheet benefit that remains will most likely truncate lease terms for customers attempting to minimize the present value of the lease payments on their balance sheets. This phenomenon will create opportunities for lessors who are willing to take on the role of true asset managers.

From the lessor’s perspective, we will have to create systematic approaches to evaluating and reassessing the lease term, along with modifications to front and backend systems. Some lessors also will have to reassess their pricing strategies and performance metrics. Of major importance, of course, will be the sales effort required to educate the customers and continue to promote the many benefits of leasing. On the bright side, these changes create a chance to become more intimate with your customers as you dive into what really is driving their financing decisions.

Conclusion

We have seen major changes occur within the leasing industry before and we always have adjusted. The same holds true for the effect of the Exposure Draft – we will adjust. Plus, these changes will bring opportunities for lessors, not just create a downside, as some unintended consequences become more apparent. The new rules, when applied in a certain manner, for instance, will allow lessors to accelerate residual income. We just have to dig in and do that which we do best – find the opportunities!

Judge Rules in Favor of Advance Property Tax Compliance

In the FP Holdings, Inc, First Portland Corporation, FPC Funding IL, LLC, and Pioneer Capital Corporation of Texas objection to hiring Advance Property Tax Compliance, Judge Jacqueline P. Cox ruled in favor of hiring the firm in the IFC Credit Corporation bankruptcy proceedings. As mentioned in the August 13th story, "Ironically, Advance Property Tax Compliance not only does the filing for many of the banks and companies involved in the bankruptcy, but also for Vencore owned by Ludwig and was also requested by Ludwig to file the Pioneer Capital personal property taxes as the company is familiar with all the leases.

"It appears not to be an objection over the company used but a view perhaps from the county tax collectors regarding ownership and liabilities, as well as who is the true owner, as the view from others."

In a related Bankruptcy case filing, Rudolph Trebels requested and was granted his testimony and information to be “restricted” and not made public due to disclosing of certain personal and business information, with possible information being available for other court cases involving this information.) Such files were granted to be not available to the public.

(It should be noted Advance Property Tax Compliance is a long time advertiser in Leasing News. editor.)

IFC Advance Property Tax Order:
http://leasingnews.org/PDF/IFC_AdvancePropertyTaxOrder.pdf

August 13, 2010 Story:
http://leasingnews.org/archives/Aug2010/8_13.htm#ifc_later

First Premier Bank in for $1.4 million---Allied Health
Over $40 Million to Date

August 18---First Premier Bank, Sioux City, South Dakota sues Allied Health Care Services, Orange, New Jersey and Charles K. Schwartz for $1,023,225 plus interest, late fees, attorney, and court costs. Contract discounted by First Premier, Edina, Minnesota, one of many in these cases.

Cases filed in Federal Court have been up-dated.

August 14---De Lage Landen Financial Services, Wayne, Pennsylvania, sues Allied Health Care Services, Orange, New Jersey and Charles K. Schwartz $1,425,000 plus interest, late fees, attorney fees, court costs and applicable taxes in Pennsylvania. This is the first thorough complaint, in my opinion, as it brings up the serial numbers of the equipment, plus adds the vendor Donner Medical and its owner Bruce Donner to the complaint. Note: no personal guarantee, therefore Charles K. Schwartz not named.

Attorney Matthew Faranda-Diedrich , in the addition to Allied and August 13--M&L Marshal & Isley Bank, Milwaukee, Wisconsin sues Allied Health Care Services, Orange, New Jersey and Charles K. Schwartz for $642,969.42 plus all expenses including interest, late fees, attorney fees, court costs. Contract discounted by First Premier, Edina, Minnesota, one of many in these cases.

August 12---First Security Bank, Canby Minnesota sues Allied Health Care Services, Orange, New Jersey and Charles K. Schwartz for $241,240 plus interest, late fees, attorney fees, court costs and applicable taxes. Contract discounted by First Premier, Edina, Minnesota, one of many in these cases.

August 12--Drake Bank, St. Paul, Minnesota sues Allied Health Care Services, Orange, New Jersey and Charles K. Schwartz $270,053.79 plus interest, late fees, attorney fees, court costs and applicable taxes. Contract discounted by First Premier, Edina, Minnesota, one of many in these cases.

August 10---United Western Bank, Denver, Colorado sues Allied Health Care Services, Orange, New Jersey and Charles K. Schwartz for $167,146. Contract discounted by Global Vantage, Newport Beach, California.

August 4-- Texas Capital Bank, Dallas, Texas, filed in the District of New Jersey, Newark, a complaint for $608,602. Asks for Replevin. Not served.

August 2-- Franklin National Bank of Minneapolis, 525 Washington Avenue North, Minneapolis, Minnesota (First Premier Capital lease) for $216,000. First Premier discounted lease. ---Not served

July 30-- AEL Financial et. al. for $661,000 ( AEL Financial, 600 North Buffalo Grove Road, Buffalo Grove, Illinois; M2Lease Funds, 175 N. Patrick Boulevard, Brookfield, Wisconsin; Cedar Rapids Bank, 500 1st Avenue NE, Cedar Rapids, Iowa---not served

July 19th-- National Bank, Bettendorf, Iowa as the holder of three leases by First Premier Capital, Edina, Minnesota for 50 LifeCare Respirators costing $250,000 each. The demand is for $800,000, First Premier Bank discount. Attorney Dennis Lenard responded August 10th, denying charges.

July 13th-- ABCO Leasing, Bothell, Washington filed against Allied Health Care Services, Orange, New Jersey as well as the guarantor Charles K. Schwartz. It regards two leases for a total of $400,000. Attorney Dennis Lenard responded August 4th, denying charges.

July 12th-- Onset Financial, South Jordan, Utah and CW Onset, a Utah limited company, on July 12, 2010 filed a $9,798,000. Allied & Schwartz served, filed August 16, restricted.

July 9th-- Crossroad Bank, Wabash, Indiana, formerly known as First Federal Savings Bank of Wabash filed for $144,788.20 plus attorney and court costs regarding respirators. Charles K. Schwartz served July 27, 2010. Asks for a Replevin. First Federal discount lease. No response to date from attorney.

June 18th-- Commonwealth Capital Corporation filed 18 for $4,224,543.02 against the corporation and $1,792,893.82 against the personal guarantee of Charles K. Schwartz, "plus attorneys fees, costs, and interest, as well as all other relieve which this court deems just;" ACC Capital discount. July 27, Scheduling Conference for 8/31/2010

May 18-- MinnWest Capital Corporation, Minnetonka, Minnesota, (subsidiary of MinnWest Bank Metro) $2,070,690 suit against Allied as well as the Charles Schwartz, president of the company, as personal guarantor to the corporation. August 5: CLERK'S QUALITY CONTROL MESSAGE - Please disregard Doc. #'s 13 & 14 [ANSWER TO CMP.] fld. by D. LENARD on 8/4/10. They were inadvertently fld. in wrong case. [SEE CIV. 10-3558] (DD, ) (Entered: 08/05/2010) ORDER ON ORAL MOTION: indicating a schedule for filing dispositive motions shall be addressed at the initial scheduling conference on 10/26/10 at 12:00 p.m. Signed by Magistrate Judge Claire C. Cecchi on 7/30/10. (sr, ) (Entered: 07/30/2010)

May 3-- Kingsbridge Holding, LLC, Lake Forrest, Illinois, was first with a suit against Allied Health Care Services for $1,051,207.74 plus attorney and court fees. ACC Capital discounted lease.--joint discovery plan prior to joint conference September 8th, Newark.

(Information from PACER.)

$15 million line plus reportedly in “work out” at Sun National Bank, Vineland, New Jersey

(Municipal actions, four to date):

American Bank FSB, Bethesda, MD
American Bank FSB, Rockville, MD
Republic Bank, Salt Lake City, Utah
Eastern Funding, New York, NY

First Premier Bank filing:
http://leasingnews.org/PDF/FirstPremierBank.pdf

Previous Stories (also contain the complaints and exhibits):
http://www.leasingnews.org/Conscious-Top%20Stories/allied_health.html

((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)

De Lage Landen: A Teachable Moment
by Bernie Boettingheimer, CLP
President, Lease Police

It was a watershed moment when De Lage Landen filed a law suit on August 13, 2010 against the slow-motion demolition called Allied Health Care Services, Inc. The parade of expanded new claims against Allied seemed to start on August 4, 2010 by Texas Capital Bank with their call for a "replevin" action against Allied. It was mentioned earlier, but not as strongly as Texas Capital Bank did.

The De Lage Landen suit, which I noticed did not include Charles Schwartz because he did not guarantee the transaction, was strong because its claim for "unjust enrichment" against the vendor in the transaction - Donner Medical Marketing, Inc. and "fraud and conversion" against the owner of Donner Medical, Bruce Donner.

Donner Medical supposedly provided the bulk of the equipment to Allied. It is encouraging to finally see that the legal team of De Lage Landen understands the importance and the culpability of vendors in a financing/leasing transaction such as this. Of course, the courts will decide if the claims are valid but at least the gauntlet has been thrown down. Let me explain this further.

Lease Police was started on the theory that a finance/leasing transaction is like a three-legged stool. If one or two legs are broken the stool won’t stand. One leg is the lessee himself, the second the vendor and the third is the equipment. Just like the stool, a finance/lease agreement needs all three strong “legs” to stand upright. We have seen tragic results in the last few years as a result of neglect by companies to spend any time in investigation of the vendors and equipment.

While fraud education has improved greatly in this area of credit investigation, too many still do not understand that some legitimate vendors sell bad or poor equipment with representations that bring about delinquencies. Experienced and proactive leasing managers are now realizing that poor vendors and weak equipment usually spells disaster despite a customer’s prior credit history.

In the Allied case above, the “financials were too good to be true” and thus they overcame the common sense of many credit executives. They ignored basic and ordinary warning signs on the vendor and the equipment. In fact, there were over 400+ UCC filings in the last few years on this just one lessee.

As Kit Menkin wrote in one of his articles, a subscriber turned down Donner Medical, and the broker substituted a new vendor, who was on the Lease Police vendor list. In investigating Donner Medical, I had asked Kit Menkin if he knew anything about Allied Health Care Services, while I researched the vendor. Kit, in turn, asked his readers.

Donner Medical, the main equipment supplier in almost all these new UCC's was a vendor operating from his residence (Google brought up the house) with no web site until after Leasing News noted it and a month later than had one, which I should add was long after 99% of the leases were created. There was no membership in any industry associations. The equipment model being sold was out of production for over five years! Red flags started to pop up the more I looked into it, as well as Kit Menkin doing research on the equipment at my request.

Leasing News later reported the manufacture said the serial numbers were not theirs when bank credit officers and Leasing News, too, read invoice serial numbers to the manufacturer.

The latest resale prices found for the units purchased were in the $825--$1,250, but only small numbers were found since the unit was past production. The selling price for hundreds of units sold by Donner Medical was always $5,000 and the serial numbers were usually in consecutive sequence. The invoices were also quite amateurish.

WHAT WAS EVERYONE THINKING?

COULD THIS BE “A TEACHABLE MOMENT”?

It is high time our industry face the reality that focusing solely on the strength of the customer's credit will get you into trouble. A smart leasing and finance executive must focus on all "three legs" of the transactions - the customer, the vendor and the equipment. Each in its own way is equally important to the successful conclusion of any finance or leasing contract.

Bernie Boettingheimer, CLP
President
Lease Police, Inc.
boettig@sbcglobal.net

Leasing News "The List" --July

--- Mergers, Acquisitions & Changes
"The Good, the Bad and the Ugly"--

July Synopsis (to see full history, go to Full Chronological List:
http://www.leasingnews.org/list_chron_new.htm

LEAF Specialty Finance (07/10) Dwight Galloway turns lights out, says ex-employees working on a new company with an investment group; he remains employed by LEAF (07/10) To close operation as LEAF Financial negotiates lease of 21,000 square feet they no longer need. (07/10) Most let go, staff is four.

AEL Financial et. al., Buffalo Grove, Illinois (07/10) Sues Allied Health for $661,000 along with M2Lease Funds, Brookfield, Wisconsin and Cedar Rapids Bank, Cedar Rapids, Iowa. Not served

Pawnee, Fort Collins, Colorado (07/10) Acknowledges loses, but raises capital streamlines operations, eager for business. http://leasingnews.org/archives/July2010/7_30.htm#pawnee

Landmark Leasing LLC., Clearwater, Florida (07/10) Jeff Maricle, who closed down Global Leasing after complaints of keeping Advance Rentals is arrested by US Attorney General after receiving 50 complaints of not returning advance rentals.

Allegiant Capital, San Rafael, California (07/10) Completes $13 million line.

Puget Sound Leasing, Bellevue, Washington (07/10) Parent First Sound Bank, Seattle, Washington raises $3.2 million capital, staves off FDIC

GCR Capital, Safety Harbor, Florida (07/10) Closes doors, refers all calls to attorney. Gave up fighting the Florida US Attorney General; many complaints at Leasing News; made Complaint Bulletin Board.

Professional Solutions Financial Services (PSFC), member of NCMIC Group, Inc., Des Moines, Iowa (07/10) Ken Catanzarite, Esq. of the Catanzarite Law Corporation, Anaheim, California files class action lawsuit seeking over $30 million. Brican Exhibeo Lease Fraud in the Brican America, Miami Beach, Florida, not licensed in State of California, violates usury and Department of Corporation law.

Tygris Commercial Finance, Parsippany, N.J. (07/10) Changes name to match parents, now EverBank Commercial Finance.

Frontier Leasing, Des Moines, Iowa (07/10) loses Royal Golf case regarding "non-cancelability." http://leasingnews.org/archives/July2010/7_07.htm#iowa

National Bank, Bettendorf, Iowa (07/10) as the holder of three leases by First Premier Capital, Edina, Minnesota for 50 LifeCare Respirators costing $250,000 each filed against Allied Health. The demand is for $800,000, bringing the total in the suits over $20 million to date. Attorney Dennis Lenard responded August 10th, denying charges.

ABCO Leasing, Bothell, Washington (07/10) filed against Allied Health Care Services, Orange, New Jersey as well as the guarantor Charles K. Schwartz. It regards two leases for a total of $400,000. Attorney Dennis Lenard responded August 4th, denying charges.

Onset Financial, South Jordan, Utah and CW Onset, a Utah limited company, filed a $9,798,000 against Allied Health Care Service, Orange, New Jersey. Not Served.

Crossroad Bank, Wabash, Indiana, formerly known as First Federal Savings Bank of Wabash filed for $144,788.20 plus attorney and court costs regarding respirators leased to Allied Health Care Services, Orange New Jersey and Charles K. Schwartz. No response to date from attorney.

U.S. Bancorp Oliver-Allen group, Larkspur, California (07/10) operation office moving to Portland, Oregon, affecting 60 employees, reports of auditing problems, sales administrative problems, lawsuits by ex-salesmen, one sales lady claim costing US Bank $1.2 million over $27,000 commission not paid; several executive problems, too.

US Bancorp Manifest, Marshall, Minnesota (07/10) It's official, cut backs in broker division, cutting back to top producing brokers only with high approved to signed ratio.

Full Chronological List
http://www.leasingnews.org/list_chron_new.htm

Alphabetical
http://www.leasingnews.org/list_alpha_new.htm

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

New Hires---Promotions

William J. (Bill) Cadigan joins Strategic Capital Investments, Newtown, Pennsylvania. He is a Certified Turnaround Professional (CTP) and a Certified Insolvency and Restructuring Advisor (CIRA). Bill received a Bachelor of Arts in Business Administration from Rutgers College, an MBA in Public Accounting from Baruch College, CUNY, and a Master of Management from the Kellogg School at Northwestern University.

Chris Emge was appointed regional vice president of sales for the Northwest U.S. for Tip Capital, Bloomfield Hills, Michigan. He will be based in San Francisco. Prior he was vice-president of Merrimack Capital Previously he was with US Bancorp Technology Leasing and its predecessor Oliver-Allen Corp.

Charles Fiumefreddo appointed to senior vice president & director of operations TD Equipment Finance, Auburn, Maine. He joined Commerce Bank in 2001, which was acquired by TD Bank in 2008. Prior to that he had 17 years of leasing experience with Summit/Fleet Bank.

Dan Zapatka appointed Vice President of Healthcare Equipment Finance, ePlus Group, Herndon, Virginia. He will be based out of Dallas, Texas. He held the position of Senior Vice President at Macquarie Bank Healthcare Leasing Group as well as senior management roles with CIT Healthcare and Comdisco Healthcare. Mr. Zapatka holds both an undergraduate and Master's degree in Administration from Jacksonville University.

Top Ten Rose Gardens

“Smoky”

(From Kit Menkin’s garden)

1. San Jose Municipal Rose Garden, San Jose, CA (1st Place)
2. Dr. E.M. Mills Memorial Rose Garden, Syracuse, NY (2nd Place)
3. Central Park Rose Garden, Schenectady, NY (3rd Place)
4. Columbus Park of Roses, Columbus, OH
5. Elizabeth Park Rose Garden, West Hartford, CT
6. The John and Mable Ringling Museum of Art Rose Garden, Sarasota, FL
7. State Capitol World Peace Rose Garden, Sacramento, CA (7th Place)
8. Ritter Park Rose Garden, Huntington, WV
9. Morcom Rose Garden, Oakland, CA (9th Place)
10. Garden Club of McKeesport Rose Garden, McKeesport, PA

Fernando's View
By Fernando F. Croce

With the new “Piranha” remake opening in theaters this week, it’s clear that the 3-D craze is nowhere close to winding down. But are movies that literally reach out to the audience a recent gimmick, or something reaching back decades? Leasing News this week takes a look at a few of the past 3-D movies. Hurry and get them from Netflix, and don’t forget to take your special glasses.

House of Wax (Andre De Toth, 1953): The earliest of the 3-D movies may also be the best. In this deliciously spooky thriller set in turn-of-the-century New York, vintage scoundrel Vincent Price has one of his finest roles as a famous sculptor who goes insane after a fire destroys his studio and his beloved wax figures. Things turn even more bizarre when a wave of murders coincides with the opening of his new gallery of wax statues. The plot plays just as enjoyably without 3-D, yet Hungarian director Andre De Toth (who, ironically, had only one eye) uses the technique with verve and humor, as when a theater pitchman slyly addresses the audience by paddling ping-pong balls straight toward our eyes. Avoid the remake, and check out the original.

Dial M for Murder (Alfred Hitchcock, 1954): A great artist who never shied away from a good trick, Alfred Hitchcock also gave 3-D an imaginative twirl with this often underrated Technicolor suspense drama. As is usual the case with Hitch, murder plays a large role in the London-set plot, which follows the unsavory machinations of three characters. Tony (Ray Milland) is a wealthy British tennis player who knows that his wife Margot (Grace Kelly) has been having an affair with Mark (Robert Cummings), an American writer. A wily fellow, Tony decides to hatch an unusual scheme: rather than punishing his wife, he blackmails an old colleague into strangling her. Of course, things don’t go as planned, and things lead to a celebrated set-piece that puts a pair of scissors to ingenious use.

Spy Kids 3-D (Robert Rodriguez, 2003): Peaking in the 1950s, the 3-D craze got a brief, peculiar second wind during the 1980s, when movies like “Friday the 13th Part III” and “Jaws 3” vainly tried to revive the gimmick. It wasn’t until the new millennium that interest again grew, thanks greatly to the busy multi-dimensional canvases pioneered by director Robert Rodriguez. In this third installment of the popular children’s action-comedy series, the Cortez superhero clan (parents Antonio Banderas and Carla Gugino, kids Alexa Vega and Daryl Sabara) continue with their breathless adventures, this time facing off against a villainous foe nicknamed The Toymaker (Sylvester Stallone). The story is less important than Rodriguez’s grab-bag of visual tricks, many of which have laid the groundwork for several 3-D effects to come.

Coraline (Henriy Selick, 2009): 3-D has over the years lent itself particularly well to animation, and Pixar has made wonders with it. Still, if I had to choose one animated feature that best showcases the technique, it would be this wickedly inventive fable from director Henry Selick (“The Nightmare Before Christmas”) Coraline (voiced by Dakota Fanning) is a little girl who, bored with her new home, walks through a mysterious door and steps into an alternate universe where everything that was dreary in the real world, including Mom and Dad, becomes wondrous. When dream becomes nightmare, however, can Coraline make it back safely to reality? Using stop-motion animation to recreate a fantasy land that's both exciting and ominous, it uses 3-D to create a fantastic feeling of space.

A Christmas Carol (Robert Zemeckis, 2009): Though “Avatar” employed 3-D techniques with astonishing skill, 2009’s most impressive use of those effects may instead lie in director Robert Zemeckis’ visually breathtaking adaptation of the beloved Charles Dickens novel. Jim Carrey portrays history's most famous miser, Ebenezer Scrooge, who spends Christmas time by nursing his own bitterness and showering contempt on those around him. But when he's visited by the Ghosts of Christmas Past, Present, and Future, he comes to realize the effects of his behavior. The plot should be familiar from dozens of screen adaptations, yet Zemeckis’ 3-D inventiveness (wait until you see all those snowflakes falling around you in the theater) should make audiences experience it as if for the first time. Look for it on Netflix, and relive the magic.

Classified ads—Operations/Remarketing/Repo

Operations: Houston, TX Silverlake Inspections LLC is an independent contracting company for real estate and equipment verification with pictures. Email: jimh05@sbcglobal.net	Operations: Portland , OR Portfolio Financial Servicing Company provides state of the art portfolio servicing for portfolios of all sizes. 800-547-4905 sales@pfsc.com
Operations: Roseburg, OR Tired of paying a full time documentation person? Try outsourcing. Ideal for anywhere in the USA. E-mail or Call Trina Drury 541-673-4116 or 541-784-7973. email: doc_prep@yahoo.com	Remarketing: Nassau Asset Management Specializing in: Repossession, remarketing, plant and fleet liquidation, skip tracing and collections. All types of equipment. Over 160 locations nationwide. We will tailor any remarketing program to your specific requirements.  www.nasset.com   Contact: ECast@nasset.com ELA,NAB T ,EAEL,NAELB,UAEL
Repossessions: Canada Cease Bailiff Services Incorporated: Asset Investigation/Tracing; Asset Recoveries; Asset Protection/Security Asset Liquidations/Sales; Ottawa, Canada; www.ceasebailiff.ca dave@ceasebailiff.ca; Phone 613 898 7376 ; Fax 613 225 2452	Remarketing: Los Angeles, CA Video, Audio, Film, Computer, IT, Test, Presentation Equipment We pay cash / 3 million in buying power /Quick Quotes UBG 800-570-5224 jon@usedvideo.org

Leasing Industry Outsourcing (Providing Services and Products)

All "Outsourcing" Classified ads (advertisers are both requested and responsible to keep their free ads up to date:
http://www.leasingnews.org/Classified/Outsourcing/Outsourcing.htm

How to Post a free "Outsourcing" classified ad:
http://www.leasingnews.org/Classified/Outsourcing/Outsourcing-post.htm

Sacramento, California ---Adopt a Dog

SAMMY - ID#A348338

“My name is Sammy and I am a male, red Pomeranian and Terrier.
“The shelter thinks I am about 3 years old.
“I have been at the shelter since Jul 18, 2010.”

For more information about this animal, call:
City of Sacramento Animal Care Services at (916) 808-7387
Ask for information about animal ID number A348338

http://www.cityofsacramento.org/generalservices/animal-care/adoptions/

Adoption Form:
http://www.cityofsacramento.org/generalservices/animal-care/documents/Dog_Adopter_Survey.pdf

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/

 

News Briefs ---

Jobless claims jump to nine-month high
http://www.washingtonpost.com/wp-dyn/content/article/2010/08/19/AR2010081905513.html

Rates rise off record lows
http://www.bankrate.com/finance/mortgages/rates-rise-off-record-lows.aspx

SEC charges State of New Jersey for fraudulent municipal bond filings
http://www.accountingweb.com/topic/sec-charges-state-new-jersey-fraudulent-municipal-bond-filings

Billionaire Donald Bren testifies in child support case
http://www.usatoday.com/money/companies/management/2010-08-20-bren20_ST_N.htm

You May have Missed---

The Barefoot Running Trend
http://shine.yahoo.com/channel/health/baring-it-all-the-barefoot-running-trend-2337336/

 

 

 

Sports Briefs----

Buffalo 34, Indianapolis 21
http://www.upi.com/Sports_News/2010/08/19/NFL-Buffalo-34-Indianapolis-21/UPI-85251282274907/

Former Yankees pitcher Roger Clemens indicted for lying about steroids
http://www.nypost.com/p/news/national/baseball_great_roger_clemens_to_ z5h5Q8HH0end3NOcDg0jaL

 

 

California Nuts Briefs---

Russian billionaire's yacht anchors off Sausalito
http://www.mercurynews.com/ci_15829477?source=most_viewed

British grocer Fresh & Easy headed to Bay Area
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/19/BU851EVR2J.DTL

More bad news for beleaguered Team San Jose
http://www.mercurynews.com/top-stories/ci_15833589

Silicon Valley home sales plunge in July
http://www.mercurynews.com/ci_15829027?source=most_viewed

 

 

“Gimme that Wine”

Napa Grape growers Anticipate Good Quality and Average Yields in Spite of Tardy Grape Ripening
http://www.winebusiness.com/news/?go=getArticle&dataid=77542

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

    1494 - Columbus returned to Hispaniola. He had confirmed that Jamaica was an island and failed to find a mainland.
    1619- The first Black slaves brought by the Dutch to the colony of Jamestown. The colonists desperately needed workers for the tobacco crop. Europe was becoming “addicted “ to snuff and smoking tobacco in a pipe, inhaling. The Indians had introduced the colonies to tobacco, who were learning to grow and dry it. Europe was “mad” for the smoke and snuff for gentlemen. John Rolfe writes in his diary, “About the last of August came in a dutch man of warre that sold us twenty negars”
By the time of the American Revolution, the English importers alone had brought some 3'000'000 captive Africans to the Americas. After the war, as slave labor was not a crucial element of the Northern economy, most Northern states passed legislation to abolish slavery. However, in the South, the invention of the cotton gin in 1793 sharply increased the need for slave labor, and tension arose between the North and the South as the slave or free status of new states was debated. In 1807, with a self-sustaining population of over four million slaves in the South, some Southern congressmen joined with the North in voting to abolish the African slave trade effective 01 January 1808. Nevertheless, the widespread trade of slaves within the South was not prohibited, and illegal trade of African slaves to Brazil and Cuba continued until the 1860s. By 1865, over twelve million Africans had been shipped across the Atlantic Ocean to the Americas, and some one million of these individuals had died from mistreatment during the voyage. In addition, an estimated three million died in Africa in slave wars and forced marches directly resulting from the Western Hemisphere's demand for African slaves.
http://www.tobacco.org/History/Jamestown.html#aaBlacks
http://www.apva.org/history/
http://www.nps.gov/colo/Jthanout/AFRICANS.html
    1704- The first underground sewer in Boston was constructed by Francis Thrasher, at his own expense. The move led to municipal regulations governing disposal of refuse and garbage. By 1710, the selectmen of Boston were giving licenses to private citizens for digging up streets for sewer construction. Now you may not think this is a big deal, but think how waste was removed in this time, most often just thrown raw into the streets.
    1741 -- Danish navigator Vitus Jonas Bering, commisioned by Peter the Great of Russia to find land connecting Asia and North America, discovers Alaska as well as the Pacific Coast of America.
    1785- Oliver Hazard Perry, American naval hero, born at South Kingston, RI. Best remembered is his announcement of victory at the Battle of Lake Erie, September 10, 1824: “We have met the enemy, and they are ours.”
http://www.publicbookshelf.com/public_html/The_Great_Republic_By_the_Master_H
istorians_Vol_III/Commodore_c.html
    1788 - A small but powerful hurricane inflicted great havoc upon forests along a narrow track from New Jersey to Maine. A similar storm track today would cause extreme disaster in the now populated area.
1794 Major General “Mad” Anthony Wayne routs Indians at Fallen Timbers, Ohio
http://www.heidelberg.edu/FallenTimbers/FTCommemorate.html
    1813-African-American Richard Allen chairs the first National Negro Convention in Philadelphia.
http://www.triadntr.net/~rdavis/allen.htm
    1833- Benjamin Harrison, the 23rd president of the US, born at North Bend, Ohio. He was the grandson of William Henry Harrison, 9th president of the US. His term of office 1889-1893, was preceded and followed by the presidential terms of Grover Cleveland ( who became the 22nd and 24th president ).
http://www.americanpresident.org/kotrain/courses/BH/BH_In_Brief.htm
    1845-Wilberforce University established in Ohio, 1856
    1866- the newly organized National Labor Union called on Congress to mandate an eight-hour workday. http://memory.loc.gov/ammem/today/aug20.html
    1867-Anson Mills, brevet lieutenant colonel in the Army, Fort Bridger, UT, was granted a patent for a new cartridge belt. Moisture had previously affected cartridge belts. Mills invented a woven cartridge belt, and the machinery for making it, which was adopted by both the army and Navy.
    1905 –Jazz trombonist/singer/composer/bandleader Jack Teagarden Birthday
http://www.redhotjazz.com/tea.html
http://teagardenonline.com/bio01.htm
    1910 - The "big blow up" of forest fires finally came to an end in Idaho. A record dry August fueled 1736 fires which burned three million acres destroying six billion board feet of timber. The fires claimed the lives of 85 persons, 78 of which were fire fighters, and consumed the entire town of Wallace. The smoke spread a third of the way around the world producing some dark days in the U.S. and Canada. The forest fires prompted federal fire protection laws.
    1911- “This message sent around the world,” sent at 7pm from the New York Times and received back at 7:16:30pm, traveling over 28,613 miles via 16 relay stations to become the first telegraph message sent around the world. It was the front page headline and quite an event for its era.
    1912-After the Japanese beetle invaded the East Coast and other diseases were affecting agriculture, Congress passed a quarantine law for plants, directed against dangerous plant diseases and injurious insect pests “ new to or not theretofore widely prevalent or distributed within and through the United States.” Plants that could transmit white-pin, blister rust or potato wart, and plants that might harbor the Mediterranean fruit fly, were immediately affected. Other species before the turn of the century had been affected, such as the “mighty American chestnut oak” that dominated the Northeast was basically extinct by this date.
http://ncnatural.com/NCNatural/trees/chestnut.html
    1920- The first radio station to be licensed was 8MK, owned by the Detroit News, which began later instituted daily service with the program, “ Tonight’s Dinner.” The call letters were changed later to WWJ.
    1921--Birthday of Jacqueline Susann - U.S. novelist. Her novel Valley of the Dolls (1966, and the movie in 1967) became the world's most popular, best-selling novel to that time - and remains the top selling novel even today.
t sold more than 17 million copies. Her other novels were also made into movies and were best sellers. She died at the peak of her success at 53.
    1924-Birthday of Jim Reeves, country music start, born at Galloway, Panola County, TX, and died at Nashville,TN, July 31,1964, when the single-engine plane in which he was traveling crashed in a dense fog. Reeve’s biggest hit was “He’ll Have to Go.” (1959) and he was inducted into he Country Music Hall of Fame in 1967.
    1926-Birthday of trombonist Frank Rosolino, Detroit, MI.
http://www.jazzcanadiana.on.ca/_ROSOLINO.htm
http://www.ita-web.org/competitions/rosolino/
    1927-Birthday of guitarist Jimmy Raney, Louisville, KY.
    1931-Birthday of drummer Frankie Capp,Worcester, MA.
http://www.centrohd.com/biogra/c2/frankie_capp_b.htm
    1940 -- Radar is used for the first time, by the British during the Battle of Britain. Also on this day, in a radio broadcast, Winston Churchill makes his famous homage to the Royal Air Force: "Never in the field of human conflict was so much owed by so many to so few."
    1942-University of Chicago scientist Glen Seaborg and his colleagues first weighed plutonium, the first man made element.
    1942-Birthday of pianist/composer Isaac Hayes, Covington, TN
http://www.isaachayes.com/bio.html
    1944-Birthday of drummer Terry Clarke, Vancouver, British Columbia.
    1945- Tommy Brown of the Brooklyn Dodgers became the youngest player in major league history to hit a home run when he connected against pitcher Preacher Roe of the Pittsburgh Pirates. Brown was 17 years, eight months and 14 days old.
    1945-Woody Herman Band records “Bijou.”
    1945- Dodger Tommy Brown becomes the youngest player (17 years, 8 months and 14 days) in major league history to hit a home run. 'Buckshot', who started his career as a 16 year-old high school student, connects off 30-year old Pirates' southpaw Preacher Roe.The Phillies are rained out for an unprecedented tenth consecutive time.
    1946- Prior to the start of the game against the Senators in Washington, using the U.S. Army's Sky Screen Chronograph, Bob Feller's fastball is clocked at 98.6 miles-per-hour breaking Yankees' hurler Donald's 1939 speed record of 94.7 mph.Grover Alexander is reached for nine straight hits and six runs as the Cubs defeat Phillies,10-4.
    1948 - Robert Plant of Led Zeppelin is born in West Bromwich, England. Five of the group's albums reach No. 1 on Billboard's pop album chart. In the mid-80s Plant organizes the Honeydrippers, featuring rock legends Jimmy Page, Jeff Beck and Nile Rodgers. The ensemble has a No. 3 hit in 1985 with ``Sea of Love.''
    1948- The largest crowd (78,382) ever to attend a night game sees Satchel Paige become the fourth consecutive Indian to throw a shutout. The ageless wonder joins Gene Bearden, Sam Zoldak and Bob Lemon in blanking the opposition.
    1949--Birthday of American composer Leonard Lehrman, born Ft. Riley,KS.
160 works, including 10 operas, among them completions of 20 works by Marc Blitzstein, most notably his operas "Idiots First" and "Sacco and Vanzetti". Works published by Theodore Presser, Carl Fischer, and (Blitzstein completions) Boosey & Hawkes, recorded by Opus One, Premier, Capstone, and Original Cast Recordings.
    1954-Meteorologist/chef/author bon vivant Al Roker born Brooklyn, NY.
http://www.alroker.com/bio.cfm
http://www.alroker.com/main.cfm
http://www.msnbc.com/onair/bios/a_roker.asp
    1955---Top Hits
Rock Around the Clock - Bill Haley & His Comets
Hard to Get - Gisele MacKenzie
The Yellow Rose of Texas - Mitch Miller
I Don’t Care - Webb Pierce
    1960-Birthday of American Composer Thomas Dempster, born Sandusky, MI.
    1960- Connie Francis began work on her first movie, "Where the Boys Are." She also starred in the sequel, "When the Boys Meet the Girls."
    1963---Top Hits
Fingertips - Pt 2 - Little Stevie Wonder
Blowin’ in the Wind - Peter, Paul & Mary
Judy’s Turn to Cry - Lesley Gore
Ring of Fire - Johnny Cash
    1964-- US President Lyndon B. Johnson signs the anti-poverty Economic Opportunity Act (totaling nearly $1 billion)
    1966-The thoroughbred Buckpasser, owned by Ogden Phipps, won the Travers Stakes at Saratoga to become the first 3-year-0ld to pass the $1 million mark in career earnings.
    1966--The Temptations' "Beauty Is Only Skin Deep" is released.
    1967-Birthday of American Composer Amos Elkana, born Boston, MA.
    1967-the New York Times reported on a new noise-reduction system for album and tape recording developed by R. and D.W. Dolby. First used by a subsidiary of Elektra Records, the Dolby noise reduction system became the industry standard.
    1968--LAMBERS, PAUL RONALD
Rank and organization: Staff Sergeant, U.S. Army, Company A, 2d Battalion, 27th Infantry, 25th Infantry Division. place and date: Tay Ninh province, Republic of Vietnam, 20 August 1968. Entered service at: Holland, Mich. Born: 25 June 1942, Holland, Mich. Citation: For conspicuous gallantry and intrepidity in action at the risk of his life above and beyond the call of duty. S/Sgt. (then Sgt.) Lambers distinguished himself in action while serving with the 3d platoon, Company A. The unit had established a night defensive position astride a suspected enemy infiltration route, when it was attacked by an estimated Viet Cong battalion. During the initial enemy onslaught, the platoon leader fell seriously wounded and S/Sgt. Lambers assumed command of the platoon. Disregarding the intense enemy fire, S/Sgt. Lambers left his covered position, secured the platoon radio and moved to the command post to direct the defense. When his radio became inoperative due to enemy action, S/Sgt. Lambers crossed the fire swept position to secure the 90mm recoilless rifle crew's radio in order to re-establish communications. Upon discovering that the 90mm recoilless rifle was not functioning, S/Sgt. Lambers assisted in the repair of the weapon and directed canister fire at point-blank range against the attacking enemy who had breached the defensive wire of the position. When the weapon was knocked out by enemy fire, he single-handedly repulsed a penetration of the position by detonating claymore mines and throwing grenades into the midst of the attackers, killing 4 more of the Viet Cong with well aimed hand grenades. S/Sgt. Lambers maintained command of the platoon elements by moving from position to position under the hail of enemy fire, providing assistance where the assault was the heaviest and by his outstanding example inspiring his men to the utmost efforts of courage. He displayed great skill and valor throughout the 5-hour battle by personally directing artillery and helicopter fire, placing them at times within 5 meters of the defensive position. He repeatedly exposed himself to hostile fire at great risk to his own life in order to redistribute ammunition and to care for seriously wounded comrades and to move them to sheltered positions. S/Sgt. Lambers' superb leadership, professional skill and magnificent courage saved the lives of his comrades, resulted in the virtual annihilation of a vastly superior enemy force and were largely instrumental in thwarting an enemy offensive against Tay Ninh City. His gallantry at the risk of his life is in keeping with the highest traditions of the military service and reflects great credit upon himself, his unit, and the U.S. Army.
    1969 - 'Never say die' Camille let loose a cloudburst in Virginia resulting in flash floods and landslides which killed 151 persons and cause 140 million dollars damage. Massies Hill VA received 27 inches of rain.
    1969 - Andy Williams received a gold record for the album "Happy Heart" on Columbia Records.
    1969-August 20th marks the last time that all four of The Beatles are together in a recording studio. They completed "I Want You" for the "Abby Road" album at EMI's London studio. (Three of the Beatles would later be present in the studio to overdub salvaged tracks from the Let It Be sessions.)
    1970-Creedence Clearwater Revival's album "Cosmo's Factory" reaches #1 on the Billboard Hot 200, a position it would hold for 9 weeks.
    1971---Top Hits
How Can You Mend a Broken Heart - The Bee Gees
Mr. Big Stuff - Jean Knight
Take Me Home, Country Roads - John Denver
I’m Just Me - Charley Pride
    1971- Texas Instruments, Dallas, Texas introduced the first electronic pocket calculator. It weighed about 2.5 pounds and cost $149. It could add, subtract, multiply, and divide, displaying the results in an LED ( light-emitting diode) window.
    1973-The Rolling Stones release "Angie."
    1974 -- House of Representatives votes 412-3 to recommend three articles of impeachment against President Richard M. Nixon. The first charges him with taking part in a criminal conspiracy to obstruct justice in the Watergate cover-up; the second charges he "repeatedly" failed to carry out his constitutional oath in a series of alleged abuses of power; & the third accuses him of unconstiutional defiance of committee subpoenas.
    1974 - No. 1 Billboard Pop Hit: ``(You're) Having My Baby,'' Paul Anka with Odia Coates. Anka last hit No. 1 with ``Lonely Boy'' in 1959, marking the longest gap between top singles
    1976-Gordon Lightfoot's "The Wreck of the Edmund Fitzgerald," about an ore carrier which sank on Lake Superior, was released as a single. The song, from the album "Summertime Dream," made it to number two on the Billboard Hot 100
    1977 - The song "Best of My Love", by the Emotions, topped the pop charts. It had a number one run of four weeks. http://www.70disco.com/emotions.htm
http://www.grooveentertainmentinc.com/emo.htm
    1978-After 37 consecutive years, the Stan Kenton Band folds. “Peanut Vendor.”
http://www.gemlimited.com/kenton.htm
    1979---Top Hits
Good Times - Chic
My Sharona - The Knack
The Main Event/Fight - Barbra Streisand
Coca Cola Cowboy - Mel Tillis
    1985 - No. 1 Billboard Pop Hit: ``Power of Love,'' Huey Lewis & the News. The million-selling single, which is featured in the hit film ``Back to the Future,'' is the band's first No. 1 song.
    1986 - U.S. Census Bureau officials reported that the U.S. population stood at 240,468,000 and the median age reached an all-time high of 31-1/2 years.
    1986 - The temperature at San Antonio, TX, soared to an all-time record high of 108 degrees.
    1987---Top Hits
I Still Haven’t Found What I’m Looking For - U2
Who’s That Girl - Madonna
Luka - Suzanne Vega
A Long Line of Love - Michael Martin Murphey
    1987-- Alabama dedicates a section of its Interstate 65 highway as the Hank Williams Memorial Lost Highway, a reference to one of his best-known songs. The fifty-mile stretch begins near his hometown of Georgiana and runs north to Montgomery, where he is buried.
    1988 - Raleigh, NC, reported a record hot temperature reading of 103 degrees. Afternoon thunderstorms in Oklahoma produced wind gusts to 75 mph in southern Pittsburgh County. Thunderstorms in Indiana produced 4.50 inches of rain at Morgantown.
    1989 - Early morning thunderstorms deluged southeastern Delaware with six to ten inches of rain in four to six hours, with local reports of 13 to 20 inches of rain. Twenty-six major roads were closed or damaged, and fourteen bridges were washed out. Flooding caused nearly four million dollars damage to local businesses.
    1989- About 20,000 people ended a week-long 20th anniversary celebration of the Woodstock Festival at the festival's original site near Bethel, New York. They left behind a mountain of mud and empty beer cans. The unsanctioned gathering had only one serious incident - a stabbing. Folksinger Melanie was the only Woodstock veteran to show up. She performed from a makeshift stage.
    1993---Top Hits
Can t Help Falling In Love (From "Sliver")- UB40
Whoomp! (There It Is)- Tag Team
I m Gonna Be (500 Miles)- The Proclaimers
Slam-Onyx
    1996- Just ten days after Microsoft shipped its first Web browser, Netscape released a letter they had sent to the Justice Department earlier in the month alleging that Microsoft had sought to gain an unfair advantage by offering computer makers and Internet service providers improper payments and other incentives to use Internet Explorer instead of Netscape Navigator. Microsoft denied the allegations, but the question of Microsoft's tactics in promoting Internet Explorer came under heavy scrutiny in the Justice Department's 1998 antitrust suit against Microsoft.
    1996--Carlos Santana receives a star on Hollywood's Walk Of Fame.
    1998- At Shea Stadium, Cardinal first baseman Mark McGwire becomes the first player in major league history to hit 50 home runs in three consecutive seasons. Mac's seventh inning solo shot helps to defeat the Mets, 2-0.
    2000 - Tiger Woods won the 82nd PGA Championship in Louisville, Kentucky. Woods birdied the last two holes in regulation and won the championship in a playoff over Bob May, becoming the first player since Ben Hogan in 1953 to win three majors (Masters, U.S. Open, British Open) in one year. He was the first player to win back-to-back PGA championships since Denny Shute in 1936 and 1937.
    2000 -The winningest pitcher in franchise history is honored by the Yankees during Whitey Ford Day ceremonies at Yankee Stadium. The crafty lefty holds the team record for victories (236) , innings pitched (3,170 1/3), strikeouts (1,956) and shutouts (45).
    2002 -A judge issues a temporary restraining order preventing the sale of Barry Bonds' 600th career home run ball hit into the Pacific Bell Park stands on August 9. Jay Arsenault, who allegedly promised friends after being given a game ticket to split any monetary gains if he caught the historic baseball, has been ordered to appear in court for hearing on September 5 along with the prized souvenir.
    2002---Top Hits
Dilemma- Nelly Featuring Kelly Rowland
Hot In Herre- Nelly
Complicated- Avril Lavigne
Just A Friend 2002- Mario
    2005- Using the equivalent of a 98-miles-per-hour major league fastball, 12-year old Kalen Pimentel ties a Little League World Series record for strikeouts in a six-inning game. The 12-year old from Rancho Buena Vista strikes out 18 Owensboro batters (all of the recorded outs) as his team coasts to 7-2 victory in the pool play of the tournament.

 

Baseball Poem

Haiku

Smallest Red Sox fans
With shirts too wide for shoulders,
named "ARCIAPARR." 

--Kurt Blumenau, Emmaus, PA

The field is empty 
The baseball game has ended 
No more cheering crowds 

--Mary Catherine Harmon, Milford, NY

Ball falls harmlessly 
Dark October night cool, crisp 
Last man coming home 

--Patrick Lethert, Woodbury, MN

Bonds swings the maple, 
Pac bell is aroar, the long 
winter is no more. 

--Perry Dugger, Madisonville, KY

My fifty-third spring; 
Once again I carefully 
Oil up the old mitt. 

--Larry Bole, New York, NY

Pitchers and catchers 
Report in February 
Spring training begins

--James Bernhardt,
(Submitted without place information