Leasing News is a web site that posts information, news, and entertainment for the commercial leasing and finance industry. The News Edition is updated Monday, Wednesday and Friday.
President and CFO of HL Leasing Found Liable Ponzi scheme
A class action case against the officers and others thought liable in the HL Leasing, Fresno, California scheme masterminded by John Otto, who committed, suicide, has found the president, Dan Ramirez, and Andy Fernandez, chief financial officer, liable and ordered to pay $46.5 million to more than 1,200 who claim to be victims. Ara Jabagchourian, principal, Cotchett, Pitre & McCarthy, LLP, Burlingame, California brought the case before Judge Donald S. Black in Fresno County Superior Court.
Friday, August 5, 2011
######## surrounding the article denotes it is a “press release”
and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
Attorney Confirms His Client’s Relationship with Fin Pac
Leasing News has written a certified US Post Office letter along with copies of the news stories and all the Bulletin Board Complaints with exhibits to the California Finance Lenders Law Division, Department of Corporations, regarding a licensed lender/broker doing business with unlicensed lenders/brokers, and has named Financial Pacific Leasing as well as Newport Financial Group, as well as Benchmark Financial Group, MD Capital Partners, Cobalt Funding Group, and Partners Capital Group.
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Leasing Stocks –Could Have Been Much Worse
CIT GROUP, INC (NYSE: CIT)
G A T X CP (NYSE: GMT)
GEN ELECTRIC CO (NYSE: GE)
MicroFinancial Incorporated (NasdaqGM: MFI)
Chesswood Group Limited (Pawnee Corp.) (CHW.UN)
Resource America, Inc.(NasdaqGS:Rexi)
Crit DeMent---May Be Turning a New Leaf
CEO, LEAF Business Capital
There is good news and bad news for Crit DeMent, CEO of LEAF Financial and LEAF Business Capital and LEAF Dealer Solutions, as well as incoming chairman to the Equipment Leasing and Financial Association.
According to the Resource America, Inc. 8-K, Commercial finance was $6.5 million the last three months compared to $5.6 million in 2010 for the last three months ending.
The report also noted:
"-- At our LEAF Business Capital unit in Philadelphia, PA, we have
It also appears LEAF is now position and expected to start to turn a profit within the next few quarters.
LEAF was at one time the only entity in the Resource America group showing a profit. Now this statement admits Leaf was losing money. Resource America gained $1 billion in assets almost overnight, now they lost almost $1 billion in assets from June 30, 2010 to June 30, 2011, while Commercial Financial goes $1 billion to $600 million.
Don’t know about these new vendor programs but Leaf is notorious for making announcements about signing vendor programs that never work out. Gateway Computer is a prime example. I think the telephone equipment vendor might be the Samsung account that was announced several months ago. Leasing News has published "new salesmen" but LinkedIn shows they started in February and March.
I think the Moberly group does mostly all copier business, the old Dolphin unit.
The nine months ending June 30, 2011 show quite a drop, going from $21.8 million to $14.4 million. And while the parent Resource America did better than the same months in 2010, it still is a net loss of $411,000 compared to the net loss of $5.3 million in 2010; less of a loss is good news, but still a loss.
The Nine months ending shows a loss of $5.57 million in 2010 and a loss of $5.24 million, but wouldn't call that a real improvement.
On Page 12, the “CASH FLOWS FROM FINANCING ACTIVITIES” shows a large drop in principal payments, but as important, Resource America used $15.2 million proceeds from issuance of LEAF preferred stock that enabled them to pick up from the cash of $11.2 million at the beginning of the year.
In following up a complaint from an investor in one of the funds, who listened to a LEAF salesman, he complained he should have known better, a search on debt equity from a copy of a Regulation
Resource America 8-K PDF:
((Please Click on Bulletin Board to learn more information))
Steve Hudson Back on the Lease Hunt
Leasing News is seeking an interview with Steve Hudson, known to the leasing industry as the founder of Newcourt Credit Group that he sold to CIT. He is an entrepreneur with a seeming touch of gold, who in May, 2011 began taking the best talent from CIT and other leasing entities to work for his new Element Financial Corp., located in Toronto.
He reportedly created the entity with $10 million from Cameron Capital Corp, which he named for his son, and $75 million private placement stock. It seems one of his first moves was paying book value for the assets of Montreal-based Alter Moneta, a leasing firm that was started in 1998 with money from National Bank of Canada and the Caisse de depot et placment due Quebec. That brings it up to $180 million in lease assets.
Leasing News is told from very well informed sources in Canada that Hudson will raise more than enough money from the pending IPO to do several more deals. He certainly is after a stock exchange listing, which most likely will happen before the end of this year.
His marketplace right now is the $100,000 to $1 million range. He has told his colleagues he has three or four more deals in the near future to take advantage, he says, of the lingering impact of the financial crisis.
He is quoted in the Canadian Globe and Mail, "I think in the next 12 to 18 months, you'll see incredible value, and after that the world heals itself, and capital starts to flow back in, and yields get driven down."
In speaking about Canadian banks, he things they are now entering the small ticket leasing market, mentioning that Royal Bank of Canada bought MCAP Leasing, Inc. and Canadian Western Bank bought Winnipeg-based National Leasing Group, Inc.
"I think that ultimately the leasing business will be bank owned, " he told The Globe and Mail and perhaps that is an indication that he will be moving more of his operation into the United States, and thus Leasing News would like an interview as it appears he is about to shake up the marketplace.
Don't forget whatever he invests in, makes a great deal of money. He founded the Toronto-based Newcourt Credit Group for less than a half-a-million dollars and later sold it in 1999 for $2.4 billion
Marlin with 97 Salesmen Still Relies on Evergreen for Profit
Marlin Business Services (NASDA-MRLN), Mount Laurel, New Jersey Reports $1.5 MM Net Income 2nd Quarter
“Renewal income net of depreciation totaled approximately $1.8 million and $2.0 million for the three-month periods ended June 30, 2011 and June 30, 2010, respectively. Renewal income net of depreciation totaled approximately $3.8 million and $3.9 million for the six-month periods ended June 30, 2011 and June 30, 2010, respectively."
Again, as Leasing News reports from the SEC 10Q filing, it is the Evergreen Clause, most likely from copiers as noted in the Marlin SEC filing on residuals:
"Our leases offer our end user customers the option to own the equipment at lease expiration. As of June 30, 2011, approximately 66% of our leases were one dollar purchase option leases, 32% were fair market value leases and 2% were fixed purchase option leases, the latter of which typically contain an end-of-term purchase option equal to 10% of the original equipment cost. As of June 30, 2011, there were $34.9 million of residual assets retained on our Consolidated Balance Sheet, of which $28.5 million, or 81.8%, were related to copiers. No other group of equipment represented more than 10% of equipment residuals as of June 30, 2011 and December 31, 2010, respectively. Improvements in technology and other market changes, particularly in copiers, could adversely impact our ability to realize the recorded residual values of this equipment.
"Fee income included approximately $1.1 million and $1.3 million of net residual income for the three-month periods ended June 30, 2011 and June 30, 2010, respectively. Fee income included approximately $2.3 million and $2.7 million of net residual income for the six-month periods ended June 30, 2011 and June 30, 2010, respectively. Net residual income includes income from lease renewals and gains and losses on the realization of residual values of leased equipment disposed at the end of term as further described below.
Our leases generally include renewal provisions and many leases continue beyond their initial contractual term. Based on the Company’s experience, the amount of ultimate realization of the residual value tends to relate more to the customer’s election at the end of the lease term to enter into a renewal period, purchase the leased equipment or return the leased equipment than it does to the equipment type. We consider renewal income a component of residual performance."
Highlights from the 10Q:
"During the three months ended June 30, 2011, we generated 4,522 new leases with a cost of $53.9 million, compared to 3,009 new leases with a cost of $31.7 million generated for the three months ended June 30, 2010. Much of the change in volume is the result of increasing sales staffing levels from 69 sales account executives at June 30, 2010 to 97 sales account executives at June 30, 2011. Approval rates also rose from 49% for the quarter ended June 30, 2010 to 60% for the quarter ended June 30, 2011 due to the improved credit quality of the applications received and adjustments made to credit policy in light of the continued strong performance of recent years’ lease originations."
"During the six months ended June 30, 2011, we generated 8,506 new leases with a cost of $100.9 million, compared to 5,485 new leases with a cost of $55.4 million generated for the six months ended June 30, 2010."
"The provision for credit losses decreased $1.6 million, or 64.0%, to $0.9 million for the three-month period ended June 30, 2011 from $2.5 million for the same period in 2010, primarily due to lower charge-offs, improved delinquencies and a reduced portfolio size. For the three-month period ended June 30, 2011 compared to the three-month period ended June 30, 2010, net interest and fee income decreased $0.8 million, or 7.0%, primarily due to the 11.2% decrease in average total finance receivables. Other expenses increased $0.9 million, or 11.5%, for the three-month period ended June 30, 2011 compared to the three-month period ended June 30, 2010, primarily due to increased salaries and benefits expense related to increased sales staffing levels."
"Salaries and benefits expense. Salaries and benefits expense increased $0.8 million, or 17.4%, to $5.4 million for the three month period ended June 30, 2011 from $4.6 million for the same period in 2010. Salaries and benefits expense, as a percentage of average total finance receivables, was 6.13% for the three-month period ended June 30, 2011 compared with 4.64% for the same period in 2010. Total personnel increased to 251 at June 30, 2011 from 211 at June 30, 2010, primarily due to increased sales staffing levels, which were 97 sales account executives at June 30, 2011, compared to 69 sales account executives at June 30, 2010."
"The Company purchased 155,604 shares of its common stock at an average cost of $12.04 per share during the three-month period ended June 30, 2011. The Company purchased 171,198 shares of its common stock at an average cost of $11.98 per share during the six-month period ended June 30, 2011. The Company did not purchase any shares of its common stock on the open market during the three- or six-month periods ended June 30, 2010. At June 30, 2011, the Company had $8.4 million remaining in its stock repurchase plan authorized by the Board of Directors."
Marlin 10-Q 6/30/2011:
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ELFA Lease and Finance Accounts Conference
Shawn Halladay, Rodney Hurd, David Mayer, and a host of speakers for the three day conference.
$1,150 Individual (ELFA Member)
"If you are employed by a company that has not renewed its membership in the ELFA in2011, you must wait until 2012 to attend this conference as a non-member."
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Leasing Association 2011 Conferences
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October 23-25th ELFA 50th Anniversary Conference
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Wednesday, September 21, 2011
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Laughs are ripe at the box-office this week with “Crazy, Stupid, Love” and “Horrible Bosses,” while DVD releases encompass science-fiction (“Source Code”), animation (“Rio”), and classic spiritual drama (“Leon Morin, Priest”)
Crazy, Stupid, Love (Warner Bros. Pictures): The romantic comedy genre gets a welcome shot of energy in this vivacious roundelay of love and awkwardness. The story kicks off as suburban everyman Cal (Steve Carell) finds his balanced existence suddenly rattled by his wife Emily’s (Julianne Moore) decision to get a divorce. Befuddled by his new position as Mr. Bachelor, he seeks advice from his friend Jacob (Ryan Gosling), a slick womanizer who has the challenge of molding out-of-it Cal into a successful ladies’ man. The plot may not sound exactly original, but directors Glenn Ficarra and John Requa (“I Love You Philip Morris”) and a crack ensemble cast that also includes Emma Stone and Marisa Tomei give a fresh spin to familiar jokes and situations.
Horrible Bosses (Warner Bros. Pictures): Following on the steps of “The Hangover Part 2” and “Bridesmaids,” this is another summer comedy that delivers big laughs. Directed with a nimble hand by Seth Gordon, the movie charts the professional woes of three friends, each of whom has to deal with bad supervisors. There’s Nick (Jason Bateman) and his smug corporate boss (Kevin Spacey), Kurt (Jason Sudeikis) and his psychotic office honcho (Colin Farrell), and Dale (Charlie Day) who works as an assistant to a roving dentist (Jennifer Aniston). When they decide to a page from Hitchcock and bump off each other’s bosses, however, reality refuses to play ball. Filled with energetic performances, sudden twists and go-for-broke jokes, this is a brisk, rude, and consistently hilarious look at life’s daily frustrations and private rebellions.
Source Code (Summit): Following the underrated “Moon” with this sturdy suspense drama, director Duncan Jones again showcases his ability to craft ingenious sci-fi with modest budgets. The title refers to a top-secret military mission that allows a person to enter somebody else’s consciousness. The latest agent to use this dangerous technique is Colter Stevens (Jake Gyllenhaal), a war veteran who finds himself stuck in limbo, repeatedly living out the last minutes of a man’s life in a train disaster. As the incident replays over and over and more details emerge, Colter grows aware of a larger danger at foot. But will he be able to prevent it and save both the city and himself? Mixing solid characters with white-knuckle thrills, the film often plays like a minimalist version of last year’s “Unstoppable.”
Rio (20th-Century Fox): Blue Sky Studios, the animation unit responsible for “Robots” and the “Ice Age” movies, delivers another gem with this lush animated adventure, directed by Carlos Saldanha and set in the vibrant landscapes of Brazil. Our guide is Blu (voiced by “The Social Network’s” Jesse Eisenberg), a Maca bird who, after years of domesticated leisure, doesn’t even bother to spread his wings anymore. Suddenly paired up with a sassy, independent-mind female Maca named Jewel (Anne Hathaway), he finds himself back in his South American homeland, embarking on a quest that brings them face to face with a colorful menagerie of tropical critters hilariously voiced by the lies of Jamie Foxx, George Lopez and Tracy Morgan. Full of breezy characters and breathtaking vistas, the movie is heartfelt and eye-catching family fun.
Leon Morin, Priest (Criterion): Though best known to movie-buffs for impeccably cool crime dramas, acclaimed French director Jean-Pierre Melville was also responsible for classics in other genres as well. An example ripe for discovery is this exceptional drama from 1961, set in a small town during the World War II invasion of France. Though the title refers to the unconventional young priest (played by French New Wave superstar Jean-Paul Belmondo) who lives in the city during the German invasion, the main character is actually Barny (Emmanuelle Riva), a widow whose spiritual doubts (as well as personal feelings) are tested during her weekly meetings with Leon Morin. Employing inventive storytelling and keeping a surprisingly light mood in the midst of such a serious setting, Melville brings this moving conflict to unforgettable cinematic life.
Kirkland, Quebec, Canada-- Adopt-a-Dog
Photos courtesy of Susan Fischer at Simple Photos
I am so grateful to Rosie. They rescued me from the pound and now have found a foster for me. I am living with other dogs and getting along very well with them. More to follow on me.
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Time to Say It: Double Dip Recession May Be Happening
2385 businesses chose LED Lighting lease-to-purchase
Electro Rent Reports Sharp Increase in Net Income, Revenues for Fiscal 2011 Fourth Quarter and Full Year
The One Airport to Avoid Is ...
Big catch: 49ers land WR Edwards with one-year deal
Thinking Inside the Box---by Eric Asimov
Washington Wineries Pick Up the Tab
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This Day in American History
1693 - It is believed that a monk named Dom Perignon invented champagne at the Benedictine Abbey of Hautvillers in the region of Champagne, northern France. He made the first champagne by re-fermenting a certain wine in the spring and then placing it in strong, sealed bottles so that the wine would become sparkling. Dom Perignon was the Cellar master for 47 years until his death in 1715. The sparkling wine was crude and perhaps the first one to produce what we drink today was Mme. Nicole-Barbe Clicquot, who developed the sur pointe process that clarified the sediment out of sparkling wines. She was also an astute business person, especially in a day that women did not run business. Nicole Barbe Clinquot was the daughter of the mayor of Reims who at 20 was widowed with a daughter after three years of marriage to a vintner. She vowed to carry on her husband's business. She developed the process of remuage (moving) in which the bottles of wine are stored upside down (on their corks or sur pointe) and then the bottles are shaken periodically and then rotated to force the sediments in the wine to settle down on the cork. After a certain period, the cork is quickly removed, the sediment is expelled by the wine gases and then the bottle is quickly re-corked. The widow Clinquot also invented pink champagne. My favorite in Louis Roederer, but a Grand Madame Clinquot, now that is a fine sparkling wine! Here is a secret. You can serve “Champagne” with everything. If you cannot match a wine to a food, serve “Champagne.” Next, a very good beer. Don’t laugh, some fine beer goes with everything ( especially if it is “fresh.”) Now what does this have to do with American History? Nothing, but thought you would like to know more about sparkling beverages.
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