Archives---August 15, 2000
38 Leasing Companies Major Changes

American Business Leasing (gone)
Balboa Capital (Founder Byrne pushed out/other changes) 
BankVest (bankrupt) 
Bombadier (reported having problems, not confirmed) 
Charter Financial (purchased by Wells Fargo)
Commerce Security (closed to leasing broker program)
Copelco (sold to Citibank) 
Dana (sold off, active as captive) 
DVI Capital (out of broker)
eLease (management team let go) 
Fidelity (acquired by EAB, a wholly owned subsidiary of ABN AMRO Bank N.V., headquartered in the Netherlands) 
Finova (out of market place)
Franklin Bank (no more leases)
Imperial (sold portfolio) 
Leasing Corp of America (for sale below book value)
Leasing Solutions (bankrupt)
Liberty Leasing (closed, California company) 
Linc Capital (out of vendor and broker business, Nasdaq halts stock sales, $13.4 loss last quarter) 
Matsco Financial (purchased by Greater Bay Bank) 
Merit Leasing (gone) 
METWEST LEASING CO. Spokane WA. (advising brokers that they have run out of funds so they are unable to fund a transaction we have there for funding.)
Metrolease—(reports closing operation, will not confirm nor deny, many serious rumors floating around the marketplace.) 
NationsBank Leasing (sold to Textron, no longer doing broker business) 
New England Capital (sold to Network Capital Alliance a division of Sovereign Bank. Sovereign did hire two people who will run a sales office in CT, doing basically the same deals with the same people as before. Little will change in that aspect.
Newcourt (acquired by CIT)
Onset Capital (Irwin buys 87% equity) 
Orix (closes small ticket vendor division in Portland, Oregon, "Business as usual," says Steve Geller)
Phoenix (both divisions)
Prime Capital ("yes and no" sold off, may be negotiating) 
Rockford (sold to American Express)
SDI (closed to broker programs) 
SierraCities (post $7.7 million second quarter loss, rumors abound) 
T&W (bankrupt, lost their listing) 
Transamerica (sold)
UniCapital ($11.4 million first quarter loss chairman, CEO, CFO resign, 38 employees cutback) 
United Leasing (re-financing)
USA Capital Leasing (gone)

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Classified Ads---Credit

(These ads are “free” to those seeking employment
or looking to improve their position)

Credit, syndication, workout experience Exceptional work ethic, common sense coupled with practical experience in equipment finance, consumer, commercial. Can interact with all levels of borrowers and intermediaries. Not an originator – but can help sales team close – great up sell ability. Will relocate for the right opportunity AND can work remotely.aaacorrespondent@gmail.com

Orlando, Florida As a Commercial Credit Analyst/Underwriter, I have evaluated transactions from sole proprietorships to listed companies, across a broad spectrum of industries, embracing a multitude of asset types. Sound understanding of balance sheet, income statement and cash flow dynamics which impact credit decisions. Strong appreciation for credit/asset risk.  rpsteiner21@aol.com  407 430-3917

Free Posting for those seeking employment in Leasing:
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Guarantor Loses Claim re: Lessor Overpayment
to Vendor for $100,000 Kickback to Lessee
By Tom McCurnin
Leasing News Legal Editor

Guarantor’s Partner Inflates Invoice From Vendor and Receives $100,000 Kickback From Lease Proceeds, But Doesn’t Let Guarantor Into the Scam.  Guarantor Sues Lessor for Breach of Fiduciary Duty. Tennessee Court Rejects Guarantor’s Claim That Lessor Owes Him a “Duty of Care”

Fountain Leasing, LLC v. Kloeber 2013 WL 4591622 E.D.Tenn., 2013

I’ve dealt with enough phony lease invoices, so that’s why I always recommend that the lessor use a purchase order that represents and warrants that the vendor won’t kickback any of the lease funds.  In today’s case, the vendor inflated the lease invoice and kick backed a heavy part of the lease proceeds to the guarantor’s partner.  The guarantor thought the lessor should have monitored the situation more carefully, but the Tennessee Court foisted that responsibility back onto the lessee.  Maybe the guarantor will be more careful selecting his partners from this point forward.

Fountain Leasing was the lessor of two Caterpillar bulldozers to the lessee Montie's Resources.  Monties had two principals, David Kloeber and Bart Montanari.  Unbeknownst to Kloeber, Bart Montanari and the Vendor altered the lease invoice for the equipment, inflating the value of one of the two bulldozers; paying the vendor $275,000 for the bulldozer, which had a market value of no more than $175,000. The vendor kicked back $100,000 to Montanari.  To make matters worse for Kloeber, he guarantied the two leases to the Lessor.

For reasons not discussed in the opinion, the Lessee defaulted on its lease obligations.  When the Lessor sued, the Guarantor Kloeber discovered the kickback and counter-sued the Lessor, claiming a breach of fiduciary duty, to wit that the Lessor should have monitored the invoice process, determined the actual fair market value, and had a duty not to pay the Vendor for leased equipment which is overpriced.  The actual Complaint was for breach of contract, misrepresentation, and negligence.

The Trial Court had no problem disposing of all three claims, which were all centrally tethered to the breach of fiduciary duty claim.  For the contract claim, the Court held that the guaranty was clear and unequivocal and there could be no implied terms.  For the misrepresentation claim, although the lease set forth a value of the equipment, the Court held that it was not reasonable for Kloeber to rely upon that number, given the waivers in the guaranty.  For the negligence claim, the Court held that there is no duty on the part of the Lessor to notify the Guarantor Kloeber of the business practices of the Lessee.  Tennessee courts have held that the law does not generally “impose fiduciary or similar duties on banks with respect to their customers, depositors, or borrowers absent special circumstances.” 

The lessons for the equipment lessor in this case seem obvious. 

•  First, Proper underwriting should include the assessment of the fair value of the collateral at inception.  I assumed this was used equipment, but was still surprised that there might have been $100,000 built in to the two invoices, which is a lot to smoke past a diligent lessor.  In this case, we hope that the guarantor is collectable for the extra monies. 

•  Second, I’ve always recommended using a purchase order to the vendor, which represents and warrants that the vendor will not kick back any of the invoice price to the lessee or its principals.  This could have acted as a defense to the counter-claim and a collection vehicle against the supplier. 

The bottom line to this is case is that guaranties in general, and the waivers contained in them in particular, are super-important.  A reference to protection regarding any kickbacks should be included
in all purchase orders by the lessor. 

Fountain Leasing Case
http://www.leasingnews.org/PDF/FountainLeasingCase2014.pdf

Tom McCurnin is a partner at Barton, Klugman & Oetting
in Los Angeles, California.

Tom McCurnin
Barton, Klugman & Oetting
350 South Grand Ave.
Suite 2200
Los Angeles, CA 90071
Direct Phone: (213) 617-6129
Cell (213) 268-8291
Email: tmccurnin@bkolaw.com
Visit our web site at www.bkolaw.com
Previous Tom McCurnin Articles:
http://www.leasingnews.org

Previous Tom McCurnin Articles:
http://www.leasingnews.org/Conscious-Top%20Stories/leasing_cases.html

 

 

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Leasing Industry Help Wanted
 

 

Collector, Atlanta, GA Experienced, calling 11-90 day delinquent customers, assisting Asset Re-marketer with delinquency reporting, weekly reporting to home office. Sales, Chicago, Atlanta Work out of main office and satellite. Heavy phone sales calling on both independent dealers and end users (cold/warm calling), marketing, weekly reporting to management. Outside territorial salespeople will also be considered. Contact: Michael Testa 312-881-3133 mtesta@secondcityleasing.com www.secondcityleasing.com Financing for Commercial Truck & Trailer, Exotic, High Line, Vintage & Classic Automobiles, Taxi, Livery & Paratransit

 

Leasing Operations Manager San Antonio, Texas Leadership role in building a team focused on credit, documentation and funding functions for a dynamic high growth business operating in both captive and non- captive lift truck markets. Click here for full description. Contact: Monet Pitts, HR Manager mpitts@minercorp.com flexxrl.com Quality Controlled Material Handling Equipment Rent, Finance, or Lease up to 84 months, Maintenace, too.

For information on placing a help wanted ad, please click here:
http://www.leasingnews.org/Classified/Hwanted/Hwanted-post.htm 
Please see our Job Wanted section for possible new employees.

 

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New Hires—Promotions in the Leasing Industry

Melissa (Carroll) Biebel was hired as Business Development Manager at Macquarie Group, Orange County, California. Previously, she was Regional Sales Manager, California, LEAF Commercial Capital, Inc. (April, 2012 – August, 2014); District Manager, De Lage Landen (January, 2002 – June, 2005); Regional Sales Representative, GE Capital (October, 1999 – December, 2001). Education: University of Nevada-Las Vegas, English/Secondary Education (1988 – 1991). University of South Florida, English

John Cabreja was hired as Inside Sales Rep at AmeriMerchant,
Greater New York City Area. Previously, he was Sr. Funding Specialist,
Merchant Advance Express (November, 2012–2014); Languages:
English, Native or bilingual proficiency; Spanish, Professional working proficiency. Education: New York University - Leonard N. Stern School of Business, Bachelor's degree, Finance, General (2008–2011).      
www.linkedin.com/pub/john-cabreja/90/707/477

Ross Chinitz was hired as Bankruptcy/Collections Counsel at Starr Companies, Greater New York Area. Previously, he was General Counsel, The Lawyers Group Advertising, Inc. (January, 2009 – June, 2014); Owner, Doran & Chinitz, LLC (January, 1998 – December, 2008); Attorney, City of Waterbury (May, 1997 – December, 1997); Associate, Kupfer, Rosen & Herz (April, 1995 – March, 1997); Associate, Brodsky, Altman & McMahon (September, 1992 – March, 1995). Education: Hofstra University School of Law (1989 – 1992). University of Maryland College Park, BA, Economics (1986 – 1989).

Daryl Ching, CFA, has joined the team of consultants for The Alta Group in Canada as Managing Director. "Ching joins Hugh Swandel, senior managing director, who has more than 13 years of specialized consulting experience in the asset based finance industry.  Swandel notes that while there are a large number of funders for asset based finance, and a large number of specialty finance companies seeking funding,  there has been a shortage of industry professionals able to assist companies with all aspects of preparation for and negotiation of facilities." Previously, Mr. Ching was Director of Finance and Corporate Development, Francium Corp. (January, 2012 –August, 2014); Senior Vice President, NAAAP Toronto (June, 2009 – December, 2011); VP Compliance, Clubb Finance Corp. (November, 2009 – October, 2011);
Managing Partner, Clarity Financial Strategy (November, 2007 – July, 2008). Principal, Coventree (June, 2005 – September, 2007); Associate, RBC Capital Markets (June, 2001 – June, 2005); Organizations: President, Young Professionals Association of Canada (July, 2003 – August, 2008). CFA Institute, CFA Charter holder. Education: The University of Western Ontario (1997 – 2001). The University of Western Ontario - Huron University College
(1997 – 2001). Bayview Glen. Upper Canada College
ca.linkedin.com/pub/daryl-ching-cfa/5/b84/b28

John Cummings was hired as CEO at Advance Capital Solutions, LLC dba ACS Factors, Greater Los Angeles Area.  Previously, he was Vice President, REV Finance Group, Inc. (December, 2009–May, 2014);
Assistant Manager, UC Factors (January, 1985–January, 1988);
Account Executive, United California Factors and UC (January, 1983–January, 1988); Bookkeeper, General Business Forms (1982–1983). Languages: Spanish. Local Leader, Catholic Engaged Encounter (January 2008). Social Services. Education: California State Polytechnic University-Pomona, Bachelor's Degree, Business Administration; an emphasis in Marketing (1983–1986).

Meghan C. Foley was named leasing manager for the Midwest region, Key Equipment Finance, Superior, Colorado. She is located in the Greater Chicago area.  Previously, she was Vice President & Area Manager, US Bank (August, 2007–August, 2014); Vice President & Account Manager, GE Commercial Finance (2002–2007); Management Development Program, McMaster Carr Supply Co. (2000–2002); ABAS Business Advisory Services, PricewaterhouseCoopers (August, 1998–March, 2000). Education: University of Notre Dame (1994–1998).
www.linkedin.com/pub/meghan-foley/6/547/1b0

Ray Hayes was hired as Leadership Development and Strategy Trainer Surrey, British Columbia, Canada.  He remains as Regional Product Manager, Nissan Canada (June, 2014 – Present).  Previously, he was Business and Finance Manager, Pioneer Chrysler Jeep (January, 2011 – June, 2014); General Sales Manager, The Jim Pattison Auto Group (January, 2005 – January, 2010); Jim Pattison Group, Lower Mainland (January, 2005 – January, 2010); General Sales Manager, The Jim Pattison Auto Group (2005 – 2010). Courses: Douglas College Marketing I, Marketing II. Education: Bradford, Ontario, Marketing (1974 – 1975).

Bari Himmel was hired as Contract Administrator at Trilogy Leasing Co., LLC., Cranbury, New Jersey. Previously, she was Legal Administrator/Contractor, Verizon Wireless (June, 2012– March 2013); Transaction Coordinator, ADP (August, 2011 – October, 2011); Lease Management Contract Admin/Global Delivery Support, Hewlett Packard Financial Services (March, 1998 – December, 2009); Collections/AR Supervisor, SkyTel (MTEL) Corporation (March, 1994 – March, 1998); Collection Manager, A&M Collection Agency (June, 1992- March, 1994); Portfolio Asset Manager, AT&T Credit Corporation
(January, 1988 – June, 1992); Student Teaching, New Brunswick High School (September, 1987 – May, 1988). Education: Rutgers, The State University of New Jersey-New Brunswick, Bachelor of Arts (B.A.)
(1982 – 1987).

Phil Kraus was hired as Regional Finance Manager at Lenovo Financial Services, Orange County, California.  Previously, he was Area Manager, The CIT Group (1997–2014); Region Manager, Newcourt Financial (1987–1996); Education: California State University-Long Beach - College of Business Administration, BS, Marketing. Activities and Societies: Kappa Sigma. Glendale College. Saint Francis High School.

Jay McNamara was hired as V.P. of Environmental Operations at Phoenix Environmental, Inc., Pacific Palisades, California.  Prior, he was a self-employed consultant (September 2013–August 2014);
CFO / V.P. Finance, Anterra Energy Services, Inc. (October 2009–June 2013); Regional Sales Manager, Zions Credit Corporation (1999-2009).  
www.linkedin.com/pub/jay-mcnamara/82/30b/1b7

Zachary Ramirez was hired as Director of Sales/ISO Relations for Core Financial, Inc., Newport Beach, California.  Previously, he was Sales Manager, Alliance Funding Group (July 2013–June 2014); Senior Financial Consultant, Capital Alliance Corporation (May 2011–July 2013). Education: Mt. San Antonio College, Associate of Arts (AA), Philosophy (2007–2009).
www.linkedin.com/pub/zachary-ramirez/69/2a4/298

Rick Rodgers was hired as Chief Financial Officer at TNC Energy LLC,
San Francisco Bay Area.  Previously, he was Managing Director/CEO,
Montgomery Street Financial Services, LLC (2003–2014); Managing Director, Bank of America Leasing & Capital Group (1993–2003); Senior Vice President, Chief Marketing Officer, Bank of America Leasing (1983–1993); Vice President, TXL Securities Corporation (1981–1983); Director of Marketing, BRAE Corporation (1977–1981); Marketing Representative, IBM Corporation (May 1973–October 1977). Education: Northwestern University - Kellogg School of Management, MBA, Finance and Marketing (1971–1973). Chapman University, BA, Economics, History (1968–1971). Activities and Societies: Completed undergraduate degree while on active duty USAF.

Alan Singer was promoted to senior vice president and general counsel at Square Two Financial, Denver, Colorado. He previously was General Counsel and Corporate Secretary. In his new role, Singer, who joined SquareTwo Financial as associate general counsel, and has practiced law for more than 25 years in all facets of consumer and commercial finance, will oversee all of the company’s legal efforts. Previously, he worked for 12 years for ING Security Life Company in several positions of increasing responsibility leading to vice president of regulatory compliance and customer relations. Singer earned his juris doctor from the University of Denver, College of Law and an undergraduate degree from Queens College, CUNY.”

Austin Sohn was promoted to First Senior Vice President at Finance One, Inc., Los Angeles, California.  He joined the firm July, 2002, as VP & Account Executive/Manager. He was promoted to SVP & Regional Manager (East Coast), September, 2004.  Prior, he was AVP, Credit Manager & Account Executive, Prime Business Credit, Inc. (January 2000-June 2002). Languages: Korean, Native or bilingual proficiency. English, Native or bilingual proficiency. Publications: Factoring Guide, Finance One (November 16, 2003). Organizations: Business Executives Group, Phoenix Credit Club, CFA.  Education: New York University, Finance: Investment Banking (2007–2008).
California State University-Long Beach

Bob Walker was hired as Financial Solutions Manager-Enterprise at Cisco Systems Capital, Greater New York City Area.  Previously, he was Vice President, US Bank Technology Finance Group (May 2012–July 2014); US Sales Manager, 3 Step IT (January 2011–June 2012); Specialty Finance Officer, JP Morgan Chase (March 2008–July 2010); National Account Manager, CIT Vendor Finance (December 2005–March 2008); Regional Leasing Account Manager, Cisco Systems Capital (November 2000–December 2005). Education:  Rowan University, Bachelor of Arts (B.A.), Communication and Media Studies, Lycoming College

 

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Bad Guys: Companies who utilize Evergreen Clauses
for Extra Lease Payments

ACC Capital, Midvale, Utah
Balboa Capital, Irvine, California
De Lage Landen, Wayne, Pennsylvania
IFC Credit, Morton Grove, Illinois
Jules and Associates, Los Angeles, California 
LEAF Financial Group, Philadelphia, Pennsylvania
Marlin Business Leasing, Mount Laurel, New Jersey
Marquette Equipment Finance, Midvale, Utah 
Mazuma Capital Corporation, Draper, Utah
Onset Financial, South Jordan, Utah
Pacific Western Equipment Finance, Cottonwood Heights, Utah 
Republic Bank, Bountiful, Utah
Tetra Financial Group, Salt Lake City, Utah

 These companies use language in their lease documents regarding purchase options to confuse, perhaps to deceive, resulting in an automatic continuation for an additional twelve months of payments. Often they win transactions with lower monthly payments as the lessee does not carefully read and prepare for the end-of-lease notification requirement (many are on ACH payments).

Several have continuation of payments and the requirement of replacing the equipment for a new lease. Leasing News has had complaints involving companies who invoke the twelve months on a $1.00 purchase option, as well as on an Equipment Finance Agreements.

Several have appeared in Leasing News "Complaints" Bulletin Board:
http://www.leasingnews.org/bulletin_board.htm

Additionally, Tom McCurnin has written often about Evergreen Clause court cases involving these companies.
http://www.leasingnews.org/Conscious-Top%20Stories/leasing_cases.html 

 

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

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What $11.62 Trillion Worth of Household Debt Looks Like
by Myles Udland, businessinsider.com

Household debt fell to $11.62 trillion in the second quarter.

The Federal Reserve Bank of New York just released its latest Household Debt and Credit report, which showed total house hold debt fell 0.2% from the first quarter to $11.62 trillion from $11.65 trillion.

"A slight decline in real estate-related balances, consistent with broader housing market developments, contributed to a flat quarter for total outstanding household debt," said Donghoon Lee, senior economist at the New York Fed. "Meanwhile, we observe continued strength in the auto loan market with the largest volume of originations since 2006."

Some of the report's highlights include:

• Mortgage debt fell $69 billion to $8.10 trillion. Mortgage delinquency rates are also falling, with 3.4% of mortgages more than 90 days delinquent, down from 3.7% in the previous quarter.

• Student loan debt balances increased by $7 billion to $1.12 trillion. 10.9% of outstanding student loan debt is more than 90 days delinquent or in default, down from 11% in the first quarter.

• Auto loan debt increased by $30 billion to $101 billion, the highest volume of originations since the third quarter of 2006. Delinquent auto debt was unchanged from the prior quarter at 3.3%

• Home equity line of credit, or HELOC, balances dropped by $5 billion to $521 billion.

• Total delinquent debt totaled $724 billion, or 6.2% of outstanding household held, down from 6.6% in the first quarter.

 

The Answer is “Yes,” Put the Lease on the Balance Sheet
by Martin B. Robins, Esq.

As a former equipment leasing company general counsel and now a current private practitioner with a significant leasing component to his practice (representing both lessors and lessees), I think it is foolhardy to not assume that the lease should always go on the balance sheet.  But since I am not a CPA, I always advise “Ask your accountant” or “Tell the lessee to ask their accountant.” However, in recent years, with all the changes supposedly coming, I also add, “You are foolhardy if you don’t assume that the answer is yes.”

In the IASB Staff Decisions to date on Leasing, it states “The primary goal of the joint lease accounting overhaul has long been to push companies to bring about $2 trillion in off-balance sheet leases onto the books.” (1)  This has occurred in far too many situations, most notably Enron. It is this obfuscation that has caused both bodies to address the issue. As the author and Bradford Block, Esq., an attorney/CPA and also a former leasing company general counsel have noted in a 2005 Matthew Bender Equipment Leasing Monograph, “ Since many of these scandals, such as Enron, involved the hiding of debt from investors, lessees must ensure that their use of leasing does not serve to obscure their true financial condition.”

As a result, it is clear that accounting standards in the near future will require most, if not all, leases of real and personal property to appear on both sides of the balance sheet. The current impasse involves the mechanics of this change, but not whether it is necessary. The FASB would utilize a more nuanced approach which might allow some smaller leases to remain off balance sheet (although even this exception is far from a certainty), but is certainly not countenancing the use of leasing to hide material liabilities. The European regulators prefer a simpler approach where all leases are booked. It appears that both approaches will apply to leases existing when they are effective, and, of course, to those entered into thereafter.

Either way, going forward, it makes little sense to conduct the sort of operating lease analysis with which we are familiar in order to shoehorn leases into the off balance sheet box, as these efforts are likely to become obsolete in the relatively near future. Even if they allow initial avoidance of a booking obligation, this is likely to change within the next several years. While there is no way to say for sure, it also seems reasonable to believe that the lending community will frown upon borrowers who search for loopholes in accounting rules to avoid booking obligations.

An interesting corollary to this conclusion is whether such efforts serve any purpose with respect to internal, budget-driven discussions – i.e. where a given department has a capital budget of X, which operating leasing allows it to augment. One would think that changes in GAAP would obviate the purpose of such discussions, but different organizations may respond (or not respond) in different ways to coming changes.

It is strongly recommended that accounting considerations be disregarded when determining whether or not (and how) to lease a given asset. If a lease makes sense to a lessee because it allows it to transfer to the lessor the risk of the residual value of that asset at the end of the lease term, this is still true even if the asset and liability are on the balance sheet. Similarly, if the lessor is providing services which the lessee values, or provides financing which is not readily obtainable elsewhere, these are good reasons to lease, irrespective of accounting considerations. The lease may also legitimately allow the lessee to obtain (through the rental rate) the tax benefits of depreciation, which it could not otherwise use because of insufficient taxable income (although formalities associated with ‘true lease’ status under the Internal Revenue Code may come into play for this purpose regardless of book accounting treatment) .

What is critical is that no one uses the accounting impasse to convince themselves or their organization that business as usual prevails and that operating lease treatment is some sort of panacea.             

1. IASB Staff Decisions to date on Leasing  (16 pages)
   http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/Documents/Project-Update-Leases-August-2014.pdf

Martin B. Robins, Esq.
FisherBroyles
203 N. LaSalle Street, Suite 2100
Chicago, Illinois
Direct: 847-277-2580
Mrobins@fisherbroyles.com
www.fisherbroyles

 

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

San Diego Attorney Pleads Guilty to Tax Charge

United States Attorney Laura E. Duffy announced the guilty plea of Mohammad Fouzi Haffar, the attorney who owned Haffar & Associates, a law firm in San Diego. Haffar pleaded guilty to willfully failing to report over $103,000 in taxes owed on his income.

According to Haffar’s plea agreement, Haffar, underreported his income from Haffar & Associates, Inc. and Allied Financial Network, Inc. and misclassified his business expenses from Haffar & Associates. As a result, he understated his taxable income in the financial statements he provided to his return preparer. Haffar admitted that for tax years 2009 and 2010, Haffar owed a total of at least $103,095.73 in taxes that he failed to report or pay.
 
According to court documents, Haffar created the law firm of Haffar & Associates in June 2008. After practicing bankruptcy, personal injury, and contract law, in approximately November 2008, Haffar began offering home mortgage loan modification services through his firm. At the time, Haffar had no existing knowledge or experience in loan modifications. He contracted with another individual to provide loan modification services to the clients of Haffar & Associates, who represented that he had successfully completed loan modifications working with another attorney, and offered Haffar the opportunity to expand into this new practice area.

In approximately November 2008, Haffar entered into a contract with two businessmen to market Haffar & Associates’ loan modification services. Their marketing company sold Haffar & Associates’ loan modification services through a call center staffed with telemarketers. The marketing company successfully convinced more than 1,000 clients to retain Haffar & Associates for loan modification services. Clients paid fees of approximately $3,500 each.

Largely unbeknownst to Haffar, the marketing company used false and misleading statements to induce potential clients to pay Haffar & Associates, including falsely representing that: (1) an attorney would be negotiating on clients’ behalf; (2) Haffar & Associates has a 98% success rate and had never lost a home to foreclosure; (3) clients were guaranteed a loan modification” (often specifying a certain monthly payment or interest rate; (4) clients would receive a refund of their fee if Haffar & Associates was unsuccessful at obtaining a loan modification; and (5) they conducted a forensic audit of the original loan documents for each client in order to discover whether the lender . . . violated one of many predatory lending laws.

In fact, Haffar did not provide legal services or work on the loan modification cases for the overwhelming majority of the over 1,000 clients of Haffar & Associates. Haffar earned approximately 6 to10% of the fee paid on each loan modification file, but this fee paid for the use of his name, bar license, and law firm, and not for Haffar’s personal involvement in handling, submitting, negotiating and litigating loan modification cases from intake to completion. Haffar did not maintain any reserve fund to provide the promised refunds to clients, and there were insufficient funds to pay all the refunds requested.

Haffar stipulated to his disbarment on November 17, 2011 for his conduct. He was formally disbarred on June 21, 2012. He is obligated to reimburse the California State Bar’s Client Security fund over $192,000 for amounts that have been paid to former clients of Haffar & Associates.
Haffar will next appear before Judge Houston on November 3, 2014 for sentencing.

DEFENDANT
Mohamad Fouzi Haffar, 35     San Diego, California
CHARGES
Subscribing to a False Tax Return, Title 26, United States Code, Section 7206(1)
Maximum penalties: 3 years in prison, $250,000 fine, 1 year of Supervised Release, and restitution to the IRS.
INVESTIGATING AGENCIES
United States Postal Inspection Service
Internal Revenue Service Criminal Investigation (IRS CI)
Federal Housing Finance Agency – Office of the Inspector General

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

 

John Kenny  Receivables Management • End of Lease Negotiations & Enforcement • Fraud Investigations • Credit Investigations • Asset Searches  • Skip-tracing • Third-party Commercial Collections john@jkrmdirect.com | ph 315-866-1167| www.jkrmdirect.com

(Leasing News provides this ad as a trade for investigations
and background information provided by John Kenny)
 

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Fernando's View
By Fernando F. Croce

Somber espionage ("A Most Wanted Man") and eccentric whimsy ("The Strange Little Cat") make for a contrasting double-bill of new releases, while DVDs offer drama as tense ("Locke"), emotional ("Love Streams"), and surreal ("Santa Sangre").

In Theaters:

A Most Wanted Man (Roadside Attractions): British novelist John le Carré is a specialist in somber espionage intrigue, and this screen adaptation of his 2008 book captures the author's brooding feel of systematic dread. The twisty story hinges on Issa (Grigoriy Dobrygin), a young Russian-Chechen immigrant who turns up in Hamburg to seek refuge and, according to the anxious authorities, take over his father's unsavory fortune. Wanted by both German and American agents, he finds himself alternately portrayed as a battered victim and a potential terrorist. When murky global interests are at stake, who knows for sure where the truth lies? Tautly directed by Anton Corbijn and featuring a sterling cast that includes Rachel McAdams, Willem Dafoe, Robin Wright and the late, great Philip Seymour Hoffman, this is a stylish thriller to rank alongside the recent "Tinker Tailor Soldier Spy" adaptation.

The Strange Little Cat (Kimstim Films): Young German director Ramon Zürcher makes a beguiling feature debut with this one-of-a-kind comedy-drama. The plot sounds simple: A slice-of-life view of a family in a teeming Berlin apartment, with each person going about their business while their pet cat saunters around the household. Children play with their remote-control toys, older siblings plan for dinner, grandparents fall asleep in their rooms, and the mother watches them all with more than a hint of unease. What makes the film unique, however, is Zürcher's inventive way of arranging objects and movements, so that the screen feels constantly alive with meticulously orchestrated, beautifully peculiar activity and unexpected, funny bits of business. By the end, this seemingly lightweight movie accumulates a stylistic creativity and emotional melancholy that linger in the mind. With subtitles.

Netflix Tip: The sudden death of Robin Williams (1951-2014) has claimed one of modern cinema's most beloved comic icons. Celebrate the joy he brought to audiences with some of his greatest roles, from "Moscow on the Hudson" (1984), "Good Morning, Vietnam" (1987) and "Dead Poets Society" (1989) to "The Fisher King" (1991), "Aladdin" (1992), and his Oscar-winning turn in "Good Will Hunting" (1997).

On DVD:

Locke (Lions Gate): Perhaps best known to American audiences as the bulky villain Bane in "The Dark Knight Rises," British actor Tom Hardy has given subtle and powerful performances for years. He may finally have his breakout role as the titular character in this intense, minimalist drama. Hardy stars as Ivan Locke, a dedicated worker and family man whose life is turned upside down by a sudden telephone call one night. While driving home, he's contacted by a former flame who's about to give birth to their child. Determined to reach the hospital and see her, Locke stares down the dark road while going through a variety of emotions, aware that whatever decision he makes will forever affect his life and family. Basically a one-man show tailor-made for Hardy's talents, director Steven Knight's account of an unforgettable ride is a prime example of taut, involving storytelling.

Love Streams (Criterion): Widely heralded as the father of American independent cinema, John Cassavetes was a towering figure whose rough-hewn and highly emotional style has been endlessly influential throughout the decades. This 1984 drama, finally available on DVD after years of semi-obscurity, ranks among his best achievements. Cassavetes stars as Robert Harmon, a middle-aged bachelor whose life is a whirlwind of booze, smoking and short-term girlfriends. Into his home suddenly strolls his sister Sarah (a magnificent performance by Cassavetes' real-life wife, Gena Rowlands), who's divorcing her husband and in need of shelter. As the days pass, the two high-strung siblings meet on a path of struggle, irritation, and, ultimately, transcendence. A masterpiece of personal filmmaking, this is a must-see for Cassavetes fans and lovers of profoundly affecting cinema.

Santa Sangre (Severin): Recently seen in the documentary "Jodorowsky's Dune," Chilean director Alejandro Jodorowsky is a visionary who doesn't make films often, but makes every one of them count. Such is the case for this mind-blowing 1989 horror-fantasy, which amply showcases his singular surreal talents. Unfolding in and around a seedy Mexican circus, the bizarre story focuses on the relationship between Fenix (Axel Jodorowsky), a mentally unstable young man, and his mother Concha (Blanca Guerra), who have grown closer follows a series of horrible events. With a series of murders and the sudden appearance of a childhood sweetheart (Sabrina Dennison), can Fenix find a way back to sanity before it's too late? At once macabre and beguiling, this is an astonishing ride brimming with unforgettable images. With subtitles.

Boxer Blend
San Diego, California Adopt-a-Dog

Elvira
Boxer blend
Female-Spayed
24.6 lbs.
Estimated DOB: 4/17/2014

"I'm an energetic puppy that just can't wait for our first game of catch! I love to run, jump, and play! If you have an active lifestyle and enjoy outdoor activities than I'm the perfect dog for you! I can turn any day into an adventure! Stop in and let me show you how much fun I can be!"

“Please make a donation to help care for me until my new family finds me and takes me home.”

Click here to help support the Center in caring for animals like Elvira, even if you can't adopt one of your own!
https://www.animalcenter.org/donate/donate_adoptions.aspx?name=Elvira

Hours of Operation
Adoption Kennel Hours:
Open for adoptions
Monday to Thursday:   Noon-6:00pm
Friday:       Noon-7:00pm
Saturday:   10am to 6:00pm
Sunday and major holidays
11:00am to 6:00pm

Helen Woodward Animal Center
A non-profit organization Tax ID #23-7228287
Location: 6461 El Apajo Road, Rancho Santa Fe, CA 92067

Phone: (858) 756-4117  Option #1

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

 

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Update—Fall Leasing Conferences
Exhibitors Listings 

 

September 4-6
2014 Eastern Regional Meeting
Lord Baltimore Hotel
Baltimore, MD

Exhibitors to Date

Amerisource Funding
Bankers Capital
Blue Bridge Financial LLC
Business Credit Reports
Bryn Mawr Funding
Channel Partners LLC
CLP Foundation
Collateral Specialists, Inc.
Financial Pacific Leasing, LLC
First Federal Leasing
Fora Financial
iCapital
instaCOVER
Leasepath
Maxim Commercial Capital LLC
Merchant Cash and Capital, LLC
North Mill Equipment Financing LLC
OnDeck
Pacific Western Equipment Finance
Pawnee Leasing Corporation
Preferred Business Solutions
RLC Funding
TEAM Funding Solutions
Varilease Finance, Inc.

Registration/Schedule Available

September 10-12
Canadian Finance and Leasing Association
The Fairmont Chateau Whistler
Whistler, British Columbia

Registration now Open, Program Available
http://www.cfla-acfl.ca/events/cfla-annual-conference-2014/

 

September 18-20

Hyatt Regency San Antonio Riverwalk
123 Losoya Street
San Antonio, Texas  78205
United States

Event Schedule
http://www.nefassociation.org/events/Sessions.aspx?id=387999

Event Registration
https://nefassociation.site-ym.com/events/register.aspx?id=387999&itemid=bb564651-1581-4b73-80f0-0894716338dc

Registration List: 2014 Funding Symposium
(148 Registered to Date)
http://nefassociation.site-ym.com/events/RSVPlist.aspx?id=387999 

General Information
http://nefassociation.site-ym.com/events/
event_details.asp?id=387999&group=

Exhibitors to date

Amerisource Funding
Bank of the West
Blue Chip Leasing Corporation
Boston Financial & Equity Corporation
Business Credit Reports
Bryn Mawr Funding
Channel Partners, LLC
CLP Foundation
Collateral Specialists, Inc.
Conestoga Equipment Finance
Dakota Financial, LLC
Delta Management Group, Inc.
ECS Financial Services, Inc
Financial Pacific Leasing, Inc.
 FORA Financial
Funding Circle
Leasepath
LeaseTeam, Inc.
Great American Insurance
LCA Financial, LLC
Maxim Commercial Capital
Monitor Daily
North Mill Equipment Finance
OneWorld Business Finance
Orange Commercial Credit
 NCMIC Finance Corporation
Pawnee Leasing Corporation
 Quiktrak, Inc.
RLC Funding
RTR Services, Inc.
 Winston & Winston, P.C.

 

September 19 - 20, 2014
Tianjin, China
Sudhir Amembal: 
The First Global Leasing Industry Competitiveness Forum
For More Information:
kelly@amembalandassociates.com

Qualified leasing professionals from outside of China will not be charged any registration fees. They are, however, expected to pay for all their travel expenses including accommodations and meals at the venue.

From the Chinese side, the speakers will include prominent leasing company executives and supportive governmental representatives; from the international side, the speakers will be drawn from senior executives from leading leasing companies and others who have played a vital role in leasing's international growth.

Speakers include:

• Sudhir P. Amembal, Chairman & CEO, Amembal & Associates, U.S.A.
• Crit DeMent, Chairman & CEO, LEAF Commercial Capital, Inc., U.S.A.
• Esteban Gaviria, CEO, Leasing Bancolombia, Colombia
• Shawn D. Halladay, Global Leasing Expert, Amembal & Associates and The Alta Group, U.S.A.
• Hugh Lander, Chief Executive Officer, BOQ Finance (BOQF), Australia
• Bob Rinaldi, Chairman-Elect, ELFA, U.S.A.
• Arnaldo Rodriguez, President, CSI International, Spain
• Jukka Salonen, Chairman, Leaseurope, Finland
• Fred Sasser, Chairman, Chicago Freight Car Leasing, U.S.A.
• Judy Tan, Managing Director, Caterpillar (China) Financial Services, China
• Wang Chong，Chairman,CDB(China Development Bank) Leasing，China
• Kong Linshan, Chairman, Minsheng financial leasing co., LTD, China
• Kong Fanxing,   Chairman, International Far Eastern Leasing, China            
• Cong Lin, President, ICBC Leasing, China

Information on Conference, including biographies:
http://www.leasingnews.org/PDF/2014ChinaForum_7302014.pdf

 

 

October 9 -10
Eurostars Grand Marina
Barcelona, Spain

Booking of rooms at the Grand Marina is to be done by filling in a Hotel Reservation Form, which can be downloaded from the Annual Convention website at:
http://www.annual-convention.eu/index.php?page=accommodation

Last year's event was a resounding success with more than 500 participants from across Europe as well from Australia, Canada, China, Morocco, South Korea and the USA.

Registration/Further Information:
http://www.annual-convention.eu/

October 19-21
2014 53rd Annual Convention
Manchester Grand Hyatt
San Diego, CA

Video Preview of ELFA Annual Convention
ELFA President and CEO Woody Sutton
(1:55)

• Friday, September 26, 2014: Last day to receive the special ELFA convention rate for your accommodations at the Manchester Grand Hyatt or the San Diego Marriott Marquis & Marina.
• Tuesday, October 7, 2014: Last day for mail-in and online registrations. After this date registrations can be made on-site. Please note: There are no refunds of registration fees after this date.

Full Information: Speakers, Brochure, Registration:
http://www.elfaonline.org/events/2014/AC/

 

 

Cosmopolitan, Las Vegas, Nevada

 It will bring together critical decision makers concerning credit and collections 
from all facets of financial services.

Agenda
http://www.collectionscreditrisk.com/conferences/fscc/agenda_preview.html

Registration
http://www.collectionscreditrisk.com/conferences/fscc/reginfo.html

November 5-7
34th Annual AGLF Fall Conference
Loews Ventana Canyon
Tucson, Arizona

November 6 - 8
2014 Western Regional Meeting
Hyatt Regency Irvine
Irvine, CA

 

November 11-13

The 2014 Middle East Leasing Summit to be held November 11-13 at the JW Marriott Marquis Hotel Dubai is reported to be strongly supported by leading leasing companies and international leasing association. 

This summit will gather regional government officials, vendor representatives, national organizations and industry leaders to interpret the air finance from the aspect of market situation, regulatory, growth point and second hand aircraft to better understand Middle East air finance market.

The conference promises "Deep insight into Middle East leasing market climate with introduction of Islamic Finance’s application and banks’ involvement. There is no doubt that this summit will provide a premier platform for its delegates to establish strategic cooperative partnerships, expand business. We firmly believe that your outstanding industrial background and broad knowledge would contribute significantly to the quality and scope of this
summit."

For more information, please visit the official website at
http://www.duxes-events.com/LeaseME/

November 12 - 14
Commercial Finance Association
70th Annual Convention
Washington Marriott Wardman Park
Washington, D.C.

 

November 16 -17
NJ Expo Regional
Teaneck, New Jersey
(Sunday evening- All Day Monday)

 

November 18 - 21, 2014
Istanbul, Turkey
The Third Annual Operating Lease Conference

"Three prominent and qualified speakers have been added to the agenda.
They are: Stephan van Beek, Senior Director Sales & Marketing Development - EMEA, Oracle Financing, an expert on software leasing; Arnaldo Rodriguez, President – International Division, CSI Leasing, who is the epitome of having successfully globalized the product; and, Esteban Gaviria, CEO, Leasing Bancolombia, who leads the most successful bank-held operating leasing company in Latin America. I will chair the conference and also teach a two-day seminar preceding the conference."
          Sudhir Amembal

For More Information:
kelly@amembalandassociates.com

CFA Related Conferences
http://www.leasingnews.org/PDF/CFAConferences_2014.pdf

CFA Network Calendar
http://www.leasingnews.org/PDF/CFAEventsCalendar_2014.pdf

ELFA ---2014 Schedule of Conferences, Workshops
and e-Learning Opportunities
http://www.leasingnews.org/PDF/ELFA2014ScheduleInfo_1212014.pdf

 

  

News Briefs----

Cisco Cutting 6,000 Jobs, Projects Flat Revenue In First Quarter
http://www.forbes.com/sites/maggiemcgrath/2014/08/13/cisco-rises-on-top-and-bottom-line-beat/ 

Fed Payments Panel Recommends Replacing ACH
http://www.bankinnovation.net/2014/08/fed-payments-panel-recommends-replacing-ach/

Mortgages drift lower in summer doldrums
http://www.bankrate.com/finance/mortgages/mortgage-analysis.aspx?ic_id=Top_Stories_link_1

Amid weak earnings, Wal-Mart finds a bright spot in its small-scale grocery stores
http://www.washingtonpost.com/news/business/wp/2014/08/14/amid-weak-earnings-wal-mart-finds-a-bright-spot-in-its-small-scale-grocery-stores-u-s-e-commerce-business/

David Gregory Out, Chuck Todd Takes Over 'Meet the Press'
http://www.thedailybeast.com/articles/2014/08/14/david-gregory-out-chuck-todd-takes-over-meet-the-press.html

Starbucks vows to change unpredictable barista work schedules
http://seattletimes.com/html/businesstechnology
/2024309792_starbucksschedulingxml.html

America’s Top 10 Restaurant Groups
http://www.fsrmagazine.com/owner-operators/america-s-top-10-restaurant-groups

Bank of England makes emergency plans in case of Scottish independence
http://www.theguardian.com/business/2014/aug/13/scottish-independence-bank-england-contingency-plans 

US Victims' Lawyer: Arab Bank Financed Terrorists
http://abcnews.go.com/US/wireStory/us-victims-lawyer-arab-bank-financed-terrorists-24985358

 

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--You May Have Missed It

Denver’s Marijuana Gold Rush Is Forcing Out Locals
https://news.vice.com/article/denvers-marijuana-gold-rush-is-forcing-out-locals

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SparkPeople--Live Healthier and Longer

10 Easy Ways to Lighten Up Any Recipe
Boost Nutrition and Cut Calories in the Kitchen
http://www.sparkpeople.com/resource/nutrition_articles.asp?id=1592

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Baseball Poem

The Machine

by Stephen Porter ©

Published: Baseball Almanac (03-20-2001)

T'was the greatest group of men, ever to play,
On a diamond, with a ball, every day

There was Joe, there was Johnny, and then there was Pete,
The whole team was sturdy, as two ton concrete

Down at first there was Tony, always catching them square,
And at second was Joe, who could run like a mare

Dave held up short, never missing a beat,
And fielding at third, no one else, but Pete

The outfield was anchored, by three all their own,
Foster, Griffey, and Geronimo, no better were known

Individually the best, well maybe not quite,
But together they put up one hell of a fight

All who watched, those 8 play the game,
Knew something was up, they were destined for fame

And sure enough, two years back to back,
The Machine won the title, for they had the knack.

Were they truly the best group, ever to play,
On a diamond, with a ball, every day

It isn't for sure, no one can agree,
For many teams have put it on the line, in this land of the free

But one thing I feel, as other Reds fans do,
Those 8 played the best, as a team, as a crew.

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Sports Briefs----

Rob Manfred Elected as New M.L.B. Commissioner
http://www.nytimes.com/2014/08/15/sports/baseball/MLB-Commissioner-Rob-Manfred-Tom-Werner-Tim-Brosnan.html?emc=edit_na_20140814&nlid=31282772

Pettine: Brian Hoyer, not Johnny Manziel, will start vs. Redskins
http://www.cbssports.com/nfl/eye-on-football/24661002/report-brian-hoyer-not-johnny-manziel-will-start-vs-redskins

Fairfax's Banjo Man to be strumming away at new 49ers' stadium
http://www.marinij.com/football/ci_26338581/fairfaxs-banjo-man-be-strumming-away-at-new

Oregon State Beavers quarterback Sean Mannion named to Manning Award watch list
http://www.oregonlive.com/beavers/index.ssf/2014/08/
oregon_state_beavers_quarterba_12.html#incart_river

San Francisco saying goodbye to Candlestick Park
http://www.sacbee.com/2014/08/14/6628984/san-francisco-saying-goodbye-to.html

 

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California Nuts Briefs---

Median SF home price dips back below $1 million
http://blog.sfgate.com/pender/2014/08/14/median-sf-home-price-dips-back-below-1-million/?cmpid=hp-hc-bustech

'Stick Finale: Sir Paul, stuck in traffic
http://www.sfgate.com/music/article/A-fitting-farewell-for-the-Stick-at-Paul-5690320.php

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“Gimme that Wine”

http://www.youtube.com/watch?v=EJnQoi8DSE8

DA files environmental lawsuit against Sebastopol winery owner
http://www.pressdemocrat.com/home/2503268-181/da-files-environmental-lawsuit-against

California Grape Crush Forecast: 3.9 Million Tons, Down 8 Percent from 2013 Record
http://www.winebusiness.com/blog/?go=getBlogEntry&dataId=137134

How Italian wines are named
http://www.postcrescent.com/story/life/food/2014/08/13/italian-wines-named/13951951/

Grape sales slow in face of prospects for another big crop
http://westernfarmpress.com/grapes/grape-sales-slow-face-prospects-another-big-crop

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