Operation Lease Fleece, Most Received Light Sentences
All Are No Longer in Jail

(It is appropriate to end the year with this story first reported November 9, 2007 as the start of what became over 30 arrests in what the FBI investigation dubbed "Operation Lease Fleece."  In relationship to the leasing Ponzi schemes as well as Equipment Acquisition Resources (Sheldon Player, now deceased) or Allied Health Care Services (owner in jail, vendor out of jail), this bust was small, involving only $20 million in losses to several lending institutions.  It was more the players caught which started at 23 and went up to over 30, with others not indicted and still active in the leasing industry today. Ironically, stealing from a 7-Eleven store brought more years in jail than those caught here received. The Orange County Weekly
wrote several stories about the light sentences or no sentences. (1)

(If there is anything to be learned here, hire an "excellent" attorney, should you find yourself with a knock on the door on getting caught for something you should not have done. Editor)

February 4, 2013, Mark McQuitty, co-founder of CapitalWerks, Preferred Lease, was sentenced by Judge Cormac J. Carney for 24 months starting 12 noon, March 21, 2013, plus three years’ probation and other stipulations (2). He was given a Greyhound bus ticket and took a ride with other "low risk" prisoners to Reeves II Federal Penitentiary, Pecos, Texas.

Part of the stipulations including not associating with other felons, as well as:

"The defendant shall not engage as whole or partial owner, employee, or otherwise, in any business involving equipment lease financing programs of any kind, loan programs, telemarketing activities, investment programs, or any other business involving the solicitation of fund or cold calls to customers without the express written approval of the Probation Officer prior to engagement in such employment or business. Further, the defendant shall provide the Probation Officer with access to any and all business records, client lists, and other records pertaining to the operation of any business owned in whole"

He was released on December 11, 2014.

His partner at CapitalWerks/Preferred Leasing James "Jim" Raeder was sentenced December 17, 2012:

No fine and no restitution
 1 day jail (equals time served)
 12 months halfway house
 300 hours community service
 Three years' probation
 Stipulations

Leasing News reported that Adam S. Zuckerman, Laguna Beach, California, head of BrickBanc, Costa Mesa, California, appeared to be the ringleader. He received the toughest sentence.  He told Leasing News he had a “great attorney” who got him a reduced sentence.  March 21, 2012:

37 months in federal prison
 Three years' Probation
 Stipulations

He was released on February 21, 2014.

As a side story, in the series about "Adam Zuckerman: the man behind Lease Fleece?", he speaks of " "I started Heatrock after converting the building that formerly housed my previous endeavor, IntenseCity Sports Performance Centers, into an incubator/accelerator for small business,” he explains how this all happened. ”The entire facility was transformed from a 30,000 sq. ft. state of the art sports training complex into a high-tech home for 20 small companies, where we would provide guided growth and support services to take them to the next level.”

“This is where I first learned about the leasing business second hand from Jim Reader (CapitalWerks/Preferred Lease/Republic Leasing of Southern California), where he negotiated space in our building for some a few of his ‘companies.’ Little did I know five years before I ever contemplate entering ‘the business,’ that Jim was in fact housing some of the dirtiest players in the industry right under my roof.”
http://www.leasingnews.org/archives/February%202008/02-14-08.htm#fleece

“It was during this time that I met Jim Raeder and Mark McQuitty (mentioned in my opening post). Jim introduced himself as Mark business partner in CapitalWerks/Preferred Lease. He seemed very personable, honest and had an air about him that made you want to chit chat about things. Chit chat fast turned to friendship and friendship remained the only bridge between Jim and me for many years. McQuitty of course was a different animal, who made no bones about getting to the heart of the matter. He quickly agreed (through an attorney friend, Barry Falk) to invest $50k in Heatrock. He loved the idea, and of course had some ideas of his own.

“Mark wanted to place a few of his ‘companies’ inside of Heatrock as tenants. In fact, within a week, came back with Jim and their new partner, Tim Lueison, to better determine how much of the building they actually could use. After a few rounds of negotiation, Heatrock won a few new tenants. Sales Stream Inc. , ISystems, and a renegade named Beau would soon take residence at The Rock.”
http://leasingnews.org/archives/Oct2010/10_12.htm#unpublished

As to Zuckerman's story about the success of his company "IntenseCity Sports Performance Center," a long time reader of Leasing News wrote: "I provided a master lease line of credit for a company called IntenseCity.  It was a large fitness facility in the Irvine Spectrum.  The owner was Howard Rapport and Adam Zuckerman.  About six months after the last schedule closed my boss called me into her office and told me that she received a call from Colonial Pacific that the company stopped making payment and if I would go to the facility and find out what was going on.  I pulled up and Adam was loading all of the equipment into a truck.  I walked up and asked him what was going on.  He said “I just sold all of the equipment.”  I said, “Adam, this is not your equipment to sell.” He said, “Too late I just sold it all.”

1. OC Weekly Criticizes Judge Carney ocweekly.com/navelgazing/2013/04/michael_scott_grayson_verizon.php
2. McQuitty Other Stipulations:
   http://www.leasingnews.org/PDF/mcquity_other_stipulations.pdf
   
   

Other “Operation Lease Fleece” Sentences
http://leasingnews.org/archives/Dec2012/12_19.htm#sentences

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

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Classified Ads---Credit

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

Free Posting for those seeking employment in Leasing:
http://www.leasingnews.org/Classified/Jwanted/Jwanted-post.htm

All “free” categories “job wanted” ads:
http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm

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Investment Firm Backing Marlin Sells 1.7 Million Stock 
to Another Marlin Investment Group

Tuesday, December 30, 2014
MRLN -NASDAQ
Close: $20.69
52wk High: 29.58
52wk Low: 17.10
Volume: 14,905

1.7 million shares of Marlin Business Services stock on Monday, December 22. The filing noted that the block of 1,705,317 of common stock were sold at a purchase price of $20.00 per share.

Marlin Business Services dba Marlin Equipment Finance reported to the SEC that Peachtree Equity Investment Management, Atlanta, Georgia, sold 1,705, 317 shares at $20.00 each, reporting hold 604,617 shares Peachtree Matthew Sullivan is on the board of directors.

A SEC filing on December 23, 2014: “As described in the Schedule 13D/A filed by Red Mountain Capital Partners LLC on December 23, 2014, Red Mountain Partners, L.P. and Red Mountain Investors I LLC – Series A agreed to purchase a block of 1,705,317 shares of the Registrant’s Common Stock from WCI (Private Equity), LLC, an affiliate of Peachtree Equity Investment Management, Inc., at a purchase price of $20.00 per share. The transaction is expected to close on or about December 29, 2014.”

Red Mountain Capital Partners, Los Angeles, California reports owing 2,976,925 shares; is not reported having a seat on the board of directors.

SEC Filing on Sale:
http://www.snl.com/Cache/26766467.pdf?IID=
4089372&FID=26766467&O=3&OSID=9

Peachtree SEC Form
http://www.snl.com/irweblinkx/ShowFile.aspx
?KeyFile=26717960&Format=XML&Output=XML

Red Mountain SEC form
http://www.snl.com/irweblinkx/ShowFile.aspx
?KeyFile=26703417&Format=XML&Output=XML 

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Former Marlin EVP & COO is Available

George D. Pelose
Corporate Attorney, Board Member,
Business Advisor, Mentor

As reported in November 7, 2013 Leasing News:

MT. LAUREL, N.J., -- Marlin Business Services Corp. (Nasdaq: MRLN) announced the retirement of George D. Pelose from his position as Executive Vice President and Chief Operating Officer of the Company. Mr. Pelose, who began his Marlin career in 1999 as the Company's General Counsel, commented, "It was a very difficult decision to leave Marlin, but I believe it is the right time for me to step away so I can pursue my outside interests. Since joining Marlin in 1999, I have had the opportunity to work with many talented people to help drive Marlin to what it is today, a leader in the small ticket commercial finance arena. It has been a great privilege to have been part of the Marlin team and the Company's track record of success. I plan on working closely with Dan and his team during the first quarter of 2014 to ensure a smooth transition."

"On behalf of the entire organization, I'd like to take this opportunity to personally thank George for his significant contributions and his 15 years of dedicated service. He has led the Company through change and was instrumental in shaping Marlin and successfully growing the Company. We wish him much success as he pursues other interests," said Daniel P. Dyer, Marlin's Chief Executive Officer.
http://leasingnews.org/archives/Nov2013/11_07.htm#retirement

----

The year has passed, so now George Pelose can state he is available.

From his LinkedIn.com site:

"My name is George Pelose and I am a recently retired corporate executive seeking to use my business experience, legal expertise and life skills to help companies achieve their goals and objectives.

"During my 15 years as Executive Vice President and Chief Operating Officer of Marlin Business Services Corp. (Nasdaq: MRLN), I played an instrumental role in driving this start-up, specialty finance company into a publicly-traded, federally-regulated bank holding company that has consistently posted double digit growth and has delivered very attractive returns to its public shareholders.

"My legal degree from the University of Pennsylvania has also enabled me to practice business law and develop strong corporate governance and compliance expertise in my prior roles as General Counsel of Marlin and as a Business & Finance attorney with Morgan, Lewis & Bockius LLP.

"The business success I helped create at Marlin, coupled with my legal knowledge and expertise, puts me in an ideal position to assist business leaders, entrepreneurs and non-profit organizations seeking to build or strengthen their companies.

"Whether it involves serving as a Board Member or providing business or legal advice on an outsourced basis, I possess the technical skills, practical experience and personal desire to help organizations and their leaders successfully navigate the challenges they face and deliver on their business plans.

"If you are a business owner or entrepreneur looking for a Board Member or Advisor to help you take your company to the next level, feel free to connect with me to see whether I can help you achieve your goals."

www.linkedin.com/pub/george-pelose/6/544/79b

(No charge for the advertising, George. Happy New Year. Editor)

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New Hires---Promotions in the Leasing Industry

Chris Bucher was hired as Director, Equipment Finance at Whitney Bank New Orleans, Louisiana. "Head of Equipment Finance charged with building and leading a commercial equipment finance company for Hancock Bank/Whitney Bank. Our mission is to build an equipment loan and lease product suite to complement our Corporate, Middle Market and Commercial Banking partners." Previously, he was National Sales Manager, Senior Vice President, Regions Equipment Finance (March 2008–December 2014)); Senior Vice President, Manager Equipment Finance Product, Capital One Bank (September, 1983 – March, 2008); Manager of the Banking Segment's Equipment Finance product (Capital One acquired Hibernia National Bank 11/2005) Head, Equipment Finance Product, Senior Vice President, Hibernia National Bank, during this period of March, 2000 – November, 2005. VP, FNJ (1983 – 1994). Education: Louisiana State University and Agricultural and Mechanical College, M.S., Finance (1982 – 1983). Louisiana State University and Agricultural and Mechanical College B.S., Finance (1980).
www.linkedin.com/pub/chris-bucher/12/931/68b

Niki Ogunyomi was promoted to Assistant Vice President-Credit at Ascentium Capital, Kingwood, Texas. She joined the firm December, 2013, as Senior Credit Analyst. Prior, she was Credit Analyst, First American Bank (September 2011–September 2014); Staff Accountant, Black Oak Partners LLC (January 2011–August 2011); Accounting Analyst, Asst. Vice President, First American Bank (March 2007–September 2010); Teller, UMB Bank (June 2006–March 2007). Organizations: Oklahoma Bankers Association, Leadership Development (2010–2010). Exchange Club of Norman; MBA Women International, Houston Chapter. Education: University of Central Oklahoma, Masters, Business Administration (2008–2010); Activities and Societies: Alpha Kappa Alpha Sorority, Inc. University of Missouri-Kansas City, BBA, Finance, Economics (2004–2006). Robert Greene $5000 scholarship recipient (2005-2006). Activities and Societies: Omicron Delta Kappa Honor Society; Alpha Kappa Alpha Sorority, Inc.

Brian Tallerico was hired as Account Executive at River Capital Finance, Westlake, Ohio. Previously he was Mortgage Processor, JPMorgan Chase (October 2012–January 2014); Mortgage Banker, Quicken Loans (June 2011– May 2012). Education: The Ohio State University, Bachelor of Science (BS), Business Family and Consumer Sciences/Human Sciences (2008 – 2011).
www.linkedin.com/pub/brian-tallerico/75/653/a66

Leasing Industry Help Wanted
 

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2006 Prediction on Leasing Industry Holds True

The late Jeff Taylor, CLP, published "The Future of Equipment Leasing," August, 2006.  His predictions to leasing today were uncanny.

The following is an excerpt from his book:

On September 8, 2005 the Equipment Leasing Association met with the Securities & Exchange Commission (SEC) to educate them on the positive aspects of equipment leasing throughout the world.

They stated that the global equipment leasing market is approximately $600 - $700 billion annually with the U.S. accounting for one-third of the global market (est. $220 billion in 2004).

They pointed out that Corporate America leases for the following reasons:

• Access to capital
• Lower cost of capital
• 100% financing
• Convenience
• Asset risk management
• Tax planning and minimization
• Off-balance sheet financing
• Regulatory capital and asset constraints
•  

They also said that 77% of their member's volume was in the form of direct finance leases and conditional sales, which most experts acknowledge as alternative forms of loans. Only 9% were classified as true operating leases.

So the questions, logically, that I have to ask are:

If only 9% of the world's major company’s volume is in the form of loan financing and not true operating leases, does that mean that equipment leasing companies:

• Are afraid of offering true leases?
• Cannot afford to offer true leases?
• Will no longer take residual risk?
• No longer exist and no one notices?

My predictions for public leasing companies are as follows:

      Small Ticket - will abandon true leases and all residual risk and support direct finance leases and loans to consumers. Captive companies including IBM, HP, John Deere, J & J will dominate. All transactions will be credit scored and audited for compliance.

      Middle Market - will lean towards direct finance leases and loans, yet create true operating leases in which they feel they can make money in re-leasing used equipment. They will abandon consumers and focus on business markets. They will use brokers to acquire business and jettison full-time sales people.

      Large Ticket - They will continue to leave the U.S. and find a home in Europe and Asia where the tax laws are more equitable and capital is abundant.

(The book is available from these sources, according to Amazon:
http://www.amazon.com/gp/offer-listing/0972704736)

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

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FASB--A Giant Leap for...
Another 2006 Prediction Holding True

Shawn Halladay, who reports on accounting and software for the
banking, finance, and leasing industry, as well as acts as a Legal
Expert and is a lecturer, in 2006 started a Leasing Blog. They
were also reported in Leasing News.  This one from July 19, 2006,
also predicts accurately what is happening today:

Yes, folks, the step has been taken. Both the FASB and IASB agreed yesterday to undertake a joint project designed to overhaul FAS 13, and, implicitly, IAS 17, the international lease accounting standard. The proposed timetable includes FASB staff research on the scope and implications of the project, followed by Board deliberations during 2007. A Preliminary Views document will be issued and comment will be solicited from interested parties in 2008, with a formal Exposure Draft issued for comment in 2009. If the rabble rousers get their way, all leases will end up on the balance sheet, even though this result goes against every lease accounting standard in the world, along with the civil laws of some countries.

Based on the comments, it appears that any revision to FASB 13 may only be a patch that addresses the off balance sheet treatment for lessees, since the Board does not want the complex issues involved in lessor accounting to delay progress on the project. Several members of the FASB Board specifically mentioned that the issue of materiality for small ticket transactions would be taken into account as the Board deliberates, something for which Alta principal and former ELA President Michael Fleming has pushed. The Board has requested that the ELA be represented on the project work group, which the association has agreed to.

Apparently, there was unanimous agreement by the FASB that current rules are deficient. According to FASB member Leslie F. Seidman, "…investors are concerned that existing standards do not require balance sheet recognition of significant assets and liabilities arising from leases.” There is plenty of press about this issue, also. The Analyst's Accounting Observer weblog, for instance, claims that “it's just a good idea to fix a standard that produces standardly awful results.” As the AAO points out, current lease accounting doesn't say much about the future obligations of a company's operating leases, and, although analysts adjust the balance sheet to account for the obligation, it is a haphazard, imperfect exercise. “Investors shouldn't have to jury-rig balance sheets to make them say something when they're dealing with fairly standard transactions.”

Bold talk, but, although everyone knows it needs fixing, no one has come up with realistic solutions. Furthermore, won't the same reporting problem exist if operating leases go on balance sheet? As Luca Pacioli tells us, if there is a liability there must be an asset. Now what do I do as an investor? The balance sheet shows a bunch of assets, some of which are real and some of which are leasehold interests. The real assets can be converted to cash, but not the leasehold interests. So, now I have to restate the balance sheet from information I will probably get from the footnotes to properly determine the quality of the company's assets. Sound familiar? Oh, how I love lease accounting!

Shawn Halladay
352 Denver Street, Suite 224
Salt Lake City, UT 84111
801/322-4499
shawn@amembalandhalladay.com
www.amembalandhalladay.com

Leasing News Biography:
http://www.leasingnews.org/Advisory%20Board/Halladay_Shawn.htm

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Staying Ahead of the Pack

Allan Levine, President, Madi$on Capital, Maryland, says his company has survived for 43 years by staying ahead of the pack.
       alevine@madisoncapital.com

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

Pleads Guilty to $53 Million Tax and Bank Fraud

WASHINGTON, DC - Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Preet Bharara, the United States Attorney for the Southern District of New York; and David A. Hubbert, Deputy Assistant Attorney General for the Tax Division of the U.S. Department of Justice announced that Wilbur Anthony Huff, a Kentucky businessman, pleaded guilty in Manhattan federal court to various tax crimes that caused more than $50 million in losses to the Internal Revenue Service (IRS), in addition to a massive fraud that involved the bribery of bank officials, the fraudulent purchase of an insurance company, and the defrauding of insurance regulators. Huff entered the guilty plea before U.S. District Judge Naomi Reice Buchwald.

According to the information, plea agreement, and statements made during court proceedings:

Background

Huff was a businessman who controlled numerous entities located throughout the United States (Huff-Controlled Entities). Huff controlled the companies and their finances, using them to orchestrate a $53 million fraud on the IRS as well as other illegal schemes. However, rather than exercise control of these companies openly, Huff concealed his control by installing other individuals to oversee the companies’ day-to-day functions and to serve as the companies’ titular owners, directors, or officers. Huff also maintained a corrupt relationship with Park Avenue Bank and its executives, Charles J. Antonucci, Sr., the president and chief executive officer, and Matthew L. Morris, the senior vice president.
 

Tax Crimes

From 2008 to 2010, Huff controlled O2HR, a professional employer organization (PEO) located in Tampa, Fla. Like other PEOs, O2HR was paid to manage the payroll, tax, and workers’ compensation insurance obligations of its client companies. However, instead of paying $53 million in taxes that O2HR’s clients owed the IRS, and instead of paying $5 million to Providence Property and Casualty Insurance Company (Providence P&C) – an Oklahoma-based insurance company – for workers’ compensation coverage expenses for O2HR clients, Huff stole the money that his client companies had paid O2HR for those purposes. Among other things, Huff diverted millions of dollars from O2HR to fund his investments in unrelated business ventures and to pay his family members’ personal expenses. The expenses included mortgages on Huff’s homes, rent payments for his children’s apartments, staff and equipment for Huff’s farm, designer clothing, jewelry, and luxury cars.

Conspiracy to Commit Bank Bribery, Defraud Bank Regulators, and Fraudulently Purchase an Oklahoma Insurance Company

From 2007 up to and including 2010, Huff engaged in a massive multi-faceted conspiracy, in which he schemed to (i) bribe executives of Park Avenue Bank, (ii) defraud bank regulators and the board and shareholders of a publicly-traded company, and (iii) fraudulently purchase an Oklahoma insurance company. As described in more detail below, Huff paid bribes totaling hundreds of thousands of dollars in cash and other items to Morris and Antonucci, in exchange for their favorable treatment at Park Avenue Bank.
As part of the corrupt relationship between Huff and the bank executives, Huff, Morris, Antonucci, and others conspired to defraud various entities and regulators during the relevant time period. Specifically, Huff conspired with Morris and Antonucci to falsely bolster Park Avenue Bank’s capital by orchestrating a series of fraudulent transactions to make it appear that Park Avenue Bank had received an outside infusion of $6.5 million, and engaged in a series of further fraudulent actions to conceal from bank regulators the true source of the funds.

Huff further conspired with Morris, Antonucci, and others to defraud Oklahoma insurance regulators and others by making material misrepresentations and omissions regarding the source of $37.5 million used to purchase Providence Property and Casualty Insurance Company, an Oklahoma insurance company that provided workers’ compensation insurance for O2HR’s clients, and to whom O2HR owed a significant debt.

Bribery of Park Avenue Bank Executives

From 2007 to 2009, Huff paid Morris and Antonucci at least $400,000 in exchange for which they: (1) provided Huff with fraudulent letters of credit obligating Park Avenue Bank to pay an investor in one of Huff’s businesses $1.75 million if Huff failed to pay the investor back himself, (2) allowed the Huff-Controlled Entities to accrue $9 million in overdrafts, (3) facilitated intra-bank transfers in furtherance of Huff’s frauds, and (4) fraudulently caused Park Avenue Bank to issue at least $4.5 million in loans to the Huff-Controlled Entities.

Fraud on Bank Regulators and a Publicly-Traded Company

From 2008 to 2009, Huff, Morris, and Antonucci engaged in a scheme to prevent Park Avenue Bank from being designated as “undercapitalized” by regulators – a designation that would prohibit the bank from engaging in certain types of banking transactions and that would subject the bank to a range of potential enforcement actions by regulators. Specifically, they engaged in a series of deceptive, “round-trip” financial transactions to make it appear that Antonucci had infused the bank with $6.5 million in new capital when, in actuality, the $6.5 million was part of the bank’s pre-existing capital. Huff, Morris, and Antonucci funneled the $6.5 million from the bank through accounts controlled by Huff to Antonucci. This was done to make it appear as though Antonucci was helping to stabilize the bank’s capitalization problem, so the bank could continue engaging in certain banking transactions that it would otherwise have been prohibited from doing, and to put the bank in a better posture to receive $11 million from the Troubled Asset Relief Program. To conceal their unlawful financial maneuvering, Huff created, or directed the creation of, documents falsely suggesting that Antonucci had earned the $6.5 million through a bogus transaction involving another company Antonucci owned. Huff, Morris, and Antonucci further concealed their scheme by stealing $2.3 million from General Employment Enterprises, Inc., a publicly-traded temporary staffing company, in order to pay Park Avenue Bank back for monies used in connection with the $6.5 million transaction.

Fraud on Insurance Regulators and the Investment Firm

From July 2008 to November 2009, Huff, Morris, Antonucci, and Allen Reichman, an executive at an investment bank and financial services company headquartered in New York, N.Y. (the Investment Firm), conspired to (i) defraud Oklahoma insurance regulators into allowing Antonucci to purchase the assets of Providence P&C – the Oklahoma insurance company that was owed $5 million by O2HR and (ii) defraud the Investment Firm into providing a $30 million loan to finance the purchase. Specifically, Huff and Antonucci devised a scheme in which Antonucci would purchase Providence P&C’s assets by obtaining a $30 million loan from the Investment Firm, which used Providence P&C’s own assets as collateral for the loan. However, because Oklahoma insurance regulators had to approve any sale of Providence P&C, and because Oklahoma law forbade the use of Providence P&C’s assets as collateral for such a loan, Huff, Morris, Antonucci, and Reichman made, and conspired to make, a number of material misstatements and material omissions to the Investment Firm and Oklahoma insurance regulators concerning the true nature of the financing for Antonucci’s purchase of Providence P&C. Among other things, Reichman directed Antonucci to sign a letter that provided false information regarding the collateral that would be used for the loan, and Huff, Morris, and Antonucci conspired to falsely represent to Oklahoma insurance regulators that Park Avenue Bank – not the Investment Firm – was funding the purchase of Providence P&C.

After deceiving Oklahoma regulators into approving the sale of Providence P&C, Huff took $4 million dollars of the company’s assets, which he used to continue the scheme to defraud O2HR’s clients. Ultimately, in November 2009, the insurance company became insolvent and was placed in receivership after Huff, Morris, and Antonucci had pilfered its remaining assets.

Charles Antonucci, who was charged separately by complaint on March 15, 2010, pleaded guilty to his role in the crimes described above on October 8, 2010. Matthew L. Morris and Allen Reichman were charged by Indictment with Huff on October 1, 2012. Morris pleaded guilty in connection with the case on October 17, 2013.
Reichman is currently scheduled to go to trial before Judge Buchwald beginning on March 2, 2015. The charges against Reichman are allegations, and he is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Janis Echenberg and Daniel Tehrani and Special Assistant U.S. Attorney Tino Lisella are in charge of the criminal case.

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

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Leasing News: Best of 2014
By Fernando F. Croce

As the year closes, we have compiled a list of the greatest cinematic achievements to hit theaters. So make sure to check these out before awards season rolls in, and have a happy 2015!

Goodbye to Language: Arguably the greatest living film artist, Jean-Luc Godard proves that, at 84, he's still the world's youngest cinematic innovator with this endlessly fascinating drama. The story follows the troubled relationship of a couple, but that's just the launching pad for the legendary French provocateur's dazzling collection of experiments, which mix superimposed text and cultural references with abrupt musical cues and color-saturated images. Making what is easily the densest, boldest use of 3-D technology ever, Godard's picture is not just stunningly imaginative but also deeply affecting, at once inquisitive and romantic.

Stray Dogs: A leisurely stroll through the darkest corners of Taipei, this challenging and beguiling drama stars Lee Kang-sheng as a nameless family man doing his best to watch over his two small children, from holding a sign in rainy streets to finding makeshift homes in alleys and supermarkets. There's a glimmer of hope when he crosses paths with a lonely grocery clerk (Chen Shiang-chyi), but can they overcome their alienation? Filmed in director Tsai Ming-liang's trademark long takes, it may be difficult viewing, though the masterful style, combined with his concern for the characters, make it a ride worth taking.

Closed Curtain: A specialist in thoughtful allegories about cinematic creativity under duress, Iranian director Jafar Panahi serves up a self-reflexive story concering a screenwriter (Kambozia Partovi) who comes to his seaside villa to secretly work on his new drama. His solitude is interrupted by a pair of siblings (Maryam Moqadam and Hadi Saeedi), who break into his home and claim to be on the run from the police. Suspense about the characters slowly builds until a twist gives way to the blurry line between fictional narrative and behind-the-scenes realism in this intriguing, multilayered meditation on storytelling.

Under the Skin: In his first film in a decade, British filmmaker Jonathan Glazer conjures up an unforgettable slice of science-fiction with this challenging mood piece. Set in Scotland, the story follows an alien creature that takes the form of a beautiful young woman (played by Scarlett Johansson) in order to lure men to their doom. An outline of the plot may sound like a silly siren-from-outer-space thriller, but that doesn't do justice to the astonishing blend of dread and excitement in the atmosphere created by Glazer, which brings to mind such classic as "2001: A Space Odyssey" and "The Man Who Fell to Earth."

The Immigrant: A profoundly personal, richly textured drama, this intimate epic from James Gray pierces the audience's heart. Set in the early 1920s, it follows the life of a Polish immigrant (Marion Cotillard, in a breathtaking performance), who comes to Manhattan with her sister and soon becomes involved with an alternately charming and abusive man (Joaquin Phoenix). Taking some time off from the gangland tales that made his name (“Little Odessa,” “The Yards”) to penetratingly lay out the heroine's complex emotions, Gray chronicles an arrestingly acted, deeply moving vision of the American Dream.

Mr. Turner: Mike Leigh travels back in time in this superb study of 19th-century painter J.M.W. Turner. In a magnificent, award-winning performance, Timothy Spall plays Turner as a brilliant but troubled artist whose beautiful works contrast sharply with a life of prickly emotions, particularly in his relationship with his ailing father (Paul Jesson) and his put-upon housekeeper (Dorothy Atkinson). Gorgeously photographed in ways that often suggest lustrous oil canvases, this sprawling biopic towers as another addition to Leigh's gallery of flawed yet profoundly humanistic characters.

The Tale of the Princess Kaguya: This year's greatest animated picture featured not Lego adventurers or marshmallow robots, but rather a young woman's confrontation with her fate in imperial Japan. In this breathtaking release from Ghibli Studios, we follow the mysterious Kaguya's life from childhood to her adult years, as the beautiful maiden is courted by various men, including the Emperor himself. Directed by Japanese veteran animator Isao Takahata, this lyrical, delicately rendered fable that dazzles the eyes while it touches the heart.

Inherent Vice: Adapting notoriously reclusive author Thomas Pynchon's novel, writer-director Paul Thomas Anderson returns to the 1970s in this singular comedy-noir. Set in a seaside corner of Los Angeles, the splendidly convoluted narrative follows a small-time private investigator (Joaquin Phoenix ), whose life is shaken up by the sudden appearance of a former girlfriend (Katherine Waterston). Suddenly thrust into a whirlwind of bizarre characters, he must separate the real from the imaginary. A balancing act of manic humor and deep melancholy, this is a remarkable stroll through a panorama of American eccentricity.

Listen Up Philip: A letter penned in acid, Alex Ross Perry's comedy-drama packs quite a wallop. Philip (Jason Schwartzman) is an arrogant young writer who, as his second book is about to hit shelves, sets out to excoriate former colleagues and girlfriends. As he vies for inspiration, his relationships with his photographer girlfriend (Elisabeth Moss) and a literary idol (Jonathan Pryce) are laid bare under a harsh light. As brutal as it is funny, Ross Perry's scathing movie examines the often cruel world of writers with a keen eye that engages and alienates in fearlessly equal measure.

The Strange Little Cat: German director Ramon Zürcher's one-of-a-kind comedy-drama is this year's most captivating feature debut. The story is a slice-of-life view of a family in a bustling Berlin apartment, with each person going about their business while their pet cat saunters around the household. What makes the film unique, however, is Zürcher's creative way of arranging objects and movements, so that the screen feels alive with meticulously orchestrated activity and unexpected bits of business. By the end, this seemingly lightweight work accumulates stylistic creativity as well as emotional melancholy.

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

Retriever, Labrador/Weimaraner
Chester County, Pennsylvania  Adopt-a-Dog

Mosby
24519067 
Age: 5 years 16 days
Sex: Male
Size: Large
Color:        Black/White
Neutered     
Declawed: No
Housetrained: Unknown
Site: Chester County SPCA
Location: Main Dog Kennel
Intake Date: 12/14/2014

The Chester County SPCA
1212 Phoenixville Pike
West Chester, PA 19380
Phone: 610-692-6113
Fax: 610-436-4630 (Business Office)
Fax: 610-692-7234 (Shelter)

Tuesday - Friday:    Noon - 7:00pm
Saturday - Sunday: 10:00am - 5:00pm
Closed on Mondays

Application:
http://www.marinhumanesociety.org/atf/cf/%7B1CBFF72E-B60C-4D1E-ABA7-4489FE5A93D6%7D/DogSurvey.pdf

Adoption Fee: $175

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

[headlines]
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Thank You--Salvation Kettle Reaches $6,535
Broke All Leasing News Records for Donations

Thank You Donors

(Please click on kettle to learn more)

News Briefs----

PayClip, a Latin American Square, Raises $5.2 Million
http://bankinnovation.net/2014/12/payclip-a-latin-american-square-raises-5-2-million/

Apple Pay Dominates Our Top 25 Posts of the Year
http://bankinnovation.net/2014/12/apple-pay-dominates-our-top-25-posts-of-the-year/

Of the Big 5 Banks, Wells Looks Like the Year’s Winner
http://bankinnovation.net/2014/12/of-the-big-5-banks-wells-looks-like-the-years-winner/

Shake Shack files for IPO, plans massive expansion
http://nypost.com/2014/12/29/shake-shack-hopes-to-raise-up-to-100m-in-ipo/

Arrests plummet 66% with NYPD in virtual work stoppage
http://nypost.com/2014/12/29/arrests-plummet-following-execution-of-two-cops/

SUVs make comeback as gas prices fall
http://www.utsandiego.com/news/2014/dec/30/honda-crv-auto-show-new-car-dealers-suv/

Obamacare Enrollment Reaches at Least 7.1 Million
http://www.bloomberg.com/politics/articles/2014-12-30/obamacare-enrollment-reaches-at-least-71-million-us-says

--You May Have Missed It

Beers Americans No Longer Drink
http://247wallst.com/special-report/2014/12/15/beers-americans-no-longer-drink/2/

[headlines]
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SparkPeople--Live Healthier and Longer

The 100 Best Workout Songs of 2014
http://www.sparkpeople.com/blog/blog.asp?
post=the_100_best_workout_songs_of_2014

[headlines]
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Football Poem

I am the Master of my Fate

Often read before a football game:

William Ernest Henley (1875) .

Out of the night that covers me,
Black as a Pit from pole to pole,
I thank whatever gods may be
For my unconquerable soul.

In the fell clutch of circumstance
I have not winced nor cried aloud,
Under the bludgeoning of chance
My head is bloody, but unbowed.

Beyond this place of wrath and tears
Looms but the horror of the shade,
And yet the menace of the years
Finds, and shall find me, unafraid.

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate:
I am the Captain of my soul.

[headlines]
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Sports Briefs----

Jim Harbaugh: Being UM coach fulfills boyhood dream
http://www.crainsdetroit.com/article/20141230/NEWS/141239984/jim-harbaugh-being-um-coach-fulfills-boyhood-dream

Kawakami: Electric Jim Harbaugh shows why 49ers will regret this
http://www.mercurynews.com/tim-kawakami/ci_27220375/kawakami-electric-harbaugh-shows-why-49ers-will-regret

Lowell Cohn: 49ers' Jed York talks about keeping things classy (w/video)
http://www.pressdemocrat.com/sports/3312150-181/lowell-cohn-49ers-jed-york?page=2

49ers' Jed York faces radio interview barrage
"Says he is 'accountable."  But to whom? And what?  And when?
http://www.contracostatimes.com/49ers/ci_27229279/49ers-jed-york-faces-radio-interview-barrage

Oakland Raiders add nine players to their roster
http://www.mercurynews.com/raiders/ci_27230555/oakland-raiders-add-nine-players-their-roster

Madison Bumgarner Named 2014 Associated Press Male Athlete of the Year
http://bleacherreport.com/articles/2314804-madison-bumgarner-named-2014-associated-press-male-athlete-of-the-year

[headlines]
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California Nuts Briefs---

Caltrans snowplow operator aids lost man on cold Christmas night
http://www.sacbee.com/news/local/crime/article5180040.html

French Laundry robbed of expensive wines
http://www.mercurynews.com/eat-drink-play/ci_27231232/french-laundry-wine-theft

[headlines]
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“Gimme that Wine”

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

Napa Valley vineyards: A year in review
http://napavalleyregister.com/star/business/napa-valley-vineyards-a-year-in-review/article_367f6a5b-d177-5fe5-a450-b4b230401233.html

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/

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