Friday, June 18, 2010
Bulletin Board Complaint
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Bulletin Board Complaint
This complaint came in on June 3rd from Shawn Minnihan, JM Funding Group, Inc., Littleton, Colorado:
"I operate JM Funding Group, as a small-ticket lease company in Littleton, CO. My company was referred by another lease funding source to GCR Capital out of Florida back in December '09 on a hospitality deal we had in-house. The name of the deal was Wise Motels, Inc. At the time, GCR contacted us saying that the other funding source contacted them to help place a deal for us. The representatives who contacted me from GCR Capital, John Grant (EVP) and Lenny Freeman (V.P.), claimed that they were a funding source for hotel deals. Since it was a referral from Axis Capital and GCR claimed they could fund hotel deals, we decided to move forward with signing a broker agreement (which they requested from us) and sending them the deal.
"GCR Capital received two approvals in January (each for approximately $50k) along with signed contracts and deposit check from our customer to commence the deal. On May 5, or thereabouts, the supplier received final funding on both schedules, which we confirmed with vendor.
"Throughout the process, Lenny Freeman, the funder Valerie Sampson, and I had email correspondence pertaining to the progress and funding of the deal. I also have emails from Lenny Freeman stating that he is 'looking forward to getting us paid'.
"It is now going on 30 days and we have yet to receive a commission check or any update as to when we might receive one. We have sent emails and placed phone calls to John Grant, Lenny Freeman, and even the President Judy DiVincenzo. Judy DiVincenzo said she would get back to me last Wednesday, May 26th and now they have gone completely dark on us. They owe us approximately $2,650.15 in commissions and we feel 30 days is ample time to release us our commissions. We have gone back to the representative at the funding source that referred us the deal and unfortunately they do not want to get involved with GCR. No surprise!
"It's not a huge sum of money but it's the principal of screwing another broker in the same line of work. We thought we might see if you can help before we take this to the next level."
After many telephone calls to Judy DiVincenzo, President, as well as Valerie Sampson, according to her voice mail, her assistant, but from the party in the complaint, the “funder,” received one telephone call and one email, basically saying that Lenny Freeman was no longer with the company and Judy DiVincenzo in the past has taken care of complaints and would get back---but to date has not.
GCR Capital has made the Florida newspapers, and as reported, has been in communication with the Florida Attorney General:
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US Bancorp Manifest---Changes going on
Curt P. Kovash, General Manager/Sr. Vice President U.S. Bank Manifest Funding Services is back to the vendor division. This is basically a demotion (but he has a job.) It all started when Rizzo was aced out and the division was put in control of two, not one, and the writing was on the way from the chairman, not happy with the leasing division---too many write-offs, problems, and other leasing companies taking advantage of the goal of putting on more business. A very good example of what has been going on in the small ticket marketplace. Large ticket has also been hit with fears of FASB changes. Portland middle market has also not preformed. They blame on brokers, but it really is poor management. Many should take early retirement.
For the last few months, Brokers have been reporting to Leasing News that US Bank Manifest has been cutting back on referral sources and tightening credit. Once the leader, now apparently leaderless (Sorry, Charlie, no tuna today. You have many colleagues who have become successful on their own.)
Leasing News has been told during this time that the small ticket operation would be moving to Portland, Oregon. Inquiries regarding these changes were not denied nor confirmed.
Hopefully Tom Landmark will wind up okay.
Re-organizing Lease Accounting Dept.
LEAF Ratings with FITCH and others, including landlord
Fitch, a major global rating agency who provides the world’s credit markets with independent and prospective credit opinions, research, and data, moved LEAF Corporation, Pennsylvania an up-grade, although noting higher than expected losses and delinquencies.
As LEAF search for new credit, as reported by Leasing News, it appears they are brokering leases to others, as noted by several brokers who have told Leasing News they lost deals to LEAF who was sending packages to Financial Pacific, Federal Way, Washington.
Paul Menzel, CLP, who's former company was purchased by LEAF told Leasing News:
"We do business with third party originators all over the country. That may include all types and sizes of operations, including small brokers, independent leasing companies, captives, and banks. LEAF submits applications under the same program and pricing as our other Third Party Originators."
In the meantime, Bob Hunter, LEAF Executive Vice-President paid a visit to the Columbia, South Carolina office, and reportedly there are only four to five people left now at the 21,000 square foot facility.
Ironically, LEAF may try to break their lease, if a buyer of the “platform” does not come through soon, it was reported (Hey, the landlord reportedly made $800,000 in improvements for the plan to expand LEAF in Columbia!!! Boy, is Paul Menzel lucky!!!)
FITCH did up-grade this one portfolio from "negative" to "stable:
"LEAF II Receivables Funding LLC series 2007-1 (LEAF 2007-1):
--Class A-3 upgraded to 'AA' from 'A'; Outlook to Stable from Negative.
"To mature 20-JUL-2012 Original Dollar USD $101,320,000 1 Month LIBOR + .2%
"The review of LEAF 2007-1 is consistent with Fitch's 'Rating U.S. Equipment Lease and Loan Securitizations,' dated June 16, 2008.
"The upgrade to the Class A-3 notes is reflective of increasing credit support provided by subordination and a reserve account. However, losses and delinquencies have been higher than initially expected. As of the June payment date, cumulative net losses totaled 5.30% while total delinquencies are 2.49%. Despite the higher losses and delinquencies incurred to date, credit support was found to be consistent with the upgraded rating for the class A-3 notes.
"Fitch will continue to closely monitor this transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.
"Applicable criteria available on Fitch's web site at 'www.fitchratings.com': 'Rating U.S. Equipment Lease and Loan Securitizations,' dated June 16, 2008, and 'Global Structured Finance Rating Criteria', dated Sept.30, 2009."
Allied Health Care Services No Response to Date
In the two legal complaints filed against Allied Health Care Services, located in both New York and New Jersey, there has been no response filed. In both cases the corporation was served, but only in one was the Charles Schwartz, president, who personally guaranteed the lease, served. His wife was served in one. In the Minnwest Capital May 18th filing it took a while to serve Schwartz personally, as it is reported he is not often in his office, but allegedly mostly spends time with his horses at the stables he and his wife own. In this instance, his attorney Dennis R.McConnell of Stanhope, New Jersey had a postponement of response to the legal complaint extended until June 24th.
Filed earlier in May, Kingsbridge Holding, LLC, Lake Forrest, Illinois was having difficulty serving Charles Schwartz, but served the corporation which was to have a response by June 14th and a personal one from serving the wife, with a response by June 15th, but there is no record of a postponement or any action as well as the notice of an attorney appointed for the plaintiff.
In the meantime, it appears more UCC's indicate loans or leases made to Allied Health Care Service, notably to LACHANCE FINANCIAL SERVICES, INC., 203 SOUTHWEST CUTOFF,NORTHBOROUGH, MA 01532 as well as two small banks: PUBLIC SAVINGS BANK, 2755 PHILMONT AVE. SUITE 140, HUNTINGDON VALLEY, PA 19006 and TEAM CAPITAL BANK, 210 PENNS TRAIL, SUITE 104, NEWTOWN, PA 18940. Leasing News contacted bank officers at both banks first by email with copies of articles, then by telephone the following day. Leasing News was told without their attorney approval, they could not speak with Leasing News. It was learned they were not aware of the law suits or slowness to many leasing companies. Ironically,
Allied does not have a web site and a Google search will not bring up any information on Schwartz company as there are many “Allied Health” companies. Same with Charles Schwartz.
According to FDIC financial records, Team Capital Bank has 101 full time employees, formed November 1, 2005, net equity of $56 million, with $645,000 profit March 31, 2010 and Tier 1 risk-based capital ratio 11.85%. Public Savings Bank has 32 full time employees, net equity of $4.7 million, and $44,000 profit as of March 31, 2010. Tier 1 risk-based capital ratio 11.05%
The banks would not discuss the amount granted.
The May paydex of Dun & Bradstreet for Allied Health Care Services has dropped. It appears leases find two on time, ten 30 day, 8 60 day, and two 90 days, which may be the two lawsuits filed, although Leasing News is informed there are three in "serious deliquencies" who have not filed a complaint to date. D&B also reports 574 UCC's.
Charles Schwartz has not returned calls to Leasing News and several funders of leases report not having spoken to him in 45 days. Leasing News will print any response, including those filed with the courts, as this progresses.
First Two Month UCC Filings:
Last Three Year UCC (429) Filings:
(This ad is a “trade” for the writing of this column. Opinions
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Special School’s Out Edition:
With summer just around the bend, students out on vacation are looking forward to a couple of months of fun in the sun. To celebrate, here’s a handful of savory school-set choices from Netflix. With movies like these, even the brattiest students won’t resist checking out the classrooms.
Superbad (Greg Mottola, 2007): Modern comedy king Judd Apatow (“The 40-Year-Old Virgin”) brings his unique brand of humor to high school with this popular, alternately sweet and raunchy comedy, directed by Greg Mottola. Seth (Jonah Hill) and Evan (Michael Cera) are like a homeroom Laurel and Hardy, inseparable friends even as they trade insults and evade bullies. Their friendship is up to the test, however, as they make their way to an after-school party where both their dream girls will be. Can they survive the night’s unpredictable maelstrom of fake IDs, goofy cops, and wacky nerds (including Christopher Mintz-Plasse as the unforgettable “McLovin”)? Last days of school don’t come much funnier than this.
Housing and Unemployment
The May housing numbers were not good. Total starts were down 10%, with an annual rate of 593,000, while single family starts were down 17.2% at an annual rate of 468,000.
The decline was due primarily to the end of the homebuyer tax credit. Permits, an indicator of future building activity, were down almost 6%( single family permits were off almost 10%). Regionally, there was an even split – starts were up in the midwest (4.9%) and the west ( 10.8%), but weakness in the northeast ( -6.3%), and particularly the south ( -21.3%) pulled total starts down. Future activity in the south will certainly be negatively impacted by issues related to the Gulf oil spill.
One of the best indicators of an improving economy ( which is key to a stronger housing market) is the jobs picture. Although we’re seeing an improving trend, the drivers are not sustainable ( i.e., government spending). The April number was a solid net gain of almost 300,000 jobs, but the May net gain of 400,000 plus was due almost entirely to temporary hiring's by the government ( Census).
Inventory remains a big problem and this is being driven primarily by foreclosures in the resale market. Won’t say much about “shadow inventory” other than it exceeds the listed inventory. This Means continuing downward price pressures. Bottom line is that we Need to slow down foreclosures ( nothing has worked well to date) and/or We need a big surge in demand and that brings us back to the job market.
NAHB’s latest housing outlook calls for 664,000 units in 2010 and 991,000 in 2011. That looks reasonable to me, but the keys are stronger job market ( that’s iffy right now – see note below), and getting a better handle on foreclosures. The government is considering more changes that would force lenders/servicers to work harder to get homeowners into the HAMP and HARP programs (federal programs designed to help homeowners modify and Refinance their residential mortgages).
(2) The non residential real estate market is having problems similar To those experienced by the residential markets. This could impact Job creation as most of the problem banks are smaller regional one.
That are exposed to the non residential sector. These are the banks That loan to small businesses who create most of the jobs in the U.S.
### Press Release ############################
Mortgage Fraud Indictments Southern California
Joint United States Attorney's Office and District Attorney's Office (Ventura County) mortgage fraud indictments and arrests from earlier today in Ventura, California.
Below are summaries of some of the defendants that are located in Southern California:
The court cases that have been brought and resolved as part of the ongoing mortgage fraud crackdown are the result of the collaborative efforts of a number of law enforcement agencies, including the United States Attorney’s Office, the Federal Bureau of Investigation, the Office of Inspector General for the United States Department of Housing and Urban Development, the United States Secret Service, IRS - Criminal Investigation, U.S. Immigration and Customs Enforcement, the United States Postal Inspection Service, and the Ventura County District Attorney’s Office. Below is a quote from our assistant special agent in charge:
Ellon Lindsey, Assistant Special Agent in Charge of IRS - Criminal Investigation’s Los Angeles Field Office, observed: “Mortgage fraud hurts our communities, drives some homebuyers into foreclosure, leaves lenders with bad loans, and burdens neighborhoods with deteriorating and abandoned properties. Today, IRS - Criminal Investigation is pleased to be a part of the numerous investigations that have successfully attacked these crimes on a variety of fronts. Using federal laws that include wire fraud, money laundering and tax offenses, we are able to successfully disrupt these schemes and bring their promoters to justice."
#### Press Release #############################
Login #: 10662893
"Schnauzer (purebred) – female – 4 years old. This darling little girl is just as sweet as she is cute. What a social butterfly! She happily greets people and other dogs. She is so cute when she wags her tail and her whole back end wiggles. This girl is easy to handle on a leash and hops right into the crate when you say “kennel”! This affectionate, gentle girl knows the sit command and trains easily using treats. She also loves to sit in your lap. She needs to go home with someone who will let her live inside with access to all the love she deserves."
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
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Bypassing BP stations won't KO oil giant
The Rich Are Different: They're Optimistic
This dancing baby, who hails from the dance capital of the universe, Brazil, grooves an enviable samba. But many don't believe it's real video, including Today show anchor Ann Curry. I have a one year old grandson who dances to TV commercial music. His oldest brother also was quite a dancer (still is). I believe it.
Lakers top Celtics in Game 7 of NBA Finals to earn second straight title
With a heavy heart, Shaun Micheel soars into a tie for the lead at the 2010 U.S. Open
Alex Smith ends first mini-camp practice of the off-season with two interceptions
Tiki throws Ginny some 'fakes' in divorce court
In Albuquerque, French-Style Wines That Sparkle
Jets now in wine business, unveil limited-release cabernet to commemorate new stadium
Sleeping with the Grapes
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Leasing News Wine & Spirits Page
Today in History
1980-The film, "The Blues Brothers", starring Dan Akroyd and John Bulushi, premieres in New York City. Cameo's in the film include Aretha Franklin, Ray Charles, James Brown and John Lee Hooker.
This Day in American History
1621-The first duel of record took place between two servants of Stephen Hopkins, one of the leaders of the Plymouth Colony. Governor William Bradford’s decision was rendered as follows: “The Second Offense is the first Duel fought in New England, upon a Challenge at Single Combat with Sword and Dagger between Edward Dotey and Edward Leister, Servants of Mr. Hopkins; Both being wounded, the one in the Hand, the other in the Thigh; they are adjug’d by the whole Company to have their Head and Feet tied together, and so to lie for 24 hours, without Meat or Drink; which is begun to be inflicted, but within an Hour, because of their great Pains, at their own and their Master’s humble request, upon Promise of better Carriage, they are Released by the Governor.”
What is it
Not just the precious few
From a World Series
They do not bring to mind
Yet they stand for something For times I traveled
Written by Gene Carney, published in
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
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