Wednesday, June 6, 2012
Bulletin Board Complaint
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Bulletin Board Complaint
"I am having a hard time getting my $10,000.00 deposit back from a company called New Leaf Funding. They cannot get me the lease they promised and are not willing to give me back my deposit."
Bjavesh "Bobby" Patel
The proposal expired December 13, 2011 with the stipulation that $495 Documentation fee will be retained wither or not financing is provided (1)
After several emails, telephone calls, and communication, the president of New Leaf Funding Corporation,
Debby Brandenburg made this statement:
"New Leaf Funding Corporation has offered to provide the originally requested financing for this customer and will apply their deposit toward that financing as originally proposed. We have been forthright with our communications with this customer, even with their exercise of misrepresentation and will continue to do so."
Mr. Patel responded:
"I don’t want to get into ‘she said, he said,’ but I told New Leaf Funding all of the information. There would be no reason for me to lie because all the information was in front of them and they can clearly see everything because they were given tax returns, personal financial statements, etc, etc. Because they cannot to the deal they are saying that I never told them it was a start up company. I did and they told me they will try to do it the best way they can.
"Since they cannot do the deal they told me new can finance $200,000 but in segments. $35,000 today, maybe another $15,000 next week, etc, etc. I asked them if I ordered part of my FF&E now, what’s the guarantee that I will get the rest. They said most likely they will have it asap but they will not put that in writing. Kit, I can’t order part of the FF&E and have it sit there in my parking lot hoping the rest will come. I need to completely renovate my rooms and ordering part of it does not do me any good. We are renovating to a Quality Inn and they required us to change all of the FF&E?"
The mailing address is a mail-drop:
Corporation filings shows incorporated November 3, 2009 in Virginia (2) with Debra Brandenburg as president, but filed January 18, 2011 (3) with the address changed 2/04/2012 to 761 Crestbrook Loop, Longwood, Florida, which appears to be a residence: http://www.zillow.com/homedetails/636-Woodridge-Dr-Fern-Park-FL-32730/47685111_zpid/
BBB Rating is "F"
A description of the company in LinkedIn:
"New Leaf Funding provides equipment leasing solutions as well as other financing options for the hotel industry. New Leaf Funding understands the particular challenges of our esteemed clients in the hospitality industry when paying for upgrades, flag changes, improvements, new properties, etc. We consider ourselves partners with our clients, offering low rates, fast approvals, and a particular dedication to even the transactions that don't look easy to do at first glance, or have been refused by other lenders or banks."
The company appears active in the Linkedin.com groups:
American Hotel and Lodging Association
(1) America's Best Inn Proposal:
(2) Virginia Corporation Filing:
(3) Florida Corporate Filing:
(Leasing News provides this ad as a trade for investigations
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All “free” categories “job wanted” ads:http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm
Sheldon Player: Where is He?
The above photo is the most recent, and the first one Leasing News has published that is bona fide; sent by a reader and confirmed by three other readers who have met with him during the course of their business, as well as it matches the photo's (difficult to see, but you can see the resemblance) in the proof of subpoena (1)
In the last installment, the founder of Equipment Acquisition Resources, Palatine, Illinois, Sheldon Player, had a judgment against him from the bankruptcy trustee in the amount of $18,323,404 plus costs of $275.00 against for his failure to appear and to file responsive pleading to Plaintiff's Complaint, and for any additional relief this Court deems necessary. (2)
The bankruptcy court continues it settlements with creditors, and the IRS matter appears open, and the FBI has no comment regarding Equipment Acquisition Resources or Sheldon Player. This matter is over three years old.
(1) Subpoena with photo's as proof of service:
(2) Plaintiff is granted default judgment
Sheldon Player Articles:
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Which Came First: Fear or Reality of the Economy?
Indicators since April have pointed to an economic slowdown. Much of this comes from fear in the European as well as Asian economy involving imports, exports, and investments both here and overseas. The indicators came from the National Association of Credit Managers, Equipment Leasing and Finance Association as well as the confidence reports from its foundation.
Dan Geller, Ph.D.
“Even without external factors, such as the sovereign-debt crisis in the Euro Zone, the U.S. economy is going to deteriorate between now and the end of the year” said Dan Geller, Ph.D. Chief Research Officer at Money Anxiety Index, “expect to see less job creation, slow down in consumer spending, and above all, gradual increase in consumers’ level of financial anxiety.”
The Money Anxiety Index (moneyanxiety.com), which measures the level of consumers’ financial worry and stress based on economic indicators, rose 0.4 in June to 91.1. June is the second consecutive month of increasing consumer financial anxiety, which started in April of this year. Prior to April of this year, the Money Anxiety Index was trending downwards since its post-recession peak 0f 99.5 in June of 2011.
Ironically banks, savings and loans, even consumers and most of all large corporations, have plenty of cash, but are unwilling to spend it, blaming it all on "uncertainty."
Dr. Geller told Leasing News, “the MAI measures actual economic indicators - not how consumers feel like the other indices."
A neighbor of mine, is the CFO of a major company here in Silicon Valley. He told me they have a tremendous amount of cash (I can’t repeat the number). I said wouldn't it be better to invest it than earn a small amount of interest. He said he didn't want to waste the cash and would rather sit on it to see how the economy was going.
I have another neighbor who is chairman of a very large company, worldwide, and he recently had a person in his company made CEO so he could spend more time at home(s)---he has one in Pebble Beach and elsewhere---anyway, I told him about my conversation with our neighbor (I walk my dog everyday and run into people often doing the same or just walking). He said his company was in the same position, and not as active in introducing more products, thus he didn't need to be CEO, as it was smarter to sit and wait than to spend now. He was coming home earlier, not working longer, and enjoying it, he added.
I asked Dr. Geller that it seemed to me the attitude was running the economy.
"Well Kit, you hit on the central and eternal question about the US economy - what comes first, the chicken or the egg?! " he responded. “There is no simple answer to this question, there are too many variables involved. But the bottom line is this - people react intuitively to their environment (it's in our DNA since we lived in caves), when they feel economic danger (high unemployment, stress at work, higher gas prices etc._, they go into defensive mood."
Disguised Sale/Leasebacks---Another Teachable Moment
A rash of sale/leaseback deals disguised as new equipment has hit our industry again and this highlights that we need to review.
LeasePolice recently re-affirmed Database Developers, Inc.’s “High Risk” vendor designation and our investigation found over $1 million in recent disguised sale leaseback transactions from just this one vendor.
Lease Police has also seen computer vendors pop up in North Carolina, Georgia, Florida, California and Michigan who all have the same business model. These vendors are selling clone computer servers costing roughly $15,000 for amounts ranging between $50,000 to 75,000. They then kick-back 70-80% of the net proceeds to the lessee – but of course Mr. Lessee, “let’s keep this side agreement to ourselves.”
Our investigation of Database Developers, Inc. is an excellent case of how working capital schemes work.
In the almost 3 & half years of Database Developers, Inc.’s existence we can not determine or care to estimate its total leasing activity or the number and transactions with side agreements such as above. However, we are aware of a least 14 recent leases ranging from $50, 000.-75,000.each and 4 already have delinquency problems. The problem is that disguised sale lease/back transactions are stealthy, and collection problems occur in about 40% of the cases between 12 & 18 months after their origination
Incorporated in Florida on January 21, 2009, Database Developers, Inc. was placed on “Alert” after barely 4 months on our May 20, 2009 first alert. Their owner Daryl Honowitz called Lease Police complaining that our High-Risk rating on another company he was associated with was unfair. He was acting as its sales wing and he tried to justify the very high price of their computer servers. His promise to send proof to justify this high pricing never materialized. Just recently and before our May 8, 2012 request to our subscribers for information regarding Database, Honowitz again called and we revisited why his company’s had a High Risk score. We promised to re-investigate his firm and requested that he supply us with more info on his high-priced servers. No information came forward.
The results of the new investigation were even more damaging to Database Developers, Inc. than our first investigation. We uncovered 3 “side agreements” signed by lessees with Daryl Honowitz’s other firm, United Tech Holdings, Inc. and found that recent lessees of Database Developers were agreeing to an “ADVANCE LEASE BACK” which gave a cash back sum of 70% of all invoiced dollar amounts to the GUARANTOR by affiliates or vendors of United Tech Holding”. On May 11, 2012 we confronted Daryl Honowitz with these facts and he acknowledged that these documents exist, but that they are actual unrelated agreements with outside brokers and undisclosed funding sources. We demanded to have names and proof of his statements. Nothing has been heard from him since.
The 14 deals mentioned were done through several brokers with 3 funding sources. Two of them were Lease Police subscribers in the past but they decided that saving roughly $3 per report was worth the risk, so they never made an inquiry. The third firm has never been a subscriber. Why they approved a vendor selling a high price clone server located across the country is something they will have to sort out. As for the lessee, doesn’t a prudent businessman judge a vendor’s ability to handle customer service on such a technical product as a server? Where is help on installation and software compatibility? Does a prudent businessman run the risk of his entire operation shutting down because his vendor is 1000 miles away and the manufacturer is in Taiwan or China?
COULD THIS BE ANOTHER TEACHABLE MOMENT?
We still are a long way from understanding the dynamics of a sale. These disguised sale lease/backs make no economic sense and when questioned many are easily exposed. This vendor had been questioned four months after it was formed by Lease Police, Inc and was subsequently exposed as a vendor that needed to be avoided. That fact that they continued to operate for almost four years shows that there are some funders still feel they are smarter and more experienced than any perpetrator.
The need for working capital has entered the minds of small businessmen/owners as well as those flim-flam operators interested in a fast-buck. If you recall in the previously published article “A Teachable Moment“(1), Lease Police was started on the theory that a finance/leasing transaction is like a three-legged stool. If one or two legs are broken, the stool won’t stand. One leg is the lessee himself, the second the vendor and the third is the equipment. Just like a stool, a finance/leasing agreement needs all three strong legs to stand upright.”
They fail to understand my THREE-LEGGED STOOL theory: use every resource to investigate the vendor, understand the equipment, and understand the need for the equipment by the lessee. Now with these recent revelations we can add one more tenant of avoiding costly and embarrassing losses – simply like making an inquiry to Lease Police.
Sounds like an advertisement? Certainly, some further inspection on the vendor and equipment legs are in order. It’ so simply to make an inquiry.
Bernie Boettigheimer, CLP
((Please Click on Bulletin Board to learn more information))
Bob Teichman, CLP
What is your favorite thing about the equipment finance industry?
Can you tell us a little about your background in the industry?
In my career there are few tasks I haven't performed. I started and ran several leasing companies. Then about 14 years ago I plucked up my courage and went out on my own as a trainer, teacher and consultant. There is nothing quite as scary as a completely empty desktop, but business was quick to come and it turned out to be a very rewarding decision. Now I provide training for brokers, lessors, lessees, banks and international agencies. I help brokers and lessors structure transactions, and I am a registered consultant to the World Bank and a senior advisor to the US Agency for International Development. Recently an associate and I completed the Global Leasing Toolkit on behalf of the International Finance Corporation, an affiliate of the World Bank.
Bob, you served as CLP Foundation President from 2007-2008. Can you tell us about your experience with CLP?
In the following years I worked on many aspects of the CLP program. I was part of the group that created the Mentor program; I wrote additional materials for the Handbook and served on the Test Committee. I served on the Board of Directors for six years and I was an officer for five years.
In 2006 my associate and I created the Certified Leasing Specialist Program in Ukraine. This program trains people new to the leasing business and is administered by a licensee of the CLP Foundation. The CLS training consists of three weeks of classes and three exams. Successful candidates are awarded the CLS designation. To date several hundred people have taken the training. The program has since been extended to other neighboring countries.
The CLP Program has been and continues to be a major part of my business life. I am proud of my service to the Foundation as a Director and Officer, and I continue to promote the Program in various ways; volunteering, mentoring, serving on committees and introducing the Program to the international community.
What was the last book you read?
If you won 50 million dollars in the lottery, what would you do with the money?
CLP Spring, 2012 Newsletter:
Now Facebook faces a civil lawsuit and federal regulator scrutiny, and its shares continue to drop. So what went wrong? Industry watchers pointed to a slew of factors, from Mark Zuckerman donning his signature hoodie at the company IPO road show to underwriters allegedly warning top investors that Facebook’s financial forecasts had been overestimated. “By the time Facebook’s stock started trading on the public market, insiders—the company’s founders, employees and venture-capitalist backers—had bagged most, if not all, of the company’s value for themselves,” the New Yorker’s John Cassidy explained.
But not everyone agreed that it was a flop. “Overlooked is that Facebook decided to make its entrance into a U.S. IPO market in the dumps,” wrote the Wall Street Journal’s David Weidner. “When it comes to the U.S. market for initial public offerings … Facebook was just a high-profile flop in a series of lesser-known flops.” Still others said that the IPO could even be called a success. The IPO wasn’t mispriced—it maximized benefit to the company, argued Slate’s Eliot Spitzer. “That is, of course, the purpose of the IPO. That is what Facebook did,” he wrote. Forbes contributor Tim Worstall agreed. “Morgan Stanley’s done just what they were being paid to do: so why is everyone shouting at them?” he asked. “The entirety of capitalism is, after all, based on the idea of caveat emptor, is it not?” (Let the buyer beware!) But the company’s primary task at hand will be how it can build and maintain a profitable business. “Although Wall Street may see it differently, Facebook’s main task is not about making a quick buck,” wrote San Jose Mercury News’ Larry Magid. “It’s about slowly and methodically building a sustainable business that’s financially profitable and socially useful, long into the future.”
Welburn Receives Inaugural Award LeMay-America's Museum
In conjunction with its grand opening, LeMay – America’s Car Museum (ACM), Tacoma, Washington, presented its “Nicola Bulgari Award” to Ed Welburn, vice president of global design for General Motors. Welburn was honored t a gala celebrating the opening of the four-level, 165,000 square foot museum. The award named for jewelry magnate Nicola Bulgari, Vice Chairman of the Bulgari Group and an avid collector of American cars.
The Bulgari award is to be annually presented to individuals who make outstanding contributions to preserving America’s automotive heritage through education, restoration or collecting classic cars.
“I firmly believe that in order for our designers to create great new vehicles, they need to understand the rich history of our brands,” said Welburn. “Our own collection – the GM Heritage Center – maintains a rich history of GM concept and production vehicles. Furthermore, we have a special staff and facility at GM Design dedicated to the restoration and maintenance of our historic concept cars. These include vehicles like the Y-Job, Stingray Racer, Mako Shark, and Firebirds I, II and III, to name just a few.
“The GM Heritage Center opened in 2005 to retain the company’s historical and concept cars, instead of allowing such vehicles to be sold or scrapped. During the financial crisis of 2008 and 2009, the GM Heritage Center was maintained by the company, and it continues to operate today with more than 400 vehicles in its collection.”
In addition, Welburn continues to maintain strong ties to the enthusiast community, overseeing stellar displays of heritage vehicles, concept cars and modern cars at the Amelia Island and Pebble Beach Concours d’Elegance. He also served on the board of America’s Car Museum for six years.
Like many car enthusiasts, Welburn’s passion started in childhood. Growing up in Philadelphia, he loved the Cadillac Cyclone concept and Chevrolet Corvettes of the late 1950s. He wrote to GM when he was 11 years old, saying he wanted to be a car designer. GM wrote back with steps for achieving his dream. It worked: he was hired by GM in 1972, and in 2003 he was named vice president of GM Design North America, assuming the mantle once worn by Harley Earl, father of American automotive design. In 2005, Welburn became the company’s first vice president of global design, and today he oversees more than 1,900 individuals in ten Global Design Centers in seven countries.
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Courtesy Listing! Please contact Terrell at: 323-385-8993 or firstname.lastname@example.org and not the rescue group connected to this page!
"Danny is a 6-month old, 10 pound Terrier mix. Danny and his mommy (Carrie) were left behind by their owners when they were evicted from their house. He is very playful and affectionate. He is good with dogs, children, and he loves to chase his foster daddy's cats. Danny is neutered, vaccinated, de-wormed, a fecal test was done, front-lined, and micro-chipped. Please call Terrell at 323-385-8993 or email@example.com"
Rescue Group: Downtown Dog Rescue
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