Paul Weiss, Back in the Saddle
Re-Joins Leasing News Advisory Board

Paul Weiss has been in and around equipment leasing for 25 years. He was a long time member of the Leasing News Advisory Board, but he resigned when he also resigned as President of ICON Capital and as Vice-Chairman of the Board of Directors, of which Mr. Weiss was a substantial shareholder in its ultimate parent (he sold his shares simultaneously with his resignation). ICON Capital was then the largest in its field in syndication volume for lease investment programs to individual investors. He was responsible for the company's lease acquisitions and securities sales and marketing efforts. Mr. Weiss stayed at ICON as its president until the end of 2006.

In the first year after his non-compete clause ended, he was approached by a former ICON colleague to get back into the leasing business and form Panthera. Paul believed that after the industry pullback in 2008 there has been a lack of real equity in the leasing markets, and that many players had moved to more conservative financing type transactions as a consequence. Still, many sectors still require or desire traditional equipment based equity investors to have true lease and rental alternatives for equipment users. Panthera was therefore formed last year to "bring a substantial pool of capital to U.S. and European equipment leasing, renting and trading market" he is back with "creative problem-solving equity deals." Panthera enjoys substantial private equity backing. Since its formation Panthera has been active in such disparate markets as rail, aircraft rotables, locomotives and industrial equipment, and actively seeks out relationships with manufacturers, lessors and brokers for any equipment transactions where the equipment has a long useful life.

In addition to being a principal at Panthera Leasing, he is the non-executive board chairman of Pacific Rim Partners KK, a consumer products distributor based in Tokyo. He is also a private investor and an Advisor to or Director of numerous Bay Area emerging growth companies. He is a frequent speaker on business development and entrepreneurship and a frequent judge on start up and emerging growth company financing competitions.

Upon designing and completing the acquisition of ICON from its founders in 1996 he (along with Beau Clarke, since deceased) joined that company on a full time basis and was at various times responsible for all of the acquisition of leases and other transactions for the ICON Funds and for marketing and management of ICON's large public investment programs. According to the Monitor, ICON became one of the largest independently owned leasing companies in the United States after it was acquired by Mr. Weiss and his partners in 1996. Prior to that time Mr. Weiss was Executive Vice President and a co-founder of Griffin Equity Partners (1993-1996), Senior Vice President of Gemini Financial Holdings, Inc. (1991-1993) and Vice President of Pegasus Capital Corporation (1988-1991); in each of these capacities he was responsible for large ticket seasoned lease portfolio acquisitions. Mr. Weiss believes he has been involved with more than $4 billion of large ticket leasing acquisitions during his career. He was named as one of the top 25 most influential in the leasing industry by Leasing News in 2009. Prior to entering the equipment leasing business in 1988, Mr. Weiss was an investment banker and securities analyst. 

He describes his other interests as including a secret passion for model trains, the pursuit of being minor though perhaps inconsequential philanthropist, and the mentoring of large and small businesses (which on rare instances actually consider his advice). He is a longtime resident of Marin County, California. Paul can be reached at paul@pantheraleasing.com

Leasing News
Chairman, Advisory Board
Bob Teichman, CLP	Teichman Financial Training, Sausalito, CA.
Advisory Board
Steve Crane, CLP	Bank of the West, Walnut Creek, CA
Dale Davis	Endeavor Financial Services, Costa Mesa , CA
Phil Dushey	Global Financial Services, Manhattan, NY
Ken Greene, Esq.	Hamrick & Evans, Universal City, CA
Shawn D. Halladay	The Alta Group, Salt Lake City, UT
Robert S. Kieve	Empire Broadcasting, San Jose, CA
Bruce Kropschot	Kropschot Financial Services, The Villages, FL
Bruce Lurie	Douglas-Guardian Services Corporation, Houston, TX
Andrew Lea, M.A.	NetSol Technologies, N.A., Alameda, CA
Allan Levine	Madison Capital, LLC., Owings Mills, MD
Don Myerson	BSB Leasing, Colorado, Hawaii
Armon L. Mills, CPA	J.H. Cohn, LLP, San Diego, CA
Tom McCurnin	Barton, Klugman & Oetting, Los Angeles, CA
Hugh Swandel	The Alta Group, Canada
Paul Weiss	Panthera Leasing, San Francisco, CA
Rosanne Wilson, CLP	1st Independent Leasing, Beaverton, OR
Ginny Young	former Brava Capital, Orange, CA

Editor/Publisher
Christopher Menkin	Saratoga, California

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Classified Ads---Sales Manager

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

Fort Myers, Florida Very experienced and strong skills with both Captive and Specialty Sales Management. Over 25 years , will relocate and travel---successful and team player. e-mail: tlinspections@gmail.com

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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Pawnee Reports on Fire in Colorado

From Gary Souverein, President & COO, Pawnee Leasing, Fort Collins Colorado:

"We have, as of this morning, a major fire that started burning fifteen miles outside Fort Collins. Many readers may be aware of the many fires out of control in this part of the country. This fire began Saturday morning. While it won't threaten our offices or any of our employees’ homes it has been remarkable to see this disaster develop so close to home. I took one the photos outside our office and the other from my office window this morning which if you look very closely you can see the fire moving down the nearest foothills to the west of Fort Collins.

"It is predicted to be the worst fire in northern Colorado in many, many years. Mother Nature is conspiring against the very brave firefighting personnel as its 10% contained and we are in the middle of a hot, dry, windy week. The fire may last for weeks TV news is telling us.

"While we're open as usual its hard not to be distracted thinking of our community members that are being affected by this disaster and our prayers are with them and the firefighting personnel that they stay out of harm's way. "

Gary DiLillo, President 440.871.0555 or gary@avptc.com To learn more about the benefits of outsourcing personal property tax, please click here.

Positron Complaint Investigation
by Christopher Menkin

There are many “red flags” here, and again stemming from the vendor and perhaps equipment. This may be the beginning to be brought to Leasing News reader’s attention. The equipment may be sold direct or through vendors, but placed often to funders by Positron.

Leasing News has been investigating a complaint against Positron, Westmont, Illinois, a publically held company, considered by many as a leader in nuclear cardiology equipment. Stephen E. Shinkman, President, Kendall Nuclear Medicine, Inc., Miami, Florida, produced a copy of a check for $35,000 and proposed lease from Positron ("or its designee") dated January 17, 2011. (1) There are many copies of emails and correspondence, as well as several "off the record" telephone conversation with Corey N. Conn, Chief Financial Officer.

Several funders have contacted Leasing News but would like to remain “off the record” for the time being.

A recent press release quotes, "Positron Corporation is a leading molecular imaging healthcare company, specializing in the field of nuclear cardiology announces completion of its first strontium validation effort."

There is the last email between the two promising the deposit to be returned on June 1, 2012. Since then, both sides have attorneys handling the matter who do not want any public statements given.

It is known there are regulatory problems, perhaps solved, as well as manufacturing problems with the medicine used in the process.

There is also a SEC complaint filed November 16, 2011 regarding "Oakbrook, Ill. resident Patrick G. Rooney and his company Solaris Management LLC for fraudulently misusing the assets of the Solaris Opportunity Fund LP, to which it was the investment adviser.

According to the SEC’s complaint filed on Nov. 16, 2011 in federal court in Chicago, Rooney and Solaris made a radical change in the fund’s investment strategy, contrary to the fund’s offering documents and marketing materials, by becoming wholly invested in Positron Corp., a financially troubled microcap company. (2)

A June 5, 2012 press release notes the first strontium validation effort. "Jason Kitten, President of MIT, commented on completion of this milestone, 'This is the first strontium-82 validation to be performed outside of the national laboratory arena and sets the stage for private entry into the strontium-82 radioisotope supply chain. The objective of Positron's isotopes mission is to improve the reliability and increase the availability of Sr-82 supply; further advancing cardiac PET. Positron's dedication to cardiac PET will lead the way in liberating the United States dependency on reactor-based isotopes, thereby reducing the need for highly enriched uranium. Sr-82 production, processing, and Rb-82 PET are well-established technologies; the techniques, modalities, and know-how have been available for some time and only now, though Positron's vertically integrated strategy, a full solution is becoming a reality'."

Without further information from both sides, this perhaps is not a "Bulletin Board Complaint," although Stephen E. Shinkman, President, Kendall Nuclear Medicine, Inc., believes it is. Perhaps it is more a financial dilemma, as illustrated by Marketwatch's report on the company's three month statement:

• A net loss of $2,962,000 for the three months ended March 31, 2012 compared to a net loss of $735,000 for the three months ended March 31, 2011.

• Revenues for the three months ended March 31, 2012 were $829,000 as compared to $2,871,000 for the three months ended March 31, 2011

• Systems sold during the three months ended March 31, 2012 were $353,000 while system sales for the same period in 2011 were $2,623,000

• General and administrative expenses during the three months ended March 31, 2012 were $1,765,000 as compared to $506,000 for the three months ended March 31, 2011.

• At March 31, 2012, the Company had current assets of $1,863,000 and current liabilities of $5,950,000 compared to December 31, 2011 when the Company had current assets and current liabilities of $1,951,000 and $5,176,000, respectively.

• Cash and cash equivalents at March 31, 2012 were $3,000 compared to $1,000 at December 31, 2011. Accounts receivable was $695,000 at March 31, 2012 compared to $612,000 at December 31, 2011. Note current liabilities and compare to other numbers.

http://www.marketwatch.com/story/10-q-positron-corp-2012-05-21

(1) Positron Lease Proposal:
http://www.leasingnews.org/PDF/Positron.pdf

(2) SEC Complaint:
http://www.leasingnews.org/PDF/SECPositronComplaint.pdf

 

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

 

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Commitment Forms

The dollar size of the lease proposal often dictates the details and length of the commitment letter.

In small ticket lease, the actual lease payment is often given and calls for the first and last as well as the documentation fee. Often a clause contains a "documentation" fee for $495.00, which is non-refundable if the lease is not approved. The wording is different and seems to be buried and whether written originally by an attorney or taken from the use of another leasing companies form is not known.

According to ex-employees as well as complaints that have appeared in Leasing News, many companies get such proposals signed in advance knowing they will be unable to proceed with the lease due to the nature of the equipment or the proposed lessee telling them of their credit difficulties in the presentation or from running a consumer credit report.

In larger ticket size leases, often a form such as this is used, which specifically charges a fee to process the application:

http://two.leasingnews.org/loose_files/Lease_app_agreement.rtf

Loans or “Working Capital” commitment letters are explicit and require the broker to often be licensed. This form is for use in California:

http://two.leasingnews.org/loose_files/Authorization_to_find_lender.rtf

This form is one of the most widely used in the leasing industry for leases $50,000 and above and covers most of the bases. Note: Last sentences about the signatures makes this more a “proposal,” than commitment. If required, these sentences may be removed.

http://two.leasingnews.org/loose_files/Generic%20commit%20Letter.DOC

It is a good idea to have the form you use reviewed by an attorney with equipment leasing experience. This does not mean your college friend who became a lawyer. You wouldn't take your children to an Endodontist to get braces on their teeth, although the practitioner is a "dentist." The same with going to an attorney. You don't go to a divorce attorney to go over a lease commitment contract.

Some things to consider in your form.

#1: ACH---If you are going to require it or may require it, you should have this spelled out in the agreement. If not in the contract and becomes a requirement of the lease, the proposal is invalid.

#2 Date---It is a good idea to have a time period involved, and perhaps if not approved, from completion of all the documents and/or lease contracts. A prospect can back out after 30 days and bring this up in small claims court, unless spelled out the time begins after all documentation is complete ( attorneys will have different opinions on this and its wording, but the complaint may make it into Leasing News when it takes months before anything happens.)

#3 Personal guarantee--of all officers who own 10% or more of a privately held corporation. (This will protect if the final approval comes in with terms and conditions, but requires other guarantors who are not named on the application or in the proposal.)

This form was developed by Ken Greene now at partner at Hamrick & Evans, LLP, Universal City, California, with offices also in Northern California.

http://www.leasingnews.org/Conscious-Top%20Stories/Greene_Lease_agreement.htm

To Contact Ken Greene:

Kenneth C. Greene, Partner
Hamrick & Evans, LLP
10 Universal City Plaza, Suite 2200
Universal City California 91608
818-763-5292
Fax: 818-763-763-2309
kgreene@hamricklaw.com

The form makes it a contract between both parties, and is not one sided as appeared in this Leasing News Bulletin Board Complaint:

(click to make larger)

from this Leasing News Bulletin Board Complaint:
http://leasingnews.org/archives/December%202009/12-14-09.htm#benchmark

 

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Leasing News Help Wanted Ad Pricing

25% Off regular rate below plus 30 day run

Help Wanted Web Ad New Programs Classified Ad Section  (rotates chronological above headlines and  also appears in Classified Ad section.) * 21 days in a row: $595 four lines (a space is a line)  ($40 each additional line or space) Design work is free. Logo is free as well as company description not to exceed the number of lines of the ad. Also free: click to a click to a web site or a full description of the position. Ads are placed in the "Help Wanted' section by category, alphabetical, with the ad with the most lines first in the group. They appear on the web site and in each news edition at the top in a rotation basis per issue. * Help Wanted” ads  appear in each issue on a chronological basis above the top headline as a courtesy. This position is not available as a paid position, but is generally on a rotation basis.  At the same time, the ad continues in the classified help wanted section in the news edition and web site, so in effect appears twice. Leasing News reserves the right to refuse advertising, particularly to a company that has appeared in the complaint bulletin board

 

Leasing Icon Sudhir Amembal Gets Award
Since 1993, Chairman World Leasing Convention

Sudhir P. Amembal, Chairman, Amembal & Associates, was honored by Euromoney at the 30th Annual World Leasing Convention, recently held in St. Petersburg, Russia, for having served as the Chairman continually for 18 years of the annual international convention with top leasing companies from all over the world.

Noted Leasing Industry Icon, lecturer, author, active in many ventures, including Worldleasingnews.com, he accepted the plaque, stating "the past three plus decades have been an incredible personal journey," noting he has learned as much as he has taught, establishing close relationships with hundreds in varied parts of the world and travelling nine million miles in the process!"

In presenting a plaque to Mr. Amembal, Ms. Natasha Wood from Euromoney, organizers of the Convention, stated that Mr. Amembal was being honored in recognition of his outstanding service to the development, growth and longevity of the Convention, as well as for his stellar service to the global leasing industry.

She also noted his commitment to not for profit work on behalf of animals. Many readers may not be aware he is the founder and president of www.animaladvisory.com.

Mr. Amembal biography:
http://www.amembalandassociates.com/whoweare.html

 

 

 

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Letters??---We get eMail

(Mostly in Chronological Order)

Resouce America dumps LEAF?

"RAI dumped LEAF, outsourced most of the corp IT dept. after losing money for years in the CDO biz"

Leasing, LEAF Funds, CDO biz... tough sinking...how can Cohen's bail this out..or not?"

(Name With Held)

(More news on this in Friday's edition)

Bulletin Board Complaint

New Leaf Funding Corporation, Maitland, Florida

http://leasingnews.org/archives/Jun2012/6_06.htm#complaint

"I gleaned this from a Bankrate.com article through Yahoo Finance. This is the same kind of complaint that finds itself to Leasing News more than any other type. The independent leasing broker industry will invite regulation if this practice continues. The integrity of our industry depends on our ability to police ourselves.

“ Your website has shined a light on the underbelly of an otherwise stellar record of industry practices. By doing so, we can continue to insure that our 'fee for service” model delivers real value to small businesses across the U.S. (and Canada) and be fairly compensated for the quality of our work and the risks that we take. "

Paul J. Menzel, CLP
President & CEO
FINANCIAL PACIFIC LEASING, LLC

Consumer complaint No. 5: Advance-fee loans

Last year, 44,020 consumers filed complaints with the Federal Trade Commission regarding advance-fee loans. These loans lure consumers with the promise of a loan or credit card, regardless of an applicant's credit history, and require the payment of a fee in advance. Often, these loans turn out to be too good to be true.

"With advance-fee loans, they take the money and oftentimes, the loan doesn't appear," says David Torok, director of the division of planning and information at the FTC. "Be very, very cautious."

A lender that isn't interested in your credit history but requests personal information, such as a Social Security number or bank account number, is a red flag for an advance-fee loan offer, according to a fact sheet from the FTC.

Other warning signs include fees that are not clearly disclosed and a loan offer made by phone that requires you to pay in advance.

Before applying for a loan, check to see if a lender is registered in your state by contacting your state attorney general's office or your state's department of banking or financial regulation, according to the FTC's website

----

CLP Spotlight
Bob Teichman, CLP
Teichman Financial Training

"Thanks for publishing the CLP profile. Always appreciate the exposure. Good edition today (Teichman profile notwithstanding), especially the column by Bernie B. Also, I enjoyed re-reading Casey at the Bat. Great American classic."
http://leasingnews.org/archives/Jun2012/6_06.htm

--

Bulletin Board Complaint
Liberty Capital, LLC, Aliso Viejo, California
http://leasingnews.org/archives/May2012/5_30.htm#complaint_liberty

“Good call on bringing out the details on that deal with Liberty Capital. It could help others avoid a similar situation. Kudos.”

Jim Yokoyama

---

“These types of complaints are very disturbing. The part that bothers me the most is the comment about getting the customer working capital through a ‘vendor friend’. We see these types of fraud on a somewhat regular basis and it can be extremely damaging to a broker / funder that gets involved and actually funds them. These ‘vendors’ need to be made public so that others can be forewarned. With the help of the funders that do business w/ Liberty Capital, I bet you would be able to determine who this “vendor friend” is. Unfortunately, most funding sources aren’t always on board when trying to determine if they are funding fraudulent transactions as it makes them look bad.”

Ross Stites, CLP
Credit Officer - Culver Capital Group

--

Google Visits De Lage Landen Financial Services
http://leasingnews.org/archives/May2012/5_30.htm#google

“The dog pictures were great and very funny. Thanks for the laugh.”

Pat McCann
Universal Financial Group, Inc.

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Vendor Vartanian Makes Lease Fleece Plea Agreement
http://leasingnews.org/archives/May2012/5_22.htm#vendor

“Do you know if Jim Raeder's sentencing got moved to another date? You have him listed as being sentenced June 4th.

“McQuitty and Ziya Arik got pushed back is why I'm wondering.”

(Name With Held)

((ORDER TO CONTINUE Sentencing by Judge Cormac J. Carney as to Defendant James Raeder. Sentencing continued to 9/10/2012 11:00 AM before Judge Cormac J. Carney. (mt) (Entered: 05/11/2012))

--

My name is Ed Dietz. I am General Counsel for Marlin Business Services Corp., parent company of Marlin Leasing Corporation and Marlin Business Bank (collectively, "Marlin"). I am writing in reference to your March 9, 2012 post on www.leasingnews.org entitled "Why the Evergreen Clause is important to Marlin Leasing" (http://leasingnews.orearchives/Mar2012/3 09.htm#marlin) and your May 11, 2012 post picked up by Seeking Alpha and appearing on Marlin's Yahoo! Finance page (http://seekingalpha.com/article/580711-marl in-does-not-disclose-possible-loss-of-evergreen payments). There are gross misstatements of fact and untrue implications in the posts. While difficult to decipher exactly what is being communicated in the posts, the implications seem to be that (1) so called "evergreen clauses" are illegal in certain jurisdictions, and (2) Marlin does not send notification letters to end user lessees in such jurisdictions whose leases will enter a renewal period absent proper notice from the end user lessees.

Contract renewal clauses are illegal in exactly zero states. What I think you're trying to communicate is that four states have enacted laws requiring notification in connection with the renewal of commercial leases. Not only does Marlin comply with such statutes, but Marlin also sends notice letters to every single end user lessee (in every state) prior to any lease entering renewal status. Stated differently, Marlin, as part of our standard operating procedure, provides (and has always provided) exactly the type of notice you incorrectly state Marlin does not provide.

Please allow this letter to serve as Marlin's formal demand that you immediately (1) post a correction on www.leasingnews.org stating that Marlin does, in fact, notify lessees in advance of lease expiration (and locate such correction in at least as prominent a position as you gave to the inaccurate information you previously posted), and (2) add Marlin's name to the list on www.leasingnews.org of leasing companies that notify lessees in advance of lease expiration. I expect the correction to appear today.

Please note, if you wish to re-print any of the text from this letter, I authorize you to do so only if you publish it in its entirety.

If you have any questions, I can be reached at 856.505.4458 or edietz@marlincorp.com.

Nothing herein shall impair, or be construed as a waiver of, any legal or equitable rights or remedies available to Marlin.

Sincerely,
Edward R. Dietz, Jr., Esq. General Counsel

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William G. Sutton, CAE
President & Chief Executive Officer
Equipment Leasing and Financial Association
wsutton@elfaonline.org
cc: kitmenkin@leasingnews.org

“Mr. Sutton:

“Please see the attached letter sent yesterday by Marlin Business Services Corp. to Kit Menkin, proprietor of the website www.leasingnews.org. As the President and CEO of the trade association representing the U.S. equipment finance sector, I want to share the attached with you in order to (1) let you and the ELFA know the type of reckless and inaccurate statements Mr. Menkin posts on his site about an ELFA member and (2) provide you with Marlin's response in order to clear up any misconceptions that Mr. Menkin's erroneous postings may have created.

“If you have any questions or comments, please feel free to contact me. My contact information is listed below.

“Thank you for the great work that you and the ELFA do for our industry.

“Regards,”

Ed

Response from the editor to Mr. Deita, Esq.:

A correction was made at the top of the May 22 Leasing News Edition articles:
http://leasingnews.org/archives/Apr2012/4_04.htm#marlin

Correction: Evergreen Legal in all 50 states

Edward R. Dietz, Vice President and General Counsel, Marlin Business Services Corp., Mount Laurel, New Jersey, requested we inform readers that Evergreen clauses are legal in all 50 states.

In this article, “Marlin Does Not Disclose Possible Loss of Evergreen Payments,” (http://seekingalpha.com/article/580711-marlin-does-not-disclose-possible-loss-of-evergreen-payments) it was stated: "Evergreen clauses are illegal in four states, meaning automatic payments cannot continue, especially prevalent in ACH payments."

Leasing News has placed a comment to correct the story that Evergreen clauses are legal in all 50 states in “Seeking Alpha,” where the article appeared with the sentence, “Evergreen clauses are illegal in four states, meaning automatic payments cannot continue, especially prevalent in ACH payments.”

The shorter story that appeared in Seeking Alpha was edited from the original story which appeared in Leasing News, where it was stated:

"At this time, these states require the lender or lessor to inform the borrower or lessee regarding the termination of the initial lease contract:

"New York
Rhode Island
Texas
Illinois (In Illinois, Consumer law, but may affect commercial, especially a proprietorship, partnership or personal guarantee)"

Many leasing companies require the lessee in 46 states to notify the lessor 90 days in advance by certified letter regarding the exercise of the residual, and if not, payments will continue for an additional twelve months. In the four states above, the lessor is to notify the lessee in advance.

Leasing News apologizes for any confusion. The Evergreen clause is legal in 50 states.

Original article:
It's Evergreen Again with Marlin's Profits by Christopher Menkin
http://leasingnews.org/archives/May2012/5_07.htm#marlin

-----------

As to responding to the email to Mr. Sutton, Leasing News is not a member of ELFA therefore not under its jurisdiction. Leasing News has written many stories regarding ELFA’s lack of transparency in regards to the issue of lessors notifying in advance the termination of their original lease contract. In fact, ELFA has attended state legislative hearings voicing its opposition to notification by the funder to the lessse, which Leasing News has written about the last few years.

Regarding Mr. Dietz request concerning notification of lessees regarding residuals, please start the dialogue by responding to this complaint posted April 4, 2012:

Marlin Business Services, Mount Laurel, New Jersey
 Bulletin Board Complaint

Leasing News has attempted since March 22, 2012 to contact officers at Marlin Leasing, with over six emails to one officer, including four telephone calls, as well as two emails to four officers followed up with two telephone calls. The emails included the complaint as well as the documents, and the telephone calls were follow-up to the emails.

There has been no response.

From:
Ken J. Krebs
Beneficial Capital 
(800) 886 - 8944
ken@bencap.com

“I’ve been in this industry for about twenty years and although the past three have been rough, overall it has been a great experience.  We have worked closely with so many quality people over the years, many who unfortunately are no longer around...I’m looking for some help, and hoping you may be able and willing.  One of our Lessee’s contracts, that had been sold to Marlin, was put into auto renewal because the Lessee neglected (forgot) to exercise their purchase option.  The contract was originally structured with two payments in advance as security deposit, followed by 60 monthly payments, and a 10% purchase option. They’ve recently realized they have now made 65 payments (five extra).  In an effort to settle, they have offered to pay Marlin an additional $1,500 and to forfeit the return of their security deposit.  This is a $25,000 contract with a $2,500 purchase option.  The security deposit amount is $1,196.36.  So, they are offering $1,500 plus $1,196.36 to settle the $2,500 purchase option.  If accepted, this would give Marlin an additional 5 full payments plus $196.36. Marlin has declined the offer and in turn has requested an additional $3,000 payment as well as forfeiture of the security deposit. Can you help with this?"

 

From:
Patrick and Cynthia Tingling
D'Lor Salon & Spa
Atlanta, Georgia

“This is Patrick & Cynthia Tingling Owners of D’Lor Salon & Spa in Atlanta. We Regret that we have to take this course of action.
We feel that Marlin has received enough funds for the value of the equipment that was leased. We are willing to meet our obligations if they would meet us half way... the experience with marlin have left us a bad taste, hopefully you will be able to make sense to then that sometimes goodwill is far more valuable than driving customers away from the industry.
We must make a decision by tomorrow in order to prevent another monthly deduction from our bank account.
Thanks
Patrick and Cynthia..."

It appears the lease payments are ACH and the lessee was not aware that the original lease was up until they had made five extra payments on a 10% Purchase Option, which they are will to make: 

There is no doubt this is not a "true lease" but a "capital lease" or "loan" in many states. This lease has a Pennsylvania choice of law and a Pennsylvania mandatory forum -- even though the lessee is in Georgia, the vendor is in Missouri, and there is absolutely no connection to Pennsylvania.

From:

Michael J. Witt, Esq.
MICHAEL J. WITT LAW OFFICES
4342 Oakwood Lane
West Des Moines, IA 50265
Tel: (515) 657-8706
Mobile: (515) 868-1067
Fax: (515) 223-2352
witt-law@live.com

“In my opinion Marlin stands on shaky grounds here.  Most so-called ‘10% purchase option’ transactions in the small-ticket arena are not true leases under UCC 1-302 but are, instead, loans.  It is preposterous to say that a loan can have an ‘automatic renewal’ provision.  (How would anyone feel if, after paying off their mortgage over 30 years, the bank called and said the mortgage had "automatically renewed" for an additional 12-month period based on an auto-renewal clause hidden in the fine print?!) 

“Marlin, we must all admit, was entitled to a particular return at the end of the 5-year term of this lease.  However, it is now trying to illegitimately (in this one attorney's opinion) bloat its originally planned-for return by taking advantage of the fact that when this small-business lessee took out this lease in 2006, it did not purchase a un-purchasable 2011 calendar to mark the date it was required to notify Marlin not to renew the lease. 

“Few people know that if Marlin did not have an auto-renewal program, it would be losing money (which only begs the question, how much longer do Marlin investors think that this flimsy business model can endure?).  If this is not a true crime under our criminal codes, it is a crime against the industry that so many of us try to uphold every day we go to work.”

D’Lor Salon & Spa Lease Contracts:
http://www.leasingnews.org/PDF/DLor_Lease.pdf

---

Correction: Evergreen Legal in all 50 states
http://leasingnews.org/archives/May2012/5_22.htm#correction

From a reader:

“Edward R. Dietz, Vice President and General Counsel, Marlin Business Services Corp., Mount Laurel, New Jersey, requested we inform readers that Evergreen clauses are legal in all 50 states.” Did I not read in Leasing News some time ago that most of the profits from leasing at Marlin Business Services are from evergreen leases? A nice bit of profit and justification for Evergreen Leasing that Mr. Dietz surely wants to protect from the possible taint of illegality. If four states were not allowing such financial chicanery what would that say about those states that did allow it and about those companies who use Evergreen Leases? Someone had to put their finger in the hole of the dike to prevent the cleansing water of ethics from spreading and drowning the practitioners of Evergreen leasing.

“It is comforting to see attention to such details of the law that defends a practice that extracts money from unsuspecting customers and yet provide a clear cut example of how law deviates from the path of ethics. The “letter of the law” view of the legal system provides cover for and allows certain unethical but legal behavior to exist. If one robs a person with a gun they go to prison but if one uses a pen to take money from an uninformed borrower one goes to the bank. Maybe both behaviors should be classified as illegal.”

Jerry Bernardy

---

May 18, 2005 Archive
NAELB Conference
By: Charlie Lester

“I wanted to drop you a quick note and say thank you for your newsletter that you put out on Friday May 18th. Being that it was approximately two years ago (May 10, 2010) that Charlie passed away. It was such a nice surprise to see the article that Charlie had written about the NAELB conference re-published. Charlie had such a passion for the leasing industry and loved working with some many of the people with in the industry. Re-reading the article brought back so many great memories of Charlie as well as made me realize how much I really miss him.

“For someone like me, your newsletters serve as constant reminders that there really are some good people that truly care about our industry still around. Keep up the great work!

“Thank you for all that you do.

“God Bless,”
Kurt Hess
LPI Healthcare Financial Services

----

“Thank you for connecting with me on LinkedIn today. At your convenience, I’d like to speak with you briefly. I have been aware of you and your publication for many years, but have never had the opportunity to interact with you before.

“FalconBridge Capital Markets is a boutique, FINRA and SEC registered investment bank that focuses exclusively on capital raising and merger advisory for financial services and financial technology companies. I always find it useful to trade notes with market participants – invariably these discussions result in common areas of interest, even if not immediately apparent.”

Stephen A. Geis
Managing Director
FalconBridge Capital Markets, LLC

---

“Your Leasing News is far superior, informative, and practical, than any of the other leasing publications.”

Bob Borden
ULS

---

“I have enjoyed reading leasing news over the last four years. I have changed jobs and am not involved in leasing anymore. I don’t have time to read Leasing News on a regular basis but I always know where to find it if something changes.”

Marci Jaman

---

“I enjoyed Leasing News when I worked in Irvine at Balboa Capital, for 4 years as a Sales Manager, especially the archive section! Here is our story. Let’s keep in touch.”

Best Regards,
Rob Selway
First Enterprise Bank

About First Enterprise Bank:
http://www.leasingnews.org/PDF/1stEnterpriseBankForbes.pdf

 

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May—The List

Liberty Capital, Aliso Viejo, CA (05/12) Bulletin Board Complaint
http://leasingnews.org/archives/May2012/5_30.htm#complaint_liberty

Element Financial, Toronto, Canada (05/12) Acquires the vehicle fleet business from Scotiabank for $146.7 million, plus debt, and he receives a report $430 million of lease assets. Goes back to the market for more cash.

Chase Industries Grand Rapids, Michigan (05/12) Founder files BK, says Chase Industries is dissolved.
http://leasingnews.org/archives/May2012/5_14.htm#chase

Newport Financial Partners, Inc., Newport Beach, CA (05/12) Bulletin Board Complaint.
http://leasingnews.org/archives/May2012/5_09.htm#bbc

Marlin Leasing, Mount Laurel, NJ (05/12) Three months again shows Evergreen is their net profit maker.
http://leasingnews.org/archives/May2012/5_07.htm#marlin

LEAF Financial/Commercial, New Jersey (05/12) Resource America/LEAF moving in different directions.
http://leasingnews.org/archives/May2012/5_07.htm#moving

Alphabetical List
http://www.leasingnews.org/list_alpha_new.htm

Chronological List
http://www.leasingnews.org/list_chron_new.htm

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Changes as Why Housing Continues Down
by Albert Schuler

• Household formations down significantly (Fewer marriages; “Junior moves back home”; etc.)

• Homeownership down as renting gains favor

• Immigration is off considerably ( this impacts household formations)

  
  

Al Schuler, former US Agriculture Timber, Economist, now retired, but continues his newsletter.

 

Europe is the biggest immediate headache, and China is showing signs of slowing. The U.S. economy is recovering from a financial/banking recession, and recoveries from such recessions are historically much slower than from a more typical “currency/inflation” recession. The more typical recession is often caused by the Fed raising interest rates to cool an overheated economy – once cooled, the Fed lowers interest rates to get things going again. With banking/financial crises, the damage is deeper and more widespread, and hence, is more difficult (and time consuming) to correct.

ELLEN MICHELE STERN, ATTORNEY Southern California Free initial consultation Nationwide network of providers and client base. Twenty-six years of leasing expertise, ranging from front-end transactional through collections, equipment & judgment recovery. Results-oriented Phone: 951.443.4000 or email:leaselaw@msn.com California Finance Lenders’ License specialist

 

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

Almost $4 Million Plus Tax Evasion

Louis Joseph Vadino, Santa Ana, California appeared before United States Magistrate Judge Robert N. Block. On June 6, 2012, a federal grand jury indicted Vadino, 70, on charges of evasion of payment of federal taxes and making false statements to the Internal Revenue Service.

The indictment alleges that on April 27, 2006, after several years of attempting to audit and assess the tax due and owing for Vadino’s1999 federal tax return, the IRS notified Vadino that his outstanding tax liability for 1999 was $1,251,360. Beginning after this date, the IRS actively attempted to collect Vadino’s outstanding liability (tax, penalties and interest) of approximately $3,919,861.

According to the indictment, between 1998 and 2007, Vadino formed foreign companies in the British Virgin Islands (Ambrite Properties, Euromarket Finance Limited, and Media Partners Investment Limited) and in Panama (S& L Development) to hold title to properties and open foreign bank accounts. The indictment alleges Vadino willfully attempted to evade and defeat the payment of his outstanding taxes due and owing by concealing and attempting to conceal from the IRS the nature and extent of defendant Vadino’s assets and the location thereof, making false statements to agents of the IRS, placing funds and property in the names of nominees, and using offshore accounts to place funds and property beyond the reach of process of the IRS.

Between June 8, 1999, and March 29, 2002, Vadino purchased five residential properties in Lake Forest, California, under Ambrite Properties with over $1.8 million in cash; Vadino, his mother, and his three daughters lived in each of these properties. According to the indictment, after the IRS assessed Vadino’s outstanding tax liability, Vadino transferred four of the properties into his daughter’s name, sold one of the properties and refinanced three other properties, causing approximately $2 million in wire transfers to be made into a Greek bank account in which Vadino was the sole signatory. The indictment also alleges that Vadino caused over $1.6 million in wire transfers from offshore bank accounts to be made for the purchase of real property in Ramona, California, to buy two trucks, to make mortgage payments on the Lake Forest properties, as well as to pay for Vadino’s personal expenses.

Vadino is also charged with making false statements to Special Agents, including that Vadino told agents that he did not own or control real property and had no income to pay his personal expenses and tax liabilities, in April 2006 when the IRS assessed Vadino’s taxes due and owing or at any time since.

Trial is scheduled before United States District Judge Andrew J. Guilford on July 31, 2012.

The criminal investigation of Louis Joseph Vadino was conducted by IRS - Criminal Investigation in Los Angeles in conjunction with the United States Attorney’s Office for the Central District of California.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until proven guilty in court.

United States Attorney’s Office contact:
Brett Sagel, Assistant United States Attorney
(714) 338-3598

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

Mr. Terry Winders available as a consultant regarding assisting attorneys in resolving disputes or explaining procedures or reviewing documents as utilized in the finance and leasing industry. He is the author of several books, including DVD's, as well as weekly columnist to Leasing News. He also performs audits of leasing companies as an expert on documentation, and has acted as an expert witness on leasing for litigation in legal and tax disputes, including before the IRS. He also has taught the senior bank examiners, how to review a bank leasing department, for the Federal Reserve in Washington D.C. and has trained the examiners for the FDIC on how to prepare a lease portfolio for sale. 502.649.0488/Leaseconsulting@msn.com

 

(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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#### Press Release #############################

Annual Elder Abuse Awareness Day on June 15

SACRAMENTO, CA – The California Department of Corporations encourages Californians to observe the 7th Annual World Elder Abuse Awareness Day (WEAAD) on Friday, June 15, 2012, by participating in events around the state and promoting awareness of elder abuse issues by wearing purple that day.

The department will participate in events and resource fairs the week of June 11, including a panel in support of World Elder Abuse Awareness Month with the Department of Insurance and the US Postal Inspector. This panel will meet on Thursday, June 14, at the Jackie Robinson Community Center in Pasadena. On Friday, June 15, Department staff will be present to advise attendees on senior investment scams and/or share materials at the Alpert Jewish Community Center in Long Beach and the Prince of Peace Lutheran Church in Hemet. Details on these and other upcoming events are available at the Department’s Education and Outreach Events Calendar on the website here: http://www.corp.ca.gov/Consumer/Events.asp.

"As the state’s chief regulator of the investment advisor community, the Department is especially sensitive to the needs and vulnerability of seniors in California,” said Corporations Commissioner Jan Lynn Owen. "We have special materials to address senior investment scams, including our Seniors Against Investment Fraud (SAIF) program which is well-respected and much emulated.”

Seniors Against Investment Fraud (SAIF) alerts and educates Californians over the age of 50 about financial and investment fraud, scams, and unscrupulous sales practices that specifically target seniors. SAIF provides valuable information and resources for seniors to make well-informed financial decisions. SAIF is available in English, Spanish, Chinese and Tagalog and may be ordered in printed books from the Department or downloaded from http://www.corp.ca.gov/Consumer/SAIF/Pubs/Default.asp.

Many communities and organizations throughout California will issue proclamations declaring June 15, 2012 as World Elder Abuse Awareness Day (WEAAD) and host events designed to raise their communities’ awareness of elder abuse. The first Awareness Day in 2006 involved several hundred organizations and governmental bodies at international, national, regional, local, community and neighborhood level, in every continent in the world. The day recognizes the significance of elder abuse as a public health and human rights issue.

To learn more and to download a free copy of the Community Guide World Day Tool Kit, visit the website of the International Network for the Prevention of Elder Abuse (INPEA) www.inpea.net/weaad.html.

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

 

Lab Mix
Downers Grove, Illinois Adopt-a-Dog

Romona
Description: Lab Mix

Gender: Female
Age: 6 mos. — born late 2011
Size: Medium
Neutered? Yes
House trained? TBD
Location: Temp-care
OK with children? Good
OK with other dogs? Good
OK with cats? Good
Crate trained? Yes
Leash trained? TBD

"I am currently in a foster home while I am waiting to find my forever home. I am such a sweet girl. I am crate trained and working on housebreaking. I am good with kids, cats and other dogs. As a matter of fact, I like other dog so much that I need to live with another dog in my new home. As with any young dog, I would benefit from obedience training. I do have a lot of energy so I need to live in a house with a large fenced in backyard so I can run and play. If you are interested in setting up a time to meet me, click here to download a copy of the dog application.

Adopt a Pet
http://www.wshs-dg.org/wshs/adopt

Dog Adoption Form:
http://www.wshs-dg.org/media/wshs/files/Dog_Application_Form_2012.pdf

Please fax it back to our adoption desk manager at 630-960-9604 or email her at adoptiondesk@wshs-dg.org.

Once she has received it, she will set up a time for you to meet me. You won't be disappointed!"

West Suburban Humane Society
1901 Ogden Avenue
Downers Grove, IL 60515
Telephone: (630) 960-9600
Facsimile: (630) 960-9604
Email: Director@wshs-dg.org

 

Adopt-a-Pet by Leasing Co. State/City
http://www.leasingnews.org/Conscious-Top%20Stories/Adopt_Pet.htm

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

 

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Classified ads— Finance / Human Resources

Leasing Industry Outsourcing
(Providing Services and Products)

Finance: Chicago, IL Experienced in big ticket origination, syndication, valuation and workout. Twenty five years, MBA, CPA, JD, LLM (Tax), structuring specialist. Inbound and outbound transactions. Email:pal108381@comcast.net Transaction Summary | The Lechner Group  Website: www.tlgattorneycpa.com	Finance: Naperville, IL Your guide to the right questions and answers in finance. Expert in capital raising, GAAP, acquisitions, lease economics. CPA. MBA.  E-mail: m.willow@ameritech.net
Finance: Charlotte, NC 15 Years of Equipment Leasing Experience and Recruiting with Business Aviation niche. Visit us at www.turningpointgrp.com  E-mail: info@turningpointgrp.com	Human Resource Consultant: New York, NY Employee Relations, Recruiting, Benefits, employee customer surveys, plus payroll administration "ON-LINE" services-- AND IN PERSON at your location Please visit:www.adviceonhr.com
Information System: North Detroit, MI  INFOLEASE EXPERT - 18 years experience.  Since being downsized in 2002, working as a consultant for several leasing companies.  Seeking consulting projects nationwide.  email: darwint@prodigy.net	Finance: New York, NY “Think Outside the Bank”. Barrett Capital is a merchant banking and consulting firm, specializing in asset based financing: equipment, vehicles, receivables and real estate. Email: bkorn@barrettcapital.com Web: www.barrettcapital.com

All "Outsourcing" Classified ads (advertisers are both requested and responsible to keep their free ads up to date:
http://www.leasingnews.org/Classified/Outsourcing/Outsourcing.htm

How to Post a free "Outsourcing" classified ad:
http://www.leasingnews.org/Classified/Outsourcing/Outsourcing-post.htm

News Briefs----

Firefighters battle huge blazes across US West
http://ca.news.yahoo.com/one-dead-wildfires-rage-colorado-mexico-060328430.html

Austrailia Aircraft, Container/Transport Equipment Leasing
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/06/10/prweb9587185.DTL

Bombardier shares rally on massive NetJets order
http://business.financialpost.com/2012/06/12/bombardier-expected-to-rally-on-massive-netjets-order/

Global Financial & Remarketing Services New Chicago Office
http://www.virtual-strategy.com/2012/06/11/global-financial-remarketing-services-llc-announces-new-chicago-office

Balboa Introduces Financing for Cloud Computing Services
http://finance.yahoo.com/news/balboa-capital-leading-way-fast-152100301.html;_ylt=A2KJjahdFthP2W0AAVPQtDMD

Study: Facebook ads are effective
http://www.usatoday.com/money/advertising/story/2012-06-12/Facebook-comScore-ads/55555616/1

Nasdaq CEO Seeking Amends in Silicon Valley
http://business-news.thestreet.com/mercury-news/story/wake-facebook-ipo-nasdaq-ceo-seeking-amends-silicon-valley/1

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You May Have Missed---

Lunch Buffett: $3M for Oracle’s ear
http://www.nypost.com/p/news/business/lunch_buffett_for_oracle_ear_d3UPQd3xHlc74cvV9pofDL

[headlines]
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SparkPeople--Live Healthier and Longer

The Truth about ''Natural'' Sweeteners
http://www.sparkpeople.com/resource/nutrition_articles.asp?id=1203

 

[headlines]
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Sports Briefs----

Durant, Westbrook propel Thunder past Heat in Game 1
http://www.usatoday.com/sports/basketball/nba/story/2012-06-12/Finals-Game-1-LeBron-James-Russell-Westbrook-Kevin-Durant/55558494/1?loc=interstitialskip

Los Gatos' Alex Smith begins San Francisco 49ers minicamp with new approach to mechanics
http://www.contracostatimes.com/breaking-news/ci_20843768/alex-smith-begins-san-francisco-49ers-minicamp-new

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Baseball Poem

 

When I go to a Red Sox Baseball Game.(Arts and Lifestyle) The Boston Herald; 10/13/2003; Tardiff, Nicole Byline: Nicole Tardiff I can't explain  the feeling I get  when I go to  a Red Sox  baseball game. It's like this  BANG of energy that rushes through my veins.  I'm free. The air is filled with  the spices of  hot dogs, pizza,  Fenway freshly cut grass. I love it.  Here  everyone is like me,  cheering on my fave Red Sox players.  I'm not different.  Here  I fit in.

Nicole Tardiff, 17, is a senior at Lexington High School. This poem was originally published in "2:25 P.M.," a book of poetry and prose from Lexington High School's participation in the Student Publishing Program.

Lexington's Student Publishing Program has been selected as one of the top high school writing programs in the country by Web del Sol, the largest nonprofit publisher of periodical contemporary literature in the United States.

See http://www.225pm.org for more information about the Student Publishing Program and its free online literary magazine and writing resources

 

 

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California Nuts Briefs---

Los Gatos Girlfriend of artist Thomas Kinkade wants to 'redeem her reputation,' lawyer says
http://www.mercurynews.com/bay-area-news/ci_20842800/girlfriend-artist-thomas-kinkade-wants-redeem-her-reputation

Governor, Legislature remain divided on budget
http://www.contracostatimes.com/breaking-news/ci_20844002/governor-legislature-remain-divided-budget

CalPERS to raise health care premiums 9.6 percent
http://www.sacbee.com/2012/06/12/4557662/calpers-to-raise-health-care-premiums.html

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“Gimme that Wine”

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

The Culture of Wine
http://www.winespectator.com/webfeature/show/id/46915

Chianti classico board agrees on major revamp
http://www.harpers.co.uk/news/news-headlines/12340-chianti-classico-board-agrees-on-major-revamp.html

California considers less familiar wine grape varieties
http://westernfarmpress.com/grapes/california-considers-less-familiar-wine-grape-varieties

Lodi vintners welcome Chinese taste for wines and investments
http://www.sacbee.com/2012/06/12/4554935/lodi-vintners-welcome-chinese.html

Brett Anderson, New Orleans Food Writer, Is Laid Off
http://dinersjournal.blogs.nytimes.com/2012/06/12/brett-anderson-new-orleans-food-writer-is-laid-off/?ref=dining

 

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

     1774- Rhode Island becomes 1st colony to prohibit importation of slaves. The Rhode Island General Assembly in Newport, RI, passed this legislation, banning slave importation: “ No Negro or mulatto shall be brought in to this colony, and in case any slave shall be brought in , he or she shall be, and are hereby, rendered immediately free, so far as respects personal freedom, and the enjoyment of private property, in the same manner as the native Indians.”
    1789 - General George Washington was served a new dessert by Mrs. Alexander Hamilton, ice cream.
    1798-The Mission San Luis Rey de Francia was founded. It was abandoned in 1846. Restoration began in 1892.
http://www.californiamissions.com/cahistory/sanluisrey.html
http://www.sanluisrey.org
    1786-birthday of Winfield Scott, American army general, negotiator of peace treaties with Indians and twice nominated for president (1848 and 1852). Leader of brilliant military campaign in Mexico in 1847. Scott was born at Petersburg, VA and died at West Point, NY, May 29,1866.
http://www.civilwarhome.com/scottbio.htm
http://www.npg.si.edu/exh/brady/gallery/77gal.html
http://www.ngeorgia.com/other/scottinmexico.html
http://home.att.net/~Rebmus/SCOTTSTACTICS.htm
    1868-African-American Oscar J. Dunn elected Lieutenant Governor
of Louisiana Ran away from slavery; finally bought his freedom; began his education prior to his freedom; State Senator in 1868 ;Lt. Governor from 1868 to 1870; reputed to be firm, courageous and incorruptible, died suddenly in November, 1871. Ironically, his death brought the first African American to serve as governor of a state: P.B.S. Pinchbeck. He had been elected president pro tempore of the Louisiana senate in 1871, and promoted to lieutenant governor upon the death of Oscar J. Dunn. Pinchback was educated in Cincinnati, was a captain in the army. When Governor Warmoth was impeached in December 1872; he became governor for a few days.
http://www.sec.state.la.us/45.htm
    1875—Birthday of Mariam Amanda Wallace "Ma" Ferguson - two-time Governor of Texas. In November 1924, she and Nellie Ross of Wyoming were elected the nation's first female governors. Her husband had been impeached, convicted and removed from the Governors office to which he had been elected 1916. She ran to clear the family name under the motto "two Governors for the price of one." She said, up front, that she would be just a stand-in for her husband, but when elected, she did a lot of things her way. Although “Ma” Ferguson did fulfill a campaign promise to secure an antimask law against the Ku Klux Klan, the courts overturned it. State expenditures were slightly increased, despite a campaign pledge to cut the budget by $15 million. The focal point of discontent centered upon irregularities both in the granting of pardons and paroles and in the letting of road contracts by the state highway department. Ma Ferguson pardoned an average of 100 convicts a month, and she and "Pa" were accused by critics of accepting bribes of land and cash payments. Critics also charged that the Ferguson-appointed state highway commission granted road contracts to Ferguson friends and political supporters in return for lucrative kickbacks. She won re-election and then retired from politics until she was 65 years, running for governor in 1940, but did not win. She died June 21, 1961.
http://www.tsl.state.tx.us/governors/personality/mferguson-p01.html
http://www.reaganadv.com/ma/biography.html
    1889 - Forest fires in northern Wisconsin and northeast Minnesota were in the process of destroying millions of dollars of board feet of timber. 
    1905-Trumpet player Doc Cheatham birthday
http://www.riverwalk.org/profiles/cheatham.htm
    1907 --The temperature at Tamarack, California dipped to 2 degrees above zero, the lowest reading of record in June for the U.S. after 42 inches of snow fell between the 10th and the 13th, the snow depth on this date was 130 inches.
    1921 - "The Sultan of Swing," Babe Ruth, made a 460 foot homerun into the center field bleachers at New York City's Polo Grounds. It was the longest homerun Ruth made in his career.
    1927 - Aviation hero Charles Lindbergh was honored with a ticker-tape parade in New York City. He was the most popular man of his era, considered a presidential candidate, but the kidnapping of his son changed his life. While the man who asked for ransom was caught, it is believed by many that it was Lindbergh’s own sister who killed the infant as she suffered from mental illness and had harmed the baby earlier.
    1933-In an effort to get the economy going again, the Federal Savings and Loan Association was authorized with the passage of the Home Owners Loan Act. The purpose of the legislation was to provide a convenient place for investment and to lend money on first mortgages. The first association was the First Federal Savings and Loan Association of Miami, Florida, which was charted on August 8, 1933.
    1935 - In a 15 round match, Jim Braddock defeated Max Baer in a. With the win, Braddock captured the world heavyweight boxing title in New York City.
    1937--- Joe DiMaggio hits 3 consecutive HRs against St Louis Browns
    1939 - Victor Records artist Lionel Hampton and his band recorded "Memories of You." He had played the song with the Benny Goodman
Quartet at Carnegie Hall in 1937.
    1940- R'n'B singer Bobby Freeman was born in San Francisco. He is best known for "Do You Wanna Dance," which became a number five hit for him in 1958. The song was later covered by the Beach Boys - in 1965 - and the Ramones - in 1978.
    1942 - John C. Cullen, Seaman 2/c discovered Nazi saboteurs landing on beach at Amagansett, Long Island. He reported this to his superiors. The FBI later captured the Nazis and Cullen was awarded the Legion of Merit. The four men had plans to sabotage NYC’s water system and industrial sites across the Northeastern US. 
    1942-The Office of War Information was created.
http://memory.loc.gov/ammem/today/jun13.html
    1944-Marvin Camras, who was a student at the Armour Institute of Technology, Chicago, Il, patented a wire recorder for sound recordings. He had actually invented it in the 1930’s, and it was used experimentally in 1939 and 1940, with several models in use by the US Navy in 1941. When I first went to work for KFRC Radio in 1963, we were using wire to record interviews, including telephone interviews ( several times a week I would interview Governor “Pat” Brown, who was a long time fan of the radio station when he was San Francisco district attorney).
    1944 - Only one week after the Normandy invasion, the first German V-1 buzz bomb, also called the doodlebug (Fieseler Fi-103), was fired at London. The first guided missile to be used in force, the V-1 was powered by a pulse-jet engine and resembled a small aircraft. Only one of the four missiles London saw that day caused any casualties, but a steady stream of V-1s causing severe damage and casualties fell on London in coming months. At times, nearly 100 bombs fell each day. Many German buzz bombs never reached their targets because of primitive guidance systems or because they were destroyed in flight by anti-aircraft fire or intercepting Allied fighters. 
    1948---Top Hits
Nature Boy - Nat King Cole
Toolie Oolie Doolie - The Andrews Sisters
Baby Face - The Art Mooney Orchestra
Texarkana Baby - Eddy Arnold
    1948 - During farewell ceremonies for Babe Ruth, his Uniform #3, was retired. The emotional ceremony at Yankee Stadium came two months before the baseball legend died.
    1956---Top Hits
The Wayward Wind - Gogi Grant
I’m in Love Again - Fats Domino
I Want You, I Need You, I Love You - Elvis Presley
Crazy Arms - Ray Price
    1963-President John F. Kennedy and other leaders condemned the assassination by a sniper of civil rights leader Medgar Evers in the back outside of his home in Jackson, Mississippi on June 12. The crime sparked numerous demonstrations this day as an outrage of the killing. The reaction to this killing spurred the Civil Rights Act of 1964.
Ten years after Medgar Evers’s death the national office of the NAACP reported that Mississippi had 145 black elected officials and that blacks were enrolled in each of the state’s public and private institutions of higher learning.... In 1970, according to statistics compiled by the Department of Health, Education, and Welfare, more than one-fourth or 26.4 percent of black pupils in Mississippi public schools attended integrated schools with at least a 50 percent white enrollment. When Medgar died in 1963, only 28,000 blacks were registered voters. By 1971, there were 250,000 and by 1982 over 500,000.
http://www.olemiss.edu/depts/english/ms-writers/dir/evers_medgar/
http://www.cr.nps.gov/nr/travel/civilrights/mainmap1.htm
    1964---Top Hits
Chapel of Love - The Dixie Cups
A World Without Love - Peter & Gordon
Love Me with All Your Heart - The Ray Charles Singers
Together Again - Buck Owens
    1966- The US Supreme Court rendered a 5—4 decision in the case of Miranda v Arizona, holding that the Fifth Amendment of the Constitution “required warnings before valid statements could be taken by police.” The decision has been described as “providing basic legal protections to persons who might otherwise not be aware of their rights.” Ernesto Miranda, the 23-year-old whose name became nationally known, was retried after the Miranda Decision, convicted and sent back to prison. Miranda was stabbed to death in a card game dispute at Phoenix, AZ, in 1976. A suspect in the killing was released by police after he had been read his “Miranda rights.” Police procedures now routinely require the reading of a prisoner’s constitutional rights (‘Miranda”) before questioning.
    1967- President Lyndon Baines Johnson appointed Thurgood Marshall of Maryland to the Supreme Court, making him the first African-American appointed to this position. 
    1968 --* KEDENBURG, JOHN J. Medal of Honor
Rank and organization: Specialist Fifth Class, U.S. Army, 5th Special Forces Group (Airborne), 1st Special Forces. place and date: Republic of Vietnam, 13 June 1968. Entered service at: Brooklyn, N.Y. Born: 31 July 1946, Brooklyn, N.Y. Citation: For conspicuous gallantry and intrepidity in action at the risk of his life above and beyond the call of duty. Sp5c. Kedenburg, U.S. Army, Command and Control Detachment North, Forward Operating Base 2, 5th Special Forces Group (Airborne), distinguished himself while serving as advisor to a long-range reconnaissance team of South Vietnamese irregular troops. The team's mission was to conduct counter-guerrilla operations deep within enemy-held territory. prior to reaching the day's objective, the team was attacked and encircled by a battalion-size North Vietnamese Army force. Sp5c. Kedenburg assumed immediate command of the team which succeeded, after a fierce fight, in breaking out of the encirclement. As the team moved through thick jungle to a position from which it could be extracted by helicopter, Sp5c. Kedenburg conducted a gallant rear guard fight against the pursuing enemy and called for tactical air support and rescue helicopters. His withering fire against the enemy permitted the team to reach a preselected landing zone with the loss of only 1 man, who was unaccounted for. Once in the landing zone, Sp5c. Kedenburg deployed the team into a perimeter defense against the numerically superior enemy force. When tactical air support arrived, he skillfully directed air strikes against the enemy, suppressing their fire so that helicopters could hover over the area and drop slings to be used in the extraction of the team. After half of the team was extracted by helicopter, Sp5c. Kedenburg and the remaining 3 members of the team harnessed themselves to the sling on a second hovering helicopter. Just as the helicopter was to lift them out of the area, the South Vietnamese team member who had been unaccounted for after the initial encounter with the enemy appeared in the landing zone. Sp5c. Kedenburg unhesitatingly gave up his place in the sling to the man and directed the helicopter pilot to leave the area. He then continued to engage the enemy who were swarming into the landing zone, killing 6 enemy soldiers before he was overpowered. Sp5c. Kedenburg's inspiring leadership, consummate courage and willing self-sacrifice permitted his small team to inflict heavy casualties on the enemy and escape almost certain annihilation. His actions reflect great credit upon himself and the U.S. Army.
    1969 --An unusual late season snowfall covered parts of South Dakota, Wyoming, Montana, and Nebraska. 10 inches of snow fell at Deerfield, South Dakota and 5 inches was measured at Great Falls, Montana.
    1970- the Beatles' "Long and Winding Road" reached number one on the Billboard Hot 100 chart. The song was never released as a single in Britain, and Paul McCartney disowned the record after producer Phil Spector added a background chorus of women's voices. Nonetheless, it was reported to have sold 1.2 million copies in its first two days of release.
    1971 - The New York Times began publishing the Pentagon Papers, a secret study of America's involvement in Vietnam.
    1972---Top Hits
The Candy Man - Sammy Davis, Jr.
Song Sung Blue - Neil Diamond
Nice to Be with You - Gallery
The Happiest Girl in the Whole U.S.A. - Donna Fargo
    1976-Don Bolles, investigative reporter for the Arizona Republic, died as a result of injuries received when a bomb exploded in his automobile, June 2, 1976, while he was engaged in journalist investigation of an alleged Mafia story. Bolles was awarded posthumously the University of Arizona’s John Peter Zenger Award, December 9, 1976.
    1980---Top Hits
Funkytown - Lipps, Inc.
Coming Up - Paul McCartney & Wings
Biggest Part of Me - Ambrosia
My Heart - Ronnie Milsap
    1984-- Severe thunderstorms produced large amounts of hail in the Denver, Colorado metro area. Hailstones as large as 4 inches in diameter fell. Homes and other buildings sustained around 200 million dollars in damage. Thousands of cars were battered with total damage to vehicles estimated at 150 million dollars. In some areas, golfball size hail fell continuously for 30 to 40 minutes. 20 people were injured by the giant hailstones. Torrential rains as much as 4.75 inches in Lakewood clogged drains and caused widespread damage from flooding.
    1984 - The Jacksons' ``State of Shock,'' with Mick Jagger doing guest vocals, is released. The million-seller reaches No. 3 on Billboard's Hot 100.
    1987 - Fifteen cities in the north central U.S. reported record high temperatures for the date, including International Falls, MN, with a reading of 92 degrees. Mason City IA and Waterloo IA reported record highs of 100 degrees. Thunderstorms in the northeastern U.S. produced golf ball size hail around Hamilton Square NJ, along with high winds which tore the roof off a hospital causing a million dollars damage. Averill Park NY was deluged with 1.64 inches of rain in fifteen minutes. 
    1988---Top Hits
One More Try - George Michael
Together Forever - Rick Astley
Everything Your Heart Desires - Daryl Hall John Oates
I Told You So - Randy Travis
    1988- Afternoon thunderstorms produced severe weather in the Southern and Central Plains Region. Forrest NM was deluged with 5.5 inches of rain in ninety minutes. Temperatures soared into the 90s across much of the eastern half of the nation, including New England. Northern Illinois reported a record twenty straight days of dry weather.
    1990---Top Hits
Please Hammer Don t Hurt Em, M.C. Hammer
I Do Not Want What I Haven t Got, Sinead O Connor
I m Breathless, donna, 
Pretty Woman, Soundtrack
    1994-- At the age of 34, Cub second baseman Ryne Sandberg suddenly retires walking away from $16 million (due to personal problems, he said.) While he had been a notoriously slow starter throughout his entire career, his 1994 start was disastrous. Later, he admitted that he had been distracted at the time while going through a messy divorce. He came back for the 1996 and 1997 seasons, retiring permanently at the age of 37 with a career batting average of .285, and a record 277 home runs as a second baseman; this record was surpassed in 2004 by Jeff Kent.http://www.thebaseballpage.com/past/pp/sandbergryne/
http://www.geocities.com/Colosseum/Arena/6113/
    2000---Top Hits
The Marshall Mathers ,Eminem 
The History Of Rock , Kid Rock
Oops!...I Did It Again , Britney Spears, 
Mad Season, matchbox twenty
    2003 --On his fourth attempt, Roger Clemens becomes the 21st pitcher and the first since 1990 to record 300 career wins as the 40-year-old righty goes 6 2/3 innings in the Yankees' 5-2 inter-league victory over the Cardinals. In the second inning when Edgar Renteria swings through full-count fastball, the 'Rocket' also joins Nolan Ryan (5,714) and Steve Carlton (4,136) as just the third hurler to record 4000 career strikeouts.
    2004---Top Hits
Confessions ,Usher 
Under My Skin, Vvril Lavigne, 
Here For The Party , Gretchen Wilson, 
Musicology, Prince 
    2005 - Pop superstar Michael Jackson is found not guilty on all counts of his child molestation trial in Santa Maria, Calif. Jackson, 46, had been charged with molesting a 13-year-old cancer survivor in 2003, serving him wine and conspiring to hold the boy and his family hostage at his Neverland estate in order to get them to rebut a television documentary.

NBA Finals Championship This Date
    1989 Detroit Pistons
    1997 Chicago Bulls