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Court Holds that Indian Tribe May Conduct Business
as Pay Day Lender in California Without Securing Lender’s License
By Tom McCurnin
Leasing News Legal News Editor

Court Rules That Oklahoma Indian Tribe Can Conduct Business in California as Pay Day Lender Without a Lenders License.
Sovereign Immunity Triumphs. But Is That a Good Thing?

People v Miami Nation Enterprises 223 Cal.App.4th 21 (2014).

Anyone who does business with an Indian Tribe is asking for trouble. They can interject themselves into society to conduct business, but if things go South, the tribe can hide behind sovereign immunity. It means the tribe is immune from civil suit or criminal prosecution.
In this case, it applies to usury, late fees, even collection procedures.

In today’s case, a Florida based pay day lender was making pay-day loans in the State of California, but didn’t procure any licenses to do so. This would be a bona fide disaster for you or me, but since the lender was owned by an Oklahoma Indian tribe, they were beyond the rule of law. The facts follow.

Five pay day lenders solicited short-term, payday loans over the Internet to California residents in violation of several provisions of the California Finance Code. The State of California brought actions against them for injunctive relief, restitution, and civil penalties. The trial court granted the Commissioner's ex parte request for a temporary restraining order against each of the businesses and set a date for them to show cause why the request for a preliminary injunction should not be granted. The pay day lenders filed motions to quash service, claiming that several tribal entities owned the pay day lenders. The State opposed the motion, arguing that the doctrine of tribal sovereign immunity did not apply to commercial activities outside of Indian country. The Court denied the motion to quash service.

The tribes appealed, arguing that under a United States Supreme Court decision, the tribes enjoy immunity from suit in state court, even if the subject of the action is purely commercial activity that occurs on nontribal lands. To determine if the tribes were actually conducting business, a discovery referee was appointed to supervise the discovery. After the discovery was completed, the tribes renewed their motion to quash, and the Department of Oversight filed a motion for a preliminary injunction, which the trial court deemed an opposition to the motion to quash.

The tribe formed a company called MNE, and the tribe expressly provided MNE would enjoy all privileges and immunities of the tribe itself, including “the right of sovereign immunity from unconsented civil suit.” The pay day lenders were wholly owned subsidiaries of MNE. The trial court ruled that the tribes enjoyed sovereign immunity, and the Department of Oversight appealed.

On appeal, the Court had little trouble upholding the sovereign immunity because the lenders were wholly owned corporations organized under tribal law, and expressly protected from suit by the tribe's immunity.

The case is not terribly interesting, but what is interesting is the growing trend for some pay day lenders to “rent-a-tribe” for purposes of avoiding all consumer protection licensing statutes, which is generally regulated only by States, not the United States.

Many view this trend as disturbing simply because the tribe’s identity is concealed to the average borrower, unlike going to an Indian owned casino. Most of the trade names used by companies (such as Western Sky, Cash Advance, and Preferred Cash Loans) offer no indication to the borrower that the lender is owned by an Indian tribe.

Moreover, the laws are stacked against the States, because Congress, not the States, has jurisdiction to award or curtail sovereign immunity. In a few states, namely North Carolina and Washington, regulators have given up fighting tribal payday lenders, realizing that the legal battle would be too expensive and complicated. Educating the public as to the dangers of tribe based pay day lenders is an easier way to combat the problem.

Many States believe that these pay day lenders are not actually owned by Indian tribes, and are sham businesses that use a so-called “rent-a-tribe” scheme. The business model is that legitimate payday lenders offer tribes compensation to allow the lenders to organize under the tribe's name, while the lenders maintain anonymity and enjoy functional control of the lender. The compensation may be monthly payments to the tribe--usually a percentage of monthly profits of the pay day loans. The pay day lenders have no physical presence on tribal land, and instead, operate from call centers and the internet.

If this isn’t outrageous enough, consultants on the Internet offer instructions to payday lenders, advising them how to joint venture with Indian tribes to evade regulation. For further reading, readers might want to read www.denverpost.com/opinion/ci_17355660.

In response to this lack of regulation, over 8,500 borrowers complained to the Federal Trade Commission, which does have authority to regulate tribal activity. The Complaints included:

• The Application Process. The borrowers claimed that there were no disclosures, the web site made it near impossible to actually read the loan documents, and a 600% annual interest rate

• An Improper Truth in Lending Disclosure. The borrowers claimed that the TIL Disclosure was conflicting in several areas and the font was a microscopic 7 point font size);

• Outright Deceit in the Sales Process. The FTC obtained policies and emails which advised salesperson not to tell the borrower many pertinent facts.

• Illegal Enforcement of Loans. The FTC determined that the Indian pay-day lenders forced through unauthorized ACH payments and used a cleverly hidden arbitration clause to compel the borrowers to travel to Oklahoma and participate in arbitration on tribal land.

• Evergreen Clause. The FTC found that the loans would be renewed and even if paid in full, would still be renewed. The process to opt out of automatic renewal was nearly impossible to exercise.

The FTC brought suit against the Indian pay day lenders, and one Nevada Federal Commissioner, backed up by a Federal Judge took on the tribal pay day lenders. A copy of the Commissioner’s Report, and the Order Approving the Report, are attached. The Report has more detail in it and is more interesting reading.

The bottom line is that trend (which may or may not be peaking) offers two lessons for readers, depending on whose ox is being gored. If the reader is a lender, or potential lender, desiring to be free of all usury claims and regulation, then partnering with an Indian tribe may be a good business model for those readers. If, on the other hand, the reader feels that these lenders give all lenders a bad name, then there may be a light at the end of this tunnel—one Nevada Commissioner has figured this out.

Miami Indian Case 1
Miami Indian Case 2
Miami Indian Case 3

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

Tom McCurnin
Barton, Klugman & Oetting
350 South Grand Ave.
Suite 2200
Los Angeles, CA 90071
Direct Phone: (213) 617-6129
Cell (213) 268-8291
Email: tmccurnin@bkolaw.com
Visit our web site at www.bkolaw.com
Previous Tom McCurnin Articles:
http://www.leasingnews.org/Conscious-Top%20Stories/leasing_cases.html

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1-4 Family Home Loans Take 154 Year Old Bank Down
Baltimore/Bel Air, Maryland

The two offices of Slavie Federal Savings Bank, Bel Air, Maryland, were closed with Bay Bank, FSB, Lutherville, Maryland, to assume all of the deposits. Founded April 4, 1900, the bank had 29 full time employees as of March 31, 2014, at their original office in Bel Air and the office established June 30, 2002 in Baltimore.

This brings Bay Bank to 11 offices in Baltimore City and Baltimore County as well as in Anne Arundel and Harford counties, bring the bank's parent Bay Bancorp to assets in excess of $500 million.

Philip E. Logan has been the President, Chief Executive Officer and Chairman of the Board at Slavie Federal Savings Bank since January 2001, according to Bloomberg BusinessWeek. The bank was informed several times to bring its capital up to par, but was unable to do so. Bel Air, Maryland is a town of 10,274, so most of the loans appear to be in Baltimore real estate, which was the downfall of the bank as evidenced by the non-current loans (no loan and interest payments, yet paying interest on deposits) and residential real estate charge offs.

(in millions, unless otherwise)

Non-Current Loans

2006	$1.20
2007	$479,000
2008	$1.2
2009	$1.9
2010	$5.7
2011	$7.7
2012	$9.7
2013	$12.7
3/31	$10.7

Charge Offs

2006 0
2007 $122,000 ($119,000 commercial/industrial, $3,000 individuals)
2008 $102,000 ($100,000 commercial/industrial, $2,000 individuals)
2009 $150,000 ($154,000 1-4 family residential, -$4,000 nonfarm/nonres.)
2010 $14,000 ($14,000 1-4 family residential, $1,000 nonfarm/nonres., -$1,000 comm./ind.)
2011 $400,000 ($400, 1-4 family, $1,000 individuals, -$1,000 commercial/industrial)
2012  $6.3    ($4.9 1-4 family, $740,000 nonfarm/nonres., $571,000 constr./land, $90,000   individuals, $5,000 commercial/industrial)
2013  $1.9    ($1.4 1-4 family, $373,000 nonfarm/nonres., $109, constr./land, -$10,000 Individuals)
3/31 $128,000   ($285,000 1-4 family, -$421,000 nonfarm/nonres., -$3,000 individuals)

Construction and Land, 1-4 family multiple residential,
Multiple Family Residential, Non-Farm Non-Residential loans.

Profit
2006	-$13,000
2007	$62,000
2008	-$2.2
2009	$89,000
2010	$538,000
2011	-$3.0
2012	-$9.1
2013	-$3.6
3/31	-$458,000

Net Equity
2006	$16.6
2007	$16.8
2008	$14.9
2009	$16.2
2010	$16.8
2011	$13.6
2012	$6.3
2013	$3.1
3/31	$2.9

Tier 1 risk-based capital ratio 3.83%

As of March 31, 2014, Slavie Federal Savings Bank had approximately $140.1 million in total assets and $111.1 million in total deposits. Bay Bank, FSB will pay the FDIC a premium of 0.20 percent to assume all of the deposits of Slavie Federal Savings Bank. In addition to assuming all of the deposits of the failed bank, Bay Bank, FSB agreed to purchase approximately $129.9 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.6 million.

http://www.fdic.gov/news/news/press/2014/pr14041.html

Unofficial Problem Bank List:
http://cr4re.com/PBL05172014.html
List of Bank Failures:
http://www.fdic.gov/bank/individual/failed/banklist.html
Leasing News Bank Beat:
http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm

John Kenny
Receivables Management

• End of Lease Negotiations & Enforcement
• Fraud Investigations
• Credit Investigations • Asset Searches
• Skip-tracing • Third-party Commercial Collections

john@jkrmdirect.com | ph 315-866-1167| www.jkrmdirect.com

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

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“Job Boards---Be Careful”
Career Crossroad---By Emily Fitzpatrick/RII

Question: Should I post my resume on Job Boards?

Answer: We recommend NOT posting your resume on Job Boards.
Job Boards came soon after the age of the Internet, e.g. Monster, Career Builder. They have slowly lost momentum as Candidates realize they were being publicly tagged as “ACTIVE” (looking for a position) when they posted their resumes on these public forums.
Not such a great idea:
(1)   Current employers will be alerted, and your position could be in jeopardy: your current employer may think you are actively seeking new positions – when, in fact, you may just be “open” to hearing about opportunities.
(2)   You will lose control of your personal brand.
(3)   A potential employer may perceive that there must be something “wrong” with you (the Candidate) that you have your resume posted.
(4) The information may be used by a person who wants to steal your identity or even to gain knowledge of where you live.
(5) It may be duplicated or stay on the internet forever (never put your home address on a document that will go on the internet.)
NOTE: Never upload your résumé to your social profiles either (e.g. Facebook, LinkedIn)
Utilize Job Boards as a research tool to review positions / companies.
Present yourself ONLY to specific companies you are interested in and to positions that you are qualified for. Furthermore, be aware there are recruiters who will send your resume out without your express permission (RII guarantees confidentiality and will never send out a resume without express permission to do so).

NOTE: A recent survey conducted by SHRM found that two-thirds of HR Pros prefer to receive resumes directly, not via a Job Board

Emily Fitzpatrick
Sr. Recruiter
Recruiters International, Inc.
Phone: 954-885-9241
Cell: 954-612-0567
emily@riirecruit.com
Invite me to Connect on LinkedIn
www.linkedin.com/pub/emily-fitzpatrick/4/671/76
Also follow us on Twitter #RIIINFO

Career Crossroads Previous Columns
http://www.leasingnews.org/Conscious-Top%20Stories/crossroad.html

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Leasing Industry Help Wanted

For information on placing a help wanted ad, please click here:
http://www.leasingnews.org/Classified/Hwanted/Hwanted-post.htm

Please see our Job Wanted section for possible new employees.

June 1, 2014 Alexa Ranks Leasing Web Media
Leasing News #1

How popular the site relative to other sites; ranking in the United States, Global Rank

Daily time	U.S.	Worldwide	Sites
on site	rank	rank	link

21:18	19,303	109,686	165	Leasing News
2:30	72,647	308,601	156	Monitor Daily
3:33	246,847	639,336	238	Equipment Leasing & Finance Assoc.
2:26	387,528	647,484	54	Equipment Finance Advisor
2:53	*	894,110	82	National Assoc. Leasing Brokers
1:51	*	1,057,542	45	Lessors
3:44	*	1,104,691	64	National Equip. Finance Association
2:39	*	1,362,575	117	Commercial Finance Association
3:21	*	1,899,542	55	Canadian Finance & Leasing Assoc.
3:55	*	2,293,756	21	CLP Foundation
2:27	*	2,576,496	101	Equip. Lease & Fin. Foundation
*	*	9,272,169	11	Assoc. Government Leasing & Fin.

Alexa is a search analysis company owned by Amazon. You can learn the rank of any web site by downloading the free Alexa Browser Extension (http://www.alexa.com/).

The metrics above are free. There are various plans to learn more about a web site.

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Leasing 102
by Mr. Terry Winders, CLP

Files

I have had the opportunity to revied some lease portfolios as of late and one of the most misunderstood needs of a leasing company is the need to look into the lease files numerous times over the life of the lease. This is true for insurance, sales tax, equipment location changes, and many other reasons not the least of which is what are the provisions in the lease for termination including all options.

The trend has been keeping leasing documents on line, at a server, or the cloud, and with the digital signing, it all sounds easy. However, there are still many paper trails as well as original signed documents that need to be locked up, as well as organized.

When I am requested to do a lease audit it takes me way too much time to figure out “what was the deal”. I mean that the lease folder is not organized and there are copies of proposals, work sheets, pricings and other non- descript papers that confuse what was actually approved. Worse are notes and changes made, but not explained.

After the deal is approved there should be a lease summary sheet that describes the deal and the approvals. It should be made for accounting, as well as for audits or legal needs.

Organization in a folder with pin flap sections for a final deal sheet, credit approval, pricing at booking, equipment description and location, credit information including financial records, insurance, correspondence, and most of all a “copy” of the lease agreement and all other attachments is a must so six months after the lease you can go to the correct section to seek out what you need.

A portfolio full of everything in one place does not cut it. Papers get lost (including portfolios) and it takes valuable time to find things.

I would recommend putting the original lease documents in a fire proof cabinet and only use them upon termination.

If an actual copy is in the lease folder for reference then there is no fear of losing vital information. I do fear that because there are so many generations or versions of lease agreements that you should put a “copy” of the “signed lease” in the working lease file. End of the lease options vary with each lease as do insurance requirements and equipment location requirements so just putting an unsigned copy into the folder could get you into trouble.

This is very true when lessors buy leases from many sources with many different documents.

Your collections people should refer to the copy of the signed lease agreement for late charge amounts or other allowed fees. The fee section varies more than any other provision in our leases. In addition, default sections can be different and require different notice requirements.

Different types of leases require different lease documents so many times we have to refer to the lease folder to determine what was agreed upon.

Correspondence can get complicated and numerous so a separate section needs to be created so it will not cause a mess in the balance of the folder. Insurance needs to be followed and it creates a lot of paperwork so it also needs a special section.

Just because you have scanned lease documents onto a server, doesn’t mean it will answer all the questions an auditor or user may need. A well-organized lease folder will save hours of concern and wasted time looking for missing documents.

Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at terrywinders11@yahoo.com or 502-649-0448
He invites your questions and queries.
Previous #102 Columns:
http://www.leasingnews.org/Conscious-Top%20Stories/Leasing_102/Index.htm

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.

502.649.0448/terrywinders11@yahoo.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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March, 2014---The List

--- Mergers, Acquisitions & Changes
"The Good, the Bad and the Ugly"-

MicroFinancial/Leasecomm/Timepayment, Burlington, MA (04/14) 2014 1st & 2013 4th Quarter Soft http://leasingnews.org/archives/Apr2014/4_21.htm#micro

Summit Leasing, Inc., Yakima, Washington (04/14) Acquired by Continental Bank, Salt Lake, City.
http://leasingnews.org/archives/Apr2014/4_04.htm#continental

Marlin Leasing, Mount Laurel, New Jersey (04/14) Getting back into broker business
http://leasingnews.org/archives/Apr2014/4_04.htm#continental

Ascentium Capital, Kingwood, Texas (04/14) Reports a 35% increase in volume with assets near $500 million for the first quarter of 2014 (an increase of 57%). The company closed a $200 million securitization in March.

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

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

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Healthcare Partners Group Leasing Head
Gets 4 Year Sentence

Michael Edward Filmore, 52, of Chesterfield, Missouri, was sentenced to four years in federal prison for defrauding TARP recipient Pulaski Bank (Pulaski), of Creve Coeur, Missouri.. He was also ordered to pay $6.5 million dollars in restitution and will remain on supervised release for three years after his prison sentence is served. Filmore was sentenced by United States District Judge Audrey G. Fleissig in St. Louis, Missouri.

"Filmore obtained more than $6 million in Pulaski Bank loans by fabricating documents, using shell companies, and outright lying about collateral, said. TARP was intended to stabilize the financial system, not to fund crime," said Christy Romero, Special Inspector General for TARP (SIGTARP). “SIGTARP and our law enforcement partners will bring justice to those who commit crimes that jeopardize TARP investments.”

According to court documents, Filmore was a customer of Pulaski and defrauded the bank over a period of several years in a multi-million dollar fraud scheme while he purportedly operated a medical equipment sales firm by the name of Healthcare Partners Group, LLC. Filmore was engaged in the brokerage of medical equipment and needed to finance the acquisition of equipment, which he then sold and leased to customers. In order to obtain financing, Filmore fabricated and altered brokerage account records submitted to Pulaski which purportedly showed that he had millions of dollars in securities that he agreed to pledge as collateral for outstanding loans, including a $1 million revolving line of credit. However, none of the collateral pledged by Filmore - in the form of securities accounts or purported valuable medical equipment - existed as was represented to the bank. Ultimately, Filmore obtained at least 15 loans and more than $6 million in financing from Pulaski, and he currently owes Pulaski more than $5 million.

On November 1, 2013, employees at Pulaski determined that purchase order and account information associated with a new loan was suspicious. Further investigation by the bank revealed fictitious information had been submitted to the bank. Discovering these discrepancies, Pulaski canceled the wire transfer of funds and reported the matter to authorities.

This case was investigated by SIGTARP, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Tom Albus of the U.S. Attorney’s Office for the Eastern District of Missouri.

((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)

Top Stories May 26-May 29
(You May Have Missed One)

Here are the top stories opened the most by readers:

(1) Balboa Capital Dismisses Suit Against Regents Capital
Regents Capital Sues Balboa for $36,454 Attorney Fees
by Christopher Menkin
http://leasingnews.org/archives/May2014/5_27.htm#balboa

(2) Correction:
Regents Capital Sues Balboa for $36,454 Attorney Fees
Balboa Capital Dismisses Suit Against Regents Capital
http://leasingnews.org/archives/May2014/5_29.htm#correction

(3) My Husband Richard and the Veterans Administration
by Rosanne Wilson, CLP, BPB
http://leasingnews.org/archives/May2014/5_29.htm#wilson

(4) New Hires --- Promotions
http://leasingnews.org/archives/May2014/5_29.htm#hires

(5) Uber to Become the World's Most Valuable Startup
http://leasingnews.org/archives/May2014/5_27.htm#uber

(Tie) (6) HSMC Sanctioned for Destroying Evidence of Recorded Phone Calls in Privacy Action
By Tom McCurnin
Leasing News Legal News Editor
http://leasingnews.org/archives/May2014/5_27.htm#hsmc

(Tie) (6) Leasing 102 by Mr. Terry Winders, CLP Equipment Location
http://leasingnews.org/archives/May2014/5_27.htm#location

(8) Redbox to dismantle 500 of its DVD/Blu-ray kiosks
http://www.upi.com/Business_News/2014/05/23/Redbox-to-dismantle-500-of-its-DVDBlu-ray-kiosks/4631400867405/?spt=sec&or=bn

(9) “Resume in ASCII Text File”
Career Crossroad---By Emily Fitzpatrick/RII
http://leasingnews.org/archives/May2014/5_27.htm#crossroad

(10) Zombie Bank Closes in Cincinnati
500th Bank Failure Since 2007
http://leasingnews.org/archives/May2014/5_27.htm#bank_beat

(11) Eight Tips to Rethinking Work-Life Success
Crossing the Corner Office Chasm
By Teresa Taylor
http://leasingnews.org/archives/May2014/5_29.htm#tips

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

Firestone Financial Expansion/Moves to New Location
Closes New Multi-Year Credit Facility

Needham, MA –– Firestone Financial Corp. a leader in equipment financing announced today two of its growth initiatives, a move to a new office location and an increased credit facility.

Firestone Financial has 49 employees and $188M of assets under management. The company recently relocated its headquarters to 117 Kendrick Street in Needham, Massachusetts. The new office space will allow Firestone Financial to double its size to accommodate the growth of the company.

Firestone Financial also signed a $225 Million, multi-year revolving credit facility at the end of last year; this is an increase from the prior facility of $125 Million. The bank group is led by RBS Citizens, N.A. and the lenders include Wells Fargo Bank National Association, Bank of America, N.A., People’s United Bank, Rockland Trust Company, TD Bank, N.A., Brookline Bank, Berkshire Bank and Webster Bank.

Jerry Sargent, President of Citizens Bank, Massachusetts applauded Firestone’s management team. “We’re proud of our partnership with Firestone and excited for the firm as it continues to grow. Like us, Firestone has an unwavering commitment to its clients. Its unique ability to assist its customers stems from its deep knowledge of the industries it serves. We look forward to the firm’s future growth and our continued partnership.”

Firestone Financial, President and CEO David Cohen said, “Over the past few years we have grown very rapidly and our new office and credit facility will provide us with the tools we need to accommodate our continued growth. We are extremely optimistic about the future of our business and the industries we serve.”

About Firestone Financial Corporation
Since 1965, Firestone Financial has helped businesses by provided equipment financing nationwide. Our focus is on cultivating long term relationships in the industries that we serve. Today we provide competitive financing solutions for the video gaming, amusement, vending, carnival, fitness, and commercial laundry industries. To learn more, call 1.800.851.1001 or visit www.firestonefinancial.com.

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

May Credit Managers' Index Increases,
Signals Continued Recovery

After accurately predicting economic weakness in the first quarter of 2014, the National Association of Credit Management's monthly economic report improved in May, suggesting further recovery and stronger GDP figures in the second quarter, barring any unforeseen shocks.

Columbia, Maryland: —The Credit Managers' Index (CMI), issued by the National Association of Credit Management (NACM), improved from 56 to 56.8 in May. This marks the second consecutive month of improvement for the index, further signaling the end of the first quarter's economic turmoil that appears to have been primarily caused by bad weather. Elsewhere in the May CMI report, the favorable factors index rose from 60.7 to 62.7, buoyed by a strong increase in sales, and the unfavorable factors index remained unchanged at 52.8, held back by a perplexing increase in disputes.

Earlier in the 2014 the CMI predicted poor economic performance in the first quarter with a short series of declines that was eventually reflected in the US Commerce Department's recent revision of the US gross domestic product (GDP) figures, which indicated that the economy had endured negative growth at a rate of 1% for the first three months of the year. Recent CMI readings, however, have supported the hypothesis that analysts can expect the second quarter data to be much more positive.

The best news in the May report came in the favorable factors, which reached its highest reading in the last year thanks to a leap in sales. "The biggest jump took place in the sales category as the reading is now heading towards the 70 mark," said NACM Economist Chris Kuehl, PhD. "The index sits at 65.6 and that is by far the highest reading notched in well over three years."

Indeed only one of the favorable factors now sits below 60 as of May's readings: new credit applications. The figure fell this month from 59.3 to 58.9, but the data suggest that while new applications for credit have slowed, fewer applications are also being rejected, which means that those applying for credit are in better financial shape. Furthermore, while new applications fell, amount of credit extended jumped considerably to 65, just shy of where it was at the start of the year. "There may be fewer applications, but there are more companies seeking larger amounts of credit," Kuehl said.

The unfavorable factors index remained flat at 52.8, which remains a respectable figure. Rejections of credit applications improved from 52.3 to 52.7 and accounts placed for collection improved as well from 51.7 to 53.8, suggesting that fewer business debtors overall are facing credit crises. An unexpectedly sharp deterioration in disputes, however, from 54.7 to 50.2, is most likely what held the index down. The decrease in disputes was somewhat baffling, and could have been driven by any of a number of different possibilities. "It may indicate that there is a stronger desire to adjust credit arrangements as companies anticipate a period of better growth," Kuehl noted. "It may also reflect the impact of the first quarter slump and the temporary nature of that economic dip."

Nonetheless, the combined index, coupled with improvements in both the manufacturing and service sectors, suggests that better days are ahead now that the winter doldrums are firmly in the past, barring any unforeseen surprises. "The impact of the bad first quarter is still being felt and it may be another month or two before the rebound noted in the favorable categories starts to make a real dent in the unfavorable categories," Kuehl said. "The news is good in the right places and there are fewer warning signs or cautionary notes this month. If that trend can be sustained for a few more months one can talk of real recovery by the middle of the year, but thus far it seems that one good month is often followed by a more challenging one."

For a full breakdown of the manufacturing and service sector data and graphics, view the complete May 2014 report at http://web.nacm.org/CMI/PDF/CMIcurrent.pdf. CMI archives may also be viewed on NACM’s website at http://web.nacm.org/cmi/cmi.asp.

ABOUT THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT
NACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACM’s collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nation’s policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy.

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

Auto Lender Will Pay $5.5 Million to Settle FTC Charges
It Harassed Consumers, Collected Amounts They Did Not Owe

A national subprime auto lender will pay more than $5.5 million to settle Federal Trade Commission charges that the company used illegal tactics to service and collect consumers’ loans, including collecting money consumers did not owe, harassing consumers and third parties, and disclosing debts to friends, family, and employers.

Consumer Portfolio Services, Inc. (CPS), headquartered in Irvine, Calif., agreed to refund or adjust 128,000 consumers’ accounts more than $3.5 million and forebear collections on an additional 35,000 accounts to settle charges the company violated the FTC Act. CPS will pay another $2 million in civil penalties to settle FTC charges that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA)’s Furnisher Rule.

“At the FTC, we hold loan servicers responsible for knowing their legal obligations and abiding by them,” said Jessica Rich, director, FTC’s Bureau of Consumer Protection. “The law is very clear: Loan servicers can’t charge consumers more than they owe. And they can’t threaten and harass consumers about delinquent debts.”

The order settling the charges requires CPS to change its business practices to comply with the requirements of the appropriate laws. In addition, the company is required to establish and maintain a comprehensive data integrity program to ensure the accuracy, integrity and completeness of its loan servicing processes, and the data and other information it services, collects or sells. CPS must also provide the FTC with periodic independent assessments of its data integrity program for 10 years.

According to the FTC’s complaint, CPS’ loan-servicing violations include:

Misrepresenting fees consumers owed in collection calls, monthly statements, pay-off notices, and bankruptcy filings;
Making unsubstantiated claims about the amounts consumers owed;
Improperly assessing and collecting fees or other amounts;
Unilaterally modifying contracts by, for example, increasing principal balances;
Failing to disclose financial effects of loan extensions;
Misrepresenting that consumers must use particular payment methods requiring service fees; and
Misrepresenting that the company audits verified consumer accounts balances.

The company’s collection violations include disclosing the existence of debts to third parties; calling consumers at work when not permitted or inconvenient; calling third parties repeatedly with intent to harass; making unauthorized debits from consumer bank accounts; falsely threatening car repossession; and deceptively manipulating Caller ID. Because for many of its accounts CPS is a creditor, the complaint charges these practices violated Section 5 of the FTC Act. For those accounts where CPS is a debt collector, the complaint charges these practices violated the FDCPA.

CPS is also charged with failure to establish and implement reasonable written procedures and failure to reasonably investigate and respond timely to consumer disputes under the Furnisher Rule.

Under the order, the company will begin sending refunds to consumers and adjusting affected account balances within 90 days

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

German Shepherd Dog and Anatolian Shepherd
Irvine, California Adopt-a-Dog

Trinket
- ID#A090753

I am a spayed female, black and tan German Shepherd Dog and Anatolian Shepherd.

I am about 2 years, 2 months old. 86 Pounds.

I have been at the shelter since Mar 01, 2014.

Shelter Staff made the following comments about this animal:
Big dogs make it happen and that's the truth as far as I'm concerned. I am such a nice girl who enjoys playing with people and toys. I think you'll really fall in love with me and my kind hearted nature. I do need to be with my family and go places with them for a while until I can adjust to new places and gain trust that when they have to go away without me, they'll come back. It might take some time and patience; however, it will be well worth it to have me as part of the pack.

For more information about this animal, call:
Irvine Animal Care Center at (949) 724-7740
Ask for information about animal ID number A090753

Email: info@irvineshelter.org

City of Irvine Shelter
Physical Address:
6443 Oak Canyon
Irvine, CA 92618

Center Hours:
Weekdays: noon-7 p.m.
Weekends: 10 a.m.-5 p.m.
Closed Tuesdays and Holidays

*Please arrive at least two hours before closing in order to visit with adoptable animals. Adoptions stop one hour prior to closing.

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

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Michale J. Witt Joins Leasing Attorneys Group
Law Firms who specialize in the equipment leasing industry

Leasing Attorneys

Birmingham, Alabama
The lawyers of Marks & Associates, P.C. have over 30 years experience in dealing with virtually every type of equipment financing and are recognized throughout the industry for prompt, practical solutions and exemplary service. They offer cost-conscious, effective lease enforcement and good counsel.
Email: Barry@leaselawyer.com
Website: www.leaselawyers.com

California, National: city: Riverside
Ellen Stern - get results, reasonable pricing; numerous industry contacts, nearly 30 yrs exp.in SoCal, 20 yrs equip.: CFL license specialist, documentation, work-outs, litigated collections, recoveries; deal-maker.
Email: leaselaw@msn.com

Kenneth C. Greene

California & Nevada
Leasing and Financial consultant, active in several leasing
associations, as well as involved in music and film productioncin LA. Mention "Leasing News" for a free consultation.
415-858-97111
Skype: 424.235.1658
or kenlaw100@gmail.

Connecticut, Southern New England:
EVANS, FELDMAN & BOYER, LLC Collections, litigation, documentation, portfolio sales and financing, bankruptcy. We represent many of the national and local leasing companies doing business in this state. Past chairman EAEL legal committee. Competitive rates.
email: rcfeldman@snet.net

Los Angeles, Southern CA
Seasoned attorney representing secured creditors in auto finance and truck/equipment lease industry. Bankruptcy and State Court litigation. Vincent V. Frounjian (818) 990-0605or email: vvf@pacbell.net.

Encino, California: Statewide “ELFA”
Hemar, Rousso & Heald, LLP 30 yr excellent reputation Lessor representation commercial litigation, debt collection, and bankruptcy.
Call Stephen E. Jenkins Esq (818) 501-3800

Los Angeles, Statewide: CA. "ELFA" Aggressive creditors rights law firm specializing in equipment leasing handling collection matters on a contingency, fixed fee or hourly cbasis. email:RGarwacki@prodigy.net

Los Angeles -statewide: CA "ELFA"
Practice limited to collections, bankruptcy and problem accounts resolution. Decades of experience. 10-lawyer firm dedicated to serving you. Call Ronald Cohn, Esq. (818)591-2121 or email. Email: rrcohn@aol.com

Los Angeles- Statewide, CA
Lawyer specializing in banking and leasing issues statewide. Documents and litigation.
Tom McCurnin, Barton, Klugman & Oetting. Voice: (213) 617-6129
Cell:(213) 268-8291
Email:
tmccurnin@bkolaw.com

California & National
Paul Bent – More than 35 years experience in all forms of equipment leasing, secured lending, and asset based transactions. Financial analysis, deal structuring, contract negotiations, documentation, private dispute resolution, expert witness services. (562) 426-1000.
www.paulbentlaw.com

Illinois
Trabaris, P.C.: Finance attorney with 24 years’ experience with transactional, documentation, secured financing and workouts/restructurings. Kevin Trabaris. Phone: 847-205-4377. Email:kevin@trabaris.com

Website: www.trabaris.com. Blog:trabaris.com/info/blog/

Law Firm - Service, Dallas, TX. "ELFA"
Mayer regularly practices in leasing, secured financing, project development and finance and corporate finance.
email: dmayer@pattonboggs.com
Website: www.pattonboggs.com

Massachusetts (collection/litigation coast to coast)
Modern Law Group focuses its practice on collections, lease enforcement and asset recovery. For the past five years, our attorneys have helped clients recover millions of dollars. We are able to cover your needs coast to coast.
Email phone 617-855-9085www.modernlawgroup.com

Michael J. Witt, experienced bank, finance, and leasing attorney, also conducts Portfolio Audits. Previously he was Managing Counsel, Wells Fargo & Co. (May, 2003 – September, 2008); Senior Vice President & General Counsel, Advanta Business Services (May, 1988 – June, 1997) Tel: (515) 223-2352 Cell: (515) 868-1067
E-mail: witt-legal@outlook.com
Web: www.witt-legal.com

National: The OMEGA Network Group-nationwide legal representation of small and mid ticket equipment lessors-flat fee bankruptcy & replevin, contingent collection,
billable litigation (704-969-3280)
tong_92@yahoo.com

National: Coston & Rademacher: Business attorneys serving the lease-finance industry since 1980. Transactional, documentation, corporate/finance, workouts, litigation, bankruptcy, portfolio management. Chicago-based national practice. Jim Coston, CLP (Members: ELFA, NEFA).
email: Jcoston@costonlaw.com
Website:www.costonlaw.com

St. Louis County , MO. - statewide:
Schultz & Associates LLP., collections, negotiation, and litigation. Also register and pursue recovery on foreign judgments. Contingency and reasonable hourly rates.
Ronald J. Eisenberg, Esq.
(636) 537-4645 x108
reisenberg@sl-lawyers.com
www.sl-lawyers.com

NJ,De,Pa: Specializing in leased equipment/secured transactions. Collections, replevins/workouts reasonable rates. Sergio Scuteri/Capehart & Scratchard, PAsscuteri@capehart.com / www.capehart.com

New York and New Jersey
Peretore & Peretore, P.C. documentation, portfolio purchase & sale, replevin, workouts, litigation, collection, bankruptcy. Aggressive. Over 25 years experience.www.peretore.com

Thousand Oaks, California:
Statewide coverage Spiwak & Iezza, LLP 20+ years experience,Representing Lessors banks in both State/ Federal Courts/ all aspects of commercial leasing litigation.
Nick Iezza 805-777-1175
niezza@spiwakandiezza.com

Free Posting:
http://www.leasingnews.org/Classified/Attorney/Attorney-post.htm

News Briefs----

CLP Spring/Summer Circular Spotlights Bob Fisher, CLP
PDF

South Side Bank, 1 of 3 Black Banks, Ordered Raise Capital or Sell
http://www.chicagotribune.com/business/ct-highland-community-bank-0531-biz-20140531,0,4420746.story

Bank mergers loom large in Wisconsin; more than a dozen since early '13
http://www.jsonline.com/business/bank-mergers-loom-large-in-wisconsin-more-than-a-dozen-since-early-13-b99280776z1-261374511.html

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--You May Have Missed It

The third coming of Steve Hudson--Element Financial
http://www.theglobeandmail.com/report-on-business/rob-magazine/returning-to-the-lease-financing-scene-after-a-controversial-exit/article18884378/?page=1

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SparkPeople--Live Healthier and Longer

11 Active Vacation Ideas
http://www.sparkpeople.com/resource/slideshow.asp?show=9

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Baseball Poem

The Catchers Learns the Motion
by Tim Peeler

and is often the hub of the movements,
he reads the Morse code of the pitcher
and returns the speech of the dumb,

he loves the sphere and its ridges,
rips it from the tight mitt
with or against the seams
whistles it from a frog squat.
the catcher learns
he is the hat of the hat dance,

the pitcher may think himself
the center of gravity,
but the catcher
waits at the apex of the great angles,

slaps the leather trap
on the errant razor
as it spits up from the dust.

the catcher imprints the motions of the hitters,
checks the rhythm of their passages,
knows he must slip an extra measure
at the end of their cha-cha-cha,

the catcher is the great disturber,
can cock twice on his return throw,
spit on the plate, call for the "buzzer"
block the ump's clear visage,

bilingual kamikaze
chattering like a wired chimp,
muttering with silent busted digits,
sacrificing legs
to the varicose crouch and
the ruinous crunch
of the few that get through
to thin armor.

Touching All Bases
Poems from Baseball
Tim Peeler
www.mcfarlandpub.com

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Sports Briefs----

Group won't seek referendum on Sacramento Kings arena deal
http://www.sacbee.com/2014/06/01/6448901/group-wont-seek-referendum-on.html

Kings win OT thriller to advance to Cup Finals
http://www.ocregister.com/articles/kings-616575-game-chicago.html

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California Nuts Briefs---

Bay Area buyers frustrated by tight supply of homes for sale
http://www.contracostatimes.com/business/ci_25872760/bay-area-buyers-frustrated-by-tight-supply-homes

Should California use taxpayer dollars to build more dams?
http://www.sacbee.com/2014/06/01/6448005/should-california-use-taxpayer.html

Graton casino's earnings beat expectations
http://www.pressdemocrat.com/article/20140531/articles/140539889

Locals release 130,000 salmon at Half Moon Bay, CA
http://blog.sfgate.com/stienstra/2014/06/01/locals-release-130000-salmon-at-half-moon-bay/

S.F. Bay Area High School Alumni
http://blog.sfgate.com/stew/2014/05/31/did-you-know-these-famous-folks-went-to-bay-area-high-schools/#6931101=0

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“Gimme that Wine”

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

Sonoma to review tasting room rules again
http://www.pressdemocrat.com/article/20140601/articles/140609986

California Cuts Water to Some Farms and Cities
http://news.nationalgeographic.com/news/2014/05/140529-sacramento-river-water-rights-california-drought/

Pumps Can Save Energy, Money in Vineyards
http://www.winesandvines.com/template.cfm?
section=news&content=133477

Ohio's wine and grape industry accounts for nearly $800 million a year in economic activity, study finds
http://www.cleveland.com/open/index.ssf/2014/05/
ohios_wine_and_grape_industry.html

St. Helena wine consultant sued for $1.6 million
http://napavalleyregister.com/news/local/st-helena-wine-consultant-sued-for-million/article_30120fc9-25c4-5a78-b7b3-a4b6a6435b2a.html

BR Cohn Fall Music Festival (Sept 19-22) Go on Sale
http://www.brcohnfallfestival.org/

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

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1692-As the village of Salem was gripped by terror of witches, Massachusetts Bay Colony governor Sir William Phips ordered a special court create on May 217,1692, to expedite judgment of the more than 150 people accused of witchcraft. Unpopular resident Bridge Bishop, first accused in April, was the first one jailed brought to trial on June 2. At her April examination her accusers—teenaged girls---had collapsed in fits as she appeared but Bishop adamantly denied the charges. “I am not witch—I known not what a witch is.” She was convicted June 2 and hung June 10.
    1731—Birthday of American's First lady: Martha Dandridge Custis Washington. While some have stated this was a standard marriage of “convenience” in its day and age, the truth in the diaries and letters and devotion of both husband and wife supersedes the criticism as they tried to live a private life and maintain a family.
http://www.whitehouse.gov/history/firstladies/mw1.html
http://www.firstladies.org/Bibliography/MarthaWashington/FLBioSketch.htm
    1835 - P. T. Barnum and his circus began their first tour of the United States.
    1851- America's first statewide statute prohibiting the sale of alcoholic beverages was enacted in the state of Maine, June 2, 1851. The following Independence Day the mayor of Bangor showed his support of the new law by smashing 10 kegs of confiscated booze.
    1852-Publication today of a manual of the corporation of the city of San Francisco containing a map of the city, the Declaration of Independence, the Constitution of the United States, the constitution of the state of California, the charters of the city, the revised ordinances still in force, and certain laws relating particularly to the city of San Francisco.
    1852-10,641 immigrants arrived by boat during the month of May.
    1854-New light house on Bird Island, also known as Alcatraz, illuminated for the first time. It could be seen 12 miles at sea.
    1856-Gov. Johnson ordered newly-appointed Maj. Gen. Sherman of the California Militia to call up its members because of the crisis in San Francisco.
    1863 -- Harriet Tubman frees 750 slaves in raid. This former slave and abolitionist James Montgomery lead 300 African American troops of the Union's Second South Carolina Volunteers on a raid of plantations along the Combahee River. Backed by three gun boats, Tubman's forces set fire to the plantations and free 756 slaves. American history also shows her as the first woman to lead military troops into action.
http://www.nps.gov/boaf/harriettubman2.htm
http://members.aol.com/asargordon/combee.htm
http://www.harriettubmanbiography.com/
http://www.nyhistory.com/harriettubman/life.htm
    1865 – In an event that is generally regarded as marking the end of the Civil War, Confederate General Edmund Kirby Smith, commander of Confederate forces west of the Mississippi, signs the surrender terms offered by Union negotiators. With Smith’s surrender, the last Confederate army ceased to exist, bringing a formal end to the bloodiest four years in U.S. history. The American Civil War began on April 12, 1861, when Confederate shore batteries under General Pierre G.T. Beauregard opened fire on Union-held Fort Sumter in South Carolina’s Charleston Bay. During 34 hours, 50 Confederate guns and mortars launched more than 4,000 rounds at the poorly supplied fort, and on April 13 U.S. Major Robert Anderson, commander of the Union garrison, surrendered. Two days later, U.S. President Abraham Lincoln issued a proclamation calling for 75,000 volunteer soldiers to help quell the Southern “insurrection.” Four long years later, the Confederacy was defeated at the total cost of 620,000 Union and Confederate dead.
    1883- The first electric elevated railroad began demonstrated at the Chicago Railway Exposition by the Electric Railway Company. The total track was 1,553 feet and not permitted to operate until June 9th and ceased operating on June 23, having 118.75 hours with 1,588 trips, carrying 26,805 passengers, and had ran 446.24 miles. It was the first commercial elevated train to operate and was considered a success to build a line in Chicago.
    1886-The first wedding of a president in the White House was Grover Cleveland's marriage to his ward, Frances Folsom, during his first administration. Cleveland was 49 and Ms. Folsom, 21. Cleveland served as president form March 4, 1885 to March 4, 1898. With the thought he had a second term in the bag, he did not campaign much and lost. He did the next election and served as president again from March 4, 1893 to March 4, 1897.
    1889--A great flood on the Potomac River in Washington D.C. took out a span of Long Bridge, and flooded streets near the river. The flood stage reached was not again equaled until 1936.
    1891- Charles Gardner Radbourn wins his 300th game beating the Beaneaters at South End Grounds in Boston, 10-8. ‘Old Hoss', who will finish 484 of the 497 games he starts, will end his 11-year career this season with 309 victories.
    1896--In England, Guglielmo Marconi was awarded the first radio patent. He had succeeded the previous year in sending long wave radio signals over a distance of about two kilometers. And in 1897, Marconi formed a wireless telegraphy company to develop its commercial applications. In 1901, Marconi succeeded in sending the letter "S" across the Atlantic from Cornwall, England to a receiving station in St. John's, Newfoundland.
    1904-Johnny Weissmuller birthday. Peter John (Johnny) Weissmuller, actor and Olympic gold medal swimmer, born at Windber, PA. Weissmuller won three gold medals at the 1924 Olympics and two more at the 1928 games. He set 24 world records and in 1950 was voted the best swimmer of the first half of the 20th century. After retiring from amateur competition, he appeared as Tarzan in a dozen movies and as “Jungle Jim” in the movies and on television. Died at Acapulco, Mexico, January 20, 1984.
    1917 - The temperature at Tribune, KS dipped to 30 degrees to establish a state record for the month of June.
    1925-Native Americans were declared citizens of the United States with all rights. The statute declared “all non-citizen Indians born within the territorial limits of the United States be, and they are hereby declared to be, citizens of the United States.”
    1921-Trumpeter Ernie Royal born Los Angeles, CA.
    1935— Babe Ruth, one of the greatest players in the history of baseball, ends his Major League playing career after 22 seasons, 10 World Series and 714 home runs.
   1938-Gene Krupa records “Wire Brush Stomp,” (Brunswick 8166).
    1941- Rolling Stones' drummer Charlie Watts was born in London. Watts joined the Rolling Stones in January 1963, about six months after the group was formed. He was working in an advertising agency at the time, but had earlier played with Alexis Korner's Blues Incorporated, as had other members of the Stones. Watts has been the backbone, along with guitarist Bill Wyman, of the Rolling Stones rhythm section throughout their 25 year career.
    1941- William Guest of Gladys Knight and the Pips was born in Atlanta. The group was part of the Motown empire in the 1960's, where they had a hit with “I Heard It Through the Grapevine” in ‘67. But the Pips' greatest popularity came in the ‘70s on the Buddah label, where their 1973 gold album “Imagination” yielded three gold singles. Among them was “Midnight Train to Georgia,” which hit number one on the Billboard Hot 100 chart.
    1944--KOBASHIGAWA, YEIKI Medal of Honor Technical Sergeant Yeiki Kobashigawa distinguished himself by extraordinary heroism in action on 2 June 1944, in the vicinity of Lanuvio, Italy. During an attack, Technical Sergeant Kobashigawa’s platoon encountered strong enemy resistance from a series of machine guns providing supporting fire. Observing a machine gun nest 50 yards from his position, Technical Sergeant Kobashigawa crawled forward with one of his men, threw a grenade and then charged the enemy with his submachine gun while a fellow soldier provided covering fire. He killed one enemy soldier and captured two prisoners. Meanwhile, Technical Sergeant Kobashigawa and his comrade were fired upon by another machine gun 50 yards ahead. Directing a squad to advance to his first position, Technical Sergeant Kobashigawa again moved forward with a fellow soldier to subdue the second machine gun nest. After throwing grenades into the position, Technical Sergeant Kobashigawa provided close supporting fire while a fellow soldier charged, capturing four prisoners. On the alert for other machine gun nests, Technical Sergeant Kobashigawa discovered four more, and skillfully led a squad in neutralizing two of them. Technical Sergeant Kobashigawa’s extraordinary heroism and devotion to duty are in keeping with the highest traditions of military service and reflect great credit on him, his unit, and the United States Army.
   1942 – The US carriers from Pearl Harbor joined the fleet northeast of Midway. In total, the American force has approximately 250 planes, equal to the number in the approaching Japanese force. Japanese Admiral Katuta’s light carrier force attacked Dutch Harbor in the Aleutians as a diversion. The Americans, aware of the Japanese plans for the invasion of Midway, do not react as predicted. They were aware of the Japanese plan for Midway and
took advantage of the information, although the Japanese had a superior
force.
    1944-KRAUS, RICHARD EDWARD Medal of Honor
Rank and organization: Private First Class, U.S. Marine Corps Reserve. Born: 24 November 1925, Chicago, Ill. Accredited to: Minnesota. Citation: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty while serving with the 8th Amphibious Tractor Battalion, Fleet Marine Force, in action against enemy Japanese forces on Peleliu, Palau Islands, on 5 October 1944. Unhesitatingly volunteering for the extremely hazardous mission of evacuating a wounded comrade from the front lines, Pfc. Kraus and 3 companions courageously made their way forward and successfully penetrated the lines for some distance before the enemy opened with an intense, devastating barrage of hand grenades which forced the stretcher party to take cover and subsequently abandon the mission. While returning to the rear, they observed 2 men approaching who appeared to be marines and immediately demanded the password. When, instead of answering, 1 of the 2 Japanese threw a hand grenade into the midst of the group, Pfc. Kraus heroically flung himself upon the grenade and, covering it with his body, absorbed the full impact of the explosion and was instantly killed. By his prompt action and great personal valor in the face of almost certain death, he saved the lives of his 3 companions, and his loyal spirit of self-sacrifice reflects the highest credit upon himself and the U.S. Naval Service. He gallantly gave his life for his comrades.
    1944--NAKAMINE, SHINYEI Medal of Honor
Private Shinyei Nakamine distinguished himself by extraordinary heroism in action on 2 June 1944, near La Torreto, Italy. During an attack, Private Nakamine’s platoon became pinned down by intense machine gun crossfire from a small knoll 200 yards to the front. On his own initiative, Private Nakamine crawled toward one of the hostile weapons. Reaching a point 25 yards from the enemy, he charged the machine gun nest, firing his submachine gun, and killed three enemy soldiers and captured two. Later that afternoon, Private Nakamine discovered an enemy soldier on the right flank of his platoon’s position. Crawling 25 yards from his position, Private Nakamine opened fire and killed the soldier. Then, seeing a machine gun nest to his front approximately 75 yards away, he returned to his platoon and led an automatic rifle team toward the enemy. Under covering fire from his team, Private Nakamine crawled to a point 25 yards from the nest and threw hand grenades at the enemy soldiers, wounding one and capturing four. Spotting another machine gun nest 100 yards to his right flank, he led the automatic rifle team toward the hostile position but was killed by a burst of machine gun fire. Private Nakamine’s extraordinary heroism and devotion to duty are in keeping with the highest traditions of military service and reflect great credit on him, his unit, and the United States Army.
    1944—Birthday of composer and conductor Marvin Hamlisch, perhaps best known for his film scores “The Sting” (1923), “The Way We Were” (1972), and his best-known Broadway work includes “A Chorus Line” (1975), and “They’re Playing Our Song” (1977)”. He died at Los Angeles, Ca, August 6, 2012.
    1945----Top Hits
Laura - The Woody Herman Orchestra
Dream - The Pied Pipers
Sentimental Journey - The Les Brown Orchestra (vocal: Doris Day)
At Mail Call Today - Gene Autry
    1951--CHARLTON, CORNELIUS H. Medal of Honor
Rank and organization: Sergeant, U.S. Army, Company C, 24th Infantry Regiment, 25th Infantry Division. Place and date: Near Chipo-ri, Korea, 2 June 1951. Entered service at: Bronx, N.Y. Born: 24 July 1929, East Gulf, W. Va. G.O. No.: 30, 19 March 1952. Citation: Sgt. Charlton, a member of Company C, distinguished himself by conspicuous gallantry and intrepidity above and beyond the call of duty in action against the enemy. His platoon was attacking heavily defended hostile positions on commanding ground when the leader was wounded and evacuated. Sgt. Charlton assumed command, rallied the men, and spearheaded the assault against the hill. Personally eliminating 2 hostile positions and killing 6 of the enemy with his rifle fire and grenades, he continued up the slope until the unit suffered heavy casualties and became pinned down. Regrouping the men he led them forward only to be again hurled back by a shower of grenades. Despite a severe chest wound, Sgt. Charlton refused medical attention and led a third daring charge which carried to the crest of the ridge. Observing that the remaining emplacement which had retarded the advance was situated on the reverse slope, he charged it alone, was again hit by a grenade but raked the position with a devastating fire which eliminated it and routed the defenders. The wounds received during his daring exploits resulted in his death but his indomitable courage, superb leadership, and gallant self-sacrifice reflect the highest credit upon himself the infantry, and the military service.
    1953---Top Hits
Song from Moulin Rouge - The Percy Faith Orchestra
I Believe - Frankie Laine
April in Portugal - The Les Baxter Orchestra
Take These Chains from My Heart - Hank Williams
    1954 – Senator Joseph McCarthy charges that communists have infiltrated the Central Intelligence Agency (CIA) and the atomic weapons industry. Although McCarthy’s accusations created a momentary controversy, they were quickly dismissed as mere sensationalism from a man whose career was rapidly slipping away. Senator McCarthy first made a name for himself in 1950 when he charged that over 200 “known communists” were in the Department of State. During the next few years, he alleged that communists were in nearly every branch of the U.S. government. His reckless accusations helped to create what came to be known as the Red Scare, a time when Americans feared that communists were infiltrating all aspects of American government and life. Despite the fact that McCarthy never managed to unearth a single communist, his ability to whip up public hysteria and smear opponents as communist sympathizers made him front-page news for several years. Sensing that his base of power was eroding, in 1954 McCarthy embarked on a spectacularly unsuccessful effort to recapture public support by opening investigations into alleged communist infiltration of the U.S. Army. By early June 1954, the McCarthy-Army hearings had been going on for nearly a month. This was the first opportunity for the American public to get a firsthand view of McCarthy, as the hearings were televised. His bullying style and hysterical behavior quickly turned off the audience. In a desperate attempt to regain momentum, McCarthy charged that communists had also infiltrated the CIA and atomic weapons industry. No one took the charges seriously, and Secretary of State John Foster Dulles, his brother, CIA Director Allen Dulles, and President Eisenhower brusquely dismissed McCarthy’s accusations as reckless and without basis. Just a few weeks later, McCarthy was thoroughly disgraced when the lawyer for the U.S. Army, Joseph Welch, gave him a devastatingly effective tongue-lashing, which ended with Welch asking the senator whether he had any sense of “decency” at all. The McCarthy-Army hearings collapsed soon thereafter, and the U.S. Senate voted to censure McCarthy. He died, still holding office, in 1957.
    1955- Dana Carvey, comedian, actor (“Wayne's World,” “Saturday Night Live”), born Missoula, MT. He was one of my father's students as in his later years he taught comedy and writing at San Francisco State, and then at his workshop in San Rafael, California.
    1959-The game between the Baltimore Orioles and the Chicago White Sox at Comiskey Park was delayed for nearly half an hour as swarms of gnats invaded the field. Bug spray and torches did not disperse the gnats, but a smoke bomb, set to be used as part of a post-game fireworks display, did. The Orioles won, 3-2.
    1961---Top Hits
Travelin' Man - Ricky Nelson
Daddy's Home - Shep & The Limelites
Running Scared - Roy Orbison
Hello Walls - Faron Young
    1962 - Ray Charles' "I Can't Stop Loving You" hits #1
    1962--- Island Records, founded in Britain by Jamaican Chris Blackwell, released its first single, "Twist Baby" by Owen Gray. By the late '60s, Island was home to such British acts as Traffic, Jethro Tull and Emerson, Lake and Palmer. In the following decade, reggae artists predominated, with Bob Marley and the Wailers, Toots and the Maytals and Burning Spear all recording for Island.
    1964 - The original Broadway cast album of Hello Dolly! is certified gold
    1964 - The Rolling Stones play their first US gig at a high school in Lynn, MA; that same day, they make their American TV debut on WABC's Les Crane Show in New York.
    1967- Race riots in Roxbury section of Boston.
http://ksgaccman.harvard.edu/hotc/DisplayIssue.asp?id=139
http://cebp.aacrjournals.org/cgi/content/full/12/3/256S
    1967 -- KFRC Fantasy Fair and Magic Mountain Music Festival at Mt. Tamalpais to benefit the Hunters Point Child Care Center. “Trans-Love Buslines” carries participants from the parking area to the festival. I was news editor and we promoted the event as this style of music was very popular. The station was the leader of the new S.F. sound.
http://www.sfmuseum.org/hist1/rock.html
    1967--GRAHAM, JAMES A. Medal of Honor
Rank and organization: Captain, U.S. Marine Corps, Company F, 2d Battalion, 5th Marines, 1st Marine Division. Place and date: Republic of Vietnam, 2 June 1967. Entered service at: Prince Georges, Md. Born: 25 August 1940, Wilkinsburg, Allegheny County, Pa. Citation: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty. During Operation Union 11, the 1st Battalion, 5th Marines, consisting of Companies A and D, with Capt. Graham's company attached launched an attack against an enemy occupied position with 2 companies assaulting and 1 in reserve. Company F, a leading company, was proceeding across a clear paddy area 1,000 meters wide, attacking toward the assigned objective, when it came under fire from mortars and small arms which immediately inflicted a large number of casualties. Hardest hit by the enemy fire was the 2d platoon of Company F, which was pinned down in the open paddy area by intense fire from 2 concealed machine guns. Forming an assault unit from members of his small company headquarters, Capt. Graham boldly led a fierce assault through the second platoon's position, forcing the enemy to abandon the first machine gun position, thereby relieving some of the pressure on his second platoon, and enabling evacuation of the wounded to a more secure area. Resolute to silence the second machine gun, which continued its devastating fire, Capt. Graham's small force stood steadfast in its hard won enclave. Subsequently, during the afternoon's fierce fighting, he suffered 2 minor wounds while personally accounting for an estimated 15 enemy killed. With the enemy position remaining invincible upon each attempt to withdraw to friendly lines, and although knowing that he had no chance of survival, he chose to remain with 1 man who could not be moved due to the seriousness of his wounds. The last radio transmission from Capt. Graham reported that he was being assaulted by a force of 25 enemy soldiers; he died while protecting himself and the wounded man he chose not to abandon. Capt. Graham's actions throughout the day were a series of heroic achievements. His outstanding courage, superb leadership and indomitable fighting spirit undoubtedly saved the second platoon from annihilation and reflected great credit upon himself, the Marine Corps, and the U.S. Naval Service. He gallantly gave his life for his country.
    1969--LAPOINTE, JOSEPH G., JR. Medal of Honor
Rank and organization: Specialist Fourth Class, U.S. Army, 2d Squadron, 17th Cavalry, 101st Airborne Division . place and date: Quang Tin province, Republic of Vietnam, 2 June 1969. Entered service at: Cincinnati, Ohio. Born: 2 July 1948, Dayton, Ohio. Citation: For conspicuous gallantry and intrepidity in action at the risk of his life above and beyond the call of duty. Sp4c. Lapointe, Headquarters and Headquarters Troop, 2d Squadron, distinguished himself while serving as a medical aid man during a combat helicopter assault mission. Sp4c. Lapointe's patrol was advancing from the landing zone through an adjoining valley when it suddenly encountered heavy automatic weapons fire from a large enemy force entrenched in well-fortified bunker positions. In the initial hail of fire, 2 soldiers in the formation vanguard were seriously wounded. Hearing a call for aid from 1 of the wounded, Sp4c. Lapointe ran forward through heavy fire to assist his fallen comrades. To reach the wounded men, he was forced to crawl directly in view of an enemy bunker. As members of his unit attempted to provide covering fire, he administered first aid to 1 man, shielding the other with his body. He was hit by a burst of fire from the bunker while attending the wounded soldier. In spite of his painful wounds, Sp4c. Lapointe continued his lifesaving duties until he was again wounded and knocked to the ground. Making strenuous efforts, he moved back again into a shielding position to continue administering first aid. An exploding enemy grenade mortally wounded all 3 men. Sp4c. Lapointe's courageous actions at the cost of his life were an inspiration to his comrades. His gallantry and selflessness are in the highest traditions of the military service and reflect great credit on him, his unit, and the U.S. Army.
    1969--POXON, ROBERT LESLIE Medal of Honor
Rank and organization: First Lieutenant, U.S. Army, Troop B, 1st Squadron, 9th Cavalry, 1st Cavalry Division. Place and date: Tay Ninh Province, Republic of Vietnam, 2 June 1969. Entered service at: Detroit, Mich. Born: 3 January 1947, Detroit, Mich. Citation: For conspicuous gallantry and intrepidity in action at the risk of his life above and beyond the call of duty. 1st Lt. Poxon, Armor, Troop B, distinguished himself while serving as a platoon leader on a reconnaissance mission. Landing by helicopter in an area suspected of being occupied by the enemy, the platoon came under intense fire from enemy soldiers in concealed positions and fortifications around the landing zone. A soldier fell, hit by the first burst of fire. 1st Lt. Poxon dashed to his aid, drawing the majority of the enemy fire as he crossed 20 meters of open ground. The fallen soldier was beyond help and 1st Lt. Poxon was seriously and painfully wounded. 1st Lt. Poxon, with indomitable courage, refused medical aid and evacuation and turned his attention to seizing the initiative from the enemy. With sure instinct he marked a central enemy bunker as the key to success. Quickly instructing his men to concentrate their fire on the bunker, and in spite of his wound, 1st Lt. Poxon crawled toward the bunker, readied a hand grenade and charged. He was hit again but continued his assault. After succeeding in silencing the enemy guns in the bunker he was struck once again by enemy fire and fell, mortally wounded. 1st Lt. Poxon's comrades followed their leader, pressed the attack and drove the enemy from their positions. 1st Lt. Poxon's gallantry, indomitable will, and courage are in keeping with the highest traditions of the military service and reflect great credit upon himself, his unit, and the U.S. Army.
    1969---Top
Get Back - The Beatles
Love (Can Make You Happy) - Mercy
Oh Happy Day - The Edwin Hawkins' Singers
Singing My Song - Tammy Wynette
    1972- the ‘50s group Dion and the Belmonts reunited for a show at Madison Square Garden in New York. The concert was captured on the LP “Reunion.”
    1973- Paul McCartney and Wings have the #1 song on the chart with "My Love"...It's in the first of its three straight weeks at the top.
    1975 - No. 1 Billboard Pop Hit: "Thank God I'm a Country Boy," John Denver.
    1976 - Don Bolles, an award-winning investigative reporter for the Arizona Republic, was fatally injured when a bomb exploded in his car. He had been probing connections between businessmen and organized crime in Phoenix. A national team of reporters from several newspapers helped to indict John Adamson, who was arrested with others, for the murder.
http://www.azcentral.com/specials/special01/
http://jeff.scott.tripod.com/donbolles.html
    1977---Top Hits
Sir Duke - Stevie Wonder
I'm Your Boogie Man - KC & The Sunshine Band
Dreams - Fleetwood Mac
Luckenbach, Texas (Back to the Basics of Love) - Waylon Jennings
    1977 –New Jersey allows casino gambling in Atlantic City
http://gaming.unlv.edu/research/subject/AtlanticCity.html
http://camden-www.rutgers.edu/RUCAM/impact_gaming.html
http://www.library.ca.gov/CRB/97/03/Chapt6.html
    1978- Bruce Springsteen's long awaited album, "Darkness On The Edge of Town" is released. Springsteen was prevented from recording for a year due to litigation involving his former manager. The album included the tracks "Badlands," "Prove It All Night" and the title track.
    1979 - Donna Summer's "Hot Stuff" hits #1
    1985- Nancy Lopez wins the LPGA tournament
http://golfonline.comfluent.net/cgi.pan$record
&Nancy_Lopez&McDonald's_LPGA
_Championship&lpga?golfstats
http://www.lpga.com/player_results.aspx?id=500
    1985 - Lightning struck a house, broke a bedroom window, and jumped to a metal frame bed. A man was killed but his wife was unharmed by the lightning
    1985---Top Hits
Everything She Wants - Wham!
Everybody Wants to Rule the World - Tears for Fears
Axel F - Harold Faltermeyer
Don't Call Him a Cowboy - Conway Twitty
Sick of Love) - Waylon Jennings
    1987--- Thunderstorms spawned seven tornadoes in West Texas and six tornadoes in Illinois. Thunderstorms in Illinois produced wind gusts to 70 mph at McComb and Mattoon. Thunderstorms in southern Texas produced 5.5 inches of rain south of Seguin, and up to eight inches of rain in Washington County.
    1988 -Severe thunderstorms in Texas and Oklahoma produced hail more than three inches in diameter near Stilwater OK, and softball size hail in Jones County of north central Texas. Baseball size hail and 70 mph winds caused an estimated 100 million dollars damage around Abilene TX.
    1988-True story—James Brown's wife Adrienne claims diplomatic immunity while fighting numerous traffic violations under the grounds that she's the wife of the Official Ambassador of Soul.
    1989 -Thunderstorms produced severe weather across much of the south central U.S. through most of the day and night. Thunderstorms spawned a dozen tornadoes, and there were 123 reports of large hail and damaging winds. Thunderstorm winds gusted to 78 mph at Russell KS, and baseball size hail was reported at Denver CO, Cuthbert TX, and in Reeves County TX. Afternoon thunderstorms in southern New England produced wind gusts to 120 mph at Fitchburg, MA, causing five million dollars damage.
    1990 -66 tornadoes struck parts of the Midwest, the Ohio Valley, and the Great Lakes area with the majority of the tornadoes in the Ohio Valley. 7 of the tornadoes were rated F4 on the Fujita scale. Indiana was the hardest hit with 37 tornadoes and 8 deaths. This outbreak was the largest outbreak since the Superoutbreak of April 3-4, 1974.
    1992- k.d. lang publicly declared her homosexuality in an interview with the Advocate, a US gay and lesbian publication. Lang talked frankly about her lesbian lifestyle and her unrequited love for a married woman.
    1994---Top Hits
Swear—All-4-One
I'll Remember (From “With Honors”)--- Madonna
The Sign—Ace Of Base
Return To Innocence—Enigma
    1997-Timothy McVeigh was found guilty of bombing the federal building in Oklahoma City two years ago.
http://www.pbs.org/newshour/bb/law/june97/mcveigh_6-2.html
    1999—Top Hits
Livin La Vida Loca--- Ricky Martin
If You Had My Love, Jennifer Lopez
No Scrubs- TLC
Fortunate- Maxwell
    2000- With the Tigers visiting Wrigley Field for the first time since the 1945 World Series, Cub reliever Rick Aguilera pitches a perfect ninth inning for his 300th save to nail down a 2- 0 Chicago victory.
    2000- For the first time a major league team chooses to honor a hero from a different sport as the Montreal Expos will wear Maurice Richard's uniform number (9) on their jerseys to honor the late Montreal Canadians star.
    2010 - After 22 seasons of compiling can’t miss Hall of Fame statistics, Mariner outfielder Ken Griffey, Jr. unexpectedly issues a statement through the team announcing that he has decided to retire. The now 40-year old "Junior," once known as the Kid, leaves the game fifth on the All-time career home run list with 630 round-trippers.

The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?

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