Steve Jobs fans continue to make pilgrimage to his Palo Alto home
######## surrounding the article denotes it is a “press release” and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
(Leasing News provides this ad as a trade for investigations
Correction: Bulldog Truck & Equipment Sales
“Your story is fair but I wanted to point out your use of the past tense in how Bulldog ‘specialized’, ‘had a facility’, ‘had salespeople’, ‘handled repossessions’ might mislead readers to think we are out of business. On the contrary we still specialize in repossessing and remarketing financial institution assets, still have own our facilities and still have an onsite direct sales force of industry experts and still have a quality client base.”
It will take a bulldog to get out of this mess!
by Christopher Menkin
Classified Ads---Senior Management
Free Posting for those seeking employment in Leasing:
All “free” categories “job wanted” ads:http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm
Two More Sentenced in Operation Lease Fleece
Readers have been asking for updates the last few years, including the last month, on what is the latest with the sentencing of those caught in what the FBI labeled “Operation Lease Fleece.” This was a major scam in its day, a conspiracy that included disguised "sale/leasebacks" or leases that exceeded the "soft costs" such as software and installation. Many were on ghost equipment. Adam Zuckerman told Leasing News he set up phony bank accounts, trade references, fake vendors, knew how to fool site inspections, and existed before the days of Lease Police.
Zuckerman took a major role in what also involved the two alleged bad boys in the leasing industry, Mark McQuitty and Jim Raeder first of Republic Leasing of Southern California, then Preferred Leasing and finally CapitalWerks.
The latest update shows Zuckerman sentencing delayed as well as Michael Grayson, the trial of the Vartanian Brothers postponed again, and two sentencing’s:
Mark McQuitty, co-founder CapitalWerks, sentencing sent for May 14, 2012 before Judge Cormac J. Carney (going on over four and a half years since pleading guilty)
James Raeder, co-founder CapitalWerks, sentencing set for June 4, 2012 before Judge Cormac J. Carney (going on over four and a half years since pleading guilty)
Adam Zuckerman, head of BrickBanc and others, sentencing set for 10/24/2012 10:00 AM before Judge Cormac J. Carney (going on four and a half years since pleading guilty!)
Leigh Dorand, 42, Tech Capital, Phoenix, Arizona sentencing continued until 7/23/2012 10:00 AM before Judge Cormac J. Carney.
Paul Arnold, 60, Brickbanc, Laguna Hills also known as Arnold Paul Zuckerman, Arnold Zuckerman, Scott Alan Zuckerman (reportedly an uncle of Adam Zuckerman) On February 27, 2012 sentenced to the Bureau of Prisons for a term of 24 months (to start April 23, 2012). It was reported due to his age, he did not receive the standard three year term. Special Assessment of $100. Fines are waived. He will be under a supervised release for a term of five years under the rules and regulations of the US Probation Office and General Order 05-02
Chance Nell Weaver, Axis Communications, Tarzana: Placed on probation for three years under terms and conditions of US Probation Office and General Orders 05-02 and 01-05. Pay $250 special assessment. Pay total fine of $250.
Michael Scott Grayson, Axis Communication, Tarzana sentencing continued to 6/25/2012 11:00 AM before Judge Cormac J. Carney
Chant Vartanian, president of ISystems Technology and Solutions, currently operating under several business names, trial date is continued to April 24, 2012 at 9:00 a.m. IT IS FURTHER ORDERED that the status conference is continued to April 16, 2012 at 9:30 a.m.
Sarkus Vartanian, vice-president of ISystems Technology and Solutions, currently operating under several business names, "trial date is continued to April 24, 2012 at 9:00 a.m. IT IS FURTHER ORDERED that the status conference is continued to April 16, 2012 at 9:30 a.m.
Operation Lease Police Stories:
((Please Click on Bulletin Board to learn more information))
Sheldon Player—Equipment Acquisition Resources
Sheldon Player was sent to jail from the 1985 conviction for fraud involved in Greyhound Leasing, basically leasing equipment that did not exist. Leasing News also did an interview with him about what happened, according to his side of the story (1). It appears he did the same with Equipment Acquisition Resources, Palatine, Illinois, then got involved in Jackson Hole, Wyoming bottled water franchise offering, many casino debts paid by his company, it is claimed by the bankruptcy trustee, $900,000 in a duffle bag caught by the FBI when he landed in Denver-claiming casino winnings, yet he remains scot-free as the leasing companies have put their cases on hold against the officer's personally as it appears Sheldon Player and his estranged wife Donna Malone have reportedly filed personal bankruptcy (another curious case as on all documents she does not sign as “Player,” but he and everyone calls her his wife.) It should also be noted the records of the bankruptcy were not able to be located on line.
The hearing regarding the latest IRS and Casino winnings and loses for Sheldon Player, the founder of Equipment Acquisition Resources, status hearing was again continued, this time to March 28, 2012.
The Bottom Line: Player remains free.
(1) Sheldon Player, Greyhound Leasing, Déjà vu?
Additional Sales Issues
Customers that think they are going to use the equipment until it drops are going to focus on your end of lease options. They would be cash buyers, if they could, and most likely are looking to put “down” as little as possible and go as long as possible.
Customers that have a definite term of use will probably plan to return the equipment and will want a replacement. They have experience with obsolescence or plans for equipment with larger capacity, and generally may be more interested in a non-24, 36, 48 month plan, but something more “custom.”
One comment about term! We tend to think in full year terms such as three, four, or five years when in fact most businesses have a seasonally cash flow, business activity, or equipment use. One of the most important questions to ask is “when do you want the lease to end?”
If I were leasing snow removal equipment I would probably chose April or May not July or August. If the lease was for a full term of years, it would start and end in October or November. Loans would do this but leases should end when the use ends.
Or, I may ask if there is a lower business activity time during the year to end the lease term so that equipment decisions and replacement could be reached without detracting from important business activity. The term should be governed by equipment’s use not conventional lending terms. Remember leasing effects the expense whereas loans are usually cash items with expenses dictated by accounting and tax requirements.
Having plans of 60 or 90 day delay payment or skip payment may appeal to them, or even seasonal payments. They may not choose them, but I bet those in seasonal businesses will be interested in learning about them.
I have also had accountants request a lease that ends at the end of their fiscal year. This creates easy to handle terms and expenses without creating a stub expense in the following year. It usually signals an interest in retaining the equipment at the end of the lease because the lease is not tied to the actual term of use.
In many small businesses, their accountant plays a large role as advisor to the owner. It may require you to obtain their blessing prior to a commitment from the customer. In larger companies they can kill a deal faster than anyone can, so you should plan on presenting your case to them as part of the selling process.
Also when learning about the use of the old equipment, ask if there were any times when it was out of service for maintenance, overhauls, seasonal use, or used by a separate company or sister corporation. Was it ever off-sight or out of service due to lack of spare parts? All of this may support the type of program or lease that you will offer.
Old equipment may not have any high tech attachments and therefore the original cost may not have contained any monies for software programs that will both affect the price of the new equipment and impact the residual value you place on the equipment. It may seem strange to raise the question when discussing the old equipment, but the conversation allows the customer to discuss the reasons for the equipment change and will give you good insight as to the use of the new equipment. The more they talk about it, they more they sell themselves on why they need this new equipment.
Once you have covered all that you can from questions on the old equipment, or if the equipment is new to the company, try and ask some of the same questions on the new equipment. To begin with ask if they have a brochure you may have or the name of the supplier, manufacturer, or distributor. Usually asking the customer for a complete description will not accomplish much so plan on contacting the supplier for the complete description. But it would be good to ask about the additional costs for freight, installation, wiring, and sight preparation, or training on equipment use.
Also ask about other costs for taxes, additional attachments purchased from another vendor or used from the old replaced equipment.
Lessors that do not investigate the cost and take a residual on freight expense have always amused me. Trust me; it is hard to collect a residual on freight expense. I know you tell them it is “cost to lessor,” but you may not only lose a repeat customer but a vendor over this one “small” item.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at firstname.lastname@example.org or 502-649-0448
He invites your questions and queries
Previous #102 Columns:
FDIC Quarterly Chart--RE Biz Loans Volume Getting Back to "Normal"
It appears most real estate business loan levels are returning to a positive level, according to the FDIC Quarterly Chart just released, but not to the highs of the last 10 years, which were mostly in 2008.
Most of the banks that failed in the last few years had high losses in construction and land development, primarily for 1-4 family homes; mostly not individual homes, but for builders of sections of homes.
Bouncing back also seems to be happening in nonfarm nonresidential lending, although agricultural loans remain down, according to the FDIC numbers.
On the downside, assets of leasing receivables from banks has been in a ten year negative direction. (Readers who have more knowledge on this or an opinion, “on the record” or “off the record,” please email email@example.com).
A definition of these loans follows the chart from the FDIC.
Construction and Land Development Loans---These are secured by a mortgage on the property being finance, normally no longer than three year terms. This may also include additions or alterations to existing structures and vacant land.
Nonfarm Nonresidential as defined by FDIC are liens secured by real estate on business and industrial properties, such as hotels, motels, churches, hospitals, education and charitable institutions, association buildings, golf courses, recreational facilities and similar properties; source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower.
Agricultural loans include operating expenses, investment in farm equipment, often against crops in the future, and for generally a short term from one to three years.
Farmland is long-term credit for acquisition of farm real estate and construction financing or refinancing of property; property must be suitable for farming.
Full Chart here for real estate loans:
Balance Sheet ( see #28):
**** Announcement **************************************
Calling all Community and Regional Banks!
As the front page of the Wall Street Journal announced last week, companies are investing more in equipment.
The Equipment Leasing and Finance Association Membership Committee has launched a membership recruitment campaign aimed at banks with less than $1 billion in assets that are looking for ways to put their capital to work and diversify their portfolios through equipment leasing and finance.
For a limited time, small and regional banks that have never been members of ELFA will save 50% off the ELFA membership dues.
If you represent a community bank with less than $1 billion in assets that is not currently a member of ELFA, or you have contacts at banks fitting this profile, please contact Director of Membership Kesha Robinson at 202-238-3432 or firstname.lastname@example.org or visit http://www.elfaonline.org/QL/SRB/.
Bank Beat---Asian-American Bank Fails in Georgia
The three branches of Global Commerce Bank, Doraville, Georgia, were closed with Metro City Bank, Doraville, Georgia, to assume all of the deposits. Founded August 18, 1995 to service Atlanta, Marietta, Sandy Springs, the bank had 29 full time employees as of December 31, 2011 at three offices in Doraville, Johns Creek, and Norcross.
Metro City Bank is also a Asian-American Bank, April 4, 2006 and as of December 31, 2011 had 54 full time employees are their two offices in Suwannee, one in Doraville, Duluth, and Johns Creek. This adds to branches then in Doraville and Johns Creek.
One of the major differences is as of December 31, 2011, Metro City Bank had Tier 1 risk-based capital ratio that was a very healthy 16.02%, whereas Global Commerce Bank had 1.08%, extremely low.
To understand both banks marketplace, it is best to look at their geographic marketplace:
Doraville is a small town, 15 miles northeast of Atlanta on Highway I-85. In 2010 the population was 8,330. The main business was a GM plant, which closed in 2009.
Norcross is 20 miles northeast of Atlanta along I-85 with a population 2010 US Census Population 9,116.
Johns Creek, 27 miles northeast of Atlanta, is the tenth-largest municipality in Georgia and its wealthiest city, according to Wikipedia and was incorporated December 1, 2006. 2010 US Census population was 76,728. It appears there is a commute problem coupled with no money to repair its roads.
Where were they getting their deposits and business?
Global Commerce Bank was an overseas Chinese bank, privately held, offering credit instruments, such as letters of credit to facilitate international trade, and in2003 was ranged the 9th best performing bank amongst 323 banks in Georgia, according to Wikipedia, very active in SBA loans. As can be seen by the locations, much of the lending appears out of thier geographic footprint.
Metro City Bank year-end 2011 equity was $52.2 million, showing a profit of $5 million and $2.9 million in non-current loans, after a charge off of $3 million ($2.7 million nonfarm nonresidential properties and $334,000 in commercial and industrial loans.
Tier 1 risk-based capital ratio was a very healthy 16.02%.
Metro City Bank is also a privately held bank, specializing in the Asian-American marketplace. Chairman Nack Y. Paek, a CPA, and according to his biography, "President of a successful SBA service provider."
There is another CPA on the board, a jewelry manufacture, general surgeon, fashion jewelry wholesaler who served in the Korean Army, a native of Malaysian in real estate, a native Hong Kong in private label fashion, a controller with a trading company, a South Korean in the jeweler business, a Patel hotel owner, an account now finance manger of Trends Menswear, another CP, degree from Korea, and Farid Tan, president and CEO, banker from Malaysia. Senior VP and Chief Loan Officer, Hwa Saeng Kim, with banking experience in Korea as well as serving the banks Amsterdam office.
Note: Metro City Bank gains healthy deposits as of December 31, 2011. Global Commerce Bank had approximately $143.7 million in total assets and $116.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, Metro City Bank agreed to purchase approximately $79.0 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
Global Commerce Bank problems started in 2009.The main defaults and charge offs came form lines of credit and commercial loans. The nonfarm nonindustrial charge offs went from $1.6 million in 2009, to $4.6 million in 2010, and $3.5 million in 2011. Nonfarm Nonresidential as defined by FDIC are liens secured by real estate on business and industrial properties, such as hotels, motels, churches, hospitals, education and charitable institutions, association buildings, golf courses, recreational facilities and similar properties; source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower.
The numbers below tell much of the story about what happened:
(in millions, unless otherwise)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.9 million.
List of Bank Failures:
(Read “Bank Beat Group” in Linkedin.com
Sutton and Brown attend AZELA Meeting
William (Woody) G. Sutton, CAE, President and CEO of the Equipment Leasing and Finance Association (ELFA), was the guest speaker at the Arizona Equipment Leasing Association (AZELA) for its first meeting in 2012 held at the Starfire Country Club in Scottsdale, Arizona. He was accompanied by Dennis Brown, ELFA VP of State Government Relations.
Following networking and dinner, introductions with comments on the state of the industry were shared by all the attendees. An increase in application volume was a common observation.
Woody Sutton’s power point presentation using data compiled by ELFA, addressed the state of the industry, the state of the association, and interesting highlights of Woody’s military and political experiences and their connection to the finance industry.
The information as presented echoed what was said in the presentations of the attendees - the finance sector is showing signs of improvement, with a continued need for capital formation to maintain the ability to acquire capital equipment.
Leasing News Help Wanted Ad Pricing
Career Crossroad—“Appearance for an interview”
Question: Can you advise me on the importance of appearance when going on an interview – I could use some tips. May sound a bit superficial, but I got through the first few rounds of phone interviews and have a face to face scheduled for next week and want to put my best foot forward.
Answer: This is not superficial – it is important – after all you are in a competition! In terms of importance in the interview process (NOTING that of course you have the requisite experience for the role) appearance & having a good face-to-face interview falls right behind your resume presentation and phone presence & personality (phone interview).
Most important is basic grooming. Seems simple enough – BUT I had an experience with a Candidate attending an interview looking a bit – well – undesirable and though his experience was excellent, he did not get an offer simply because of His Appearance!
Think about it, if you owned a company how would you like your employees representing your company – especially your Sales Professionals. There are many psychological undertones to your appearance which HR Managers are well aware of. Just take the time to be the best you can be!
Remember the Leasing & Finance industry is a conservative one – present yourself appropriately … this applies to Receptionist roles to C-Level Executive roles.
Check out your local hairdress
Exclusively for the Women:
Jewelry / Bag
BE INTERVIEW READY:
1. Two suits ready and dry cleaned
IF YOU SMOKE – do NOT smoke before your interview – you can NOT mask the smoke!
Previous Career Crossroad columns:
BBB New Virus
Perhaps by now, many readers already know this, or have been fooled before, but not again. But just in case, this new one making the rounds, from the Better Business Bureau, saying there is a complaint wants you to open the "Complaint Report." DON'T. It is a virus. Hopefully you weren't fooled or have an anti-virus program---but sometimes this type has a new one that gets through.
The best is to ignore this:
Here with the Better Business Bureau informs you that we have been sent a complaint (ID 71693536) from one of your customers related to their dealership with you.
Please open the COMPLAINT REPORT to find more information on this problem and let us know of your opinion as soon as possible.
We are looking forward to your prompt reply.
Top Stories---February 27--March 1
Here are the top ten sorties opened by readers:
(1) Westover Capital Accused of Multiple Grand Thefts by Christopher Menkin
(2) It will take a bulldog to get out of this mess! by Christopher Menkin
(3) Leasing 102 by Mr. Terry Winders, CLP
(4) Leasing Up at Bigger Banks, but not Smaller
(5) Classified Ads---Sales Manager
(6) SunTrust estimates possible $120 million cost
(7) Mr. Terry Winders, CLP, Two Day Seminar, April 5 & 6
(8) Bank Beat—Non-Conforming Loans in Georgia
(9) BSB Ad--click to "We Do"
(10) The List---January and February, 2012
#### Press Release #############################
Fleet Financing Resources New Line at Western Equipment Finance
Riverside, CA – Fleet Financing Resources (FFR), a boutique-style lender servicing the commercial vehicle industry, announced that it has entered into a vendor program agreement with Western Equipment Finance, a subsidiary of Western State Bank in Devils Lake, ND. The program agreement is aimed at extending FFR’s reach to commercial fleet manufacturers, dealers, and operators by offering another well capitalized credit facility with a financially sound reputation.
Dave Reynolds, President and CEO of FFR commented, “We will benefit from the additional financing from Western for its comprehensive suite of funding solutions in commercial vehicles which make them an excellent fit for FFR’s growing portfolio.”
“I’ve known Laurie Bakke, President of Western Equipment Finance, for many years and of the first-class organizations she builds”, said Dave Reynolds. “Thanks to our newly expanded program agreement with Western, we can do even more to help our customers grow their business well in to the future”.
The new vendor program is estimated to generate an additional $3 to 5 million dollars annually in funding for Fleet Financing Resources. The program will include an application only option, along with the full financial review for the financing of new or used commercial vehicles.
##### Press Release ############################
##### Press Release ############################
Money Keeps Accumulating in Domestic Bank Accounts
In the last three months of 2011 alone, one quarter trillion dollars was added to domestic bank accounts – nearly $3 billion per day.
SAN ANSELMO, Calif. – The latest analysis from Market Rates Insight (www.marketratesinsight.com) shows that just in the last three months of 2011, consumers added $250 billion dollars to domestic bank accounts. Total deposits, which includes overseas branches of U.S. banks, increased by $183 billion in the last quarter of 2011, which means that about $33 billion was transferred from overseas U.S. banks to domestic branches. For whole of 2011, domestic deposits in FDIC insured institutions grew by $882 billion to $8,755 billion, and total deposits in FDIC insured institutions, which includes overseas deposits in U.S. banks, grew by $760 billion to $10,183 billion.
Deposit money continues to flow from term accounts, such as CDs to liquid accounts such as checking, savings and money market accounts. During 2011, CD balances decreased by $157 billion, while checking, savings and money market balances grew by over $1 trillion. Consumer retail deposits now make up 89.6% of domestic deposits, up from 89.2% in the beginning of 2011. The increase in percentage of retail deposits indicates that more of the current deposits are made by individuals rather than businesses. The increase in deposits during 2011 occurred despite a decrease of 22 basis points in the national average for deposits – from 0.84 % in January to 0.62% in December.
“The latest figures have a double message” said Dan Geller, Ph.D. Executive Vice President at Market Rates Insight, “The first is that more consumers are risk averse and prefer the safety and security of FDIC insured deposits, and the second is that more consumers prefer to bank domestically than overseas.”
About Market Rates Insight
### Press Release ############################
Age: 6 years
"I don't mean to brag, but I'm a purebred Welsh Corgi. That's the queen of England's favorite breed, you know. While I don't claim royal blood lines, I do claim to be a well behaved dog who is crate trained and enjoys daily walks. Because of serious illness my loving family was no longer able to provide walks or proper care and I'm hoping you can. Please come to meet me."
Dog Adoption Guidelines:
SPCA of Northern Virginia
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
2011 storms trigger home insurance rate hikes
You May Have Missed---
Steve Jobs fans continue to make pilgrimage to his Palo Alto home
SparkPeople--Live Healthier and Longer
10 High-Stress Personality Characteristics
Kobe Bryant, Lakers are head and shoulders above Heat in 93-83 win
Stanford women rout Cal to cap 18-0 Pac-12 regular season
Ex-Saints coach, NFL to discuss injury bounties
A Hard Winter
by Raymond A. Foss
Well, they talk of woolly-bear caterpillars
I’m worried about the squirrels in our yard
Lawmakers call for state audit of San Jose's pension problems
“Gimme that Wine”
Spotted: Lady Gaga Visits Napa Wine Country
Bay Area wine job postings blossom, but hard numbers are hard to find
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in History
1595-First New England Settler: William Blackstone, born at Durham County, England, was the first settler in what is now Boston, Massachusetts, and also the first in what is now Rhode Island. Blackstone came to New England with the Captain Robed Gorges expedition in 1623. When the expedition failed and most returned to England, he stayed and settled on what later became Beacon Hill. In 1634, he sold most of his Boston property and moved to the shores of the river that now bears his name. He died there at what is now Cumberland, Rhode Island, May 26,1675.
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?
How to play:
Refresh for current date:
See USA map, click to specific area, no commercials
Real Time Traffic Information
You can save up to 20 different routes and check them out with one click,
Independent, unbiased and fair news about the Leasing Industry.