Platinum Financial, Orange, California
Bulletin Board Complaint: $6,236.18

Royal Corinthian, Inc., West Chicago, Illinois, was awarded a line of credit up to $250,000 by Platinum Financial on September 9, 2013. The first use of the line was a $165,561.67 equipment lease with $1.00 purchase option for an Autocaster Economizer option; contract signed September 26, 2013, along with a check for 6,236.15. (1)

The lease was not funded and in October, 2013, Tom Leonard of Platinum Financial told him a personal guarantee was required. Andy Savenok, general manager, requested the deposit be returned. More financials were requested, more proposals were made, by Mike Ruiz and Tom Leonard, but the bottom line is the deposit was not returned, nor proposals accepted.

Mr. Savenok contacted various agencies from the Better Business Bureau, to agencies in California, and as he describes it, wasn’t getting anywhere in his attempt to have his deposit returned.

In an effort to warn others, he told Leasing News he constructed two websites:

http://www.platinumfinancial.org/
http://www.platinumfinancial.info/

He then was sued in the State of California by Platinum Financial regarding the websites. The court ruled against Platinum Financial, basically citing “anti-slap” provisions. (2)

Mr. Leonard told Leasing News, “Your speaking of 1 client named Andy Savenok, who signed a contract for his father’s company, of which he has no ownership…I have 100 clients in the last 4 months we funded deals. I am not worried about what 1 has to say."

Leasing News has received two additional complaints, primarily from the web sites set up by Royal Corinthian. The first one has been verified, and Mr. Leonard responded, “He is partnering with Andy Savenok and generating online complaints, which are unvalid and untrue. We were going to return his deposit to him, just not as fast as he wanted it to be done.”

“Then I guess at this point I am not going to reply to any more complaints at this time since it is either the money goes back or you post the complaint.”

There is a complaint in Yelp:
http://www.yelp.com/biz/platinum-financial-oc-orange-3

Another in Scambook:
http://www.scambook.com/company/view/124061/Platinum-Financial-OC

It appears via the lawsuit that the company is “U.N.I. Consulting, LLC, a California limited liability company doing business as Platinum Financial, OC.” At the time of the dispute, neither entity was licensed as a California Finance Lender.

LinkedIn home profile shows Tom Leonard is the owner, and previously was director of Nationwide Business Credit (October, 2009-December, 2012).

www.linkedin.com/pub/tom-leonard/2/715/6a6

Platinum Financial Website with Speaking Person
http://www.platinumfinancialoc.com/

1. Leasing Contracthttp://www.leasingnews.org/PDF/leasing_contract2014.pdf

2. Court Case re “Anti-Slap.” (32 pages)
   http://www.leasingnews.org/PDF/anti_slap_court2014.pdf

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

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Classified Ads---Sales

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

Free Posting for those seeking employment in Leasing:
http://www.leasingnews.org/Classified/Jwanted/Jwanted-post.htm

All “free” categories “job wanted” ads:
http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm

Crossroads Equipment Lease & Finance joins
“No Longer taking Broker/Discounting Business” List

“Unfortunately at this time we are no longer accepting any applications from our broker business. Due to some changes within our company organization we are closing our broker business desk at this time.

“We will keep your contact information and advise if Crossroads should reopen its broker business.

“We appreciate your time, patience and consideration.

“Thank You,”

Judith Ruelas
Credit Manager
Crossroads Equipment Lease & Finance
9385 Haven Ave
Rancho Cucamonga, Ca 91730
Phone: 909.291.6458

(Please do not confuse the company above with Jean Hamilton's Crosspoint Leasing and Financial Services, Fair Oaks, California, which continues as “an active company in the equipment leasing industry as well as providing a variety of financial services including consulting."

No Longer taking Broker/Discounting Business
plus Leasing Companies Out of Business--List
http://www.leasingnews.org/Pages/Out-of-broker-bus.htm

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Channel Partners Last 20 Deals

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Complaints Bulletin Board BBB Ratings

logo rating

The following companies appear on the Leasing News
“Complaints” Bulletin Board:
http://www.leasingnews.org/bulletin_board.htm

Ability Capital Solutions, Long Beach, California: Not Rated
ACC Capital, Midvale, Utah: A+
Balboa Capital, Irvine, California: A
De Lage Landen, Wayne, Pennsylvania: A+
iFinancial Group, San Clemente, California: A+
Integrity Financial Groups, Murray, Utah Warning
Leasing Innovations, Inc., Solano Beach, California: A+
Liberty Capital, Aliso Viejo, California N/R
MAC Financial Services, Scottsdale, Arizona: A+
Marlin Leasing, Mount Laurel, New Jersey A+
Jules and Associates, Los Angeles, California: A+
Matrix Business Capital, Long Beach, California: Not Rated
Newport Financial Partners, Newport Beach, California: N/R
Onset Financial, South Jordan, Utah A
Proviso Financial Services, Coquitlam, British Columbia: N/R
Radiance Capital, Tacoma, Washington: A+
Tetra Financial Group, Salt Lake City, Utah A+

(“Not Rated” Section Follows Ratings)

BBB Leasing Company Ratings
May 20, 2014

Changes
(Last ratings December 3, 2013)

Bankers Capital, Northborough, Massachusetts (Was A+, now not rated).
http://www.bbb.org/central-western-massachusetts/business-reviews/financing/bankers-capital-in-northborough-ma-262264

Celtic Leasing, Irvine, California (A-, now not rated)
http://www.la.bbb.org/Business-Report/Celtic-Leasing-Corp-78000620

Chase Industries, Grand Rapids, Michigan: Finally, states out of business. If legal problem, advise seeking an attorney, BBB states. http://www.bbb.org/western-michigan/business-reviews/leasing-service/chase-industries-in-grand-rapids-mi-38115448

Enterprise Capital Partners dba Enterprise Leasing, Spokane, Washington (from not rated to A+)
http://www.bbb.org/eastern-washington/business-reviews/investment-advisory-service/enterprising-capital-partners-in-spokane-wa-64002656/

Equilease Financial Services, Norwalk, CT (From Not Rated, to A-1, now part of North Mill Equipment Finance, a subsidiary of Colford Capital).
http://www.bbb.org/connecticut/business-reviews/financial-services/equilease-financial-service-in-norwalk-ct-1003628

Integrity Financial Groups, Murray, Utah (A-, now has warning sign:” On at least one occasion, BBB sent mail to this company in an attempt to develop a report. The mail was returned by the Post Office; therefore a complete BBB report at this time is unavailable.

“If you have information that would assist your BBB in developing a report, please speak with a BBB service advisor. - See more at: http://www.bbb.org/utah/business-reviews/financing-consultants/integrity-financial-groups-in-murray-ut-22293260#sthash.uSG6t1Uy.dpuf” Many Bulletin Board Complaints” (http://www.bbb.org/utah/business-reviews/financing-consultants/integrity-financial-groups-in-murray-ut-22293260

Mazuma Capital Corp., Salt Lake City, Utah (Merged with Onset, but BBB lists as A+. Also on Evergreen List.)
http://www.bbb.org/utah/business-reviews/contractor-equipment-and-supply-rental-and-leasing-companies/mazuma-capital-in-draper-ut-22214565

Radiance Capital, Tacoma, Washington, remains an A+ despite the several Bulletin Board Complaints regarding charging a purchase option on Equipment Finance Agreements. One had a $5,000 security deposit that is now called in “default” for not paying the alleged purchase option on an EFA. There are several EFA pursuits by Mike Price of Radiance claiming a “purchase option.”

Varilease Finance, Inc., Salt Lake City, Utah (Moves from a B to an A.)
http://www.bbb.org/utah/business-reviews/credit-services/varilease-finance-in-salt-lake-city-ut-2216546

------------------------------------------

May 20, 2014 BBB Ratings

A+

--Accredited 12/16/1997
21st Century Leasing, San Diego, California
http://www.bbb.org/san-diego/business-reviews/leasing-service/21st-century-leasing-in-san-diego-ca-10011418/

ACC Capital, Midvale, Utah
http://www.bbb.org/utah/business-reviews/financial-services/acc-capital-in-midvale-ut-5002457
Closed, lenders running off portfolio residuals, according to Loni Lowder, president.

--Accredited 9/10/2000
Advantage Leasing Corporation Milwaukee, Wisconsin
http://www.bbb.org/wisconsin/business-reviews/leasing-service/advantage-leasing-corporation-in-milwaukee-wi-1004216/

--Accredited 4/01/2002
Allegiant Partners, San Rafael, California
http://www.bbb.org/greater-san-francisco/business-reviews/leasing-service/allegiant-partners-incorporated-in-san-rafael-ca-46794

Alliance Funding Group, Orange, California
http://www.bbb.org/orange-county/business-reviews/office-furniture-and-equipment-rental-and-leasing/alliance-funding-group-inc-in-orange-ca-13096486

--Accredited 9/01/2008
Arvest Bank Leasing, Fayetteville, Arkansas
http://www.bbb.org/arkansas/business-reviews/banks/arvest-bank-in-sherwood-ar-5001142

--Accredited 8/27/1999
Axis Capital, Grand Island, Nebraska
http://www.bbb.org/nebraska/business-reviews/office-furniture-and-equipment-rental-and-leasing/axis-capital-in-grand-island-ne-104008575

BSB Leasing, Englewood, Colorado
http://www.bbb.org/denver/business-reviews/financial-services/b-s-b-leasinginc-in-englewood-co-26029

--Accredited 6/20/1996
Charter Capital, Scottsdale, Arizona
http://www.bbb.org/central-northern-western-arizona/business-reviews/leasing-service/charter-capital-in-scottsdale-az-89000861/

Chase Industries, Grand Rapids, Michigan
http://www.bbb.org/western-michigan/business-reviews/leasing-service/chase-industries-in-grand-rapids-mi-38115448

CSI Leasing, St. Louis, Missouri
http://www.bbb.org/stlouis/business-reviews/computers-dealers/cs-i-leasing-in-saint-louis-mo-110207320

De Lage Landen Financial Services, Incorporated, Wayne, Pennsylvania
http://www.bbb.org/washington-dc-eastern-pa/business-reviews/financing/de-lage-landen-financial-services-incorporated-in-wayne-pa-80012304/

Direct Capital, Portsmouth, New Hampshire
http://www.bbb.org/concord/business-reviews/financial-services/direct-capital-corporation-in-portsmouth-nh-3004519#

Enterprise Capital Partners dba Enterprise Leasing, Spokane, Washington
http://www.bbb.org/eastern-washington/business-reviews/investment-advisory-service/enterprising-capital-partners-in-spokane-wa-64002656/

--Accredited 3/10/2011
Financial Pacific, Federal Way, Washington
http://www.bbb.org/western-washington/business-reviews/consumer-finance-and-loan/financial-pacific-leasing-in-federal-way-wa-22025327

--Accredited 8/10/2011
Five Point Capital, San Diego, California
http://www.bbb.org/san-diego/business-reviews/financing/five-point-capital-inc-in-san-diego-ca-20001011/

--Accredited 12/27/2010
Great America Leasing, Cedar Rapid, Iowa
http://www.bbb.org/iowa/business-reviews/financing/great-america-leasing-in-cedar-rapids-ia-20000104

--Accredited 8/19/2011
iFinancial Group, San Clemente, California
http://www.bbb.org/orange-county/business-reviews/leasing-service/ifinancial-group-inc-in-san-clemente-ca-13077753

Innovative Leasing Services, Inc. Carlsbad, California
http://www.bbb.org/san-diego/business-reviews/leasing-service/innovative-lease-services-inc-in carlsbad-ca-10008827/

--Accredited 7/20/2011
Jules & Associates, Los Angeles, California
http://www.bbb.org/sanjose/business-reviews/office-furniture-and-equipment-rental-and-leasing/jules-and-associates-in-los-angeles-ca-92003291

---Accredited 1/2/1993
Key Equipment Finance aka KeyBank Headquarters Location
http://www.bbb.org/cleveland/business-reviews/banks/keybank-in-cleveland-oh-6747

--Accredited 5/9/2003
Lease Corporation of America, Troy, Michigan
http://www.bbb.org/eastern-michigan/business-reviews/computers-software-and-services/lease-corporation-of-america-in-troy-mi-45000151/

Accredited since 08/01/1997
Lease $mart, Oro Valley, Arizona  85737
http://www.bbb.org/tucson/business-reviews/leasing-service/lease-mart-in-tucson-az-6762

Leasing Innovations, Inc., Solano Beach, Californiahttp://www.bbb.org/san-diego/business-reviews/financial-services/leasing-innovations-inc-in-solana-beach-ca-19005998

---Accredited 2/22/2011
Marlin Leasing, Mount Laurel, New Jersey
http://www.bbb.org/new-jersey/business-reviews/business-consultants/marlin-leasing-in-mt-laurel-nj-80012102

Mazuma Capital Corp., Salt Lake City, Utah
http://www.bbb.org/utah/business-reviews/contractor-equipment-and-supply-rental-and-leasing-companies/mazuma-capital-in-draper-ut-22214565

---Accredited since 08/09/2007
North Mill Capital, LLC, Minneapolis, Minnesota
http://www.bbb.org/minnesota/business-reviews/loans-small-business/north-mill-capital-in-minneapolis-mn-96063541

Orion First Financial, Gig Harbor, Washington
http://www.bbb.org/western-washington/business-reviews/consumer-finance-and-loan-companies/orion-first-financial-in-gig-harbor-wa-37003864

Accredited since 09/02/1999
P&L Capital, Omaha, Nebraska 68137
http://www.bbb.org/nebraska/business-reviews/office-furniture-and-equipment-rental-and-leasing/p-and-l-capital-in-omaha-ne-104006668

Pawnee Leasing, Fort Collins, Colorado
http://www.bbb.org/wyoming-and-northern-colorado/business-reviews/leasing-companies/pawnee-leasing-corporation-in-fort-collins-co-46006417

---Accredited since 08/21/2007
Portfolio Financial Servicing Company, Portland, Oregon
http://www.bbb.org/oregon/business-reviews/financial-services/portfolio-financial-servicing-company-in-portland-or-22140131

---Accredited 8/20/2009
Providence Capital Funding, Brea, California
http://www.bbb.org/orange-county/business-reviews/office-furniture-and-equipment-rental-and-leasing/providence-capital-funding-inc-in-brea-ca-100085193

Radiance Capital, Tacoma, Washington
http://www.bbb.org/western-washington/business-reviews/office-furniture-and-equipment-rental-and-leasing/radiance-capital-in-tacoma-wa-22227403

---Accredited 03/03/1979
Steelcase Financial Services, Grand Rapids, Michigan
http://www.bbb.org/western-michigan/business-reviews/office-furniture-and-equipment-wholesale-and-mfg/steelcase-in-grand-rapids-mi-14000824

---Accredited 3/11/2005
Strada Capital Corporation, Laguna Hills, California
http://www.bbb.org/orange-county/business-reviews/office-furniture-and-equipment-rental-and-leasing/strada-capital-corporation-in-laguna-hills-ca-100005606

---Accredited 12/19/2007
Summit Funding Group, Cincinnati, Ohio
http://www.bbb.org/cincinnati/business-reviews/financing/summit-funding-group-inc-in-cincinnati-oh-1206757/

Tetra Financial Group, Salt Lake city, Utah
http://www.bbb.org/utah/business-reviews/credit-services/tetra-financial-group-in-salt-lake-city-ut-22186390

United Leasing, Evansville, Indiana
http://www.bbb.org/evansville/business-reviews/leasing-companies/united-leasing-in-evansville-in-99475

A

--Accredited since 12/13/1999-
Balboa Capital Corporation, Irvine, California
http://www.bbb.org/orange-county/business-reviews/loans-small-business/balboa-capital-corporation-in-irvine-ca-13126386

--Accredited 4/6/2010
Cornerstone Medical & Technology Finance, Lees Summit, Missouri
http://www.bbb.org/kansas-city/business-reviews/financial-services/cornerstone-medical-and-technology-finance-in, -lees-summit-mo-99153606

---Accredited 8/12/2010
Navitas Lease Finance Corp., Ponte Vedra Beach, Florida
http://www.bbb.org/north-east-florida/business-reviews/financial-services/navitas-lease-finance-corp-in-ponte-vedra-beach-fl-125716478/

Onset Financial, South Jordan, Utah http://www.bbb.org/utah/business-reviews/financial-services/onset-financial-in-south-jordan-ut-403

Southern California Leasing, Tustin, California
http://www.bbb.org/orange-county/business-reviews/computers-rent-and-lease/southern-california-leasing-incorporated-in-tustin-ca-13135867

“Factors that lowered the rating for Southern California Leasing Incorporated include:

BBB does not have a clear understanding of this business”

TCF Equipment Finance, Minnetonka, Minnesota
http://www.bbb.org/minnesota/business-reviews/consumer-finance-and-loan-companies/tcf-equipment-finance-in-minnetonka-mn-96072521

Varilease Finance, Inc., Salt Lake City, Utah
http://www.bbb.org/utah/business-reviews/credit-services/varilease-finance-in-salt-lake-city-ut-22165465

A-

Dakota Financial, LLC., Los Angeles, California
http://www.bbb.org/sanjose/business-reviews/loans-small-business/dakota-financial-in-los-angeles-ca-13177252

(Note no complaints, no reason for the downgrade) “Length of time business has been operating. No complaints filed with BBB. BBB has sufficient background information on this business.”

Equilease Financial Services, Norwalk, CT (now part of North Mill Equipment Finance, a subsidiary of Colford Capital. North Mill Capital is rated A+).
http://www.bbb.org/connecticut/business-reviews/financial-services/equilease-financial-service-in-norwalk-ct-1003628

B

LEAF Financial Corporation, Philadelphia, PA
http://www.bbb.org/washington-dc-eastern-pa/business-reviews/financial-services/leaf-financial-corporation-in-philadelphia-pa-55049028/

Varilease Finance, Inc., Salt Lake City, Utah
http://www.bbb.org/utah/business-reviews/credit-services/varilease-finance-in-salt-lake-city-ut-22165465

C+

TimePayment Corporation
http://www.bbb.org/boston/Business-Reviews/leasing-service/timepayment-corp-in-burlington-ma-117288/bbb-rating

NOT Rated

(Formerly Accredited 2/10/2007)
Ability Capital Solutions, Long Beach, California
http://www.bbb.org/sanjose/business-reviews/leasing-service/ability-capital-solutions-in-long-beach-ca-100046803

Atel Capital
http://www.bbb.org/greater-san-francisco/business-reviews/equipment-rentals-and-sales/atel-in-san-francisco-ca-76975

Bankers Capital
http://www.bbb.org/central-western-massachusetts/business-reviews/financing/bankers-capital-in-northborough-ma-262264

Business Leasing NorthWest, Seattle, California
http://www.bbb.org/western-washington/business-reviews/leasing-service/business-leasing-northwest-in-seattle-wa-22035387

Icon Capital Group, Harrison, New York
http://www.bbb.org/NYC/business-reviews/financing-consultants/icon-capital-corp-in-harrison-ny-27583/ (Icon Capital now into gas and oil).

(Formerly Accredited 12/13/2007)
Matrix Business Capital, Long Beach, California
http://www.bbb.org/sanjose/business-reviews/office-furniture-and-equipment-rental-and-leasing/matrix-business-capital-in-long-beach-ca-100041782

Newport Financial Partners, Newport Beach, California
http://www.bbb.org/orange-county/business-reviews/financial-services/newport-financial-partners-llc-in-newport-beach-ca-100100708

Somerset Capital Group, Milford, Connecticut
http://www.bbb.org/connecticut/business-reviews/leasing-service/somerset-capital-group-in-bridgeport-ct-1001573
(This company was

Studebaker-Worthington Leasing Corp., Jericho, New York
http://www.bbb.org/NYC/business-reviews/financing/studebaker-worthington-leasing-corp-in-jericho-ny-21198/

Susquehanna Commercial Finance, Pottstown, Pennsylvania
http://www.bbb.org/washington-dc-eastern-pa/business-reviews/financial-services/susquehanna-commercial-finance-in-pottstown-pa-140042240/

Tri Star Capital, Santa Ana, California
http://www.bbb.org/orange-county/business-reviews/office-furniture-and-equipment-rental-and-leasing/tri-star-capital-llc-in-santa-ana-ca-13137212
(Note: company in wind down, no longer active)

Note: Many banks and financial Institutions with leasing entities evidently do not have their leasing divisions separated from bank and financial institutions ratings. No rating was found on the leasing divisions.

Find your company's BBB listing by going to www.bbb.org and using your zip code first for the right division.

To list your company in the next listing, please email rating to kitmenkin@leasingnews.org

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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. 

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The Salary You Must Earn to Buy a Home in 27 Metros
HSH.com

1. Cleveland: $29,788.67

2. Pittsburgh: $30,177.78

3. St. Louis: $31,275.49

4. Cincinnati: $31,850.18

5. Detroit: $32,250.30

6. Atlanta: $34,183.44

7. Tampa: $36,437.56

8. Phoenix: $41,308.74

9. Orlando: $43,243.95

10. San Antonio: $44,506.00

11. Minneapolis: $45,732.39

12. Dallas: $47,708.77

13. Houston: $49,036.60

14. Philadelphia: $50,546.25

15. Chicago: $52,866.88

16. Baltimore: $53,078.51

17. Sacramento: $58,113.87

18. Miami: $59,734.23

19. Denver: $59,892.46

20. Portland, Ore.: $60,307.71

21. Seattle: $73,851.06

22. Washington, D.C.: $78,503.56

23. Boston: $79,820.01

24. Los Angeles: $85,964.88

25. New York City: $89,788.69

26. San Diego: $98,534.22

27. San Francisco: $137,129.55

To calculate the figure, HSH.com used the National Association of Realtors’ first-quarter data for median home prices and HSH.com’s first-quarter average interest rate for 30-year, fixed-rate mortgages, to determine how much of a homeowner’s salary it would take to afford the base cost of owning a home.

For the full analysis as well as the detailed methodology, click here: http://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html

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Brican Verdict Still Out
by Michael J. Witt

(This involves one of the last scandals remaining, concerning over 4,000 dentists who signed agreements for a large television screen in their waiting offices that ran advertisements for products and the dentist’s services. The advertisements came from a Brican America advertising company and maintenance for the computer and the actual ads were from Brican America who told dentists that by running the ads, it would make the payments on the display screen and computer.

(The problem is Brican America ran out of advertising and was not providing the money to the dentists for the lease payments. During this time long time leasing executive Chuck Brazier was trying to sell off the Brican America’s portfolios, as the company was having difficulty "laying off the paper.

(The difficulty came to Leasing News’ attention, who quickly learned the founder of the company had done the same before, and Leasing News sent out an alert. It brought a threatening letter from attorney Charles H. Lichtman, who has been involved in such letters with Leasing News (1)

(The dentists got involved in their dental associations, created a Yahoo blog and joined together, especially the 1,672 lessees of NCMIC Finance Corporation dba Professional Solutions Financial Services (PSFS), Clive, Iowa, regarding $38 million. Many other dentists were left to hang with other leasing companies as they did not join the class action suit.

(This article is from a Leasing News contributing columnist, now Principal at Portfolio Audits. Des Moines, Iowa. He continues his law practice, Witt Law, which he began September, 2008. Prior, he was Managing Counsel, Wells Fargo & Co. (May, 2003 – September, 2008); Senior Vice President & General Counsel, Advanta Business Services (May, 1988 – June, 1997)

Christopher Menkin, editor

Brican Verdict Still Out

The small-ticket leasing community continues to wait for the trial judge’s verdict in the high-profile multi-plaintiff suit In re: Brican America, LLC Equipment Leasing Litigation (Case No. 10-MD-02183-PAS, U.S. District Court, Southern District of Florida). The case, tried over six days last month, involves one of the most unique kinds of alleged vendor fraud: a promise that the equipment is, almost literally, a goose that lays golden eggs.

The plaintiffs are a group of dentists and other medical professionals from around the country who leased equipment supplied by Brican America, LLC. The lessor was an affiliate, Brican America Inc. (collectively “Brican”). Each lease was immediately assigned to NCMIC Finance Corporation (“NCMIC”), an independent leasing company. The equipment consists of a flat-screen TV, computer and software, having a cost of approximately $3,500, used to display health-related advertisements in the doctors’ waiting rooms. A typical lease had a 60-month term, a dollar purchase option, and a total of payments of approximately $24,000 ((carrying an implicit annual interest rate, arguably, of about 137%-- $3500 original principal (equipment cost), $24,000 total of payments over 5 years = 137% )).

How could a prospective lessee rationalize spending that kind of money for a few thousand dollars’ worth of equipment? Brican made the decision fairly easy, at least to those trusting doctors who signed leases, by presenting them with a separate contract titled “Marketing Agreement” under which they were to receive, in consideration for their running the advertisements, periodic payments in amounts that would offset their monthly lease payments.

All of this begs the question: Do doctors on the whole, for all their education, lack street smarts? The answer clearly is “No.” Evidence was put on at trial showing that some of sales prospects who were pitched the deal walked away, concluding that it was too good to be true. But for those other prospects who were riding the fence between Go and No-go, there was more to the deal that intrigued them. There was what we can call the “clincher,” the part of the deal guaranteeing them that what might have seemed too good to be true at first, really was not. The clincher was the clause in the marketing agreement giving the doctor the right to cancel the separate lease if the advertising revenue should stop for any reason. “It’s right there, clear as day, in the marketing agreement, in black and white,” each lessee must have thought. “Therefore, it must take priority over the hell-or-high-water clause in the lease stating that the lease was non-cancellable for any reason.” Right?

Wrong.

What happened next requires no resort to an eight ball. The advertising revenue slowed and eventually stopped, and the doctor-lessees filed suit against the Brican entities and NCMIC. The Brican entities are now, for all essential purposes, defunct. (Of course. One of the owners of the Brican companies was Jean-Francois Vincens, who had been involvement in the similar Recomm International Display Limited scheme back in the mid-90s that cost unwary lessees so much money and ended with Recomm filing bankruptcy.)

The essence of the plaintiffs’ claims against the only viable defendant, NCMIC, is that (i) Brican had committed fraud-in-the-inducement in that it knew, when it presented the document package to each lessee, that it would be unable to pay the advertising revenue over the long term, and (ii) NCMIC knew about the scheme before purchasing the leases and therefore should not be allowed to enforce the leases. The plaintiffs did offer testimony from NCMIC’s own managers and a former managers showing that they had become generally aware of the existence of marketing agreements in some of the leases but kept funding new business (until eventually, many months later, they cut off all new purchases when becoming aware that Brican’s use of the marketing agreement was much wider than had earlier been represented by Brican.) The essence of NCMIC’s defense is that the leases contained clauses in which the lessees agreed not to raise against an assignee (here, NCMIC) any claims and defenses they might have against the original lessor, Brican.

It is far beyond the scope of this article to discuss all of the factual and legal questions that must be answered by the judge. The largest, and perhaps most difficult, issue is the question of whether NCMIC is a “holder in due course.” The applicable law is found in UCC Section 9-403(b)(2), which states that where an account debtor makes an agreement with an assignor (here, Brican) not to assert against an assignee (here, NCMIC), claims or defenses the debtor may have against the assignor, the agreement is enforceable by the assignor if the assignor meets the holder-in-due-course test of 9-403(b). The only factor in 9-403(b) that is in issue in this case, based on the evidence that was presented, is whether NCMIC made the lease purchases “in good faith.” The plaintiffs’ argument that NCMIC did not act in good faith is, essentially, that (i) NCMIC kept purchasing leases after it had become aware that Brican was using the marketing agreements and (ii) NCMIC knew or should have known that Brican would lack the financial resources to pay the lessees’ advertising revenue but bought the leases anyway, intending to shield itself behind the hell-or-high-water and waiver-of-defenses clauses. NCMIC’s argument that it was acting in good faith is, essentially, that it believed, based on what Brian told it, that marketing agreements were rarely used, and that it stopped buying leases when it learned that the use of those agreementd was widespread and that the business model Brican had developed to raise cash with which to pay the advertising revenue was fundamentally flawed.

To this writer’s way of thinking, the ultimate question coming out of the Brican case is not the technical legal issue the judge must decide under Article 9 of the UCC. Nor is it the more philosophical question of whether the risk of vendor fraud should be allocated, in our legal system, more to the funding source or more to the lessee—although perhaps this is the penultimate question. Rather, the ultimate question is the same old question that has remained at the end of the many other cases of alleged vendor fraud that preceded Brican: When is mass vendor fraud finally going to stop? The answer is, probably no time soon, given the stark reality that the equipment leasing industry continues to be probably the most un-regulated segment in all of lending. Although the players (lessors, vendors and funding sources) in this business tend to knee-jerk against more regulation, an argument can be made that more states need to adopt laws like the California Finance Lenders Law, which requires commercial lenders and brokers to post a bond and to undergo (among other strictures) background checks and fingerprint analysis on their directors and key officers before being granted a license. One might well question whether Brican was licensable in California, given the history of Mr. Vincens. Should the California model be adopted in the other states? It’s a question worth asking.

I will close with a small case in point. A few months ago, a client asked me to compile a 50-state survey on licensing and other laws specifically applicable to his small-ticket leasing company’s business model. Here is someone who invites scrutiny into the industry. Not because he enjoys spending money on being examined, but because, as he put it, “I’m tired of competing with fraud.” Again, the question is worth asking.

Michael J. Witt
WITT LAW
4342 Oakwood Lane
West Des Moines, IA 50265
Tel: (515) 223-2352
Cell: (515) 868-1067
E-mail: witt-legal@outlook.com
Web: www.witt-legal.com

1. Brican America Attorney Charles H. Lichtman
   http://leasingnews.org/archives/December%202009/12-14-09.htm#brican_letter

   (2) The case presented in the original complaint involved more than a thousand plaintiffs and is exceedingly complex in that the multiple-document contract sets (at least eight different ones) varied from doctor to doctor, and some of the leases were originated by the vendor and assigned to various independent funding sources while others were written directly by the funding sources. Many of the plaintiffs’ cases were dismissed prior to trial. This article focuses only on the claims of the plaintiffs who made it to trial.

Brican America/Brican Financial Lawsuits
http://www.leasingnews.org/Conscious-Top%20Stories/brican_america.htm

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China Leasing Summit 2014

June 18-20, 2014
China Leasing Summit 2014
Sixth Annual Conference
Crowne Plaza Beijing Chaoyang U-Town
Beijing, China

Leasing News is one of the Media Sponsors
for the China Leasing Summit 2014

To learn more, please go here:
http://www.duxes-events.com/lease14/

Boxer/Terrier Mix
Brentwood, California Adopt-a-Dog

Baby Buster

Pet ID 120230
Male
Medium
House Trained
Shots Current

About Baby Buster

"Buster - what a perfect name for this adorable boy. Buster was found wandering around an apartment complex and a Good Samaritan took him in. His owners have not shown up to claim him but it is obvious he was cared for and loved as he is in great health and loves to be loved.

"Buster has a gorgeous fawn brindle coat that photos simply do not do justice. Due to his personality, stature and deep chest we do believe that Buster is most likely a Boxer/Terrier mix. The perfect Purebred Mutt!

"Buster is between five and six months old and is a love bug. He is working on leash training, is nearly 100% house trained, He gets along great with other dogs and is on the submissive side. He is fostered in a home where there is a young child and gets along great with kids too.

"Buster will be ready to adopt around May 25th. Until then we are taking applications for him. If you are interested in adopting Buster, please go to our website - throwmeabonedogrescue.org - and click on Adoption Process. Read through that page and you'll find the link for the application you need to complete and submit.

"All potential adopters are expected to complete an application and provide pictures of their yard, patio, and/or balcony making sure we can see the fence line and/or railing. The application can be completed and submitted from our website - throwmeabonedogrescue.org - and is found under Resources. Applications will be reviewed for approval before setting an appointment to come meet and possibly adopt the dog of interest. In addition, those who live in a rental property are expected to provide proof that they are allowed to have a dog where they live.

"Each of our rescued dogs has been de-wormed if necessary, de-flea'd (with topical treatment if old enough, and by medicated bath if too young), spayed/neutered, microchipped, is up to date on shots, and has been fully examined by a veterinarian. In addition, each adopted dog comes with a starter baggie of the food it has been eating, a few treats for training purposes, a rawhide chew, a lead and collar, and a folder containing pertinent records."

Contact Form:
http://www.petfinder.com/petdetail/29218162/

Throw Me A Bone Dog Rescue
Brentwood, CA 94513

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

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Classified ads—Asset Management

Leasing Industry Outsourcing
(Providing Services and Products)

Asset Management: Atlanta, GA premier provide accounts receivable management functions from 3rd Party contingency collections to Portfolio Purchasing. Contact George Elliott, National Account Manager. 678-694-9063, www.westassetmanagement.com	Asset Management: Boston, MA Nationwide appraisals, remarketing, audits, inspections and more! Over 15-years industry experience and dedicated to deliver personal, prompt, professional services.  Call Chris @ 508-785-1277 email
Asset Management: Minneapolis, MN NetSentric provides services to leasing companies: Inspection, Appraisals, Auditing, Warehousing, Repossession, Asset Management, Repairs, Remarketing and Field Service for Electronics and Computing Technology. Email: jcahill@netsentricinc.com	Asset Management: Monroe, NC Recover a greater return on your investment.  We specialize in the woodworking, pallet, sawmill and forestry industries.   Carolinamachinerysales.com/ Melinda Meier (704)288-1904 x103
Asset Management: Nationwide  BUYER/LENDER BEWARE. Don't sign anything until Collateral Verifications Inc. goes onsite, knocks on the door and gets the facts. http://www.i-collateral.com Email: mark@i-collateral.com	Nationwide  Seasoned and fair priced workforce is at your service for all lease collections, repossessions, and asset liquidations, appraisals.  Call Nassau Asset Management 800-462-7728  dcastagna@nasset.com
Asset Storage/Re-Marketing: Ohio & surrounding states. Providing no cost warehousing, condition reports, digital photos and remarketing of off-lease forklifts & industrial equipment. NAFTA wide dealer network. Email to GCochran@OhioLift.com	Asset Management Melville, New York Auctions, Appraisals, National Repossessions.  ALL asset classes. 20+ year team works for you. Spend less, Net More… Fast! Ed Castagna 516-229-1968ecastagna@inplaceauction.com
Asset Management: South East US- AllState Asset Management  Recovery, remarketing, inspections. 25 years experience, dedicated to deliver, prompt, professional services.  Call Brian @ 704-671-2376. email	Asset Management: Global Specializing in Semiconductor and Electronic Test Equipment collateral. Lender services include Consignment Sales, Remarketing, Portfolio Purchases, Inspections, De-installation, Repairs and Warehousing.  www.testequipmentconnection.com email
Bulldog Asset Management provides recovery and remarketing services with a difference. Contingent repos, free storage and industry experts to remarket. Email:Jamie@bulldogasset.com  www.bulldogasset.com

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

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

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

News Briefs----

MasterCard Ditches ‘Mobile Wallets’
http://www.bankinnovation.net/2014/05/mastercard-ditches-mobile-wallets/

10 Most Powerful Cars of the Decade
http://www.bankrate.com/finance/auto/most-powerful-cars-1.aspx

Petco to stop selling pet treats made in China
http://www.pressdemocrat.com/article/20140520/wire/140529979

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--You May Have Missed It

Times boss speaks: Why I fired Abramson
http://nypost.com/2014/05/20/times-publisher-says-abramson-had-lost-newsrooms-support/

[headlines]
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SparkPeople--Live Healthier and Longer

Red, White and Blue Foods that are Good for You
http://www.sparkpeople.com/resource/slideshow.asp?show=43

[headlines]
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Baseball Poem

"A clever runner steals a base." - James J. Metcalfe

James J. Metcalfe was a widely syndicated columnist for the Chicago Sun-Times and a German-American poet that put together a very nice poem that truly does catch the essence of the game in a most eloquent manner.

Baseball 

by James J. Metcalfe ©

Published: Unknown (Unknown)

The game of baseball is the king
Of all the games we play
And it is one pursuit that is
Distinctly U.S.A.
The people swarm into the stands
To watch their favorite teams
And munch their hot dogs when their lungs
Are not engaged in screams
The pitcher hurls the horsehide and
The batter gets a hit
Or else the ball goes sailing and
Some fielder smothers it
A clever runner steals a base
A player takes a walk
Or managers and umpires
Decide to have a talk
The crowd is gay or gloomy or
Completely in suspense
But it goes wild when someone knocks
The ball beyond the fence. 

http://www.baseball-almanac.com/poetry/po_bball.shtml

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Sports Briefs----

Ex-49er Bubba Paris sentenced for failing to file taxes
http://www.sfgate.com/crime/article/Former-49er-sentenced-for-failing-to-file-taxes-5489525.php

Golden State Warriors introduce new coach Steve Kerr in Oakland
http://photos.mercurynews.com/2014/05/20/photos-golden-state-warriors-introduce-new-coach-steve-kerr-in-oakland/#1
http://www.contracostatimes.com/warriors/ci_25800375/warriors-steve-kerr-says-he-has-philosophy-and

Jerry Jones: ‘Great friend’ Jon Bon Jovi an ‘outstanding candidate’ to be the Bills’ next owner
http://cowboysblog.dallasnews.com/2014/05/jerry-jones-great-friend-jon-bon-jovi-an-outstanding-candidate-to-be-the-bills-next-owner.html/

Minneapolis to host 2018 Super Bowl; Cowboys can bid for 2019 game
http://www.dallasnews.com/sports/dallas-cowboys/headlines/20140520-minneapolis-to-host-2018-super-bowl-cowboys-can-bid-for-2019-game.ece

[headlines]
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California Nuts Briefs---

Tweeting clerk quits, tells Pleasant Hill what she really thinks
http://blog.sfgate.com/stew/2014/05/20/tweeting-official-quits-tells-pleasant-hill-what-she-really-thinks/

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“Gimme that Wine”

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

Anderson Valley, No. Ca., growing as destination for wine and cheese
http://www.sfgate.com/travel/article/Anderson-Valley-growing-as-destination-for-wine-5482518.php

Time to head to Pinot country

Memorial Day weekend is coming up, and that means it's time to head to Oregon's Willamette Valley.

This is one of just two weekends per year (the other being Thanksgiving) when most of the valley's wineries will fling open their doors for fans.

This means that if you're into Pinot Noir, Pinot Gris and Chardonnay, this is your weekend.

This also is the Willamette Valley's 30th anniversary as an American Viticultural Area, having been approved by the federal government in December 1983. Today, the Willamette Valley is well established as an important and growing wine region.

It's also one of the most beautiful, especially in bucolic Yamhill County, just southwest of Portland.

Learn More by going here:
http://willamettewines.com/

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