Monday, October 10, 2011
Paul McCartney, Nancy Shevell wed in London
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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.
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Chris Walker Chicago Marathon Results—“Thank You, Industry”
On Friday night in Chicago the American Cancer Society hosted a Pasta dinner for the very large fund raising contingent set to run the Chicago Marathon and raise money for the fight against Cancer. The award for the most funds raised by an individual was presented to Hugh Swandel and he accepted on behalf of his colleagues in the leasing community who embraced an effort to honor our colleague Chris Walker and raise money in the battle to end Cancer.
From Hugh Swandel:
“It was a privilege to receive this award and truly and inspiration to hear from so many in the industry who supported this effort with donations. Many shared very personal stories about cancer battles and the scars it continues to leave on all of our lives. Donations came from far and wide and many from people who heard about the effort through Leasing News (Thank you Kit). This is a great industry that truly is a community that cares!
"The Marathon itself was the toughest I have ever completed but the most satisfying. Conditions were elevated to Extreme as the Marathon started due to expected elevated temperatures.
"Thank you to all how donated and thanks to Leasing News to helping publish the cause."
To View Hugh Swandel’s Page with Donor’s Listed:
Hugh Swandel Biography:
#### Press Release############################
Swandel Elected President of NEFA
To Lead Association Out of Credit-Crisis Era
RENO, NEVADA, (OCT. 10, 2011)--Hugh Swandel, a managing director of The Alta Group, is the newly elected president of the National Equipment Finance Association’s (NEFA) board of directors. The NEFA is a U.S.-based association of equipment finance and leasing professionals. The announcement was made at NEFA’s annual funding conference held in Minneapolis, Minn. in late September.
Swandel heads the Canadian division for Alta, the global consultancy exclusively focused on equipment leasing and finance. He is a trusted advisor on business development, funding, and mergers and acquisition strategy.
Prior to joining The Alta Group, Swandel founded Swandel and Associates. Earlier in his career, he served as president and chief operations officer of Electronic Financial Group (EFG), a Canadian company that built and launched a multi-lending, web-based credit system. Swandel previously worked closely with Bruce Kropschot on mergers and acquisitions in North America and became involved with The Alta Group when Kropschot joined the consultancy.
In his new role as NEFA president, Swandel said he will help the association emerge from the credit crisis era. He also hopes to provide enhanced opportunities for the next generation of leaders while catering to the educational and networking needs of brokers and lessors who make up this community of business professionals.
“What makes NEFA unique,” said Swandel, “is how tight the community of smaller leasing companies and brokers are, and how dedicated they are to building the best companies possible.” Attendance at the last NEFA meeting was up 50 percent, he added.
Swandel has been an active member and board member of NEFA since it was formed from the merger of two regional leasing associations. Prior to that the consolidation, he was active in the UAEL. Swandel is also on the board of the Toronto-based Canadian Finance and Leasing Association, where he earned distinction as “Member of the Year” for his service work in 2006 and again in 2010. Swandel also is a member of the Equipment Leasing and Finance Association (ELFA), based in Washington, D.C., and has extensive contacts throughout North America.
“We are confident Hugh will provide the continuity of leadership and direction this organization needs,” said Gerry Egan, executive director of NEFA. “NEFA remains robust,” Egan added, “and its members are arranging for or providing funding and strategies for business growth, despite uncertainties in the global economy.”
#### Press Release #############################
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Rick Jones, Associate Publisher, was responsible for Leasing News from September 20—October 5 and would like to thank him for a job very well done.
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Puget Sound Leasing Jury Verdict In---No One Wins
“Puget Sound Leasing president Louis Secord, Jr.,
"First Sound Bank (OTC Bulletin Board: FSWA) (January 16, 2009) today announced that on January 14, 2009 it filed suit in federal court for fraud and breach of contract in connection with its March 1, 2008 purchase of certain assets from Puget Sound Leasing Co., Inc. The defendants to the suit are the sellers of the assets:
Larasco, Inc. (the business formerly known as Puget Sound Leasing Co., Inc.) and its owners, Richard Secord and Louis Secord.
"First Sound Bank's complaint alleges that the defendants violated federal and state securities laws by misrepresenting the extent to which the leases they sold to First Sound Bank were delinquent, and by failing to disclose Puget Sound Leasing Co., Inc. accounting irregularities that made the company appear more profitable than it was. The complaint also alleges that the defendants breached their contractual warranties to First Sound Bank."
Including the accusations from current and ex-employees regarding extra payments, applying lease payments, and changing purchase options, or the claim by First Sound Bank that Louis A. Secord and Richard A. Secord did not reveal the "real losses" in the sale of Larasco, the corporation owner of Puget Sound Leasing, the jury in First Sound Bank versus Larasco and both Secords, including Wells Fargo Equipment Finance versus Larasco and the Secords ruled in favor of First Sound Bank once "on its breach of contract claims against Larasco, Inc., Louis Secord, and Richard Secord based on the Asset Purchase Agreement" rewarding damages of $1,244,751.
However, they also ruled against the "breach of fiduciary duty" and "breach of contract claims" in favor of Larasco and the Secords, but they did rule in favor of Louis Secord breach of contract against First Sound Bank based on "employment agreement," awarding $2,077,767, and the same with Richard Secord, awarding $1,484,767.
They ruled against Wells Fargo claims in regard to lease purchase agreements and fraudulent misrepresentation claims, as well as "claim for indemnification based on personal guaranties.
They finally ruled against First Sound Bank on "its fraudulent transfer claim" against Larasco and the Secords.
So before the attorney fees, legal experts, accountants, deposition costs and other court case costs, not counting the time and energy of bank officers and personnel, after the damage claim: First Sound Bank owes the Secords $2,317,783.
Now before the Secords start celebrating, both had filed bankruptcy, as well as Larasco Corporation, with the claim they had disposed and hidden assets, which was never proven, and the bankruptcy trustee was informed legally of the jury verdict and awards to the Secords.
Now in the bankruptcy filing Louis Secord, Jr. lists $24.97 million in creditors ($13 million as possible First Sound Bank law suit) and $2.4 million in personal assets. Louis Secord reports income of $5,276 per month plus $3,029 in monthly Social security Payments for he and his two sons, Stone and Grey.
His brother indicates a monthly income of $6,035, but $12 million owed to creditors with $1.8 million exempt.
Whether the personal bankruptcies will be withdrawn, or if there are other law suits or pending lawsuits and their potential is not known.
Pugent Sound Leasing continues, and First Sound Bank has also survived.
During this period, the bank raised $3.2 million on an attempt for $6 million June 30, 2010. According to FDIC records, the bank lost slightly over $20 million year-end 2008 with $1.1 million in lease financing receivable charge offs, $300,000 commercial and industrial loans, $247,000 construction and land development. The previous year, the bank had made $1.5 million.
The bank saw a profit of $1.57 million in 2009.Charge offs in 2009 saw $5.3 million in lease financing receivables, $4.3 million in commercial and industrial loans, $504,000 in construction and land development.
2010 year-end showed a $7.9million loss. Charge offs in 2010 were $2.7 million in lease financing receivables, but $3.66 million in construction and land development, $2.1 in nonfarm nonresidential property and $3.95 million in commercial and industrial loans.
June 30, 2011 saw a $2.5 million loss with charge offs $470,000 in lease financing receivables, $1.5 million in nonfarm nonresidential properties, $493,000 commercial and industrial loans, and $239,000 in loans to individuals. Non-current loans were $12.86 million. Tier 1 risk-based capital ratio 5.41%. (A “C” grade).
Leasing News originally broke the story December, 31, 2008:“Puget Leasing, Bellevue, WA (12/08) Original owner no longer on bank board, questions being asked. (09/07) Sold to First Sound Bank. Bank president Don Hirtzel says Puget Sound Leasing generates roughly $8 million a month in new leases and has an average delinquency rate of less than 1 percent, it is reported.” Leasing News was told the board demanded he resign and leave the board. It seemed more a vendetta than a business judgment and whether the case is appealed, and more money washed down the drain, doesn't seem to matter as there were no winners in this case.
Perhaps the most revealing was the inside workings of Puget Sound Leasing according to depositions taken. Perhaps the practice is quite widespread in the industry among independent lessors:
Puget Sound Leasing Verdict:
Only Eight Sentenced in Operation Lease Fleece--Why?
Eight have been sentenced in what the FBI labeled "Operation Lease Fleece" in their arrest of 23 for their roles in a fraud scheme that allegedly caused more than $20 million in loses to several lending institutions that believed they were financing equipment leases. Many were disguised "sale/leasebacks" or leases that exceeded the "soft costs" such as software and installation. Many were on ghost equipment.
It appears the FBI and US Attorney General's Office considers this an "on going investigation."
It was not the dollar amount that grabbed everyone's attention, but the nabbing of the two bad boys in leasing, Mark McQuitty and Jim Raeder, late of CapitalWerks, along with Adam Zuckerman, the man accused of being a catalyst in the scheme. All three have pled guilty and await sentencing, since their court filings November 7, 2007; yes, going on for almost four years.
First before going into the list of the 19 not sentenced and the eight of the original 23 who have been sentence, there have been others added to the group since the date, and that appears to be the overall hold-up in all the up-dates to the story Leasing News has posted to date.
Neither the FBI nor Attorney General Offices provided any information and stated until the matter was complete, it was not their policy to comment on "on going investigations.” The information here comes from PACER, a public record of court documents, interviews, plus information from "first hand" and other sources.
Many of the cases have been moved to December 19, 2011, and those that are coming up this month and next will almost likely be moved forward to, as most of them have sealed documents in the cases; several have many sealed documents.
The reason I think the cases will get postponed again regards Chant & Sarkus Vartanian, who now have a status hearing February 27, 2012 with a trial set for March 6, 2012 before Judge Cormac J. Carney, who also is perhaps best known as a UCLA Football wide receiver Rose Bowl MVP.
Shant (Chant) Vartanian is president of ISystems Technology and Solutions, 3650 East Olympic Boulevard, Los Angeles, California, and his brother, Sarkus Vartanian, Vice-President, Marketing are reportedly still in business, as well as working with several Southern California leasing companies.
Several informed sources state the US Attorney General does not want to unseal the documents, and one can only guess it does not then help them with their case against the Vartanian, although in trials both sides need to present their case to the other side with evidence before the trial. Perhaps the real reason for the delay is the FBI has others they want to indict, part icularly one individual who was a long time salesman for CapitalWerks, and an "arrangement" has not been met with those who would testify.
One reader recently wrote Leasing News," I have some information with regards to Chant Vartanian (Isystems) who was connected to the "operation lease fleece" conducted by the FBI. Chant who was indicted back in Dec 2009 was still funding deals for a local broker who used to work for Capital Werks with Jim Raeder & Mark McQuitty.
“This broker was doing deals with Chant up until the day he was indicted for fraud. One of the transactions funded on Oct 30, 2009 and the other Dec 27, 2009....After the indictment the owner of this broker shop told his sales staff they needed to 'separate' themselves from I Systems fast. I would imagine if someone did some digging they would find ‘numerous’ transactions over the last 5 years this broker funneled through Isystems, this was 2 transactions within 60 days.
“I didn't want to get involved but this broker continues to give the industry a bad name and Ii think its time someone exposed him for the fraud he and his company really are. I have the name of the broker, the owner’s information, the name of the customer, date of application, date of funding, commissions paid and the amount of the deposit check collected... I don't know where to turn to get this information looked at so if you can direct me to the right place or know who I should contact that would be much appreciated...."
The information regarding John J. Callaghan of Warminster, Pennsylvania, one of the original 23 named has not been available. According to a well-informed source, it was Citibank officer John J. Callaghan involvement in the transactions that was brought to the FBI by Citibank.
These are changes in sentencing, chronologically, of those named (it should be noted the ages may not be correct, but are estimated from previous articles):
Mark McQuitty, 50, of CapitalWerks/Preferred Lease of Trabuco Canyon sentencing date continued January 30, 2012. It should be noted he has been arrested for three DUI's. He is reportedly been involved in the administration of the winding down of CapitalWerks.
Jim Raeder, 46, of CapitalWerks/Preferred Lease, formerly Mission Viejo, now living in Colorado, sentencing set for February 6, 2012. A condition of pretrial release was issued "...(a) do not use alcohol; (b) submit to drug and/or alcohol testing and outpatient treatment as directed by Pretrial Services; and (c) Comply with all conditions of probation for defendant's State of Colorado case." He has been recovering from cancer and reportedly is both writing a book, and making his living by buying assets off lease and then re-selling them.
Adam Zuckerman, 41, of BrickBanc, Laguna Beach sentencing set for October 24, 2011. I bet his sentencing will also be delayed. Mr. Zuckerman has been in the news in Southern California regarding an investment matter where he reportedly prevailed.
Brian Sime, 33, BrickBanc, Irvine also known as Joe Turner also known as Tonga sentencing continued until November, 28, 2011.
Leigh Dorand, 42, Tech Capital, Phoenix, Arizona sentencing continued until December 19, 2011.
Paul Arnold, 60, Brickbanc, Laguna Hills sentencing sent for December 19, 2011.
George Simon, 42, Advantage IT Solutions, Redondo Beach, sentencing sent for December, 19, 2011.
Kirk A. McMahan, 35, Brickbanc, Newport Beach sentencing continued until November 28, 2011.
Jeffrey Greenough, 52, Peniche, Laguna Beach sentencing continued to October 17, 2011.
Troy Worrell, 51, Peniche, Newport Beach, (many sealed documents, Oct. 3 sentencing, but seems to be continuing, no date given).
Geoffrey Silver, 39, of Silver Industries, Calabasas, sentencing continued until October 17, 2011.
Chance Nell Weaver, Axis Communications, Tarzana sentencing continued to January 23, 2012.
Michael Scott Grayson, Axis Communication, Tarzana sentencing continued February 6, 2012.
Michard Norris, 60, CapitalWerks/Preferred Lease, Los Angeles, sentencing sent for November 14, 2011.
Les Spitzer, 64, Pyramid Infinite, Grenada Hills, also known as Guy Amsalem continued until November 21, 2011.
Alphabetically, these people have already been sentenced:
James H Breedlove, 55, Santé Fe Equipment, Newport Beach: “12 months and 1 day imprisonment, with credit for time served. Pay $100 special assessment. Pay total restitution of $391,976.25. The defendant shall be held jointly and severally liable with convicted co-participants Mark McQuitty (Docket No. SACR 07-00236-CJC) and James Raeder (Docket No. SACR 07-00237-CJC) for the full amount of restitution ordered in this judgment. Interest on restitution ordered waived. 3 years supervised release under terms and conditions of US Probation Office and General Orders 318 and 01-05.”
Mark Castleman, 51, Industrial Information Systems, Chino Hills, indicted for mail fraud and November 19, 2008 pled guilty. “April 23, 2009. Hearing held before Judge Cormac J. Carney as to Defendant Mark P Castleman. Defendant Mark P Castleman (1), Count(s) 1, 1 day imprisonment, with credit for time served. Pay $100 special assessment. All fines are waived. 3 years supervised release under terms and conditions of US Probation Office and General Order 318. Bond Exonerated. Sixty (60) hours of community service with the first six months.
Douglas Cox, 42, CapitalWerks/Preferred Lease, Rancho Santa Margarita, placed on probation for 1 year under terms and conditions of US Probation Office and General Orders 318 and 01-05. Pay $100 special assessment
Harold Gold, 79, Leasing Services, Falmouth, Masschusetts, placed on probation for two years under terms and conditions of US Probation Office and General Orders 318 and 01-05. Pay $100 special assessment.
Lourey McComber, 57, Prescott Valley, Arizona, Peniche, appears to have had a medical problem, and last entry shows a Government motion to dismiss information without prejudice and signed by Judge Cormac J. Carney. There appears to be another entry made in Yuma, Arizona that was terminated.
Nohad Mousa, 44, Saut Wa Soora, Inc., Anaheim, pled guilty to 18:1341 MAIL FRAUD before Judge Cormac J. Carney. “JUDGMENT AND COMMITMENT by Judge Cormac J. Carney as to Defendant Nohad Mousa (1), Count(s) 1, 6 months imprisonment, time served. Pay $100 special assessment. Pay total restitution of $94,775. Interest on restitution ordered waived. Defendant shall be held jointly and severally liable with co-participant George Simon (Docket No 8:07CR00246) for the amount of restitution ordered in this judgment. All fines are waived. 3 years supervised release under terms and conditions of US Probation Office and General Orders 318 and 01-05. Signed by Judge Cormac J. Carney. “
Leo J. Najera, 64, ECCI, Mission Vallejo, July 20th JUDGMENT AND COMMITMENT by Judge Cormac J. Carney as to Defendant Leo J Najera (1), Count(s) 1, Defendant is sentenced to 1 day imprisonment, which the Court determines has been served. Pay $100 special assessment. Pay total restitution of $396,251.22. The defendant shall be held jointly and severally liable with convicted co-participants Mark McQuitty (Docket No SACR 07-236-CJC) and James Raeder (Docket No SACR 07-237-CJC) for the full amount of restitution ordered in this judgment. Interest on restitution ordered waived. Placed on supervised release for 3 years under terms and conditions of US Probation Office and General Orders 318 and 01-05.
Anthony E. Watson, 65, CapitalWerks/Preferred Lease, Los Angeles, pled guilty before Judge Cormac J. Carney. 1 day imprisonment with credit for time served. Pay $100 special assessment. All fines are waived. 3 years supervised release under terms and conditions of US Probation Office and General Orders 05-02 and 01-05. (mt)
John J. Callaghan, 38, of Warminster, Pennsylvania, who worked at Citicapital, one of first 23 indicted, no record found.
John Budge, 38, of Sartell, Minnesota, who worked at Bach Business Credit, one of first 23 indicted, no record found.
Note: This list may not be complete as information gathered came from many different sources, including the original US Attorney General’s Press Release.
Previous Operation Lease Fleece Stories:
((Please click on ad to learn more))
NAELB October 14-15 Conference Up-Date
Six New Funders Joining the Presentation:
Ascentium Capital, LLC
Last Day to Be Included in Roster/Also Register OnLine
ELFA 50th Anniversary Conference, San Antonio Texas
This is a business and networking and education conference you will not want to miss to survive and grow in this financial climate. It is also the 50th anniversary of the Equipment Leasing and Finance Association and all stops have been pulled out to make it not only one of the best, but one to remember.
The deadline for mail-in and on-line registration is today, Monday, October 10, 2011. Registrations will still be honored, but your name will not be included in the printed Attendee Roster. Registrations and substitutions can also be made onsite. Please note: there are no refunds of registration fees after this date.
The fee includes all convention business sessions, social activities, breakfasts and luncheons.
Career Crossroad—“Unemployed—Lease Administration”
I am confident that you have skills that are transferable from industry to industry – do some research in determining what other industries you may be interested in.
Additionally, you may want to develop your resume geared towards those industries; each version should focus on your transferable skills. This will lead to a few versions of your resume – that is okay.
In the meantime, brush up on your skills … e.g. take some classes, sign up for designations (CLP) within the industry – this will make you more marketable. Be open to consulting work or part-time opportunities which future employers will consider and admire.
Don’t forget to NETWORK with:
They may be aware of openings coming available …
I wish you luck and if you need more assistance, please feel free to contact me.
Leasing Industry Help Wanted
For information on placing a help wanted ad, please click here:
Please see our Job Wanted section for possible new employees
True Commercial Equipment Leasing
What is a true lease? A question that involves a lot of “if’s”. Please remember that there are three sets of rules that govern leases:
Therefore there are three answers to each set of lease parameters.
In this column, federal income tax requirements are explored. True leases are governed by the IRS to determine who has the right to capital recovery benefits (depreciation) or if the lessee has the right to deduct the rents?
The main criterion for income tax consideration revolves around the “intent” of the parties to the lease. A bargain purchase option shows intent to sell for less that its true value; hence the transaction is a security agreement/loan, often referred to as a “capital lease.”
Leasing the equipment for greater than 80% of the equipments useful life means the lessee has extracted most of the equipments use and has gained the right to ownership benefits through the payments of rent; hence it is a security agreement /loan. In addition the Lessor must show a meaningful residual value at lease termination. This does not mean they have to take a residual, but their records must show the assumed use value of the equipment at termination. Also if the rents and the purchase option equal the cash flow of a loan, then the economics prove it to be a loan.
The current 100% income tax depreciation benefit and section 179 benefits have confused the market place and a number of leasing companies have avoided the true lease market. In truth many lessees have opted out of the 100% depreciation and instead have assumed MACRS depreciation instead to avoid the tax hole in the next few years. Next year will be a strange year if congress takes away these tax incentives to reduce the deficit. True leasing will make a comeback.
Special arrangements have been made for business use auto and truck transportation equipment called a Terminal Rental Adjustment Clause (TRAC). So long as the lease meets the requirements of a true lease, the lessee can guarantee the residual by adding rent to cover any loss, on the sale of the equipment, or receiving a refund of rents paid equal to the value that exceeds the residual amount.
A non-profit “use” of the equipment requires a major loss in depreciation expense such as municipal leases and leases to the federal government and non-profits. No capital recovery benefits are allowed if the equipment is used outside the United States.
There are a few additional questions creeping into the discussions of how an equipment owner should show his “intent” in the lease, such as, is there an adjustment in the rent if the equipment is used harder than reported at lease commencement. How often does the Lessor inspect the equipment to make sure it is being used according to the lease agreement and is the maintenance being handled correctly? The loss of capital recovery benefits effects your lessee also--- as they lose the right to deduct the rents and must redo there income tax returns and assume depreciation.
For those who are moving from $1 option or bargain option leases to true leases with the advent of the changing accounting rules, it is wise for them to determine the full responsibilities of asset ownership. They also need to begin to review their lease agreement to include new language or forgotten language that covers all of the concerns of a true asset owner; such as the loss of the value of depreciation benefits, a change in corporate tax rates, return conditions, maintenance requirements and the quite enjoyment clause.
The last issue for consideration is the residual. The larger the residual, the more important the return conditions and the maintenance provisions. However, your return provisions cannot be so harsh, or the cost to return too high, to make even the fair market purchase option a bargain. This would disqualify the lease and make it a loan even though everything else met the rules.
Do your residual studies with the same interest that you give the credit issues and make sure that any fixed price purchase option can be supported as the future value and keep the booked residual value no greater than 80% of the Purchase option to avoid the economics test.
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:
(This ad is a “trade” for the writing of this column. Opinions
Top Stories October 3--October 7
Here are the top ten stories opened by readers:
(1) Bob Fisher to attend NAELB Conference for
(2) Banks and Creditors Could Just Cry
(3) Career Crossroad
(4) Compensation Starts to Bounce Back
(5) Hugh Swandel This Sunday for Chris Walker
(6) Delivery and Acceptance Forms
(7) Classified Ads---Asset Management/Controller
(8) New Hires---Promotions
(9) Economy Shows Signs of Life on Manufacturing Rebound
(10) Want to End the Year With More Revenue? Here's How!
Bank Beat--Two Banks, 36 branches closed
(The protestors against bank fees are just angry, and much of it is caused by banks that failed, such as Washington Mutual, who advertised on television "We aren't bankers." They gave away free checking accounts, overdraft charges, ATM fees, you name it, as they were raking it in real estate mortgages from people who should never have qualified. And now that the community banks have problems with real estate loans, what products are they left to stay in business? At one time they charged for checking, for overdraft, for services they offered, and to regulate that they can't charge for services rendered is un-American. The protestors should spend their energy looking for a job. Editor)
The 27 branches of Sun Security Bank, Ellington, Missouri were closed with Great Southern Bank, Springfield, Missouri, to assume all of the deposits. The bank was formed January 19, 1970 and when closed had 119 full time employees, compared to 2006 with 166 full time employees. By the dates of the opening of the offices, the bank started to expand in 2004 with ten new branches, five in 2005, and one in 2006. June 30, 2011 Tier 1 risk-based capital ratio: 2.36%
The bank went from a $10 million profit in 2006 to losing $17.5 million in 2008, all primarily from construction and land development loan charges offs, primarily from a couple of local developers.
Elmer Austermann, Jr.
According to the St. Louis bizjournals.com, "Elmer Austermann, Jr., Sun’s chairman, controlled more than 90 percent of Sun Security’s shares (he lost a lot of money. editor). Shaun Hayes, a shareholder and president of the bank from 2008 to 2011, is facing a raft of lawsuits involving Sun and other banks. He is a defendant in 12 civil suits filed in St. Louis County Circuit Court this year. Another bank where Hayes has been a shareholder, Excel Bank in Sedalia, Mo., is one of those suing him.
"Recent troubles at Sun that have become public include two St. Charles County developers who pleaded guilty to bank fraud charges related to a development in St. Charles County. Thomas Colvin and Kristaq Gjordeni obtained a $5.1 million loan from Sun to purchase and develop 45 acres into 33 single-family lots at The Bluffs at Green Chutes. They began experiencing financial difficulties with their other projects and started using the Bluffs project loan to pay on unrelated loans and personal expenses, the U.S. attorney’s office said.
"In addition, BancorpSouth of Tupelo, Miss., has filed two lawsuits against Hayes, one seeking just shy of $1 million and another seeking $1.2 million."
(in millions, unless otherwise)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
As of June 30, 2011, Sun Security Bank had approximately $355.9 million in total assets and $290.4 million in total deposits. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase essentially all of the assets.
The FDIC and Great Southern Bank entered into a loss-share transaction on $351.9 million of Sun Security Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $118.3 million.
The six branches of The RiverBank, Wyoming, Minnesota were closed with Central Bank, Stillwater, Minnesota, to assume all of the deposits. The bank had 108 full time employees March 30, 2011 compared to 19 full time employees in 2006 and 115 full time employees in 2007 as this was the date Chisago State Bank, founded March 9, 1908 and the Bank of Osceola, founded in 1894 merged to become RiverBank. In 2007 opened four offices, one in in St. Crois, St. Croix Falls and Hudson. June 30, 2011 the bank had a Tier 1 risk-based capital ratio: 1.71%.
In 2009, the RiverBank received a cease-and-desist order from regulators, who were concerned about the high concentration of land and land-development loans the bank had made in outlying areas of the Twin Cities, as well as “operating with a board of directors that has failed to provide adequate supervision over management, operating with an inadequate level of capital, operating with an inadequate allowance for loans and lease losses, engaging in hazardous lending and lax collection practices and operating with inadequate policies to monitor and control asset growth.”
A history of the bank is still on line at press time:
Still on line is an independent site showing the bank owned real estate:
(in millions, unless otherwise)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
As of June 30, 2011, The RiverBank had approximately $417.4 million in total assets and $379.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets.
The FDIC and Central Bank entered into a loss-share transaction on $339.3 million of The RiverBank's assets.
Central Bank will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $71.4 million.
List of Bank Failures:
SNL Financial Reports FDIC Branch Count Slumps/Deposits Jump
1. A preliminary look at the FDIC's 2011 Summary of Deposits data shows that the number of branches in the U.S. fell for the second consecutive year, while deposits jumped 7%.
2. According to the data, U.S. deposits rose to $8.25 trillion from 2010 to 2011, outstripping the 2% deposit growth that occurred between 2009 and 2010.
3. The number of U.S. branches declined to 98,202, down 315 from the 2010 count. This marks the second year of branch consolidation after years of expansion.
Click here for SNL Financial's ranking of the Top 15 Banks by Deposits:
CLP Spotlight ---Steve Reid, CLP
AN INTERVIEW WITH STEVE REID, CLP
Steve Reid, CLP
What is your favorite thing about the equipment finance industry?
Last Book I Read
The last book I read for information was Decision Points. Whether you agreed with 'W" or not, this book paints a picture and provides an understanding of the decisions all Presidents must make when they occupy the oval office. What was intriguing is the amount of thought, turmoil, conflict and sacrifice that goes into most decisions. And in the end, half the population is not going to be happy just out of principle.
If you won $50 million in the lottery, what would you do with the money?
### Press Release ############################
Equirex acquires Bodkin and establishes Bennington Financial
Oakville, Larry Mlynowski, President and CEO of Equirex Leasing Corp., is pleased to announce the acquisition of the assets of Bodkin Capital Corporation and Bodkin Leasing Corporation. In line with a corporate strategy initiated in 2007, Mr. Mlynowski also announces the establishment of Bennington Financial Services Corp. to provide corporate support functions for the Equirex and Bodkin brands.
Larry Mlynowski, MBA
Mr. Mlynowski states, “This acquisition will make Bennington one of the largest independent commercial leasing companies in Canada. We will continue to provide the market with competitive and innovative leasing products with unique and creative solutions to assist new and existing businesses to finance their growth and their dreams”.
Equirex and Bodkin will each continue to service their clients in their particular market segments. Bennington will provide comprehensive corporate services for both brands in the areas of accounting, treasury, human resources, information technology, collections, asset recovery and legal support. According to Mr. Mlynowski, “This will allow Equirex and Bodkin to focus their resources on providing a superior leasing experience to their clients through a specialized team of highly experienced and creative associates”.
About Equirex Leasing Corp.
About Bodkin Capital Corporation
For further information contact:
ELFA’s Sutton to Keynote 2011 NEFA Expo in November
Raleigh, NC – William G. Sutton, CAE, President and CEO of ELFA, will give the Opening Keynote Address at the 2011 Expo Regional Meeting of the National Equipment Finance Association, (NEFA), on November 7, at the Teaneck Marriott Glenpointe, in Teaneck, NJ.
Sutton will discuss the state of the equipment leasing and finance industry and its outlook for 2012, and provide his perspective on the Washington regulatory and political landscape.
“We’re very pleased to have Woody Sutton’s perspective on our industry,” said Gerry Egan, Executive Director of NEFA.
“Woody is an engaging presenter and has a unique combination of experiences from his distinguished Navy career where he rose to the rank of Rear Admiral, service as an aide to President Ronald Reagan, service in the U.S. Department of Commerce's International Trade Administration, and extensive service leading professional trade groups. His insights will be of special interest and value to our members at this time.”
NEFA’s Expo regional meeting continues a long tradition begun by EAEL, one of the predecessor organizations, along with UAEL, of today’s NEFA. “Many industry professionals, both from within our organization and from outside it, look forward to Expo every year and have for many years,” said Egan. “It was one of the first industry meetings I attended when I started in this business and that was more years ago than I sometimes care to think about!"
Expo kicks off with a reception the evening before, on Sunday, November 6th, then includes a full day of presentations and industry funding and services exhibits on Monday, the 7th. The full Agenda can be seen here: https://m360.nefassociation.org/frontend/event/schedule.aspx?EventId=35449.
About National Equipment Finance Association
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Seattle, Washington -- Adopt-a-Dog
Ashton is an adorable 3-year-old Miniature Schnauzer mix. He is incredibly cute, and he loves to chase balls and play with toys. Ashton also loves to play tug-of-war with his canine foster sibling, and enjoys the company of the resident cat in his foster home. Getting along with other animals seems to be easy for him! When it comes to human companionship, Ashton takes some time to warm up. Once he knows that you are someone he can trust, Ashton is one of the sweetest pups around!
Ashton is looking for an adopter he can depend on and would be happiest in a home with at least one other friendly dog or cat to show him the ropes and encourage him to play. Ashton's foster family reports that he has bonded with them and with his dog-walker, and that their relationships grow all the more each day! His foster family writes: "Ashton is a very curious, somewhat cautious boy. But he's really a big cuddle-bug, especially when it's bedtime. Ashton gets along well with our other dog and cat. He's potty trained and isn't destructive. We trust him fully alone in the house."
Ashton is currently in foster care and not at the shelter. To learn more about him call the Seattle Humane Society at (425)649-7563 or email email@example.com.
As with all of our dogs, Ashton has been neutered, microchipped, vaccinated and behavior tested. He will go home with a certificate for an examination by a King County veterinarian and an identification tag. PLUS, most dog adoptions include six weeks of training in one of our on-campus dog behavior courses -- a great way to start off on the right paw!
Introduce to children over the age of 12. Resident dogs are required to visit with Ashton prior to adoption. Introduce to cats.
Open Seven Days a Week and New Extended Hours!
Thursday-Friday-Saturday: 11 a.m. - 8 p.m.
Seattle Humane Society
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Adopt a Pet
Steve Hudson Raising Capital to enter US Leasing Market---Perhaps
More About Hudson raising capital
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Leasing News Wine & Spirits Page
This Day in History
680 - Imam Hussein, grandson of Prophet Mohammed, was beheaded. He was killed by rival Muslim forces on the Karbala plain in modern day Iraq. He then became a saint to Shiite Muslims. Traditionalists and radical guerrillas alike commemorate his martyrdom as the ceremony of Ashura. The 10-day mourning period during the holy month of Muharram commemorates the deaths of Caliph Ali’s male relatives by Sunnis from Iraq.
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