Ted Pritchard, CLP, Passes Away

Ted Pritchard, CLP
Smokey Mountain Funding, Inc.
Hunt Valley, Maryland

Ted Pritchard, CLP, son Tripp said his father died at age 67 at the Elizabeth House on Friday after a seven month ordeal of pancreatic cancer eventually took his life. There will be a funeral service in Hendersonville, North Carolina at his Church on Saturday, October 24th. Forest Lawn Mortuary will announce the arrangements. Leasing News will print the details when received in the next edition.

From the web site:

"Ted Prichard, CLP, established Smokey Mountain Funding in 1988.He is a graduate from the Citadel and also a veteran. Ted served in Viet Nam. Ted has 35+ years of business and leasing experience. He is a Certified Leasing Professional who comes from a banking family. He brings a solid business and financial background to the company. Smokey Mountain Funding, Inc. is located in Hendersonville, NC.

"Ted also owns and operates a "sister" company called Smokey Mountain Mortgage, Inc. This is a full service mortgage company licensed in North and South Carolina handling commercial and residential real estate."

"Supporting the sales staff is Tripp Prichard, President of Smokey Mountain Funding, Inc. Tripp is a graduate of North Carolina State University and also brings a solid background of both sales and leasing experience."
http://www.smokeymountainfunding.com/history.php

Classified Ads---Senior Management

For a full listing of all "job wanted" ads, please go to:
http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm

Other e-Mail Posting Sites:
http://www.leasingnews.org/Classified/Posting_sites.htm

Concord Financial Services Closes its Door

Moe Essa, President of Concord Financial Services, Long Beach, California, as informed Leasing News that he has closed his company.

GE to continue "shrinking"

Two quotes from GE-Q3 2009 General Electric Earnings Conference Call, Event Date/Time: Oct. 16, 2009 12:30pm GMT

Keith Sherin-General Electric-Vice Chairman

"I would like to start with a summary of the third quarter. On the left side is the summary for continuing operation. Revenues of $37.8 billion were down 20%. That is as we expected. Industrial sales at $25.1 billion ere down 12%. You saw in the press release organic growth was, on industrial, was down 9%. Financial Services revenue at $12.7 billion, down 20%. I ill explain more on that when I get to the Finance Services page. We earned $2.5 billion in net income, which was down 45% and for earnings per share, we earned $.022. That does include the cost of our preferred dividend...

"I will start with a few pages on Capital Finance. Mike Neal and the team continue to execute well in a very challenging environment. For Q3, the revenues of $12.2 billion were down 20%. That is driven by our assets being down $70 billion year-over-year. It also driven by the impact from deconsolidating Penske, which was about six points of revenue decline in the quarter. And we also had lower revenues because we have lower gains, principally in Real Estate and also form lower interest rates with our floating-rate book. Capital Finance earned $263 million. That was down 87% driven by higher credit costs. I will cover that in more detail. Lower gains and the impact of again shrinking the business."

Jeff Immelt-General Electric-Chairman & CEO

"So I want to reiterate one thing Keith said is that we are shrinking GE Capital faster than we had planned. We think that is on strategy as we do that, the GE Capital revenues decline accordingly. And so I think these are things we are doing proactively that are on the strategy where we view this as a positive execution point."

- GE continues to cut back on projects, employees, divisions, selling off assets.
- While press release and presentation are optimistic, is "shrinking" optimistic?
- While government looks to increase employment, GE is not
(perhaps as well as other companies are shrinking, too)
- Imagination at work?

GE Slogan Winners
http://www.leasingnews.org/archives/February%202009/02-04-09.htm#contest

Conference Call Transcript GE-Q# 2009 Earnings:
http://leasingnews.org/PDF/GE%20Conference%20Call.pdf

Leasing 102
by Mr. Terry Winders, CLP

Rate Fear

The discussion about "what is my rate" confuses more lease sales people than it does the customer. I have written in the past that trying to be "honest" is not the issue. It is the type of lease that dictates the rate. Also the accounting requirements may be looked at differently by both lessee and lessor or the funding institution. It is wrong to respond to any request for a rate quote. Loans have interest, no lease has interest. So let's discuss the different types of leases and the question of rate.

A one dollar purchase option lease is easy to compute a standard rate but it will probably be wrong for the lessee because of the accounting requirements. The procedure for placing the transaction on the books of the lessee requires the accountant to use the customers "incremental borrowing rate" to discount the rent stream to obtain the "present value" of the payments. This present value is then subtracted from the total rent to determine the difference which is then charge as interest over the lease term. Unless your lease rate is exactly the same as the customers "incremental borrowing rate" your rate quote is wrong. There for you should tell the customer that there rate is what ever there "incremental borrowing rate" is and if they want to compare lease quotes they should compare payments.

Once you move to a purchase option greater that one dollar, due to your assuming a residual, the issue of rate is clearly going to be different than the customers "incremental borrowing rate". It is interesting to note that the customer's rate is the same irrespective of what residual you take because they must discount only the payment stream. Different residuals create different payment streams which create different discounted amounts and different amounts of interest; however they will all be at the same "rate". The customers "incremental borrowing rate" is always the rate. Different payment streams create different present values so it may important to ask the customer to compare present value along with the payments to compare lease quotes.

I know these sounds like a complex way to discuss rate with your customer but are you a professional or a rate card sales person? To look professional you need to understand the rules and be able to discuss the effect of the rules on the lessee. If you just discuss rate your competition will find a way to confuse the customer and disguise their rate and take the business from you.

A true lease, a non-profit lease or any lease with a residual requires this type of discussion because the amount of the payment stream is affected by so many additional factors. Also it is wise to remember the income tax rules because with the changes that are proposed by FASB leasing will return to selling tax leases. It appears that FASB wants to place everything on the balance sheet of the Lessee so the above discussion will become a necessity if you hope to sell leasing in the future. I recommend you obtain a copy of the proposed accounting changes and after reading them get involved in the fight to save our industry.

Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at leaseconsulting@msn.com or 502-327-8666. He invites your questions and queries.

Previous #102 Columns:
http://www.leasingnews.org/Conscious-Top%20Stories/Leasing_102/Index.htm

(This ad is a "trade" for the writing of this column. Opinions contained in the column are those of Mr. Terry Winders, CLP)

Bank Beat---Central California takes another hit

San Joaquin Bank, Bakersfield, California, became the 99th FDIC-insured institution to fail in the nation this year, and the tenth in California. The five branches and deposits were assumed by Citizens Business Bank, Ontario, California.

Central California has been hardest hit with real estate failures, caught in a boom era, coupled with agriculture problems and high unemployment for almost two years.

The bank had grown to 149 employees; net equity dropped $23 million to $47 million, June 30, 2009 with a loan loss allowance of $45 million. The bank reported a $19.7 million loss June 30, 2009, all according to FDIC filings.

Federal regulators had given the bank until October 15th to raise $27 million in new capital. The 52 week high of bank stock was $21.50 and had fallen to $2.25, before the announcement was made. Bank President and CEO Bart Hill told bakersfield.com he had "... an offer by 11 private investors in India totaling $38 million, which would give them 62 percent ownership, though no single person would get more than 8 percent. Hill said $5.5 million of that money is now in Los Angeles but that the rest is awaiting the completion of background checks of the investors."

It never materialized. The FDIC and Citizens Business Bank entered into a loss-share transaction on approximately $683 million of San Joaquin Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $103 million.

Bakersfield.com full story-closing of the bank and its affect on the community:
http://www.bakersfield.com/news/business/economy/x1675932959/Regulators-shut-down-San-Joaquin-Bank

Commerce National Returns TARP

"Commerce National Bank was one of the few community banks that qualified for and also repaid TARP funds. I have attached a press release from our bank President that we as a small community bank consider newsworthy. We are also proud to state that our new Leasing Department recently completed our first full year. We have achieved most of our first year goals, we are growing, and we look forward to working with the leasing community for many years to come."

Bob Robichaud, CLP
Vice President Leasing Relations
Commerce National Bank
279 E. Orangethorpe Ave.
Fullerton, CA 92832
Tel: 714-882-7648
brobichaud@commercenatbank.com

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

Commerce National Bank Announces Repayment of $5 million of TARP-CPP Capital

NEWPORT BEACH, CA. Commerce National Bank (OTCBB:CNBF.OB), a community business bank now in its sixth year of operation, announced it has redeemed the Preferred Stock issued to the United States Treasury Department (the "UST") by repaying the $5 million received from the UST in January 2009 under the term of the Troubled Asset Relief Program Capital Purchase Program (the "TARP CPP").

"When the TARP CPP was originally proposed, only strong, well capitalized banks could apply for it," stated Mark Simmons, the President & CEO. "However, after several changes were made to the program, the public perception of it changed to a negative idea that the program was supplying bailout money to troubled banks.

"The Board of Directors earlier this year decided that it was in the shareholders' best interest to repay the TARP CPP funds as the bank did not need them, and was not, and is not, a troubled or problem bank. With the redemption of the Preferred Stock, the Bank's equity is $28,588,492. That results in a Tier 1 capital to assets ratio of 12.7%, which is more than twice the minimum requirement to be well capitalized under applicable federal regulations. This ratio places Commerce National Bank among the best capitalized business banks operating in Orange County. The bank's Board of Directors, officers and staff will continue to focus on delivering the highest level of service to its business and professional customers and seek out new customers in the Orange County community."

With offices in Newport Beach near John Wayne airport and in the City of Fullerton, the Bank is well positioned to serve businesses, professionals and selected real estate customers in both the northern and southern areas of Orange County. The offices are staffed by experienced business bankers who are committed to providing exemplary service to their customers in the business community.

(Leasing News provides this ad "gratis" as a means to help support the growth of Lease Police)

(While California had its tenth bank failure, most through residential and commercial real estate foreclosures, here is an optimistic report from SNL Financial, reprinted with their permission. Editor)

From bankers' view, clouds lifting over California

By Kevin Dobbs

In California, where banks have struggled mightily against the backdrop of a pummeled housing market, fear is giving way to op- timism, albeit with an undercurrent of caution.

Christopher Carey, the CFO of City National Corp., a bank with about 90% of its assets in California, told investors recently that loans to residential developers are "stabilizing at this point." He said nonperformers in the area "actually went down" in recent months and "it's more likely than not that we won't see" them rise again. Carey, speaking at a September conference, acknowledged that commercial real estate losses could still pose a significant threat and that high jobless rates in California remain a pressing concern. But, he said, the bank is now comfortable looking ahead to recovery with the deepest housing-related troubles easing.

"We are not out of the woods yet, but housing prices have come down significantly in most markets and the unsold homes are selling at a pretty rapid clip," he said.

The latest S&P/Case-Shiller home price indexes, released Sept. 29, provided fuel for hope. Home prices in both Los Angeles (up 1.8%) and San Francisco (up 3.3%) improved in July from the previous month. And while the measure of growth was negative on a year- over-year basis in both cities, as well as nationally, declines narrowed throughout the second quarter.

"In California, we are pretty confident that we are long past the worst of the residential development and construction problems," Doyle Arnold, Zions Bancorp.'s CFO, said at a September confer- ence.

Arnold acknowledged that the state is coming off painful lows. But Arnold said that "in recent months we have seen a couple of national home builders come back into that market and buy finished lots ready for development at prices that were at or above more recent other recent sale prices.

"Nobody's predicting a big housing boom," he added. But "there is evidence that the home builders which sold a lot of land and a lot of inventory at the end of Ô07 and Ô08 to realize tax losses, to get the refunds, to hoard cash two years ago, are now beginning to deploy that cash very selectively in high quality, well-located lots. "So," Arnold said, "they've got some inventory on which to build as some pickup in housing activity begins."

If that proves true, it could mark an important turning point for the nation's most populated state if it eventually results in new building and, by extension, new jobs. Amid the housing collapse, the state lost about 500,000 jobs tied to construction in real estate, banking, financial services and related industries, according to the Center for Continuing Study of the California Economy. The center estimates that total building levels peaked this decade in the state at about $63 billion in 2005 and have since fallen more than 60%.

Timothy O'Brien, a bank analyst in Sandler O'Neill & Partners LP's San Francisco office, told SNL that, much like the word from Zions, community bankers have passed along to him anecdotal evidence of national builders investing in California, which he called "a real positive." It indicates, he said, that national builders are not only confident in their own financial stability but also may be starting to bet on a sustained turnaround in California.

O'Brien, who tracks developments in Western real estate and their impact on banks, also said low interest rates are attracting home buyers and driving mortgage volume for banks while a national economy on the mend could result in an uptick in orders for California-based businesses, which could in turn result in more jobs.

A University of California, Los Angeles, forecast put quarterly eco- nomic growth next year in California at 2%, on average. All of which would be good news for banks in California, which need to see stronger consumer and business activity to appear in the form of not only more demand for credit but demand from credit-worthy customers. And the state's recovery could prove a harbinger for the nation, given that California's economy, if broken off on its own for statistical measurement, would rank among the world's top 10 economies, even after the effects of the latest reces- sion, according to the Center for Continuing Study of the California Economy.

"With all the shakeout we've seen, I think, the strong, relatively healthy banks should actually benefit from the diminished competi- tion and be able to see strong future growth," O'Brien said."We are going to come back. É We are taking steps in the right direction." He echoed similarly upbeat comments by executives at JPMorgan Chase & Co., Wells Fargo & Co., U.S. Bancorp and other large banks with sizable market share in California. But he also emphasized the flipside.

"I think it's safe to say bankers are less uncertain now about their ability to make a buck," O'Brien said. However, he added that "it's important to note less uncertain. It's definitely a mixed bag right now."

The state's economy, he said, remains in a tenuous position with a fragile bottom.

He noted that homes sales in California have been driven, in part, by seasonal upticks and by special tax credits for certain first-time buyers credits that are slated to expire in a couple months. And, of course, unemployment levels must level off before bankers in the state can be comfortable that credit losses will be held in check, he said. The state's unemployment rate hit 12.2% in August, well above the national average of 9.7%.

But more bankers and analysts are increasingly confident that housing, which drove California into a hole, has begun to stabilize and will eventually help fuel its growth once again for banks and the broader economy

August home sales increased 9% in California when compared with the same month a year ago, according to the California Associa- tion of Realtors. The median price of an existing home in California in August was $292,960, down 16.9% from a year earlier but up 2.6% from the previous month.

Donald van Deventer, chairman and CEO of credit and market risk consultancy Kamakura Corp., told SNL that housing in San Francisco and other relatively affluent areas of Northern California have little healing to do relative to the rest of the state. And he said Orange County, parts of the Los Angeles area and other densely populated parts of Southern California are likely to recover faster than the hard- hit Inland Empire, a central region that got punished particularly harshly by the housing bust.

"But I'm now confident that it, too, will follow along and bounce back," said van Deventer, who tracks market conditions on the West Coast. "It's not false optimism."

Leasing News Top Stories-October 12-16

Here are the top ten stories opened by readers:

(1) Direct Capital Exits Broker Marketplace
http://leasingnews.org/archives/October%202009/10-16-09.htm#Direct_Capital

(2) "Oh No! Sheldon Player Again!!!
http://leasingnews.org/archives/October%202009/10-16-09.htm#Sheldon_Player

(3) Leasing Companies Out of Broker Business
http://leasingnews.org/archives/October%202009/10-12-09.htm#Out_of_broker

(4) Looking for Broker Business
http://leasingnews.org/archives/October%202009/10-14-09.htm#Broker_Business

(Tie)
(5) Banks cutting back on loans to businesses
http://www.marketwatch.com/story/banks-cutting-back-on-loans-to-businesses-2009-10-09

(Tie)
(5) Marlin BBB "F Rating" gets $75MM from Wells
http://leasingnews.org/archives/October%202009/10-14-09.htm#Marlin_Closes

(6) You May have Missed---
Obama wins the Heisman Trophy
http://leasingnews.org/archives/October%202009/10-14-09.htm#miss

(7) Classified Ads---On Line Employment Sites
http://leasingnews.org/archives/October%202009/10-12-09.htm#Ads_Emloyment

(8) Cartoon-You made the right decision, Captain!
http://leasingnews.org/archives/October%202009/10-14-09.htm#Cartoon

(9) Pawnee Leasing SFFA operating system
http://leasingnews.org/archives/October%202009/10-14-09.htm#Pawnee_Leasing

(10) GreatAmerica Passes $1 Billion Milestone
http://leasingnews.org/archives/October%202009/10-14-09.htm#GreatAmerica

Extra/Not Counted for Technical Reasons
CIT End is Near --Peek Resigns
http://leasingnews.org/archives/October%202009/10-12-09a.htm

Southern California Leasing Newsletter

(you may need to click on this to make appear more clear, depends on your settings. One of the best newsletters sent consistently every month to clients, friends, and colleagues.)

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

CIT Amends Restructuring Plan

NEW YORK----CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, announced that it has amended its restructuring plan to further build bondholder support. The amendments have been approved by CIT's Board of Directors and the Steering Committee of CIT's bondholders.

On October 1, 2009, CIT commenced a series of offers to exchange certain outstanding series of notes and concurrently began a solicitation for votes for a voluntary prepackaged plan of reorganization. Successful completion of either the exchange offers or plan of reorganization will generate significant capital and provide multi-year liquidity through the material reduction of CIT's outstanding debt.

"Over the last two weeks, we have continued to work constructively with the Steering Committee and believe that these amendments will further build bondholder support for our restructuring plan," said Jeffrey M. Peek, Chairman and CEO. "Through the completion of the exchange offers or an expedited in-court restructuring process, we will reduce the uncertainty around our business and further maximize the value of our franchise. Either approach is intended to ensure that CIT becomes a well-capitalized bank holding company that will serve as a source of strength for CIT Bank as we implement our new bank-centric funding model."

Amended Terms of the Restructuring Plan

The amended terms of the restructuring plan include, among others:

- A comprehensive cash sweep mechanism to accelerate the repayment of the new notes; - The shortening of maturities by six months for all new notes and junior credit facilities; - An increased amount of equity offered to subordinated debt holders reflecting agreements with holders of the majority of its senior and subordinated debt; - The inclusion of the notes maturing after 2018 that had previously not been solicited as part of the exchange offer or plan of reorganization; - An increase in the coupon on Series B Notes, to 9% from 7%, being issued by CIT Delaware Funding; and - Provided preferred stock holders contingent value rights in the plan of reorganization, and modified the allocation of common stock in the recapitalization after the exchange offers, as part of an agreement with the United States Department of Treasury. - The exchange offers expire at 11:59 pm, New York City time, on Thursday, October 29, 2009, with the exception of the additional notes maturing after 2018 for which there is an early acceptance date of October 29, 2009 and expiration date of November 13, 2009. Tendered securities may be validly withdrawn at any time prior to the expiration or early acceptance date.

NYSE Approval

On October 14, 2009, the New York Stock Exchange (the "NYSE") accepted CIT's application of the financial viability exception to the NYSE's shareholder approval policy in connection with the issuance of the New Preferred Stock should the Offers be consummated. The Audit Committee of the Company's Board of Directors has approved the use of this exception.

For Additional Information

The Company is filing an 8-K containing the amended Offering Memorandum, Disclosure Statement and Solicitation of Acceptances of a Prepackaged Plan of Reorganization with the Securities and Exchange Commission. Further information about the Company, its restructuring plan, including the amended offering memorandum, will be available at www.cit.com.

The Information Agent for the Offer is D.F. King & Co. Financial Balloting Group, LLC is serving as Exchange Agent for the Exchange Offers and Voting Agent for the Plan of Reorganization. Retail holders of notes with questions regarding the voting and exchange process should contact the information agent at (800) 758-5880 or +1 (212) 269-5550. Banks and brokers with questions regarding the voting and exchange process should contact the exchange and voting agent at +1 (646) 282-1888. BofA Merrill Lynch and Citigroup Global Markets are acting as financial advisors to the Company for purposes of this transaction.

Evercore Partners, Morgan Stanley and FTI Consulting are the Company's financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Sullivan & Cromwell LLP are legal counsel in connection with the restructuring plan.

Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.

About CIT

CIT (NYSE: CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com.

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

Changes to SBA Loan Program 650,000 jobs

WASHINGTON, The International Franchise Association urged Congress to make crucial changes to the Small Business Administration loan programs to help create as many as 650,000 new jobs.

"There is significant demand for more lending in the small business community," said IFA President & CEO Matthew Shay during testimony today before the House Small Business Committee. "Making SBA loan programs work better for entrepreneurs seeking capital to open, acquire or expand a business will allow the economy to recover faster and provide the necessary bridge to a functioning commercial lending market once the recovery is complete."

Shay explained that normally businesses could find financing from a number of sources, making the SBA loan program a lender of last resort for those who have trouble finding credit from traditional sources. However, during the current recession, commercial lenders have curbed their lending making the SBA an important lending source for all businesses. He said however, that many are not participating in SBA lending programs because either they lack expertise or they find the SBA's requirements too burdensome.

"Increasing the maximum Small Business Administration loan limits from $2 million to $5 million would make more credit available to franchise business owners who own between two and five units," Shay said. "Larger loan limits will enable some of these franchise small business owners to expand into new markets and help the U.S. create between 450,000 to 650,000 new jobs within the next 12 to 18 months."

In addition to increasing the loan limits, Shay urged the Committee to look at new ways to stimulate small business lending so that funds are available specifically for business start-up and expansion, including:

- Re-institute the borrower fees on all 7(a) loans with amortizations over 15 years while eliminating or reducing lender fees on all 7(a) loans with amortizations under 15 years or alternatively on true start-ups with all amortizations.

- Make the 90 percent guarantee permanent for all loans with amortizations under 15 years, and adding a 100 percent guarantee for first two years of a franchise start-up. For loans with amortizations over 15 years, restore the 75 percent guarantee.

- Improve SBA audit standards. Shay said that if the prevailing perception among lenders becomes a lack of faith in the SBA guarantee, then small business lending will decline further and entrepreneurs will face a much greater challenge to be the engine of economic recovery.

Franchised businesses play an important role in the economic health of the U.S. economy, Shay said, and they are poised to help lead the economy on the path to recovery. An IFA Educational Foundation report shows that the franchise industry consistently outperforms the non-franchised business sector, creating more jobs and economic activity in local communities across the country. Released in February 2008, Volume 2 of the Economic Impact of Franchised Businesses, documents that franchising grew at a faster pace than many other sectors of the economy from 2001 to 2005, expanding by more than 18 percent. During this time, franchise business output increased 40 percent compared to 26 percent for all businesses.

The findings of a 2009 study, Small Business Lending Matrix and Analysis, prepared by FRANdata for the IFA Educational Foundation, demonstrate that meaningful economic recovery and job creation can start with small business lending. In fact, the study determined that for every $1 million in new small business lending, the franchise business sector would create 34.1 sustainable jobs and generate $3.6 million in economic output.

Shay added that the stimulus bill passed earlier this year made some changes to the SBA program, such as temporarily increasing the loan guarantee and suspending loan fees for borrowers.

"These were crucial first steps and we urge Congress to ensure these temporary provisions are available through 2010," Shay said. "Taking additional steps to increase access to capital for franchise businesses will create jobs and lead us to a faster recovery."

About the International Franchise Association
The International Franchise Association, the world's oldest and largest organization representing franchising, is the preeminent voice and acknowledged leader for the industry worldwide. Approaching a half-century of service with a growing membership of nearly 1,300 franchise systems, 10,000-plus franchisees and more than 500 firms that supply goods and services to the industry, IFA protects, enhances and promotes franchising by advancing the values of integrity, respect, trust, commitment to excellence, honesty and diversity. For more information, visit the IFA Web site at www.franchise.org.

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

Asset Protection Strategy Promoter Indicted on Tax Charges
Failed to report over $600,000 to the IRS

Los Angeles The operator of Repackaging America, Inc. and Incorporating You, Inc. appeared Friday in United States District Court in Los Angeles after having been arrested this morning by Internal Revenue Service agents on tax charges.

Dana Ray Reynolds was indicted yesterday afternoon on three counts one count of conspiracy to defraud the Internal Revenue Service and two counts of subscribing to false personal tax returns for the years 2002 and 2003.

According to the indictment, Reynolds developed strategies to conceal personal assets and income and to avoid the payment of liabilities, including income taxes, through the creation of corporations. Reynolds sold these strategies to the public through corporate entities, including Repackaging America, Inc. and Incorporating You, Inc. To market his concealment and avoidance strategies, Reynolds highlighted his own elaborate lifestyle made possible by following the plans he developed. In following his own strategies, Reynolds and an unindicted co-conspirator paid their personal and family expenses using monies taken from the corporations. Reynolds and the unindicted co-conspirator did not report the monies they used from the corporations as income to the IRS.

In addition to failing to report monies used from the corporations as income to the IRS, Reynolds and the unindicted co-conspirator conveyed title in assets they owned to corporations or used corporate entities to give the appearance that the assets were encumbered, in order to avoid having assets seized by the IRS or other creditors.

The indictment alleges that, for the tax years 2002 and 2003, Reynolds and the unindicted co-conspirator removed more than $600,000 from corporate accounts for their own personal benefit, income which they failed to report to the IRS.

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

If convicted of the crimes alleged in the indictment, Reynolds faces a statutory maximum 11 years in federal prison and fines totaling $750,000.

The investigation of Reynolds was conducted by IRS-Criminal Investigation's Los Angeles Field Office in conjunction with the United States Attorney's Office for the Central Judicial District of California.

"Adopt a Pet"

http://www.nhspca.org/animals/dogs.html
The Society for the Prevention of Cruelty to Animals has many adoption centers. Look for one in year area on line. Many have web sites with dogs and cats available on line.

Philippine/Asia Leasing Business Up
http://www.manilatimes.net/index.php/component/content/article/71-analysis/4050-financial-leasing-business-seen-floating-after-floods-

Consumers Continue To Struggle, Issuers Cut Credit
http://www.creditcollectionsworld.com/article.html?id=200910165TGGCGE3&from=creditandcollectionnews

Harvard loses $1.8B in operating cash
http://www.upi.com/Business_News/2009/10/17/Harvard-loses-18B-in-operating-cash/UPI-92871255822721/

Foreclosures Force Ex-Homeowners to Turn to Shelters
http://www.nytimes.com/2009/10/19/business/economy/19foreclosed.html?_r=1&ref=business

Rush Limbaugh-The Race Card, Football and Me
http://online.wsj.com/article/SB10001424052748704322004574477021697942920.html?mod=WSJ_hpp_RIGHTTopCarousel

N.L.C.S. Game 3 Final: Phillies 11, Dodgers 0
http://bats.blogs.nytimes.com/2009/10/18/live-analysis-of-nlcs-game-3-dodgers-at-phillies/?hp

Raiders stun Eagles 13-9/Vick a Bust
http://www.contracostatimes.com/top-stories/ci_13590464?nclick_check=1
http://www.sacbee.com/latest/story/2261932.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/10/18/SPKJ1A7GSG.DTL&type=sports

Snow can't slow records as Brady, Patriots rout Titans
http://www.boston.com/sports/football/patriots/articles/2009/10/19/snow_cant_slow_records_as_brady_patriots_rout_titans/

Falcons hold on at end for 21-14 win over Bears
http://www.chicagotribune.com/sports/football/bears/chi-19-bears-falcons-chicago-oct19,0,4217531.story

NFL ScoreBoard
http://nytimes.stats.com/fb/scoreboard.asp

North California Vineyards are drying out http://www.pressdemocrat.com/article/20091016/ARTICLES/910169901/1350?Title=Vineyards-are-drying-out

SF Wine Lists That Elevate the Cellar---Eric Asimov http://www.nytimes.com/2009/10/16/dining/16sfdine.html?ref=dining

Napa suffers at high end, while lower tiers and cults sit tight http://www.decanter.com/news/290546.html

1781- Washington takes Yorktown. By 1780, the Continental Army had suffered its worst privations, it greatest defeats, and its darkest hours. October was a terrible month in 1780. It would continue to lose battles but, by this time turned into a well-trained fighting force by European officers and aided by allied French forces, it endured and historians consider the American Revolutionary War ended this day in 1781 when more than 7,000 English and Hessian troops, led by British General Lord Corwallis, surrendered to General George Washington at Yorktown, Virginia, effectively ending the war between Britain and her American colonies. The military phase of the conflict ended at Yorktown as there were no more major battles, but the diplomatic struggle continued. Preliminary articles of peace were secured on November 30, 1782, after long and difficult negotiations. The Treaty of Paris, by which the war was officially ended and independence formally acknowledged by Great Britain, was not signed until September 3, 1783. Adding to the disagreements was communication by ship and even meetings locally were delayed as the pace of public transportation in the U.S. was painfully slow. It took Thomas Jefferson five days to travel from Philadelphia to Baltimore. The time delay also gave over 100,000 "loyalist" the time to fled the U.S. Also known as Tories, they had suffered various penalties for their loyalty to the Crown, including confiscation of property, removal from public office, and punitive taxation. Probably no more than 10% of the colonials were Tories, who were generally well-to-do, engaged in commerce or the professions, or public officials. Many fled to Canada, some to England. Some returned after the peace treaty was actually signed. After the conflict, many were also able to recover at least some of their confiscated property. The estimated colonial population was 2,781,000
http://www.richardferrie.com/aboutbook.htm
http://www.lcweb.loc.gov/exhibits/treasures/trt022.html
http://xroads.virginia.edu/~CAP/ROTUNDA/york_1.html
http://bluehawk.monmouth.edu/~library/mumford.html

God Protects Fools with Curveballs
by Tim Peeler

Going after her
Was chasing
A bad pitch,
A sharp curve
That tailed off
Into the dirt,
Evaded the end
Of my whirling bat.
Thank goodness
I only looked stupid
On the first strike.
Touching All Bases
Poems from Baseball
Tim Peeler
www.mcfarlandpub.com