Continues---Centerpoint Financial Services Calls It Quits June 5, 2002
June 5, 2002
Leasing News reported on COO Randy Schiell leaving, then interviewed John Otto, who said he was not pulling the plug. Rumors that Chuck Brazier, CLP, director of Customer Relations was leaving, then Leasing News began receiving complaints of deals not being funded by Centerpoint.
Tuesday morning this fax was sent to Centerpoint brokers:
From: Chuck Brazier
Effectively immediately, Centerpoint Financial Services, LLC will no longer be accepting new credit applications. We would like to thank you for your valued relationship and appreciate your patience and understanding in this matter.
No funding will take place until Wednesday, June 5, 2002 at which time, we will be notifying you of the steps Centerpoint will be able to take to assist you in funding your current backlog. Shortly, we will be sending you a copy of your backlog report and would appreciate if you would indicate which deals are still active and when you anticipate they will be ready to fund.
Again, we would like to thank you for your past business and appreciate your patience as we try to work through this difficult time. If you have any questions, please contact Chuck Brazier at (888) 615-5099 ext. 6115.
1675 Larimer St., Suite 880 Denver, CO 80202 / Tel 303/615-5099 / 888/615-5099 Fax # 303/615-9790
Centerpoint was financed by John Otto of Heritage Leasing fame. It started in 1997, working exclusively with leasing brokers, and in its hay day had up to 25 employees. Sandi Gibson was listed as director of Leasing Broker Relations, and Mark Speros was director of sales. Chuck Brazier took over these responsibilities.
Chuck Brazier, reached by telephone, said he could make no comment; it would
have to come from Gordon Robert, president. .
Chuck is past president of United Association of Equipment Leasing, sitting on the
executive committee, formerly with Sierra Cities, Heritage Leasing, Oakmont Financial, and Denrich Financial. Gordon Roberts is also a past president of the United Association of Equipment Leasing, active with the Eastern Association of Equipment Leasing, formerly with First Concord Acceptance, First Centennial Leasing, Colonial Pacific Leasing.
Leasing News called many times, each time told Gordon Roberts was in a meeting with auditors. There were rumors about a one and a half million dollar write-off carried forward, and not until recently, was the bank informed of this, it is reported.
There were also rumors simply, as being experienced elsewhere in the leasing industry, lack of sales and continuing overhead.
I suspect John Otto had enough check writing on their bad credit decisions. When your credit and pricing is targeted at challenged credits without adequate holdbacks or constant review by management, the train will eventually fly off the
( Name With held )
The money issue is the same as for any firm, more capital needed to go into
the company to keep it going. I expect that Otto got in too deep, everyone
has a limit, and decided that he wasn't willing to support it any more.
I expect that he will be honorable about funding deals, and either do them or
get them placed somewhere else. There is a bunch of good people in that
operation. I don't think many of them would relocate. There is nothing
except maybe San Diego to compare with Denver.
Reached at his Southern California office, John Otto said he had no comment to make today.