RW Professional Leasing Trial Continues

     by Christopher Menkin

“Hello: We had our first court appearance cancelled when the lawyers for  First Sierra/American Express Business Finance received our Affidavits and  realized that we would use the same list of witnesses they listed as their  witnesses! Is there any way do you think, that American Express knew about Barry Drayer's modeus operandi and were aware at the start of doing  "business" with him that his prior actions with Old Kent might happen again  and that even an agreement to see that they were able to get the short  change and the smaller community banks would get the bigger screw job was
in existence?

“I mean do you think that Barry Drayer had an agreement with
 someone in American Express to work with them on that "deal" when things went sour? It seems like there are a lot of relationships within the industry that RW Professional Leasing was working and I just wonder how guilty American Express is, I think they were a part of the scheme, anyway to find out?”

 Name With Held

Readers familiar with this story know our last up-date was for a jury to be selected for trial on April 12,2004.

From the List:

(6/2002) 40 FBI agents raided the offices and arrested Barry and Rochelle, Roger and Jennifer Drayer. The investigation found $6.5 Million of fraud. Prosecutors said that the company, the RW Professional Leasing Corporation, concocted elaborate schemes using up to 100 rented mailboxes as far away as California to send phony checks, sham invoices, bogus leases and other false documents to banks in various states. Based on those documents, the banks lent RW millions of dollars to buy equipment and lease it out, prosecutors said. The schemes included multiple loans from different banks for the same medical equipment and loans for equipment that was never bought or leased, prosecutors said.       

   For readers who need more of the details, here is the information
from our web site: “Bad Boys.”
Here is a three part series on the full story:
                 Take the Money and Run:

  Part I: http://www.leasingnews.org/Conscious-Top%20Stories/moneyandrun1.htm

  Part II: http://www.leasingnews.org/Conscious-Top%20Stories/moneyandrun2.htm

  Part III: http://www.leasingnews.org/Conscious-Top%20Stories/moneyandrun3.htm

 Other Articles on RW Professional Leasing:

http://www.leasingnews.org/Conscious-Top%20Stories/RW_stories.htm

 First, to answer the reader's question: No, I don't think American Express has made any deals with Barry or Rochelle Drayer Bresser, his sister ( she was president, not he, for many legal reasons.)

Whether Drayer will put an “Old Kent,” trading money and information, don't think that is going to happen this time.  Is he going to pull a “Terrell Owens,” don't think so.  Age is catching up with him, whetherhe admits it or not.

His “fans” write Leasing News:

“Trust me--not a day in jail and you can take that to the bank. Barry Drayer is one of the smartest and most savvy guys I have ever met.  Why do you think he asked for a jury trial??? Barry did not do anything illegal, he just told AT&T that their reports sucked and he would not honor his recourse agreement and in hindsight--he was right.”

“Barry Drayer, at best will serve "time confined". He will NEVER serve a day in an actual jail since he is too smart. Think about it----Barry in front of 12 jurors who know nothing about the finance business explaining how he could never defraud a company like First Sierra or American Express as a small broker selling paper to the giant funding source.  Worse---American Express has to stand in front of the jury and admit how dumb they were in buying First Sierra with all its problems.  They will never do this. Last, but not least, who is left to testify against him from the old recourse group at First Sierra or for that matter--Old Kent or the community banks. Hell---if I were Barry, I would be suing American Express for damages and unlawful confinement. Never a day--trust me. He may be back in business in six months.”

First, Fitch yesterday gave the Sierra Cities portfolio high marks:
http://www.leasingnews.org/archives/March%202004/03-22-04.htm#fitch Second, in the stories about RW Professional Leasing written along with Charlie Lester, there are three witnesses still alive who can be brought forward to testify about the Old Kent deal.  And they tell Leasing News, they want to testify. 

More importantly,  American Express is not playing games. August 19,2002, they filed a $20 million suit in the Southern District of Texas against RW Professional Leasing Corp and both Barry M. Drayer and Rochelle (Drayer) Bresser. October 17,2002 the “...defts' motion for a protective order staying all discovery in the case is GRANTED; that the stay is in effect only until the resolution of the criminal proceedings against the defts.  That the pltff may move to vacate the stay if changes in circumstances so warrant.  This was recently reviewed, specifically on 3/11/2004 by Arthur D. Spatt, presiding judge in the main case.

In addition, there is the case of $1,100,000 and the charge of “Racketeering (RICO) act brought by the Crawford & Sons, Profit Sharing Plan along with over 15 banks as plaintiff, plus several other independent bank cases for the similar offense.

Leasing News will bring you the latest filings on this matter in this article, but for those For those who can gain access to court records, which are public knowledge, try:
   U.S. District Court, Eastern District of New York (Central Islip)
Criminal Docket for Case#: 2:02-cr-00767-ADS-ALL
Case title: USA v RW Professional, et al filed 6/27/02
Here are highlights of the “Pending Counts:”

“...the defendants did knowingly and intentionally conspire to execute, attempt to execute a scheme and artifice to defraud financial institutions...the defendants did knowingly and intentionally execute, attempt to execute a scheme and artifice to defraud Alliance Bank...Northwest Bank...money laundering-Interstate Commerce...loan and credit applications generally and forfeiture allegation....(There are 14 pages followed with bail at $750,000 secured by “...properties owned by deft's son and son's wife, and $50,000 cash...also, electronic monitoring...home detention ...Rochelle Besser...$750,000 secured by 3 properties. Two belonging to the dft and her husband and brother in Minnesota...subject to home detention with electronic monitoring with the following condition: work, religious, medical, and visit her son Bradley Simon...”)

In the latest round, it appears the Orange County brokers who allegedly handled the over 100 mail boxes and helped in the “Ponzi” payment scheme are about to be served, called, and perhaps some of the other people named in the suit have made plea bargains.

"Letter from Geoffry Kaiser dtd 12/17/03 to All counsel. Re: to disclose fraudulent loans that the govt. intends to prove at trial(see letter from list) (Monero,Edher)

“MINUTE ENTRY as to Payaddi Shivashankar(7) Case before Jude Wall on 2/24/04 @ 11:13 a.m. for Criminal Cause for Pleading.  Dft Shivashankar present in custody with CIA counsel Edward Jenks. Govt Geoffrey Kaiser CD 4-3. Dft enters plea of GUILTY to Count One (of a seven Count) Superseding Indictment.  Sentencing set for 6/25/04 @ 9:30 a.m. before Judge Spatt. Dft remains in custody.  Magistrate Judge wall recommends that the District Court accept the guilty plea.(Coleman/Laurie)”

“ARREST Warrant Issued by Michael L. Orenstein as to Stephen Barker(Signed by Judge Michael L. Orenstein, on 3/04/04). (Coleman,Laurie)”

“ARREST Warrant Issued by Michael L. Orenstein as to Myrna Katz (Signed by Michael L. Orenstein on 3/04/04) (Coleman,Laurie)”

“INDICTMENT as to RW Professional Leasing Services Corp.(1)count(s) 1ss,2ss-3ss,4ss-6ss, Rochelle Besser(2) count(s) 1ss,2ss-3ss, 4ss-56ss,7ss, 9ss, Barry Drayer (3) count(s) 1ss, 2ss-3ss, 4ss-6ss,7ss, Roger Drayer (4) counts) 1s, Adam Drayer(5) count(s) 1s. Susan Cottrell(6) count(s) 1s, Myrna Katz(8)count(s), 1,8,9, Stephen Barker(9)counts(s), 1,8 (Montereo, Edher.)