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A Top Story in 2002: The
Shame of MSM Capital $1.3 Million
in “Advance Rentals” Not Returned? by Christopher Menkin
http://two.leasingnews.org/images/shame%20on%20you%20%231.jpg ---- When asked if Mr. Cingari, former president of Colonial
Pacific Leasing, formerly with Pitney-Bowes, had anything he wanted to say,
he told us “no.” Asked if he wanted us to say he had “no comment,”
he specifically told Leasing News not to state that. He requested we
print he was “not available.”---- http://www.leasingnews.org/bulletin_board.htm#MSM Around the end of last year, Leasing News started getting
complaints for the Bulletin Board that MSM Capital, Irvine, California was
not returning “Advance Rentals.” Callers told us MSM would approve a
lease in less than an hour, send out the documents, and take the check,
but not fund leases. Officer Rob Pardini was mentioned often. At first the officers Mike Cingari, formerly president of
Colonial Pacific Leasing in Oregon, and his “partner officer” Rob Pardini,
denied it. It was a mistake. (I
still have all the e-mail responses from them.) As the complaints piled up over the news few months, they
started to “discover” alleged accounting errors, they told us, and in
the beginning, Leasing News was successful in having “Advance Rentals”
returned to applicants who contacted us.. We don’t list on the Bulletin Board companies who return the money
claimed. Both officers of the corporation were becoming more difficult to reach.
As we got more complaints, the MSM Capital telephone calls were not
being returned and Leasing News was getting “stonewalled.” Readers will
remember President Cingari’s comment: “Tell them I am
not available.” In May, the complaints became so numerous, they made it to
the Leasing News Bulletin Board. We found out we were no longer successful in getting money returned, and evidently there were serious
problems that neither officer Cingari or Pardini wanted to admit. Up to
this time, they had been somewhat cooperative. MSM Capital Corporation also known as NASBA Capital and MSM
filed Chapter 7 Bankruptcy on July 31, 2002. The filing was accepted on
August 1,2002 by the Clerk of the Central District, U.S. Bankruptcy Court. During this time, ex-employees were winning past due salary
and commission claims from the previous year to almost $200,000. Leasing
News printed their stories, but it was not until we were able to obtain the
over 100 page filing signed by Michael Cingari, President, that we understood the “advance
rental” game. It appears over $1.3 million in “advance rentals” were not
returned as documented by 93 pages and 549 creditors. Not all are “deposits.” Perhaps
90 percent are. We called several of the creditors listed. They were
located all over the country, mostly smaller cities. The ones we contacted went back over a year, telling
stories of signed leases, but no fundings. Creditor dollar numbers were $250, $494.58, $1,675.24, $4,536.08,
$10,000, one $40,000 ( these were labeled deposits, but may have been
vendor payments?) We did not verify all of them. We only sampled them,
hearing stories of leases not funded. They are listed in the Chapter
7 filing as “deposits” owed to creditors. We actually don’t know the
exact number of creditors with “deposit” as there is a mixture, nor
did we verify they were all not “advance rentals” not returned. If we were able to do this, we believe the dollar figure may
be higher. Labor claims were here, such as for salesman Ziya Arik, $75,000;
Mark Bloom, $26,786.29; Jim Bowles, $28,855.46; Shawn Donahue, $25,381.53:
$16,632.43; Vishal Masani, $14,848.70; Mathew Swan, $27,041.00 ( there
are others who are pending, listed elsewhere in the filing. ). Several “suppliers” are also listed, such as GE Capital/Colonial
Pacific $135,000; Centerpoint Financial Services, $23,081.76; Manifest, $8502.61;Business
Insurance, $2,455; workman’s compensation insurance, $4,000. There is
no estimate for personal property taxes (they stated “unknown,” evidently
not paid,) sales tax, pensions or 401K plans. These are claims “to be
made by the governmental agencies.” There is no mention of “reps and warrants” on leases “discounted”
or disputes with funding sources, as perhaps they are “contingent liabilities.” The reason the salesmen were not paid their commissions:
it appears the corporation had spent the money to meet overhead. The evidence: page 1, Statement of Affairs: Income from operation
of business: Year to Date: $538,856
Lease fee income Last Year: $3,912,459
Lease fee income year before: $4,229,952
Lease fee income The company evidently had no income to pay the salesmen for
their commissions, so they left. Claims and counter-claims were made, but the
California Labor Court to date has ruled in favor of the ex-employees,
even in appeals. MSM has lost every labor complaint. It appears the salesmen
will never see the money as assets listed are: accounts receivable, $405,000;
office equipment and furnishings, $400; and in debtor’s possession, office
furniture, $250.00: total of $422,864. After attorney expenses, court
costs, payments to the government for taxes, and secured claims, you can see from the math there
will be nothing left. Who’s fault is it that the company filed Bankruptcy 7. After
hearing what appear as outright lies for over a year, it is obvious
from the actual income statement filed, MSM Capital desperately needed
“advance rentals” and the salesmen’s commissions----The chapter 7 bankruptcy filing
signed by President Michael Cingari gives every indication they had
no means or intention of paying them. It appears on July 25th the former president of MSM Capital,
and Colonial Pacific Leasing, Michael Cingari , with agent Grant Holstrom, formed
“Crosswater Capital” in Southern California. 15615 Alton Parkway, Ste
175 Irvine, CA 92618 DNS
shows: 4 Marquette Way Coto De Caza, CA 92679 (949)459-2129 Mr.Cingari was not available. http://www.leasingnews.org/bulletin_board.htm#MSM |
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