NAELB---“Talk the Talk, But Not Walk the Walk”

  by Kit Menkin

There are two previous Bulletin Board complaints, where the parties

stated they had filed a complaint with the National Association of

Equipment Leasing Brokers (NAELB):

National American Capital

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

Keystone Equipment Leasing

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

The complaints were published on December 3,2003.  In lieu of the new posting, Leasing News is following up with the progress of the status of the grievances filed with the Standards and Ethics committee on the National Association of Lease Brokers.

From NAELB President Bob Bell, CLP:

“In order to be as fair as possible to all parties, the NAELB has a very structured course of action in the handling of ethics matters.  Consequently, individual Board members are not officially notified of any action until such time as A:  The parties with the help of our Counsel are unable to resolve the issue.  B:   The Ethics Committee votes to forward the complaint to the entire Board of Directors for resolution.  Consequently, I have no direct knowledge of any pending ethics complaints

“The following is a brief overview of how the procedure works

 The complaining party must file the complaint in writing on their letterhead outlining the details of the complaint coupled with supporting documentation.  The complaint may not be filed by a third party such as an attorney or broker on their behalf.  The Association, as you can imagine, has no desire to be used as a pawn or drawn into any legal proceedings and the complainant is advised of that at the time the action is “officially” received.  We let both parties know, should the matters evolve into a legal dispute, and all actions will be put on hold until such time as the legal issues are resolved. 

“After the complaint is filed, the NAELB Counsel contacts the other party and advises them of the complaint.  After hearing both sides, the Counsel will attempt to resolve the issue.  If he is unsuccessful all documents, in redacted form, are presented to the Ethics Committee consisting of two Brokers and two Lenders.  If the majority of the Committee votes for further action it is then presented to the Board of Directors for disposition.”

Bob Bell, CLP

Independent Leasing Associates

1455 Lockridge Drive

Suite 100

Cumming, GA  30041

800-685-7571

Both parties have told me they have filed the forms.  In fact, they had to be re-filed with NAC and checks submitted.  The NAC was from the attorney in the action, and he was told it needed to come from

an officer of the hospital, which was done.

So both parties have told me they have gone through the procedure, which they also described as "not easy."

Richard Blum, the attorney for San Clemente Hospital:

“NAELB has not been at all helpful or responsive.  Their policy is not to get involved in anything that is in litigation.  Thus, it seems to me that there processes are not at all helpful to the aggrieved-how can one not sue over an issue in excess of $55,000  while waiting for a trade organization?

“The matter of San Clemente hospital vs. Jeffrey Beier and Beier Financial ( aka North American Capital ) are pending for trial on June 14, 2004 in Orange County before Superior Court, Judge Jane Myers presiding. 

“Previously, the defendants defaulted and hired counsel to move to set that aside.  The attorney ”fell on the sword”, admitting that the default was his fault, not Beier's.  Under these circumstances, the court “sanctioned” the attorney for the fees that the Hospital paid.  This amount was held to be $1,000 and it has been paid.

“We are proceeding with trial preparation and I have every confidence that the Hospital will prevail.

“These are the current facts re: status of the proceedings.  I will be scheduling and taking the deposition of Mr. Beier within the next 30 days or so.  Additional discovery will be in process.”

Richard Blum

In the Keystone Equipment Leasing complaint, Bill Tucker says the matter will be proceeding to Federal Court.  In the meantime, he has not heard from NAELB regarding the complaint he filed.

National Association of Leasing Broker's Mission Statement:

“The NAELB is an organization formed to promote the interests of equipment leasing brokers through education, advocacy, improved communication with funders and programs designed to upgrade the professionalism and profitability of brokers, funders and others engaged in the business of equipment lease financing.”