Rudy Trebels, President IFC Credit, Issues Statement by Kit Menkin It may very well be that IFC Credit, Morton Grove, Illinois, is the largest third party lessor to hold NorVergence "Equipment Rental Agreements." Thus the delays in responding to the Federal Trade Commission and other actions, which may include information on the total dollar amount or actual processing of the leases. It is estimated that IFC Credit holds as much as $15 million in these NorVergence contracts. CIT Technology Services in offering settlements via the New York and New Jersey Attorneys General office said it involved $8.56 million. In New Jersey, Wells Fargo had $4.4 million and GE $3.5 million. Later GE Capital agreed to pardon approximately $9 million in payments from 660 small businesses and nonprofits in a dozen states. If these numbers are the top held by third party lessors, then IFC Credit may have purchased the most from NorVergence. Two very reliable sources informed Leasing News that PFF Bank, a funder for several Leasing News listed "story credits," issued IFC Credit a $12 million line, reportedly now consisting of 550 NorVergence leases on an average of 30,000 each. It was also reported an additional $2 to $3 million was also invested, and that 90% of the leases are not paying IFC. Lessees on list serve report they are not making payments (although Leasing News has advised them to do so, and all those with Equipment Rental Agreements, as not to affect their credit or put them in an adverse position in court; plus a list of other benefits by continuing to make their lease payments.) The Federal Trade Commission has issued a full investigation, naming IFC Credit, along with several other "unnamed" leasing companies for not cooperating, in essence, not providing information requested. The attorney for IFC Credit denied this, as evidence as corresponding with a “Letter to the Editor" of the Equipment Leasing Association's ELTnews. It should be noted at the end of the communication denying it had not compiled, the “Letter to the Editor” of ELTnews concluded,” That information and other materials requested by the FTC are expected to be delivered to the FTC very soon which should resolve the requests of the FTC's Civil Investigative Demand.” The last communication from IFC Credit to Leasing News came from John Estok, executive vice-president, who wanted to fire editor Christopher Menkin for his story on the FTC victory in the NorVergence Corporation bankruptcy decision regarding alleged existing leasing with NorVergence itself. He particularly took umbrage to the work, “Wallop” in the headline. In December, 2004, Estok was named President of IFC's Small-Ticket Division. "In his new position, Estok will direct all activities for the company's small-ticket group including its indirect business unit, Pioneer Capital Corporation," the press release said.” President of IFC's Small-Ticket Division. In his new position, Estok will direct all activities for the company's small-ticket group including its indirect business unit, Pioneer Capital Corporation. Prior to assuming his new position, Mr. Estok was Chief Operations Officer for IFC Credit Corporation. Mr. Estok has been involved in the equipment leasing industry since 1972. He joined IFC Credit Corporation in 2003 with IFC's acquisition of First Portland Corporation (dba FirstCorp) where he served as President. Previously, Mr. Estok was Executive Vice President and COO of Hitachi Credit Canada Inc.; President and CEO of Industrial Leasing Corporation of Portland, Oregon; and Executive Vice President of Norex Leasing, Burlington, Canada. He is also past President of the Equipment Lessors Association of Canada." Since that communication, Leasing News has been seeking a comment or statement from IFC Credit. It is our mission to be “fair and unbiased, independent,” and present all sides to articles that are printed here. We certainly appreciate Mr. Trebels taking the time to respond: “Kit-Enclosed is IFC's response to your request for comment. “Have a Merry Christmas. “Regards, “Rudy *************** “Rudy Trebels, CLP President & CEO “Dear Kit: “You have contacted us on several occasions asking for our comments about matters concerning NorVergence, and I regret not being able to provide you with more information. “While we would like to provide our views to your commentary in The Leasing News, we feel that it's neither fair nor appropriate to discuss pending litigation or requests for more information in this forum. “As you are aware, there are significant issues to be decided that could not only impact our company, but could have serious ramifications within the leasing industry. As such, we feel it is necessary to debate issues solely within the confines of the court system and not through “Hopefully in the not too distant future, we will be able to discuss these issues with you in greater detail. “Thanks for understanding. “Regards
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