NorVergence Scandal Getting “Warmer” by Christopher Menkin Arizona Attorney General Terry Goddard sent out a press release letting his constituents know his staff made a settlement with Popular Leasing USA Inc. “…that could result in more than $200,000 in debt forgiveness to nine Arizona customers regarding NorVergence leases.” Illinois received 48.2% and New York 67% or 467 accepted the settlement by their AGs' offices. Popular, IFC Credit, Partner's Equity, and Sterling Bank, among others, did not reach a settlement. Perhaps Arizona will be different as Popular has over 300 in Missouri they are taking to court on the same matter. How Popular can settle here, but not there, is perhaps a business decision and not one of ethics? Now before some of the readers say this column is anti-leasing company, remember CIT, Wells Fargo, US Bancorp, and others who took the high road, made the better business and ethical decision. There were some other smaller companies who did the same. In the State of Washington one major leasing company turned down the second NorVergence lease application, after their operation department question the same piece of equipment in the second lease costing almost double. When the telephone service was cut off on the first lease, after NorVergence filed bankruptcy, the Washington State leasing company told Leasing News they settled the lease contract amicably. Now that we mentioned IFC Credit, remember their attorney Vincent Borst, principal at Askounis & Borst, P.C.. Chicago, Illinois, wrote Leasing News, ““More to the point, IFC considers those assertions to be sanctionable against counsel, and slanderous against IFC. If you assist in slandering IFC's reputation by publishing these wholly unsubstantiated assertions, IFC will take all available legal steps against you to recoup the undoubted damage to its reputation your article will cause, including suit against you in a Court of appropriate jurisdiction.” Well, Superior Judge Sally Montgomery who already ruled on the case against IFC Credit, appears to be reviewing what IFC Credit didn't like us reporting: charges of perjury---centered around previous testimony on money owed, hold backs, and other legal opinions. Leasing News was informed by two reliable sources that Patrick A. Witowski, Executive Vice President of Operations, was “ordered” to appear before Judge Montgomery regarding specific accounting questions, particularly in connection with previous testimony in her court.
Judge Sally Montgomery Judge Montgomery ruled earlier for the NorVergence lessee “.... properly cancelled the Lease with NorVergence. IFC takes nothing on it's counterclaim. SOS shall recover court costs and reasonable attorney fees in the amount of $45,000.00 for trial, $30K for appeal, and $15 K for a petition for review to the Supreme Court of Texas, and $15K for responding to any unsuccessful appeal by IFC to the Supreme Court of Texas in the event the petition for discretionary review is granted per the parties stipulation.” Leasing News has attempted to obtain comments from IFC Credit instead of “warnings” from their attorney. We certainly want to air the facts and all sides to the story fairly. Remember the game with your eyes closed and you have to find something that is hidden, and you get “warmer” or “colder.” As you get further away, you are told “colder.” As you get closer, it is you are “warm” and then “warmer” or “colder,” depending on how close you are to what is hidden. The Federal Trade Commission Civil Investigative Demand (CID) issued to IFC Credit Corporation, Morton Grove, Illinois, is about to get real hot, according to a well informed source. The material sought reportedly is going from “warmer” to “hotter.“ Speaking of the law profession, certainly many ears should been burning from what is being discussed at the ELA legal forum in its third day at The Palace Hotel in San Francisco, California. This is a gathering of the top professional leasing attorneys employed by the top companies. One of the defense attorneys told Leasing News, in a confidential manner, that he believes the officers at IFC Credit should have their own private counsel, not corporate counsel. Texas Law: (1) is made during or in connection with an official proceeding; and (2) is material. (b) An offense under this section is a felony of the third degree. http://www.capitol.state.tx.us/statutes/pe.toc.htm THE PUNISHMENT? (b) In addition to imprisonment, an individual adjudged guilty of a felony of the third degree may be punished by a fine not to exceed $10,000. Acts 1973, 63rd Leg., p. 883, ch. 399, § 1, eff. Jan. 1, 1974. |
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