Norvergence Files Bankruptcy?

 

   by Christopher Menkin

 

 

Leasing News has been writing about the troubles and background

of Norvergence for two years, quoting Robert J. Fine, who is the

Norvergence Bank-Funder contact under the title of Director of Strategic Relations.

As critics have noted to us, he also serves as the popular president of  the Eastern Association of Equipment Lessors.

 

The complaints range from the value of the actual collateral to the service, with many warning that when Norvergence fails, it will erupts into a class action suit similar to the one that cost Microfinancial millions of dollars.  The “distance” between financing and approving the seller plus servicer of the equipment may be decided by a court of law or another jurisdiction.

 

In the course of looking into the complaints, with several be” satisfied” by the funders involved ( perhaps along with Norvergence, as we never learned the actual details, just the results that the customer's complaint was “satisfied.,” these following comments were  received:

 

.The complaints are all over the internet and Norvergence is becoming the joke of the leasing industry...    reason that funding sources aren't coming forward is that they are scared  if they blow the whistle and stop funding Norvergence the house of card will fall very quickly ‘pyramid scheme'."

 

“I think the thing that scares me most with my clients asking me "what to do and what do you think I should do?" is 2 things: 1) The CEO is Peter Salzano, brother to Tom Salzano (who in fact is the "silent” Chief), who if you type his name in a "search", his name is not good in the industry. He cannot be named as an executive because he is wrathed in litigation of slamming in his past ownership companies who have since ALL filed Chapter 11...Minimum Rate Pricing, Inc, Parcel Consultants Inc, National Tele-communications, Inc. So the history of these brothers that they are fly-by-night, make-a-quick $ and leave customers in the rubble and giving this industry more bad apples to deal with.”

 

” Norvergence is truly a scam and this is how it works. The "Screening Manager" (better known as a "Salesperson") collects telecom bills from the company they are meeting with. The company's current costs are added up; Norvergence then reduces that cost by 30%. Once that number is determined, Norvergence then backs out the cost of the T1 and the Unlimited Cellular to determine that company's "Matrix" box price. All current costs, less 30%, nominal T1, and cellular costs are applied to the price of the box. That is why they can't put a price on the box. They have to figure out how much a company is currently spending and squeeze every last dime into the cost of the box. The customer is then bound to the 5 year agreement with the bank, regardless of service level provided by Norvergence..” 

 

” The box has nothing to do with the savings, it is a way for Norvergence to claim its' value so they can charge the customer all of their current telecommunications expenses less the 20% or 30% discount. Norvergence puts all of the value in the box and then it is then funded through a bank. Norvergence receives 5 years of Telecom upfront. Now if the customer is unhappy with the service (I've seen several complaints about the cellular portion of the solution) TOO BAD! The customer has signed a binding document with a bank. In reality, they are paying a bank for their telecom.”

 

' This magical box is nothing more than an Adtran IAD (Integrated Access Device retailing for about $500). The really sad thing is that if a customer is just getting DSL or Cable High speed internet, the box does absolutely nothing!!!”

 

” I called Nortel corporate headquarters today, and was indeed notified that litigation is pending against Norvergence for misrepresentation. I was told this is part of Norvergence's attempt to lure new customers. They are not a business partner. Nortel informed me that they may be reselling some Nortel hardware, although that would not have been obtained from Nortel as a Nortel reseller.

The problem is signing a contract with a third party leasing company for five years. If Norvergence goes out of business in a year, you are stuck paying for worthless equipment and have to go back to your current system.”

 

Leasing News is attempting to obtain a statement from Norvergence, plus confirm or deny the television news reports that the company has filed for bankruptcy protection.