2009 December Equipment Acquisition Resources, Palatine, IL. (12/09) Separate law suits now up to $50 million Comerica the latest.LEAF Specialty Group, formerly NetBank/ Republic Leasing of South Carolina (12/09) For sale or will be closed down by parent, it is reported. Chesterfield Financial Corporation, Chesterfield, Missouri (12/09) Closes its offices, founded in 1979. More news to follow. Brican America, Miami, Florida (12/09) Depositions state advertising part of lease arrangement, case goes into mediation. IFC Credit, Morton Grove, Illinois (12/09) Pioneer Capital/FP Holding Stock Sale with portfolio CIT Group, New York (12/09) Exits BK (12/09) Court okays BK plan. Old National Bank, Evansville, Illinois (12/09) exits municipal broker business. Commercial Money Center (CMC), Southern CA. (12/09) Nancy Fisher gets four years, plus. Sentencing continues for: Ronald Allen Fisher continued to 2/1/2010, Sterling Wayne Pirtle continued to 2/1/2010, Mark Edward Fisher continued to 2/8/2010. Dolsen Leasing Company, Yakama, WA (12/09) Joanie Dolsen retires: "Our Bellevue office will be closing and we are consolidating all remaining leasing activities to our corporate office in Yakima where all of our other companies are located." November Hillcrest Bank Leasing, Overland Park, Kansas (11/09) Parent bank hit with FDIC "cease and desist order." Leasing company in good shape Specialty Funding, Albuquerque, New Mexico (11/09) "Based on our banks new guidance line covenants we will no longer be accepting third party originations. We will still be funding our vendor and direct business with a limited footprint of the southwest region only." NetSol, Emeryville, CA formerly McCue Systems, Burlingame, CA (11/09) Mitch Van Wye, COO of North America, company moves to smaller quarters in Alameda, CA.
October Bluestar Financial Group, Inc., Richland, Washington-OTCBB:BSFG -(10/09) Entering small ticket marketplace, net worth/profit very small: http://www.nasdaq.com/asp/ExtendFund.asp?symbol=BSFG&selected=BSFG TCF Financial Corporation (10/09)Leasing income was reported as "flat," up only $13.78 million, $2.811 billion compared to second quarter of $2.809 billion (11/05) to apply for bank in Arizona. TCF is a Wayzata, Minnesota-based national financial holding company with $12.7 billion in assets. TCF has 442 banking offices in Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana. Other TCF affiliates provide leasing and equipment finance, securities brokerage, and investments and insurance sales. Tygris Commercial Finance Group, Chicago, Illinois (10/09) Mergers with EverBank Financial, Jacksonville, Florida, to bring $65 capital injection Concord Financial Services, Long Beach, California (10/09) Moe Essa, President, informs Leasing News he has closed his company doors. GE Capital (10/09) "we are shrinking GE Capital faster than we had planned,” Jeff Immelt, Chairman & CEO, confessing in telephone conference call. (04/06) With $15 billion in served assets and 400+ professionals across 40 locations in North America, GE Commercial Finance announces the expansion of its Corporate Lending business, providing middle market and larger corporate customers a broader suite of financial solutions. As part of the announcement, the company formally introduced Tom Quindlen as President and CEO and Jim Kelly as General Manager of North America. Direct Capital Corporation, Portsmouth, N.H. (10/09) Exits the broker business marketplace. (10/09) let's people go, now down to 200. (12/08) many cutbacks reported by readers as well] as nearby leasing company receiving applications from employees fired, but CEO Chris Broom says business is up 23%, $10 million put into the company and approaching banks to increase their lines of credit.(11/08) Readers report cutbacks, Broom says “normal.” (11/07) Mike Murray, co-founder with Dave Murray of company retires. (03/07) Allied Capital commits to $75 million to acquire a majority interest in Direct Capital. Brican America, Miami, Florida (10/09) Sued over its leasing portfolio sold to a bank regarding "marketing agreement" not disclosed as part of lease documents. Reportedly Chuck Brazier trying to sell another one of Brican's portfolio. His email address: brazier@bricanfinancial.comhttp://leasingnews.org/archives/October%202009/10-05-09.htm#Alert_Brican TechLease, Morgan Hill, California (10/09) Dr. Eric Paton, founder and owner, states his business is in a wind down stage and is not accepting any new business. September Relational Technology Solutions, Rolling Meadows, Illinois (09/09) Informed sources say company sold to Macquarie Group, Sydney, Australia, most of 350 employees being let go, it is said. Irwin Financial, Columbus, Indiana (09/09) FDIC closes Irwin sells to First Federal. (Irwin Union Bank), Columbus, Indiana, Irwin Union Bank, F.S.B. (Louisville, Kentucky) (09/09) Irwin desperately trying to stay alive (09/09) sells three branches, reportedly trying to raise money, undercapitalized. IFC Credit, Morton Grove, Illinois (09/09) Trustee to run company until November 6, Creditors have until November 9, 2009. (07/09) IFC Credit files Chapter 7, estimated $150 million owing (07/09) More defaults on loans, more suits filed against IFC Credit (07/09) CoActiv Capital Partners of Horsham, Pennsylvania files suit for over $2 million naming Trebels and Langs as individuals, cites fraud, not paying off leases, servicing deception, 180 page complaint. (07/09) Many lawsuits become public such as $1 million from California investor, $170,000 owed to Askounis & Darcy for legal fees in NorVergence matter. (07/09) Audit continues as Ludwig tries to keep First Corp. together as well as IFC, Trebels-Langs gone. (06/09) Major suit surfaces from Len Ludwig, CEOof Vencore, regarding stock lien held from sale of First Portland Corporation dba First Corp.; appears payments stopped in January; looks like IFC closing down. (05/09) Another Bulletin Board Complaint: vendor claims un-funded $25,731.43 lease that was to have been funded in January. IFC reportedly down to 25 employees. http://www.leasingnews.org/archives/May%202009/05-08-09.htm#bbc (03/09) Second Bulletin Board Complaint, removed from Story Credit list. (01/09) After Bulletin Board Complaint appeared in Leasing News, IFC decided to call up the vendor, release the UCC and return the money back to the customer, confirmed by customer. (01/09) Makes the Complaint Bulletin Board. Says can't fund lease for six months, but Chief Ligation Attorney threatens Lessee they must make the lease payments, regardless than vendor not paid. http://www.leasingnews.org/list_alpha_new.htm#ifc (12/08) admits to letting 15 employees go, readers say it is 26 to 35 (11/08) Reaches Settlement with FTC and Attorneys General and agrees to refund 86% of payments made since NorVergence filed bankruptcy to those who have not settled or paid off to date. Law fees and costs said to be over $50 million. (08/07) FTC files preliminary against IFC, four counts, involving NorVergence leases. (06/07) Missouri AG files against IFC (06/07) FTC files against IFC/Texas AG first to follow (01/07) Chicago boutique law firm of Adamski & Conti again knocked out IFC Credit Corporation in “its attempts to enforce equipment leases fraudulently induced by the now-defunct telecommunications giant, NorVergence,” as described by Managing Partner Gregory Adamski. (09/06) Collection and other problems. http://www.leasingnews.org/archives/September%202006/09-27-06.htm#ifc (05/06) on withholding information, Judge rules: "ORDERED that IFC Credit Corp. (“IFC”) shall send letters to all lessees against which it has made claims under leases or rental agreements acquired form NorVergence and explain to each lessee the precise amount of money that was delivered to NorVergence for the lease, as well as what amount was held back, the basis for such holdback, and the manner in which the holdback was applied in the accounting records of IFC."(05/06) Texas Judge Sally L. Montgomery Rules against IFC in case http://www.leasingnews.org/archives/May%202006/05-18-06.htm#judge (04/06) Texas Judge Sally L. Montgomery Rules against IFC Credit IFC to sue Leasing News for “Slander” (12/05) announces that its wholly-owned subsidiary, FPC Funding II, LLC, has completed the renewal of its $75 million revolving credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ Bank AG Deutsche Zentral-Genossenschaftsbank. (12/05) Rudy Trebels, President IFC Credit, issues statement to Leasing News:“...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 the media. Hopefully in the not too distant future, we will be able to discuss these issues with you in greater detail." (11/05) (11/05) IFC Credit writes "Letter to the Editor" of Equipment Leasing Association ELTnews, basically stating: they have complied with material requested, but then also states at the end, “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.” (11/05) The Federal Trade Commission asks a federal judge Thursday to aid its efforts in investigating debt collection regarding NorVergence "Equipment Rental Contracts. Lombard, part of The Royal Bank of Scotland Group (09/09) Exits broker marketplace worldwide, including USA. OfC Capital, Roswell, GA (09/09) Exits Leasing August Pugent Sound Leasing (08/09) Files Third complaint (08/09) Second complaint filed. The original complaint outlined the alleged deception in the sale of Puget Sound Leasing (PSL), the second brought it further (1), and the third comes from the hiring of a leasing expert who found what the first two overlooked, as well as a continuation of the first two, plus new evidence that the Secords started moving assets soon after the original complaint was made. http://leasingnews.org/archives/August%202009/08-31-09.htm#Third_Amended (05/09) First Sound Bank restated its year-end to a $20.1 million loss. The bank claims $18.3 is related to the acquisition of Pugent Sound Leasing. The bank also reported a $37,000 first quarter loss for 2009, and an $11 million decrease in assets to $247 million. (04/09) New charges, new banks enter court proceedings (03/09) Filings show 12 employees confess all at instruction of the Secords. http://leasingnews.org/PDF/First_Sound_Bank_Secord.pdf http://leasingnews.org/PDF/secord_declaration1.pdf (01/09) First Sound Bank separate suit against sellers of Puget Sound Leasing: Larasco, Richard Secord and Louis Secord, citing not revealing true nature of portfolio and delinquencies, among other charges, confirms Louis Secord no longer a member of the board of directors. (01/09) Bank owner takes Larasco, two Secords, and 11 banks, seeking judgment of what Larasco, Secords, First Sound Bank, and the 11 banks are responsible for in default and problem leases. Meanwhile, “Puget Sound Leasing” won't consider any deal less than five years in business, they send to brokers, as well as make other restrictions, but still active in the marketplace. http://www.leasingnews.org/list_alpha_new.htm#puget (12/08) Original owner no longer on bank board, questions being asked. (09/07) Sold to First Sound Bank. Bank president Don Hirtzel Puget Sound Leasing generates roughly $8 million a month in new leases and has an average delinquency rate of less than 1 percent, it is reported. Triad Leasing & Financial, Inc. ., Boise, Idaho (08/09) Files Chapter 11 BK. El Camino Resources International Leasing and Financing , (08/09) sold to CHG-MERIDIAN Group Weingarten, Germany. http://leasingnews.org/archives/August%202009/08-28-09.htm#CHG_MERIDIAN 6/2004) Harmon on his way back. http://www.leasingnews.org/archives/June%202004/6-01-04.htm#harmon ( 2/2001 ) GATX announces purchase of portfolio, making ATEL Capital largest independent owned leasing company in the world (1/2001) reportedly winding down, sold portfolio, selling partner relationships, selling off all assets 10/2000 No longer taking broker business 11/2000 struggling to stay in leasing business, according to insider reports Blue Bridge Financial, LLC, Williamsburg, New York (08/09) John Gallo, who was president of M&C Leasing, West Seneca, New York, who sold his company to Evans Bank Hamburg, New York, and was involved in the running of the division, has resigned from Evans Bank several months ago to open his own company with his son Brian Gallo IFC Credit, Morton Grove , Illinois(07/09) IFC Credit files Chapter 7, estimated $150 million owing (07/09) More defaults on loans, more suits filed against IFC Credit (07/09) CoActiv Capital Partners of Horsham, Pennsylvania files suit for over $2 million naming Trebels and Langs as individuals, cites fraud, not paying off leases, servicing deception, 180 page complaint. (07/09) Many lawsuits become public such as $1 million from California investor, $170,000 owed to Askounis & Darcy for legal fees in NorVergence matter. (07/09) Audit continues as Ludwig tries to keep First Corp. together as well as IFC, Trebels-Langs gone. (06/09) Major suit surfaces from Len Ludwig, CEOof Vencore, regarding stock lien held from sale of First Portland Corporation dba First Corp.; appears payments stopped in January; looks like IFC closing down. (05/09) Another Bulletin Board Complaint: vendor claims un-funded $25,731.43 lease that was to have been funded in January. IFC reportedly down to 25 employees. http://www.leasingnews.org/archives/May%202009/05-08-09.htm#bbc (03/09) Second Bulletin Board Complaint, removed from Story Credit list. (01/09) After Bulletin Board Complaint appeared in Leasing News, IFC decided to call up the vendor, release the UCC and return the money back to the customer, confirmed by customer. (01/09) Makes the Complaint Bulletin Board. Says can't fund lease for six months, but Chief Ligation Attorney threatens Lessee they must make the lease payments, regardless than vendor not paid. http://www.leasingnews.org/list_alpha_new.htm#ifc (12/08) admits to letting 15 employees go, readers say it is 26 to 35 (11/08) Reaches Settlement with FTC and Attorneys General and agrees to refund 86% of payments made since NorVergence filed bankruptcy to those who have not settled or paid off to date. Law fees and costs said to be over $50 million. (08/07) FTC files preliminary against IFC, four counts, involving NorVergence leases. (06/07) Missouri AG files against IFC (06/07) FTC files against IFC/Texas AG first to follow (01/07) Chicago boutique law firm of Adamski & Conti again knocked out IFC Credit Corporation in “its attempts to enforce equipment leases fraudulently induced by the now-defunct telecommunications giant, NorVergence,” as described by Managing Partner Gregory Adamski. (09/06) Collection and other problems. http://www.leasingnews.org/archives/September%202006/09-27-06.htm#ifc (05/06) on withholding information, Judge rules: "ORDERED that IFC Credit Corp. (“IFC”) shall send letters to all lessees against which it has made claims under leases or rental agreements acquired form NorVergence and explain to each lessee the precise amount of money that was delivered to NorVergence for the lease, as well as what amount was held back, the basis for such holdback, and the manner in which the holdback was applied in the accounting records of IFC."(05/06) Texas Judge Sally L. Montgomery Rules against IFC in case http://www.leasingnews.org/archives/May%202006/05-18-06.htm#judge (04/06) Texas Judge Sally L. Montgomery Rules against IFC Credit IFC to sue Leasing News for “Slander” (12/05) announces that its wholly-owned subsidiary, FPC Funding II, LLC, has completed the renewal of its $75 million revolving credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ Bank AG Deutsche Zentral-Genossenschaftsbank. (12/05) Rudy Trebels, President IFC Credit, issues statement to Leasing News:“...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 the media. Hopefully in the not too distant future, we will be able to discuss these issues with you in greater detail." (11/05) (11/05) IFC Credit writes "Letter to the Editor" of Equipment Leasing Association ELTnews, basically stating: they have complied with material requested, but then also states at the end, “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.” (11/05) The Federal Trade Commission asks a federal judge Thursday to aid its efforts in investigating debt collection regarding NorVergence "Equipment Rental Contracts. Pioneer Capital Corporation Addison, Texas (08/09)John Boettigheimer, former president of Pioneer Capital Corporation, Addison, Texas is back in the leasing and finance business, announcing the formation of Centra Leasing, Inc., Plano, Texas. (02/09) stops funding (02/09) starts funding deals from December. (01/09) IFC sells portfolio, Pioneer completes funding of deals with commission checks to follow; no status of IFC, but assume they are funding deals they have been holding off, too (01/09) Does not make Jan. 26th date ((note in Feb. (01/09)issued a memo to brokers confirming that it was unable to fund deals, perhaps since January 14th, perhaps earlier, the same condition as its parent IFC Credit Corporation, Morton Grovel, Illinois. http://www.leasingnews.org/list_alpha_new.htm#pleasing (04/06) Founder Bernie Boettigheimer retires after 24 years in business. Son John succeeds him. Company earlier became a subsidiary of IFC Credit, Morton Grove, Illinois. Marquette Business Credit Inc. (08/09) Closes Minneapolis branch, continues downsizing. OneWorld Leasing (08/09) OneWorld Business Finance, members report business off. (01/09) Ira Romoff, seasoned veteran who took over August 25, 2006 with 17 members and now 26 members retires, says press release. In LinkedIn and elsewhere, Romoff says, "I've recently retired and am looking for a Board Seat at a bank or large leasing company, consulting in banking, leasing or risk management, or a temporary CEO position.” Earlier talk that co-op was merging with one source falls flat, and its no secret that business also off at most of the members operation." It should be noted there were, and are many “partnerships” where the partners put in money and utilize the services of a main partner for servicing or maintaining lines of credit. The co-op is different that a partnership or corporation (LLC or LLP) as it is a legal “co-operative.” http://www.leasingnews.org/list_alpha_new.htm#one (08/08) Ira Z. Romoff, President, confirms: “Not a merger per se, but a combination. Still under negotiation." (07/08) The leasing co-operative looking for one source, rather than many; could be a merger. (06/06) Sharon Foglesong resigns as President of 17 member-owners representing in excess of $250,000,000 in equipment financing annually. She is moving on in her career; co-op looks to grow from 17 to 75 by 2010, predicts Chairman John Winchester, elected in April, 2006 to the position. (7/05) Sharon Foglesong appointed president, now 16 members, reports co-op going strong and successful. (8/04) Co-op adds six new members, new exec. dir. gets company going. http://www.leasingnews.org/archives/August_2004/8-06-2004.htm#one (11/03) Down to five members, but seeks new president (2/2003) Loses three members, obtains new CEO. http://www.leasingnews.org/#world MericapCredit Lisle, Illinois (08/09) Sold assets to Main Street Bank, Kingwood, Texas, closing down. http://leasingnews.org/archives/August%202009/08-21-09.htm#MericapCredit Churchill Group/Churchill Leasing, Jericho, NY (08/09) Closes its door. Evans National Bank (08/09) "The direct financing lease portfolio declined $14.5 million to $40.9 million at the end of the 2009 second quarter as the Company ceased lease originations in the second quarter of 2009. As it was the Company's intent as of June 30, 2009, to sell the portfolio, the lease portfolio was classified as held-for-sale and marked to its market value of $40.9 million. The market value is based on preliminary bids from marketing efforts." (04/09) A divison of Evans Bank, exits leasing business. (08/07) net loss of $(139) thousand, may affect leasing operation. Marlin Leasing, Mount Laurel, NJ (08/09) Second quarter net income of $555,000 compared to $1.7 million for the previous year. For the six month ending, it is $467,000 compared to the previous year of $3,059,000 (05/09) reports a first quarter revenue loss of $879,000 compared to a profit of $1,359,000 the first quarter of 2008. The company also announced it has closed its Denver office, plus has let additional 53 employees go; many of them have been with the company ten to eleven years. (05/09) Officers and directors received salary/stock issues despite 100 employees being let go, 2008 loss of $7.3 million, year ending loss of $5.2 million compared to a year-end profit of 2007 of $18.2 million http://www.leasingnews.org/archives/May%202009/05-29-09.htm#bulletin_board(03/09)Closes Two Office/28 let go. (02/09) Informs vendors slowing down on funding, FDIC matter, plus changing requirements. (01/09) Perhaps the most profitable division, Marlin announces closing down its broker division.” Our decision was based on the credit quality deterioration that we have been seeing in broker application flow. The risk vs. price relationship simply did not match the attractiveness of our other origination channels. Therefore we are applying former broker sales resources and capital to our direct channels. We sincerely wish the best for the broker community as we all manage through this economic climate.” Ed Siciliano, SVP & Chief Sales Officer. http://www.leasingnews.org/list_alpha_new.htm#marlea (11/08) $941,000 loss Third Quarter 10/08) Let's broker service representatives go, cuts back on brokers. (05/08) Confirms layoffs of 51 employees. (11/07) Exits factoring business. 08/07) Marlin stocks falls (12/01) Marlin Industrial Bank, Salt Lake City, Utah, files to be commercial bank, bank president tells press board approved move to apply for TARP money (11/08) $941,000 loss Third Quarter 10/08) Let's broker service representatives go, cuts back on brokers. (05/08) Confirms layoffs of 51 employees. (12/06) Shivers Resigns as president (07/06) Scuttlebutt is the company is for sale: http://www.leasingnews.org/archives/July%202006/07-31-06.htm#marlin (3/06) Three officers exercise option, purchase 6,612 shares (3/06) Officers sell some stock (3/06) YE 16.2MM/Plans to open Industrial bank in Salt Lake City, Utah http://www.leasingnews.org/archives/March%202006/03-03-06.htm#marlin (2/06) reports $4.4MM 4th Q, corporate officers sell some stock (12/05) CFO Bruce E. Sickel to resign employment with the Company effective March 3, 2006, says press release filed with SEC. Not mentioned was the $50,000 “stay” until March 3, 2006, employment to this date, followed by six month severance, plus some other “odds and ends.” George Pelose, General Counsel of Marlin Business Services, who was the contact for the press release, never returned any Leasing News telephone calls. It is suggested that readers go to Willis Lease, the last story in November, and learn about perhaps what may be a similar situation, but at Marlin: clouded and seemingly paid-off? There is certainly more to the story, especially if handled by an attorney and telephone calls to the media not returned. A highly reliable source tells Leasing News Mr. Pelose has not only been reading the stories printed here, but also has seen the following cartoons: http://www.leasingnews.org/archives/December%202005/12-19-05.htm#toon http://www.leasingnews.org/archives/December%202005/12-21-05.htm#toon http://www.leasingnews.org/archives/December%202005/12-28-05.htm#toon (11/05) announces the completion of its second term securitization. Marlin recently sold $96.9 million in asset-backed securities (08/05) Completes seventh securitization since 1999, this one $340.6 million term asset backed securitization. (05/09) Bulletin Board Complaint regarding "Evergreen Clause" on $1.00 buy-out; not notified 180 in advance, two years extra payments to date. (05/09) reports a first quarter revenue loss of $879,000 compared to a profit of $1,359,000 the first quarter of 2008. The company also announced it has closed its Denver office, plus has let additional 53 employees go, many of them have been with the company ten to eleven years. (05/09) Officers and directors received salary/stock issues despite 100 employees being let go, 2008 loss of $7.3 million, year ending loss of $5.2 million compared to a year-end profit of 2007 of $18.2 million http://www.leasingnews.org/archives/May%202009/05-29-09.htm#bulletin_board(05/09) Bulletin Board Complaint regarding "Evergreen Clause" on $1.00 buy-out; not notified 180 in advance, two years extra payments to date. July ACC Capital/ Amembal Capital ( 07/09) down to 15 employees, moves to Midvale, UT (07/09) exits small ticket market, now going back to main stay of the middle market, no deals under $100,000 from brokers. (4/07) William Dalton named President/CCO. (2/2001) changes name to ACC, Sudhir Amembal leaves to devote time to lecturing and education IFC Credit, Morton Grove, Illinois (07/09) IFC Credit files Chapter 7, estimated $150 million owing (07/09) More defaults on loans, more suits filed against IFC Credit (07/09) CoActiv Capital Partners of Horsham, Pennsylvania files suit for over $2 million naming Trebels and Langs as individuals, cites fraud, not paying off leases, servicing deception, 180 page complaint. (07/09) Many lawsuits become public such as $1 million from California investor, $170,000 owed to Askounis & Darcy for legal fees in NorVergence matter. (07/09) Audit continues as Ludwig tries to keep First Corp. together as well as IFC, Trebels-Langs gone. (06/09) Major suit surfaces from Len Ludwig, CEOof Vencore, regarding stock lien held from sale of First Portland Corporation dba First Corp.; appears payments stopped in January; looks like IFC closing down. (05/09) Another Bulletin Board Complaint: vendor claims un-funded $25,731.43 lease that was to have been funded in January. IFC reportedly down to 25 employees. http://www.leasingnews.org/archives/May%202009/05-08-09.htm#bbc (03/09) Second Bulletin Board Complaint, removed from Story Credit list. (01/09) After Bulletin Board Complaint appeared in Leasing News, IFC decided to call up the vendor, release the UCC and return the money back to the customer, confirmed by customer. (01/09) Makes the Complaint Bulletin Board. Says can't fund lease for six months, but Chief Ligation Attorney threatens Lessee they must make the lease payments, regardless than vendor not paid. http://www.leasingnews.org/list_alpha_new.htm#ifc (12/08) admits to letting 15 employees go, readers say it is 26 to 35 (11/08) Reaches Settlement with FTC and Attorneys General and agrees to refund 86% of payments made since NorVergence filed bankruptcy to those who have not settled or paid off to date. Law fees and costs said to be over $50 million. (08/07) FTC files preliminary against IFC, four counts, involving NorVergence leases. (06/07) Missouri AG files against IFC (06/07) FTC files against IFC/Texas AG first to follow (01/07) Chicago boutique law firm of Adamski & Conti again knocked out IFC Credit Corporation in “its attempts to enforce equipment leases fraudulently induced by the now-defunct telecommunications giant, NorVergence,” as described by Managing Partner Gregory Adamski. (09/06) Collection and other problems. http://www.leasingnews.org/archives/September%202006/09-27-06.htm#ifc (05/06) on withholding information, Judge rules: "ORDERED that IFC Credit Corp. (“IFC”) shall send letters to all lessees against which it has made claims under leases or rental agreements acquired form NorVergence and explain to each lessee the precise amount of money that was delivered to NorVergence for the lease, as well as what amount was held back, the basis for such holdback, and the manner in which the holdback was applied in the accounting records of IFC."(05/06) Texas Judge Sally L. Montgomery Rules against IFC in case http://www.leasingnews.org/archives/May%202006/05-18-06.htm#judge (04/06) Texas Judge Sally L. Montgomery Rules against IFC Credit IFC to sue Leasing News for “Slander” (12/05) announces that its wholly-owned subsidiary, FPC Funding II, LLC, has completed the renewal of its $75 million revolving credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ Bank AG Deutsche Zentral-Genossenschaftsbank. (12/05) Rudy Trebels, President IFC Credit, issues statement to Leasing News:“...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 the media. Hopefully in the not too distant future, we will be able to discuss these issues with you in greater detail." (11/05) (11/05) IFC Credit writes "Letter to the Editor" of Equipment Leasing Association ELTnews, basically stating: they have complied with material requested, but then also states at the end, “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.” (11/05) The Federal Trade Commission asks a federal judge Thursday to aid its efforts in investigating debt collection regarding NorVergence "Equipment Rental Contracts. Westover Financial, Santa Ana, CA (07/09) started by Joe Woodley, CLP, sold 40% to Steve Jones 13 years ago, is dissolving. Semi-retired, except for NEFA post, Woodley has been trying to clean up the mess since Jones left several months ago and joined iFinancial, San Clemente, CA with inside sales crew. Lakeland Bank , Montville , NJ (07/09)Lakeland Bank, Oakridge, New Jersey takes loss of $12.7 million their second quarter, they state negatively impacted by a loan and lease loss provision of $34.1 million compared to a provision of $8.2 million in the second quarter of 2008, reflecting the Company's decision to reduce exposure in its leasing portfolio. The second quarter provision allocated $28.4 million to leasing, including the previously reported charge-off of $9.5 million on the sale of $33.1 million of lease pools and a write-down for other lease pools held for sale. (01/09)"The higher provision includes $8.5 million related to the leasing division for the fourth quarter and $17.8 million for the full year. During the fourth quarter, a second leasing originator indicated that it could no longer fulfill all of its obligations under contractual recourse provisions. The Company had $37.8 million outstanding from this originator representing 860 individual leases of which approximately 83% were current or less than 30 days past due." http://www.leasingnews.org/list_alpha_new.htm#lake (10/08) Lets go its Equipment Leasing Division President Stephen Schachtel by “mutual agreement, “as per the SEC filing. Chief Executive Officer Tom Shara said the replacement of Schachtel with the division's number two man, Robert Ingram, is part of a plan to downsize the leasing business. “We want to go to a local leasing platform. We don't want to do a national lease book of business,” said the former TD Banknorth executive who took over as CEO in April after former President & CEO Roger Bosma retired. Heavy losses in truck leasing reported, particularly by one major lessee. CIT / Group (07/09) Needs loan to stave off BK (11/08) CIT becomes commercial bank to seek TARP funds.(10/08) CEO Peek calls CIT an underdog (05/08) to cut 1,000 employees.(03/08) Many problems dues to consumer loan side, attracted by current president, former Merrill-Lynch executive(01/08) CIT will lose between $125 MM & $135MM(10/08) CEO Peek calls CIT an underdog (05/08) to cut 1,000 employees.(03/08) Many problems dues to consumer loan side, attracted by current president, former Merrill-Lynch executive(01/08) CIT will lose between $125 MM & $135MM(10/08) CEO Peek calls CIT an underdog (05/08) to cut 1,000 employees.(03/08) Many problems dues to consumer loan side, attracted by current president, former Merrill-Lynch executive(01/08) CIT will lose between $125 MM & $135MM (4/07) CIT hit with $64 Million Insurance Class Action Suit (3/07) First Quarter: Top-line revenue grew 14% as a result of our 24% increase in new business volume. (10/06) to buy a Barclays Plc unit that provides financing to customers on behalf of manufacturers and construction firms in the U.K. and Germany. (12/05) Chief executive Jeff Peek told The Business he plans to double its European assets to $ 20bn (B£11.6bn, E17bn) in the next three years. (11/05) agrees to sell its micro-ticket leasing business unit (Lease Finance Group), to affiliates of Cerberus Capital Management, L.P. and Goldman Sachs. The sale is consistent with CIT's continued focus on freeing capital for redeployment into targeted strategic growth opportunities. (10/05)In campaign to optimize our portfolio of businesses, CIT to divest approximately $290 Million of Non-Core Assets: approximately $190 million older vintage, out-of-production aircraft as part of its strategy to maintain a modern fleet capable of contributing positively to the company's risk-adjusted returns, accelerate the liquidation of approximately $100 million in manufactured housing receivables, other real estate interests (7/05) will cut its work force by about 200 employees in North America, consolidating its units and technology, expecting a second-quarter charge of about $25 million for expenses related to the job cuts. (7/05) announced the sale of the majority of its corporate aircraft portfolio to GE Commercial Finance. (7/03) CIT Elects Jeffrey M. Peek President & COO, Reorganizes Senior Management Structure (8/2002) CIT Execs/Directors take stock Bonuses (7/2002) The 200 Million share offering, led by Goldman Sachs and Lehman Brothers went out at $23 each. Tyco Intl in a bid to ease its heavy debt load, raised $4.6 billion from the sale of its CIT Group, accepting half of what it paid for the finance Company a year ago. (6/2002) Tyco loses 30% of stock value, insider loans and shenanigans by directors embarrassing to all, maybe illegal, too, says SEC, IRS, State Attorney General. (6/2002) CEO Dennis Kozlowski---Delusions of Grandeur: Tyco gets a lot worse, like a dark Opera, CEO resigns, directors taking private loans, and talk is they should all resign (5/2002) Tyco to spin off CIT within 45 days (5/2002) Tyco to pay off $10 billion debt by selling CIT(4/2002)CEO Al Gamper says this is the "quiet period" to employees on line.(3/2002)board member borrows millions, loans to insiders made. (2/2002) Tyco International pledged to accelerate its breakup plan, starting with a spin-off or sale of its Tyco Capital finance arm within 8 to 12 weeks. (2/2002) Participants at the Equipment Leasing Association Annual CEO Forum, Feb. 4-5, expressed doubt that Tyco can successfully spin off it financial unit, CIT, through an IPO. Prez. Kozlowski says $10 billion- paid too much for CIT, analysts say will sell for $7.7 billion to $12 billion. Stockholder suit against company. Says Kozlowski made too much money-finder fee to director Walsh too much. Trouble in River City, however Kozlowski holding it together, But the shares remain 49% below where they started the year. (1/2002) Tyco to Separate Into Four Independent, Publicly Traded Companies. (10/2001 ) Tyco Makes it Official: CIT Tyco Capital (8/2001) Many opt to move to Tempe, AZ, stay with CIT, become bold, challenge GE and others in the marketplace, morale up, company on the move. ( 5/2001) CIT Shareholders Approve Proposed Tyco-CIT Acquisition (3/2001) Tyco International Ltd. makes offer for about $9.2 billion in cash and stock in a deal that would allow the manufacturer to finance purchases of its wide array of products. Bermuda Hq, N.H.. operation office. ( 2/2001) Closing Atlanta office and others, "freeze" on new broker business from this office (5/2001) Bruce Nelson, Tempe, Arizona seeking broker business. "We are an asset based lender and provide equipment financing in the following industries: Construction, Transportation, Logging, Material Handling, Corporate Aircraft, Mining, Energy, & Marine." American Leasing Corporation, Camden, NY (07/09) John Manning pleads guilty to embezzling $6.2 million from the company. Key Equipment Finance/American Express/Sierra Cities/Rockford (07/09 Key says "no" to copiers. Other changes being made. (07/09) Many cutbacks, changes, no one talking about it. Exits trucking leasing business. (03/09) Paul A. Larkins resigns. (01/07) Leasing News salutes Paul A. Larkins, President/CEO, as the person who has done the most for the entire equipment leasing industry in 2006. Leasing Person of the year for 2006 http://www.leasingnews.org/archives/January%202007/01-03-07.htm#year (09/05) closes the former American Express Business Finance business operation in Parsippany. (7/05) Key Equipment Finance, the nation's third-largest bank-held equipment leasing plans to hire an additional 145 Colorado-based employees over the next two years, bringing the headcount to 400 by the year 2007. (12/04) "AMEX turned over control to Key Bank last night and on the way out the door AMEX funded EVERYTHING in the system,.....verbals were not completed on many transactions, nor had delivery of the equipment occurred for many deals as well.....random attempts were made to complete verbals however after a message was left the deal was BOOKED.... "Nice to see Integrity rises to the upper levels of management in this industry!!" (10/04) American Express Business Finance Sold to Key Equipment Finance. (10/04)Former Sierra Cities President Thomas J. Depping reportedly raises $21 million from investors and buys bank in Texas to go back into the equipment leasing business. (9/04) The Gazelle is Back! Registered for the October 27th Equipment Leasing Association Conference in Palm Desert, California: Mr. Thomas J. Depping MAIN STREET INVESTMENT PARTNERS Mr. Robert H. Quinn, Jr. MAIN STREET INVESTMENT PARTNERS (3/2004) 40 Amex Leasing Employees let go in Santa Ana, closing down the office imaging-copier processing center in Santa Ana, CA.---- where the old Rockford use to be in the Xerox building on Third Street. Much of the health operation went back to Parsippany (NJ), and some moved to the old Sierra Cities location in Houston, Texas. The main reason for the closing of the operation here--the building lease was originally to Rockford and it expired. Some HR and marketing amployees will remain in Santa Ana., about ten. All employees were offered jobs in other American Express locations. (11/2002) Lays off salesmen, rumors float they are about to get out of leasing business; Richard Anderson does not return telephone calls to confirm or deny. (09/2001) American Express Business Finance has closed down their broker division. We can submit deals until 10/12/01. All deals must be funded by 12/31/01. Unconfirmed rumors that salesmen are now going after the broker vendor accounts. We are seeking to confirm or deny this. (8/2001) Discovers up to $20 million write-off with RW Leasing portfolio, other portfolio's, alleged stock fraud, Amex declares they are investigating (7/2001) pretax write-down of $826 million that will pummel, second-quarter profits. The company also unveiled plans to cut as many as 5,000 more jobs because of the weak economy. Rumors abound about portfolio performance and major problems in the woodpile/going the way Rockford Industries went. (5/2001) New Name: "American Express Business Finance" (4/2001) Merger complete, Depping resigns as "gazelle" (3/31/2001) American Express completes purchase/merger (3/2001) Sierra Cities-Amex Merger gets green light by authorities (2/2001) offer from American Express for $5.68 per share in cash. We predicted this last week, naming the company and floor price. American Express active in equipment leasing, likes what it sees, and Sierra Cities is the vehicle, not Advanta or others that it has viewed to purchase. (1/2001) VerticalNet Merger falls apart. (1/16/01) Sells Off UK Assets. (7/2000) 2nd quarter loss, see report http://www.leasingnews.org/articles.doc/newsletter3.htm. Bank of the West, San Francisco/Dublin, Ca. (07/09) Bank of the West plans to consolidate its 1,600 San Francisco Bay Area employees to a 240,000 square foot facility at Bishop Ranch in San Ramon, California, including leasing division. Bank Hq. to remain in SF. (3/04) BancWest to purchase CFBX in a cash transaction valued at $1.2 billion and is expected to close during third-quarter 2004 (3Q'04), at which time the CFBX franchise will be merged with BWE's subsidiary, Bank of the West. Fitch believes that the proposed transaction is a positive for CFBX investors, as CFBX becomes part of a larger franchise that is supported by a highly rated global banking company in BNP. (10/2002) purchases Trinity Capital.Sr.VP Jerry Newell says,” This transaction underscores Bank of the West's commitment to equipment leasing as a core product line. Bank of the West has operated a nationwide funding business for equipment leasing brokers for 30 years and provides direct equipment leases to bank customers. Bank of the West's equipment lease portfolio currently exceeds $400 million. The Bank will continue to strongly support and grow its broker funding business which represents more than three-quarters of its portfolio. In particular, we want our lease brokers to know that Bank of the West values their business and will continue to protect brokers' interests in their transactions. The addition of Trinity Capital will further expand the scope of the bank's equipment leasing product line, but is not intended to compete with the bank's existing leasing businesses. Moreover, the market focus of Trinity Capital is sufficiently different from Bank of the West's broker funding business that we do not anticipate any overlap." Commercial Money Center (CMC), Southern CA. (07/09) Sterling Wayne Pirtle and Ronald Allen Fisher pled guilty to evading $1M each in taxes, Fisher to remain in jail, Pirtle to be sentenced Nov. 23, 2009. http://leasingnews.org/archives/July%202009/07-01-09.htm#CMCmaster (06/09) Two principals plead guilty to tax invasion: http://leasingnews.org/Pages/70_bank_fraud.htm (06/0)7 Kelly Fisher-Buh takes a plea agreement in $300 million dollar tax evasion claimed by United States Attorney Carol C. Lam, who brought a twelve-count indictment charging Sterling Wayne Pirtle, Ronald Allen Fisher, Mark Edward Fisher and Kelly Michelle Fisher-Buh with income tax evasion, arising from their receipt of unreported and untaxed income from their operation of a now-bankrupt CMC. She admitted to not reporting perhaps as much as over $600,000 in income. (08/06) CMC Officers Indicted for $300 Million Tax Evasion (6/05) Ameriana Bancorp to Recover Approximately $1,000,000 from Commercial Money Center Bankruptcy (03/05) CMC Portfolio Turned Over to US Bancorp . “Should you or your readers have any questions regarding this matter feel free to contact me direct at 605 361 7781.”Troy Lang 3400 w 49th St #200, Sioux Falls, SD 57106 Phone: 605 361 7781 Email: tlang@stuartallan.com (12/04) Reportedly the settlements over unpaid leases continue two years after the bankruptcy of Commercial Money Center (CMC). Officers have been back in business since then, but under different names. The latest agreement involves Lakeland Bank and Royal Indemnity. Allegedly both firms filed claims against each other over the pools of commercial leases Lakeland purchased from CMC and surety bonds Royal issued that guaranteed lease income. Under terms of a recent agreements. Royal will pay $1.85 million to Lakeland, which in turn gets to retain $531,000 Royal already paid. The deal must still be approved by the U.S. Bankruptcy Court (5/2004) CMC Cases Like Timex—Keeps Going and Going. (11/03)The officers of this company are back in business while the "disputes" continue among insurance companies, banks, vendors, lessees, and perhaps only the attorneys are being remunerated (10/03) Ameriana said it will write off two lease pools in the third quarter, an action that will reduce the quarter's net income by approximately $2,784,000 or $0.88 per diluted share. Heretofore, Ameriana had established reserves against these lease pools equal to approximately 58% of the approximately $10,900,000 that currently remains outstanding. Note: NetBank and others have taken over certain aspects of the defaulted portfolio, as reported earlier, and suits with the insurance agency surely continue, while the class action suit continues taking depositions, while the former officers have started new leasing and finance ventures. (3/2002) Court filing agreements http://www.leasingnews.org/archives/March%202003/03-13-03.htm#cmc (3/2003) NetBank Lakeland settle BK for portfolio http://www.leasingnews.org/archives/March%202003/03-12-03.htm#new (3/2003) CMC attorney withdraws, not getting paid http://www.leasingnews.org/archives/March%2020 03/03-06-03.htm#cmc (3/2003) Class action lawsuit regards not being licensed in California for lease financing http://www.leasingnews.org/archives/March%202003/03-05-03.htm#believe 12/2002---Commercial Money Center Bankruptcy Docket for case 02-09721 http://two.leasingnews.org/temporary/bankruptcy.htm (12/2002) Ameriana Bancorp to Boost Reserves 4Q re: Commercial Money Center (Nasdaq: ASBI) announces that it will set aside additional reserves of up to $5.6 million in the Company's fourth quarter ending December 31, 2002. This action will reduce fourth quarter after-tax net income approximately $3.4 million or $1.08 per share, resulting in a net loss for both the quarter and full year. In 2001, Ameriana reported net income of $1,216,000 or $0.39 per diluted share for the fourth quarter and full-year net income of $3,800,000 or $1.21 per diluted share. Approximately $4.7 million of the additional reserves to be set aside pertain to Ameriana's investment in a pool of leases acquired from the Commercial Money Center ("CMC"), a now- bankrupt equipment leasing company. Ameriana originally purchased two separate pools of equipment lease receivables totaling $12,000,000 from CMC in June and September 2001, of which approximately $10,900,000 currently remains unpaid. Each lease in the pools was backed by a surety bond issued by one of two insurance companies rated at least "A" by Moody's Investors Services. The bonds guaranteed payment of all amounts due under the leases in the event of default by the lessee. Each pool was sold under a Sales and Service Agreement by which the insurers serviced the leases. In each case, the insurers assigned their servicing rights and responsibilities to Commercial Servicing Corporation, an affiliate of CMC, which also has filed bankruptcy. When the lease pools went into default earlier this year, one insurer made payments for several months under a reservation of rights while the other refused to make any payments. Both insurers now claim they were defrauded by CMC and are denying responsibility for payment. Ameriana is one of a number of financial institutions around the country that purchased interests in lease pools from CMC. All of the CMC lease pools are in default and in litigation. The Federal Panel on Multi-District Litigation has taken control over most of the federal actions involving the insurers of the lease pools and has assigned them to the U.S. District Court for the Northern District of Ohio, Eastern Division, for consolidated pre-trial purposes. (NetBank has $80 million as part of the suit, among others.) (10/2002) Deadline for filing for claims for Commercial Money Center has been extended since the proceedings were converted to a Chapter 7. The CURRENT attorney is Bradley Shraiberg and his phone number is 561.395.0500. He is the contact until a further motion is filed to have him removed (he said for geographical reasons, as it is now moving to the Southern District of California Bankruptcy court in San Diego .) ( Read about CMC ) (6/2002) files voluntary bankruptcy, #11, in Florida, all hell breaks loose (5/2002) Gets worse, officers may go to jail (4/2002) Many, many complaints; reports of leases where equipment never existed, paying for leases that do not exist, much behind the scenes on the reputation of the founders, lawyers having a field day, San Diego FBI investigating all.(3/2002) Throws in the towel, 128 employees out of work, Dir. of Marketing Bill Hanson not paid, goes back to work for himself, bringing Gil Evans and his son Ty with him. closes door, leaving many unpaid bills and questions, especially about Kiosk leasing. (2/2002) Returns $1.2 Million to Date admit many complaints by applicants, vendors, and brokers. Fails to secure insurance line of credit after September 11th. June Balboa Capital , Irvine, California (06/09) another Bulletin Board Complaint about residual: http://www.leasingnews.org/archives/June%202009/06-15-09.htm#bulletin (12/07) Curt Lysne, Senior. Vice President of Sales, who both started and headed the broker division, left the company last week (Lysne later in the month joins PFSC in Portland, Oregon )(12/08) Exits broker business badly with no time period notice, cutting off brokers, approvals, many report fundings not complete. Much more to follow. (03/07) takes on Marlin Leasing (03/07) completes its first term securitization by issuing $100,000,000 in contract backed notes through its subsidiary, BCC VI. (4/05) Enters internet fray with on line processing http://www.leasingnews.org/archives/April%202005/4-29-05.htm#toon (5/2004) Balboa Capital Corporation announces that Patrick Byrne has completed the acquisition of 100% of the company's stock and is now the sole shareholder of Balboa Capital, ending rumors that the company was listed for sale because the two owners were not getting along ( for quite some time, it is said ) and it was dividing employees on each side of the camp. ( 2/04) Surprise! Surprise! Surprise! --Shawn Giffin Back at Balboa Capital. Rumors float that company is up for sale that both owners not getting along; they deny it. Byrne had taken a two year sabbatical and came back to the helm in late September of last year. It was then Giffin's turn to take some time off, they both said. Since that date, Byrne was back in the swing of things, increasing originations, creating a more sales friendly environment, improving credit and funding processes using Six Sigma, cleaning house, increasing customer service, finding fraud from vendors and salesmen, starting a broker division, the first time in 15 year history, hiring Curt Lynse, formerly with GE-Colonial Pacific, working on a national vendor program division, and getting the company moving in a very competitive manner. “I'm thrilled to be back, “ Shawn Giffin told Leasing News. “My head is clear. I'm invigorated. This is a great company.” Asked about his ability to get along with the other major share holder, he said, ‘ Pat has a unique set of skills, as I do. I think we are very complimentary working together. The point is I am fired up and am really glad to be back at work. I love it! “ Asked about what his title would be, he said, “Titles aren't important to Pat or I. “ (2/04) Curt Lynse, formerly at GE Capital/Colonial Pacific Leasing, joining Balboa Capital to start a broker division, something the company has not done in sixteen years; they founded in 1988. (9/03) Patrick Byrne is back, Shawn Giffin goes on sabbatical. ( 9/2000) Founder Pat Byrne "...office available any time he wants to use it".
Commercial Money Center (06/09) Two principals plead guilty to tax invasion: http://leasingnews.org/Pages/70_bank_fraud.htm (06/0)7 Kelly Fisher-Buh takes a plea agreement in $300 million dollar tax evasion claimed by United States Attorney Carol C. Lam, who brought a twelve-count indictment charging Sterling Wayne Pirtle, Ronald Allen Fisher, Mark Edward Fisher and Kelly Michelle Fisher-Buh with income tax evasion, arising from their receipt of unreported and untaxed income from their operation of a now-bankrupt CMC. She admitted to not reporting perhaps as much as over $600,000 in income. (08/06) CMC Officers Indicted for $300 Million Tax Evasion (6/05) Ameriana Bancorp to Recover Approximately $1,000,000 from Commercial Money Center Bankruptcy Country Leasing, Bloomington, Illinois. Country Leasing, part of COUNTRY Financial, will discontinue new public leasing sales on Aug. 1, 2009. Six sales employees will be displaced Heritage Pacific Leasing, Fresno , CA (06/09) FBI seize Otto jet, Aston Martin, other material from Palm Desert and Fresno, California offices (06/09) Ben Millerbis, CEO, Pentech, says error of selling back leases was to Heritage Pacific, not HL Leasing (06/09) Letter to HL Leasing investors by Otto very catches him in many lies. (05/09) HL Leasing owned by John Otto misses interest payments, investors call FBI, Otto commits suicide, and it appears a major Ponzi scam involving over 1,000 and perhaps $132 million on leases that allegedly never exiting, FBI investigates, Department of Corporation starts collecting complaints for Receiver, FBI starts seizing assets. (02/08) Owner John Otto lets entire sales staff including Rick Gatelli, CLP, the president, and Charlie Litt, Senior Vice-President. Ron Mitchell, too. John Otto, the owner, CEO, confirmed that he has rejected an offer to sell the company to Rick Gatelli, CLP, Charlie Litt, and John Estok, CLP, formerly of IFC Credit Corporation and First Portland Corporation (please see archives above.) Otto says he has another suitor and is considering it, but does not need to sell the company. He divested himself of his investment in Pentech Financial, Campbell , California , last year, he confirmed, and as readers know closed down Centerpoint Leasing after Gordon Roberts was convicted of theft. Otto was the major investor in the company. (05/09) HL Leasing owned by John Otto misses interest payments, investors call FBI, Otto commits suicide, and it appears a major Ponzi scam involving over 1,000 and perhaps $132 million on leases that allegedly never exiting, FBI investigates, Department of Corporation starts collecting complaints for Receiver, FBI starts seizing assets.
IFC Credit, Morton Grove, Morton Grove, Illinois 06/09) Major suit surfaces from Len Ludwig, CEOof Vencore, regarding stock lien held from sale of First Portland Corporation dba First Corp.; appears payments stopped in January; looks like IFC closing down. (05/09) Another Bulletin Board Complaint: vendor claims un-funded $25,731.43 lease that was to have been funded in January. IFC reportedly down to 25 employees.
Vision Capital, Southern California (06/09) Larry Turner announces he and his partners Manny Montanez and Gil Evans closing down shop, he is going to work for Pacific Capital.
May Marlin Business Services (05/09) Bulletin Board Complaint regarding "Evergreen Clause" on $1.00 buy-out; not notified 180 in advance, two years extra payments to date. (05/09) reports a first quarter revenue loss of $879,000 compared to a profit of $1,359,000 the first quarter of 2008. The company also announced it has closed its Denver office, plus has let additional 53 employees go; many of them have been with the company ten to eleven years. (05/09) Officers and directors received salary/stock issues despite 100 employees being let go, 2008 loss of $7.3 million, year ending loss of $5.2 million compared to a year-end profit of 2007 of $18.2 million
Sovereign Bank (05/09) joins "no more broker list."
Manifest Group (US Bancorp) (05/09) Major "realignments," Mike Rizzo laid off, not for performance, just bank cut-backs; lease division reports over 3% write-offs in lease portfolio, reportedly many problems, Navigator program no longer in place as Pentech shut down, rumors circulate bank may want to sell operation, reportedly more "re-alignment" to follow. Heritage Pacific Leasing, Fresno, CA (05/09) HL Leasing owned by John Otto misses interest payments, investors call FBI, Otto commits suicide, and it appears a major Ponzi scam involving over 1,000 and perhaps $132 million on leases that allegedly never exiting, FBI investigates, Department of Corporation starts collecting complaints for Receiver, FBI starts seizing assets.
IFC Credit, Morton Grove, Illinois (05/09) Another Bulletin Board Complaint: vendor claims un-funded $25,731.43 lease that was to have been funded in January. IFC reportedly down to 25 employees.
Puget Leasing, Bellevue, WA (05/09) First Sound Bank restated its year-end to a $20.1 million loss. The bank claims $18.3 is related to the acquisition of Pugent Sound Leasing. The bank also reported a $37,000 first quarter loss for 2009, and an $11 million decrease in assets to $247 million. Latitude Equipment Leasing LLC, Wayne, New Jersey (05/09) formed by ex-Advanta and Marlin Leasing veterans, announced the assumption of the sales and administration organization of Leasing Partners Capital Inc. This brings the company into 22 marketing branches Greystone, Massachusetts (05/09) "New York pulled the plug" and effectively closed the Greystone Equipment Finance Corporation operation in Burlington, Massachusetts Thursday of last week, April 23rd, 2009. April Evans National Leasing , Hamburg, NY ( (04/09) A divison of Evans Bank, exits leasing business. (08/07) net loss of $(139) thousand, may affect leasing operation. Excel Financial Leasingg , Lubbock, Texas (04/09) SEC freezes all assets, claims $40 million security fraud. (08/07) net loss of $(139) thousand, may affect leasing operation. Greystone , Burlington, MA 04/09) Greystone closes, all but skeleton crew left, portfolio to be administered by one of parent's companies(04/09) Not funding, paying salesmen.(11/08) Founder Donald Synborski let go by board reportedly over direction of company. Also there is a $1 million group of leases with Acropolis, with four in default, more to follow. Several Alerts were posted in Leasing News, and looks like PFF and Balboa also had write offs. Original vendor group reportedly working under another name in another state. NorVergence, New Jersey (04/09) Louisiana AG arrests Thomas J. Salzano and he spends night in jail before posting bail for charges of fraud. (09/06) FTC files injunction against two key officers: Peter Salzano (in addition Thomas N. Salzano (08/06) Under New President Fred Van Etten-- Popular Reaches $15.3MM Settlement (08/06 AG Spitzer now at $20 MM settlements (08/06)NY AG Spitzer gets Nine more (07/06) NorVergence Bankruptcy Trustee Sues 26 Banks/Officers FTC Brook explains what they are looking forhttp://www.leasingnews.org/archives/March%202006/03-29-06.htm#trade (3/06) NY settlement 67%http://www.leasingnews.org/archives/March%202006/03-24-06.htm#norv (3/06) NorVergence BK charges Salzano wife charged $135,628 to corporate Amex Card (3/6) NorVergence BK charges Salzano son stealing $1/2 MM (2/06) more lessees accept settlements (1/06) Various cases, FTC serves CID on some leasing companies to learn about accounting, insurance, personal property tax. (11/05) Popular Leasing receives ruling requested as the St. Louis court found "that NorVergence has no interest relating to the subject of the action [in Missouri] and is not, therefore, a necessary and indispensable party." (11/05) 10,629 NorVergence Leases in Contention.Allegedly 1,371 NorVergence lessees to date have been offered settlements, out of an original estimated 12,000. This does not include the FTC win of $47 million dollars of “uncommitted” signed leases. Leasing News for 30 days has been trying to obtain the statistics in number and dollars of how many lessees accepted the settlements,as they were to do so in 30 days and then the leasing companies to report to the AG's office within 30 days in a specific time frame. (11/05) Hon. James Ryan of the Circuit Court of Cook County, IL, 3rd Municipal District, issues his third decision and order dismissing suits by IFC Credit Corp. against consumers who had NorVergence Rental Agreements ("NRA") assigned to IFC. Judge Ryan held that the forum selection clause in the NRAs was "unenforceable because it offends the public policy of fundamental fairness" and, therefore, the Illinois courts have no personal jurisdiction over the out-of-state defendant. ( 9/05) Lessee Gets Stay pending other court actions, sets precedent? (9/05) NorVergence 1450 member Class Action Certified in New Jersey (9/05) Texas win and others regarding venue provision creates lessee war cry: “ We are coming for the rest of the LC's now! ” (7/05)--Randy Brook of FTC wins 47 million dollars of “uncommitted” signed leases, with claims against the receivables, assets. (6/05) FTC Asks for $181 Million NorVergence default judgment plus to negate other AG settlements for full amount; hearing set for July 18, 2005. We were criticized for calling this a “soap opera,” but it truly is, except no love interest.http://www.leasingnews.org/archives/June%202005/6-28-05.htm#norv (6/05) Attorney Green to file Appeal on NorVergence Class Action Denial (6/05) Add Massachusetts to Illinois and Texas dismissing all NorVergence leases because BK receiver failed to appear in court (6/05) Florida AG case thrown out of court, next day, he appeals it. (5/05) $23 million more in settlements (5/05) GE and CIT make settlements in other states. (4/05) Reportedly defaulted leases push Preferred Capital into receivership. Several other leasing companies hit with large portfolio losses. (03/05) Thirteen state AG's jump on Preferred Capital venue issue, little realizing that the company is closed to receivership (02/05) “ERA” contract a joke http://leasingnews.org/PDF/NorVergence_Rental_aggreement.pdf (02/05) Ohio Banks Affected by NorVergence Bankruptcy (2/04) Venue Losses by Lessors local and federal courts (2/04) NorVergence Mess Not Going Away, Perhaps Criminal Action (1/05 NY AG Eliot Spitzer settles two more, now at $13MM (1/05) Peter J. Salzano, CEO file BK 11 (1/05) No disagreements about “leasing companies caving in,” as more state AGs (six now) join in litigating leasing companies for settlements with NorVergence Leasing customers. (01/05) Irwin Financial $4 million NorVergence Charge off. (12/04) More Leasing Companies "Caving In" (12/04) Leasing News Editorial: Amicable, Generous Settlement for NorVergence Lessees (12/04) NY Atty. Gen. Gets Another $11 Million Settlement (12/04) Penn. AG Sues NorVergence/Salzano Brother (12/04) Other leasing companies follow GE's lead. (12/04) GE becomes hero, sets pace for other leasing companies. In a surprise move, GE Capital made a settlement with New York Attorney General Eliot Spitzer and his staff regarding 100 approximate leases for the so-called "matrix box" and long distance telephone service from NorVergence, who filed Chapter 7 bankruptcy in July (11/04) 41 Leasing Companies in NorVergence Dilemma (10/04) ELA meets NY Attorney General's staff (10/04) Leasing companies file on lessees, Weir Group has almost 1300 plaintiffs in class action suit, newspapers print poor picture of leasing companies (9/04) Florida attorney general requests leasing companies cease collecting lease payments; three other state AG's follow (8/04) First class action is filed, two others to follow. (7/2004) Campaign to Stop Leasing Company Payments (7/2004) Robert J. Fine Resigns as EAEL President, ran Finance Division, discounting paper to banks and others (7/2004) Telecom Agent Association starts “Legal Co-Op” to breaking third party leasing contracts sold by NorVergence or involved with NorVergence equipment and service. (7/2004) NorVergence files Chapter 7(7/2004) NorVergence files Chapter 11.(7/2004) NorVergence investigated for failing to pay its employees NorVergence (4/2004) "Mr. Arnold comes to NorVergence Capital from HP Financial Services, where he was the Finance Director for North America. At HP Financial Services, he was responsible for all financial functions and was instrumental in integrating the HP and Compaq Financial services portfolios. Mr. Arnold was part of management team that launched Compaq Financial Services in 1997." PredictiFund (04/09) Exits leasing business to concentrate on credit card advances. SunBridge Capital , Mission, Kansas (04/09) Three creditors push into Chapter 11.Bank of Kansas City holding an original portfolio of $97 million, now down to $76 million;local banks seem to be holding the bag as well as Lakeland Bank, HSH Norbank, and Midwest Bank. (03/09) Posts on internet they have shut down, no more business. (12/01) Bank reportedly repossesses "Trucks on Hand," all but four employees reportedly let go. Brokers owed commissions, they tell Leasing News. (11/08) announces no more funding until first of year to concentrate on "Trucks on Hand." (06/08) cut off from funding, "Trucks on Hand" still in operation. Synovus Capital Finance (04/09) Closes down leasing division. Latitude Equipment Leasing LLC, Wayne, New Jersey (05/09) formed by ex-Advanta and Marlin Leasing veterans, announced the assumption of the sales and administration organization of Leasing Partners Capital Inc. This brings the company into 22 marketing branches March Court Square, Malvern , Pennsylvania (03/09) Reports noted denied that the subsidiary of Provident Bank is closing down. Union Capital Partners, MidVale, CO) (03/09) Sole to ACC Capital, principals to work at ACC. LEAF, New Jersey (03/09) Resource America withdraws $250MM IPO (12/08) announces loan to cover NetBank portfolio purchase and more lines, but numbers don't add up. Doesn't respond to questions as parent stock goes into the toilet (10/08) Cuts bank on broker business, letting discounters and even franchise discounters go elsewhere. (08/08) LEAF Third Party Funding in Southern California (formerly Pacific Capital Bank Leasing, Santa Barbara Leasing (03/08) closes old Jim Harris' Alco Leasing Company, Portland, Oregon(02/08) Parent of LEAF reports $6.4MM 1st Q Loss DZ Bank, Germany/USA (03/09) Exits securitization marketplace; "...unit's 21-member staff will soon shift somewhere else." Puget Leasing, Bellevue , WA (03/09) Filings show 12 employees confess all at instruction of the Secords. http://leasingnews.org/PDF/First_Sound_Bank_Secord.pdf http://leasingnews.org/PDF/secord_declaration1.pdf (01/09) First Sound Bank separate suit against sellers of Puget Sound Leasing: Larasco, Richard Secord and Louis Secord, citing not revealing true nature of portfolio and delinquencies, among other charges, confirms Louis Secord no longer a member of the board of directors. (01/09) Bank owner takes Larasco, two Secords, and 11 banks, seeking judgment of what Larasco, Secords, First Sound Bank, and the 11 banks are responsible for in default and problem leases. Meanwhile, “Puget Sound Leasing” won't consider any deal less than five years in business, they send to brokers, as well as make other restrictions, but still active in the marketplace. http://www.leasingnews.org/list_alpha_new.htm#puget (12/08) Original owner no longer on bank board, questions being asked. (09/07) Sold to First Sound Bank. Bank president Don Hirtzel Puget Sound Leasing generates roughly $8 million a month in new leases and has an average delinquency rate of less than 1 percent, it is reported.
Benchmark Financial Group, Aliso Viejo, CA (03/09) Gets first Bulletin Board Complaint.
February January Financial Pacific, Federal Way, Washington(01/09) "Parent" Allied Capital in trouble due to "Mark to Market." Paul J. Menzel, CLP President, says "FinPac is a portfolio investment of Allied's. We operate independently and are not presently affected by them." http://www.leasingnews.org/list_alpha_new.htm#finpac (7/2004) Surprise---“Fin Pac” Sold to Allied Capital, Washington, D.C., $94 Million, to close in third quarter,2004 (5/2004) S.E.C. still studying proposal, talk about promoting stock for company, truck portfolio law suit, and other questions brought up, but considered “routine,” due to nature of portfolio...Menkin would have bought stock if IPO came about,a great company FinPac CEO Dale Winter noted that the value of IPOs has declined significantly since April, when FinPac first began the process of going public. FinPac accepted Allied's buyout offer on June 30, according to Winter, who says the acquisition will not affect FinPac's operations or its 120 employees. Other leasing and finance companies have been successful with IPO's, but underwriters were reportedly not bullish about "Fin Pacs" chances, thus the sale to Allied. (4/2004) “Fin. Pac.” “C” and “D” funding source has filed an IPO to raise $80.5 million dollars. Pinnacle Business Finance , Fife, WA (01/09) Chuck Brazier, CLP, let go, company ceases all broker business(01/09) All offices but Florida were closed last year (01/09 Announces consolidation of offices to Fife, Wa. (01/09) closes Florida office. Allegiant Partners , San Rafael, Ca. (01/09) Doug Houlahan, CLP, Director, Sales and Marketing, leaves company; remains a shareholder. GE Capital , Conn (01/09) makes more cuts in GE Capital (01/09) More cuts in several divisions. http://www.leasingnews.org/list_alpha_new.htm#ge (12/08) sends out new rules regarding termination, more layoff expected after first of the year. (11/08) GE becomes commercial bank to seek TARP funds (10/08) closes more leasing divisions (09/08) starts cutting leasing divisions. (04/08) Citibank sells units to GE Capital (12/07) purchases most of Merrill-Lynch Finance Division, officers given notice to look for other employment. (1/06) Wall Street Journal says exiting small ticket leasing marketplace http://www.leasingnews.org/archives/January%202006/01-25-06.htm#ge (10/2001) Records 19% Revenue Drop in QIII Butler Capital, Hunt Valley, MD (01/09) cutting back on employees, including long term veterans such as Don Blody, who a week later winds up as top credit man at Madison Capital, Owings Mills, MD. http://www.leasingnews.org/list_alpha_new.htm#butlerc (02/07) Mitsui injected $6-million in subordinated debt into Butler Capital, Hunt Valley, MD., and had twenty-four months to effectuate the purchase of the $250 million asset firm; new officers don't want to go ahead with purchase. Velocity Financial Group , Rosemont, Illinois (01/09) lets go all of their employees last Friday with exception of the venture group. They also have an office in Wakefield, Massachusetts. They had raised an initial $400MM. Company first says "no comment," but later says wants to concentrate on venture leasing as Frank Cirone, "Chief Executive Officer & Co-founder Chief Executive Officer of Comdisco US Leasing responsible for leading the organization and management team for finance, sales, portfolio management, administration and equipment refurbishment." As Yoga Berra would say, "Looks like Dah-Jah-Vue all over again." Radiance-Capital, Tacoma, WA (01/09) "The company will continue to manage and service the existing portfolio. For the foreseeable future, there are no plans to fund or originate new finance transactions.” (01/09) Company is sold. Buyer is Tom Price, son of Mike Price. Mike was former chairman/ceo of T&W Financial and Tom was president. The company was one of the first to use securitization, went public, and was basically very successful until it moved out of the small ticket marketplace. Both Mike and Tom remained in real estate, but did leases with other “partners,” Leasing News was told. After the bankruptcy, only one officer was left holding the bag, it is reported, and he went to jail. May, 2006 Paul B. Luke, CPA 50, of Omaha, Nebraska, was sentenced to one year in prison, three years of supervised release and $1.2 million in restitution. According to records in U.S. District Court in Tacoma, Luke created a fraudulent lease agreement in order to draw more than $1 million from a line of credit T&W had with Bank of America. The money was used to pay T&W's officers, a partners car leases, and it was the $1.2 million loan default with BofA that pushed the company into bankruptcy. http://www.leasingnews.org/list_alpha_new.htm#radiance (12/08)"Currently, Radiance is focused on portfolio management only and not accepting new brokers or credit applications… When things change and we start lending again on more consistent basis and terms, I can update you at that time. Due to the instability in the economy and with those that lend to this industry, I don't see us lending in 2009. Unfortunately, in my humble opinion, I don't think we have seen the worst yet." Meryl L. Newman,Chief Executive Officer." (12/08)"Currently, Radiance is focused on portfolio management only and not accepting new brokers or credit applications… When things change and we start lending again on more consistent basis and terms, I can update you at that time. Due to the instability in the economy and with those that lend to this industry, I don't see us lending in 2009. Unfortunately, in my humble opinion, I don't think we have seen the worst yet." Meryl L. Newman,Chief Executive Officer." |