Monday, June 28, 2010
Alert---T.J. Montgomery/Healthy People 2010 Grant
“You May have Missed” is usually humorous, but today, perhaps the most realistic summation of how long unemployment may remain high.
Alert---T.J. Montgomery/Healthy People 2010 Grant
Thomas J Montgomery is at it again. His previous caper was United States Wellness Chamber of Commerce in Frisco, Texas. Since we reported about that company in 2008 I have received a steady stream of complaints about him and his company 3-4 times a month. His new address appears to be McKinney, Texas.
All of these calls were more consumer related as it appears he was keeping away from the commercial area. Each time I deferred answering any questions since these were from non-subscribers and referred them to the Attorney General in their state. That firm is rated “ F “ by the BBB. Lease Police has received no inquires either.
Web Site: http://healthypeople2010grant.org/
From the text of the new web site it looks like he is again viewing the finance area. There is no Assumed Name filed or Corporation. Here is the info on the domain name:
You may wish to call Mark LeBlanc at 281-704-0539
Archives---June 28, 2000
LeaseExchange Named One of Red Herring's 'Ten to Watch'
SAN FRANCISCO-----Red Herring has named LeaseExchange, the first open, fair and efficient marketplace for equipment leasing, one of its "Ten to Watch."
LeaseExchange received the honor at Red Herring's Venture 2000 conference in Lake Tahoe, CA. LeaseExchange delivers a solution with the potential to transform the $233 billion equipment leasing market from one that is unregulated, fragmented and inefficient to one that is open, fair and efficient.
The Lease Exchange makes it possible for leasing customers, equipment sellers and leasing companies to complete more leasing agreements faster, with less effort and for less money than was possible with the old leasing process.
"LeaseExchange is solving a pervasive real world problem; an unfair, slow and inefficient process that affects the 80 percent of US companies that lease," said John Mecklenburg, Red Herring Editor of Events. "Like the other companies on this year's 'Red Herring Ten to Watch' list, LeaseExchange, with its great technology and business model, could change the way business is done. Many companies want to offer equipment leasing as a value-added service to their customers, and LeaseExchange is the leader enabling them to do so."
Leasing customers, equipment sellers and leasing companies have been victims of a slow, costly and complicated process. The Lease Exchange transforms this process into one that is open, fair and efficient -- reducing costs and putting all of the parties in control of getting maximum value from leasing. Leasing customers submit one online application for multiple, competitive bids, saving time and money while increasing their chances of approval. Because more of their customers' leases are approved, equipment sellers close more sales. Having access to a marketplace of leasing customers dramatically reduces the cost of customer acquisition for leasing companies. They also benefit from the ability to filter applications online so that they see only applications that fit their company's preferred criteria.
LeaseExchange Co-founder and CEO Aaron Ross says, "The Lease Exchange is fixing a broken process. We are excited to be named one of 'Red Herring's Ten to Watch.' It is an honor to be included in a select group of companies being noticed for making significant changes in the way business is conducted."
Founded in April 1999, LeaseExchange received $3 million in first round funding from WaldenVC. www.LeaseExchange.com.
Only One Now - Lease Portals-Aggregate Funding Sources
These are web site that provide automated on-line leasing service only, or provide a "portal" to other on-line leasing companies or on-line funders. In the early 2000s, there were over 25, such as LeaseExchange noted above.
There now appears in 2010 to be only one remaining who fits this category: Govlease.net
“GovLease.Net connects Governmental entities with qualified lenders in an online, sealed-bid environment. This stimulates fair and competitive bidding between potential lessors for governmental leasing opportunities.
“Lessors: Gain access to a larger variety of leasing opportunities.
“Lessees: Receive the best rates from a larger pool of potential lessors while saving time and transaction costs.”
For a full listing of all “job wanted” ads, please go to:
Other e-Mail Posting Sites:
Secord Bankruptcy for Real
The filing at the last minute before First Sound Bank, Seattle, Washington took their case to trial in June, both Louis and Richard Secord filed bankruptcy. Larasco dba Puget Sound Leasing that lead the matter to a suit of not disclosing alleged delinquencies, Evergreen clauses, or the method of accounting for past due accounts or agreements to other banks of a "zero loss" unwritten policy, had already filed bankruptcy.
It appears this is not a ploy, by the financial records filed by both the Secords, and as important, First Sound Bank is now fighting a settlement agreement with Wells Fargo Equipment Finance, Washington Mutual, and others appear named as it appears the original arrangement called for a settlement in winning their case against Larasco and the Secords, lows and highs, and written as if First Sound Bank was going to win the case. The case was "stayed" pending the bankruptcy, which if granted, wipes out any claims by First Sound Bank.
These numbers come from the court records, reproduced at the end of this article. They show that Louis Secord reports income of $5,276 per month plus $3,029 in monthly Social security Payments for he and his two sons, Stone and Grey.
He also noted the disclosure of property as noted in a court filing:
From: Larasco (now in Bankruptcy)
The delay in the case appears to have protected assets and income, but the bottom line is the list of creditors at $24.97 million ($13 million list as possible in First Sound Bank suit) and $2.4 million in personal assets, exempt from bankruptcy, primarily his house and personal assets, not business assets.)
His brother indicates a monthly income of $6,035, but $12 million owed to creditors with $1.8 million exempt.
The bank now holding the bag of the legal costs of the suit, as wells a potential settlements owed to other banks, are probably the reason additional capital nor a suitor has been found by the FDIC. Perhaps the banking authorities are waiting for things to be further settled before stepping in, although each Friday it is surprising First sound Bank has not made the list of banks closed in the State of Washington. It appears this stay may last a good year or longer. It does not appear that First Sound Bank can last that long under the present circumstances.
REPLY, filed by Intervenor Plaintiff Washington Federal Savings, TO RESPONSE to 447 MOTION to Enforce Settlement Agreement Against First Sound Bank (Dial, Neil) (Entered: 06/25/2010)
DECLARATION of Steven Shaughnessy filed by Plaintiff First Sound Bank re 447 MOTION to Enforce Settlement Agreement Against First Sound Bank (Wilkinson, C.) (Entered: 06/21/2010)
Louis Secord List of Creditors (large file)
Louis Secord Amended List of sale of assets/income
Louis Secord Social Security/Income----
Richard Secord Creditors---(large file)
Richard Secord Monthly Income
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Third Law Suit against Allied Health
The third law suit Leasing News alleging default against Allied Health Care Service, New York and New Jersey, was made by was made by Commonwealth Capital Corporation. It was filed June 18th. This one is for $4,224,543.02 against the corporation and $1,792,893.82 against the personal guarantee of Charles K. Schwartz, "plus attorneys fees, costs, and interest, as well as all other relieve which this court deems just." The filing was on June 18th but there has been no service of a summons to the corporation or personal guarantor as of Friday, June 25th.
The suit claims "The equipment is being wrongfully held by Allied and/or Schwartz. Commonwealth has demanded return of the Equipment but Defendants have failed to return the equipment. The Equipment consists of approximately $1,320 ventilators, and the fair market value of the Equipment is approximately $900-$1,500 per ventilator."
The "Fair Market Price" is what Leasing News also determined, although in the leases the used equipment was sold for $5,000 each and serial numbers always appeared mostly in sequential numbers.
By chronological date, Kingsbridge Holding, LLC, Lake Forrest, Illinois, was first with a suit against Allied Health Care Services for $1,051,207.74 plus attorney and court fees. This is from a lease discounted to them by ACC Capital, then located in Salt Lake City, Utah, making it schedule 9, part of a master lease. Here, too, service was difficult. Court records show the corporation being served, Charles Schwartz wife being served, and the last note in the file is a response by June 14th. None was made, and whether he was served properly or not, what is holding this up is on June 21st the case was assigned to a new judge.
It appears the server of the summons could not locate Schwartz, who is reportedly not in the office very much, and according to his personal financial statements, has stables and horses, and allegedly spends much of his time here. There are two major thoroughbred race tracks, Atlantic City and Monmouth Park in Monmouth in Oceanport, plus two well-known harness race tracks, Meadowlands in Rutherford and Freehold in Freehold, New Jersey.
Minnwest Capital Corporation, Minnetonka, Minnesota, (subsidiary of Minnwest Bank Metro) filed $2,070,690 suit against Allied as well as the Charles Schwartz, president of the company, as personal guarantor to the corporation. The third was successful in service, had a response to be made by June 14th, but a postponed was granted until June 24th. This also was an ACC Capital discounted lease. According to a spokesman, ACC discounted nine of them "non-recourse" and was not responsible for any lack of payment.
The response filed on June 24th basically denied the corporation was in default, the personal guarantee was not valid or enforceable, denied receiving a default notice:
“FOURTH AFFIMATIVE DEFENSE
FIFTH AFFIRMATIVE DEFENSE
SIXTH AFFIRMATIVE DEFENSE
SEVENTH AFFIRMATIVE DEFENSE
EIGHTH AFFIRMATIVE DEFENSE
NINTH AFFIRMATIVE DEFENSE
TENTH AFFIRMATIVE DEFENSE
ELEVENTH AFFIRMATIVE DEFENSE
TWELFTH AFFIRMATIVE DEFENSE
THIRTEENTH AFFIRMATIVE DEFENSE
FOURTEENTH AFFIRMATIVE DEFENSE
FIFTEENTH AFFIRMATIVE DEFENSE
Copy of Allied Response to Minnwest complaint:
(Leasing News provides this ad “gratis” as a means
Top Stories --- June 21-June 25
Here are the top ten stories opened by readers:
(1) Shawn Giffin falls from Building
(3) Update: Broker Looking for Funder-Manifest et.al.
(4) US Bank Manifest Changes---Up-Date
(5) Shawn Giffin---Leasing News answer to some criticism
(6) Fin Pac Announces VendorFlex Program
(7) Tie The Saga of Rudy Trebels Claiming a CLP--update
(7) Tie Tiger's $30 Million tail
(8) Alert: Trinity Back at It
(9) New Hires---Promotions
(10) Sales makes it Happen---by Steve Chriest
Protection of Leased Asset
We all know that too protect our legal right on our leased equipment the Lessor needs to file a UCC-1 financing statement in the State where the Lessee has filed their charter papers. The filing of a lien is required under Article 9 of the Uniform Commercial Code (UCC) if you have a “lease that is intended as a security”. This occurs when you fail the legal requirements of Article 2A (Article 10 in California) and are therefore by default covered by Article 9. The big difference between the two articles of law is that Article 9 recognizes the customer as the owner of the equipment and therefore requires the Lessor to file a lien. Only in Article 2A is the Lessor recognized as the equipment owner and therefore does not require the filing of a lien.
The other purpose for filing a lien is that it is the only method to inform the public that the Lessee is in possession of your equipment and that you are the owner, not the lessee. In the old days when the lien was filed in the county or State where the equipment was domiciled a large part of the population knew where, and how, to check for liens prior to purchasing equipment. However, with the current requirement to file in the State where the business filed its charter papers and a large quantity of new business filing in foreign States to avoid taxes, or to get a favorable legal environment, it has become problematic that anyone would check for liens on equipment. So how does a Lessor protect his interest in the equipment?
In addition to filing the lien a Lessor should make annual inspections. These inspections are important and they give the marketing staff a reason to visit the lessee and ask for more business. In addition, your lease agreement should require financial information, at least on an annual basis, so the credit can be reviewed to determine if the company is headed in the wrong direction. If the lessee is too far away for an inspection then perhaps in a declining credit environment you should hire a local inspector.
On transactions that are too small, to spend much time on, the Lessor should require the lessee to place labels or stickers with the lessor’s name, address, phone number and the requirement to contact before removal or location change. These labels sound like a problem but if they are sent with the closing letter most lessees will place it on the equipment with no problem. In addition it keeps the Lessor’s name in front of the lessee and is good advertising. In addition to helping on the protection side if the equipment is moved by the lessee they should inform you so the assessed taxes are paid to the proper jurisdiction.
One of the real dangers for equipment disappearance comes from mergers and acquisitions. When companies merge there is always excess equipment and it is sold off with little or no consideration for lien holders. One of your defaults in the lease agreement is when a “Lessee or any guarantor of this Lease dies, ceases to exist or do business as a going concern”. Most mergers are asset purchases which mean you will need an assumption agreement with the surviving entity. Even though this appears to solve the problem you need to identify your equipment so the new company is aware of which assets are yours. Good time to place a label on the equipment.
If your equipment does disappear in addition to legal action, if the transaction is large enough, you should contact local repair shops and equipment vendors and offer a small reward for information on the equipment. You would be surprised how often this works.
Equipment disappearance will always be with us so how you go about protecting yourself is an important issue.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at firstname.lastname@example.org or 502-327-8666.
He invites your questions and queries.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
Bank Beat—Florida, Georgia, New Mexico
The 13 branches of Peninsula Bank, Englewood, Florida were closed on Friday with Premier American Bank, Miami, Florida, to assume all of the deposits. There are 138 full time employees.
As of March 31, 2010, Peninsula Bank had approximately $644.3 million in total assets and $580.1 million in total deposits.
The FDIC and Premier American Bank entered into a loss-share transaction on $437.6 million of Peninsula Bank's assets.
Equity had dropped from $45.8 million March 31, 2009 to $12.6 million while non-current loans went from $63.3 million to $162.7 million. The bank had lost $223,000 the year period before and $8.2 million the first quarter of this year. Tier 1 risk-based capital ratio -1.83%
The bank had losses in real estate development such as a $3.3 million mortgage loan to a developer for a project west of Boyton Beach in 2006 that by 2008 had not had land development approval, and like many banks in Florida found itself holding mortgages on land that could not be sold for what was owed.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $194.8 million.
The four branches of First National Bank, Savannah, Georgia were closed Friday with the Savannah Bank, National Association, Savannah, Georgia, to assume all of the deposits. There were 32 full-time employees. This is the ninth bank to fail in Georgia this year.
As of March 31, 2010, First National Bank had approximately $252.5 million in total assets and $231.9 million in total deposits. The Savannah Bank, N.A. will pay the FDIC a premium of 0.11 percent to assume all of the deposits of First National Bank. In addition to assuming all of the deposits of the failed bank, The Savannah Bank, N.A. agreed to purchase some of the assets. The FDIC as receiver will retain most of the assets from First National Bank for later disposition.
Bank equity March 31,2009 was $24.9 million and March 31, 2010: $4.87 million with non-current loans going from $23.2 million to $51 million. The bank lost $1.42 million with charge offs of $947,000 ($559,000 in construction and land development, $685,000 in 1-4 multi-family residential property, $55,000 commercial and industrial loans. Tier 1 risk-based capital ratio 2.58%
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $68.9 million.
The two High Desert State Bank branches, Albuquerque, New Mexico, with 15 full time employees, were closed Friday with First American Bank, Artesia, New Mexico, to assume all the deposits.
As of March 31, 2010, High Desert State Bank had approximately $80.3 million in total assets and $81.0 million in total deposits. The FDIC and First American Bank entered into a loss-share transaction on $67.6 million of High Desert State Bank's assets. Net equity had gone from $8.4 million March 31, 2009 to $1.89 million March 31, 2010 with noncurrent loans at $17.4 million. The previous period the bank lost $1.9 million and March 31, 2010 $1 million. Tier 1 risk-based capital ratio 2.83%.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million.
List of Bank Failures
US Bancorp Manifest Kovash moves to Vendor Side
“I am a 5 year old male Dachshund. I am known as a "Tweeny" because I'm a little large for a mini but a little small for a standard. My owner became ill and needed at home nursing care. I thought that I was supposed to protect my master, so I nipped at the nurses. I really need a home where I will get regular exercise as I am a little over-weight right now. No cats and no kids under 7 please. My adoption fee is $200. I will be at the Nyberg Woods PetSmart in Tualatin (just east of the I-5 freeway) Saturdays 11:00 to 5:00 until I am adopted.”
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
CIT Group pays $1.25 billion of debt
Low Rates Lure Back CP Issuers
BP has lost more than $100B in value since oil spill started
Tom Cruise movie third following Toy Story 3, Grown Ups
Photo: Steve Jobs Holding Iphone 4 Properly
UC business Prof Tyson gives grim jobs outlook
Lions' president arrested for DUI
Cruvee Launches Unprecedented Facebook Application for Wineries
New York Dropping Off in Wine Sales
Wine Is a Tough Sell to China
The New York Jets Make W! I! N! E!
US/International Wine Events
Leasing News Wine & Spirits Page
Today in History
1909 -- Eric Ambler born (1909-1998). English author, widely regarded, with Somerset Maugham & Graham Greene, as a pioneer of espionage & crime fiction. Used the pseudonym Eliot Reed on four novels written with Charles Rodda. 1964 Edgar-winner, later named a Grand Master by the Mystery Writers of America. Wrote a series of great spy novels. One of my favorites, so he gets listed here.
This Day in American History
1451 - An eclipse occurred that allegedly prevented the outbreak of war between the Mohawk and the Seneca Indians.
Here are three “choice” short poems from Tim Peeler, from his book “Touching All the Bases.” He has given us permission to reproduce them.
Budweiser! he calls
An Asterisk as Big as a Ball
the ball talked to
frank says the full moon
These come from a soft cover 128 pages
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
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