Monday, March 7, 2011
Today's Equipment Leasing Headlines
Leasing Gypsies Strike Again in Southern California
######## surrounding the article denotes it is a “press release” and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
Leasing Gypsies Strike Again in Southern California
Leasing News has been writing about the leasing gypsies in Southern California.
The group is estimated at twelve with perhaps five separate companies, but they also change names, keeping the same web site but with a URL and name changes. One of the latest with more than a dozen complaints of the applicant sending in $350 to process a lease application, and then never hearing from them again, often telephone number no longer in service. They came from all over the United States. I tell them they are lucky it wasn't more.
Leasing News was told by ex-salesmen, who worked with the gypsies, they would get $50, one company $100, for each application that comes in with a $595 document fee in the proposal. They do return the other money, after a period of time, but keep the $595, even if they do nothing but run a consumer report. Often they don't even do that, Leasing News was told by ex-salesmen, who are concerned should they put the company on their resume. They left when they realized some of the deposits were not being returned and questioned the procedure. They did not leave as they were "commission only" and had put transactions together, waiting to get paid.
Due to liabilities involved, names will be left out of this complaint except for the company making the complaint, who is afraid their name will be tarnished. Leasing News recognizes them as part of the group named by others. While emails, copies of checks, agreements, and other material were sent, they are not included as many have names on them. The documents do substantiate the Bulletin Board Complaint.
From Taycor Financial, Los Angeles:
"These two guys opened a bank account in Taycor's name without Taycor's consent. Taycor had, at one time, agreed to look at deals ****** and ****** would bring to them. But Taycor realized early on that something wasn't right. Taycor cut ties with them. But ****** and ****** continued to use Taycor's name when calling on prospective Lessees. The Lessees would be told that their deal had been approved and an initial check was needed to commence the deal. Lessees wrote checks to Taycor Financial, believing that was who they were dealing with. ****** and ****** deposited those checks into their 'fake' Taycor account.
"When they then abandoned the Lessee, wouldn't return calls, etc. Taycor would, eventually find out what had happened because Lessees would call Taycor's office looking for refunds. Taycor explained the situation to the Lessees, tried to, and succeeded in getting some of their money back from ****** and ****** and then refunded the Lessees. On other occasions Taycor was not able to get them to return the money and those Lessees were left out in the cold, some hiring attorneys who can't seem to do anything about it.
"We have copies of cashed checks that were written to Taycor Financial including Taycor's actual business address. These checks amount to well over $10k. We also have copies of others but they had the address of ****** and ****** who adopted Taycor as a d.b.a., unfortunately this is legal in CA, same with opening a bank account using that name. We realize that we have a grand larceny case against them but intend to try to recoup some or all of that money by threatening to take the evidence we have to the DA."
“####### – This deal was closed and funded under our name after we ceased working with them. They collected a 8k check with a 5k doc fee. Are you kidding me? I found out later after calling the customer that they funded the deal through ******* themselves but collected the money in our name and deposited into their account.
“####### – The email correspondence is from the lessee to the manager at ******’s bank. This guy caused so much havoc at the bank that they sent him his money back.”
“######- This poor customer was so desperate to get some money back (small business and they were hurting) so they signed the Lease Cancellation letter and only got $453.29 of their initial $1,600 check.”
Southern California Leasing Gypsies
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Marlin Officers Acquire Stock Before 4th Quarter Announcement
Marlin Business Services (NASDAQ:MRLIN) stock had one of the highest gains reported by NASDAQ on Thursday, March 3" "Marlin Business Services Corp. rose 13.4 percent to $12.49."
It may have come from the officers acquiring stock.
The company announced the Fourth Quarter and Year-end Conference Call for Wednesday, March 9. In the last quarters, the main profit from the company can be attributed to Evergreen Clauses (1)
The U.S. Securities and Exchange Commission recorded the following, which certainly would have influenced the rise in the chart above:
March 1, Daniel P. Dyer, Chief Executive Officer, President & Treasurer, acquired 66,502 shares. He has more options available, and presently owns 434,642 shares.
March 1, Executive Vice-President, COO, General Counsel and Secretary, George D. Pelose acquired 41,562 shares of stock. He has more options available, and presently owned 265,024 shares.
March 1, Lynne C. Wilson, Senior Vice President & Chief Financial Officer, acquired 16,174 shares. He has more options available, and presently owns 93,052
That’s 124,238 shares. Other directors and officers may also have acquired shares in this time period.
Christopher Jones to lead new US Bancorp Gov't Leasing Group
US Bancorp Equipment Finance announces a new government leasing and finance group to be lead by Christopher Jones, who formerly was vice-president of Key Government Finance for over three years and director of Operations and Syndications for two and a half years. He joined U.S. Bank Equipment Finance November, 2010. He is on the board of directors of the Association of Government Leasing & Finance as well as the Frank Edmonson Foundation.
Paul Frisch, executive VP, U.S. Bancorp Equipment Finance, said, "This expansion into the tax exempt arena provides us with another opportunity to provide value and build deeper relationships with clients."
Jones will be working out of the Denver, Colorado area.
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Second Column: YCS - Year Company Started | YELB - Years in equipment Leasing Business
Obtaining Vendor Business
One of the main sources of business for leasing business is from a vendor or manufacture of equipment. The recent trend has been more to emphasize seeking such business rather than calling on direct prospects by in person, internet, mail, telephone, or even soliciting business supplied by independent leasing brokers.
By utilizing a vendor, it accomplishes two major things, acceptance of your involvement, and perhaps as important, contacting the customer at the time they are obtaining equipment instead of calling on the end users and hoping they are in the market for lease financing. However, a long term relationship with a vendor or manufacturer requires a lot of hard work. Vendors with multiple offices and long time being established are the most difficult to obtain. Even the smaller vendors, new to the field, want a lot, even ask for referral fees and expect the leasing expert to jump through a lot of hoops and take a lot of risks, plus get every deal approved. New salesmen and desperate salesmen sometime go overboard and except week credits to worm our way into a new vendor. This rarely works and becomes a “lose-lose” proposition. The oldest first words are often, “If you can do this deal, I’ll give you all my business.”
The best way to win a vendor is to bring them some leads, and if you have business from a current customer, be sure to delivered the check when the deal is funded. It will make you certainly welcome to speak to the sales manager or owner of the dealership.
If you have done some business with a vendor and want to establish a more permanent relationship, you might want to make it formal. It will then become more difficult for a new person delivering a check to steal from you.
It is important to have a letter of understanding with a set of procedures so that both sides understand the arrangement. Many the times what a vendor expects, and what a lessor delivers, are very different. This may save a relationship. You don’t need an attorney, just make it informal. On a sheet of paper, outline the following:
Most lessors’ have some limitations from rates, territory, or credit requirements so it is wise to be up front about them so the vendor knows when to look elsewhere for funding. Problems arise and cool a vendor relationship when a lessor promises that he can do more that is possible and fails to perform. Most vendors understand that weak credits require a modification of the lease arrangements, but they get very angry when turndowns take a long time. It’s always best to be upfront.
In today’s world a fast turndown is almost as good as an approval. Slow turndowns are like starting a fire and watching it grow out of control. Many lessors know that a weak credit is going to require enhancements or vendor support so it may make sense to address the shortcomings before too much time, energy and money is spent looking for a miracle, especially in today’s marketplace.
It is so hard to find vendors in this market that we tend to go to extremes to try and make the vendor use our services. However, there is a reality and there are bad vendors just like there are bad customers so you need to check out the vendors you want to do business with and keep a sharp eye out for fraud. Make sure the vendor is in good graces with the manufacturer and his local bank. Make sure that the equipment is supported by the vendor and the manufacturer. Does it have a good reputation in the marketplace and check the guidebooks to see how much a two or three year old piece of their equipment is selling for to see how much its value falls off. The faster a piece of equipment is devalued has a lot to do with its quality. Leasing poor quality equipment is like trying to walk across quicksand. It will get you in the end.
A final warning! Look for support on equipment new to the marketplace and review the strength of a new manufacturer and avoid new manufactured equipment from foreign sources. Also make sure that the ownership comes from the vendor new in business or make your checks jointly payable to both the vendor and the manufacturer.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at firstname.lastname@example.org or 502-649-0448
He invites your questions and queries.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
Bank Beat---Main Street Bank, Kingwood, Texas
September 1, 2010 the FDIC issued a Consent Order to Main Street Bank, Kingwood, Texas "...with the STIPULATION, the bank consented, without admitting or denying any charges of unsafe or unsound banking practices or violation of law or regulation, relating to management effectiveness, loan and lease review rating."
Perhaps the strongest consent is the replacement of Thomas Depping as CEO, as the bank is given 90 days to find:
a. Implement the provisions of this order
The Consent Order required a "strategic plan to the Regional Director and Commission for review and comment" as well as other conditions in 60 days, 30 days of each calendar quarter the results, and review by the Regional Director and the Commissioner 30 days after the end of each calendar year. The first order replacing the CEO, meaning Depping, was to take place 90 days after September 1, 2010.
Leasing News has attempted to learn the status regarding the following of the FDIC Consent Order but has found not such report on line and inquiries have not been able to find current information either. The bank did not return calls for information.
The Main Street Bank web site shows Depping as Chairman of the bank, but what is new is he is listed as Chairman and Chief Executive Officer of MS Financial (the bank holding company.) No longer is he listed as CEO of the bank nor identified as such under his photo from the web site.
The latest news on web site is dated December 8, 2008, announcing "...that its new Professional Practice Finance Division will build on the current healthcare customer platform to provide financing for Physicians, Dentists, Veterinarians, Optometrists, CPAs and other practice professionals." Ironically, it is reported these are the unsecured loans that brought the consent order from the FDIC.
In 1999, Thomas Depping, then CEO of First Sierra, told the Houston Business Journal:
By owning a bank, First Sierra will be able to "access our 50,000 to 60,000 customers and supply them with a broad range of banking products through the Internet," says Depping.
"Our goal is to be the top Internet business bank in the country. This will be the only operation of the holding company," he says.
Reportedly the application was denied. In 2004 he entered the banking field with Main Street National Bank, later changing its name to Main Street Bank, which today has four offices, two in Kingwood and one each in Cleveland and Humble, Texas.
"Kingwood, also know as the "Livable Forest," was created by the Friendswood Development Company in 1971 and has grown rapidly since. The new community was named "Kingwood" after King Ranch, one of the original developers before being bought by the Friendswood Development Company. Now (2005) Kingwood has a population of about 65,000, and has almost 200,000 people living within a ten mile radius."
The latest financial information available on Main Street Bank comes from the December 31,2010 FDIC report which reveals the bank is down 40 employees, apparently the original group that saw the leasing and commercial loan department, including Executive Vice-President Bob Fisher, CLP, let go, now Small Business Banker, Bank of America
Bank FDIC report December 31, 2010 compared to December 31, 2009 shows total assets going from $448 million to $349.7 million, and net loans and leases decreasing from $381.8 million to $269.7 million with total insured deposits going from $388.3 million to $291.5 million.
While these numbers show a decrease, the bottom line is the total equity capital increased from $41.99 million to $46.83 million, indicating changes at the bank were positive, including less charge offs.
Net charge offs went from $7 million year-end 2009 to $3.4 million 2010, primarily with commercial and industrial loons $2.2 million and lease financing receivables 1.15 million compared to $4.2 million in commercial and industrial loans the year before and $2.7 million year-end 2009.
The 2010 charge offs would have been higher, actually $5.7 million, according to the FDIC, but Main Street recovered almost $1.1 million in commercial and industrial loans, and $1.2 million in lease financing receivables. There also were not real estate losses.
In additional positive news, from a loss of $1.85 million the year before, Main Street had a profit of $4.8 million and improved its Tier 1 risk-based capital to a very strong 16.15% and Total risk-based capital to 17.43%
(1)FDIC Consent Order:
SparkPeople—Diet and healthy living community
SparkPeople.com is the largest online diet and healthy living community with over 9 million registered members. You can create a free account to access information, set up goals, make a plan, or just find answers for questions you may have.
* Personalized diet & fitness plans
"SparkPeople can be free because my wife and I were very early eBay employees and are now using our earnings from its success to make the world a healthier place," says founder Christ "SparkGuy" Downie. "This is our way to give back and help the world. Thousands of new people join every day and don’t pay a single penny. In fact, the majority of our new members join SparkPeople after hearing about us from their friends."
Top Stories September 28--March 4
Here are the top ten stories opened by readers:
(1) Its Come Back to Bite Balboa on the...
(2) From Zero to over $450 Million in One Year
(3) Five Things You Never Knew Your Cell Phone Could Do
(4) March 4, 2002---Archives (Bob Fisher, CLP)
(5) Leasing 102 by Mr. Terry Winders, CLP
(6) Saluting Leasing News Advisor Steve Crane, CLP
(7) New Hires---Promotions
(8) License Up-Date for Leasing in United States
(9) GreatAmerica Gets 2.6 Times Tenth Term Securitization
(Tie)(10) Bank Beat---Local Bank Investors Lose Out Again
(Tie)(10) Lobbyists Getting their way on proposed FASB Lease Changes
Kingwood, Texas -- Adopt-a-Dog
“Friendly, affectionate PENNY loves belly rubs and is well known for her drive by kisses. Medium sized, fit and trim, loves walks and is an excellent jogging partner. She has a beautiful coat that is easy to maintain. She knows basic commands 'sit' and 'stay' and is good with children. Sociable with other dogs, she would love a playmate but has had no interaction with cats. Completely housebroken and has an impressive bark if needed."
Contact: Jesse Thompson at email@example.com Penny's Picassa Web Album Contact firstname.lastname@example.org *****If you would like more information about the dog featured above, be sure to send a note to the "Contact Person." This is the person fostering the dog and they will be happy to answer any questions you have. Also, in sending your note to the Contact Person Jesse Thompson at email@example.com
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Adopt a Pet
How to conquer being called 'overqualified' in a job search
Rice lends support to Stanford recruiting
Silicon Valley's breakneck speed allows companies to launch, grow and die in a matter of decades
SF Gavin Newsom is far wealthier than Oakland’s Jerry Brown
Concern over Newsom's shared office at Founders Den
(Leasing News provides this ad as a trade for investigations
Buena Vista Carneros Winery location to Close
Bryant Family Winery Hires New Head
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
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This Day in American History
1539-Former black slave Estevanico (Esteban) de Dorantes, native of Azamoor Morocco, sets out to explore what is now the southwestern part of the US.
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