Is Broker Fee Splitting in California Legal?
By Ken Greene, Leasing News Emeritus

The short and emphatic answer is “NO”. I am quite certain that many brokers share fees with other brokers, vendors, and other third parties. Sometimes, these payments, particularly when made to vendors, are called SPIFs (Sales Performance Incentive Funds), and occasionally, they are disguised so that they don’t appear to be commissions. But a rose by any other name is still a rose, and a commission by any other name is still a commission.

The legal basis for this prohibition can be found in the California Code of Regulations (CCR) Title 10 Section 1451, which states:

(b) No broker or other person shall divide with or rebate to any finance company any portion of the sum collected by way of brokerage and no finance company shall receive or accept any such division or rebate.

The Code of Regulations is also known as administrative law. Properly adopted regulations filed with the Secretary of State have the force of law. This means the Department of Financial Protection and Innovation Commissioner has the power and authority to penalize those violating the fee-splitting prohibition.

Penalties for violating the California Financing Law include revocation and suspension of one's license, or enforceable cease-and-desist orders for those who do not. Potential financial penalties of up to $10,000 for willful violations of the law and possible imprisonment are also available remedies to the Commissioner.

The bottom line is don’t split commissions, no matter how lucrative or well-hidden your commission scheme is. Find another way to make money if you want to sleep at night.

Ken Greene
Law Office of Kenneth Charles Greene
5743 Corsa Avenue, Suite 208
Westlake Village, California 91362
Tel: 818.575.9095
Fax: 805.435.7464
ken@kengreenelaw.com
www.kengreenelaw.com

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New Hires/Promotions in the Leasing Business
and Related Industries

Robin Pol was hired as Managing Director, Trifleet Leasing, a wholly-owns subsidiary of Chicago-base GATX. He is based in The Randstad, Netherlands. He started with Trifleet April, 1995, promoted Director Sales, September, 2005, promoted Director Sales, Global Accounts (July, 2018), promoted Director Commercial Global Accounts & Strategy (April, 2022 - March, 2024).
https://www.linkedin.com/in/robin-pol-7333269/details/experience/

Steven Post was hired as Vice President, Capital Markets/Middle Market, Horizon Bank, Michigan City, Indiana.  He is located in Massapequa, New York. Previously, he was Senior Vice President, Capital Markets, Indirect Finance, First Midwest Equipment Finance Co., a subsidiary of First Midwest Bank (February, 2020 - January, 2024). Full Bio:
https://www.linkedin.com/in/stevenhpost/details/experience/
https://www.linkedin.com/in/stevenhpost/

Rene Resendez was hired as Engagement Manager, Accenture, San Antonio, Texas. Previously, he was Channel Sales Account Manager, Virtual Benefit Solutions, Inc., Hearing Clinic (August, 2022 - March, 2024); Senior Sales Consultant, Cirrus Telecom (October, 2019 - January, 2022); Account Executive, Balboa Capital (May, 2019 - October, 2018). Full Bio:
https://www.linkedin.com/in/renresendez/details/experience/
https://www.linkedin.com/in/renresendez/

Lauren (Zabaronick) Timlin, CLFP, was hired as Vice President, Operations Equipment & Working Capital, FinWise Bank, Las Vegas, Nevada. Previously, she was Business Development Manager, Umpqua Bank, Vendor Finance (March, 2022 - March, 2024); Vendor Experience Representative, Umpqua Bank, {April, 2017 - March, 2022). Full Bio:
https://www.linkedin.com/in/lauren-timlin-clfp-4829725/details/experience/
https://www.linkedin.com/in/lauren-timlin-clfp-4829725/ 

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Leasing and Finance Industry Help Wanted

Commercial Finance/Leasing Finance Conferences
2024 Updated - Plus Names of LN Writers Attending

March 25–28: NEFA Finance Summit, Huntington Beach, CA
Agenda, Registration
321+ Attendees
Exhibitors
Theresa Kabot, CLFP, Kabot Commercial Leasing LLC, will be for Leasing News

April 16-18: AACFB Conference, Glendale, Arizona
https://annualconference.aacfb.org/home
Find Your Funder Here - Exhibitors List
Vicki Shimus, CLFP, Balboa Capital, will be covering for Leasing News

April 16-18: ELFA 35th Annual National Funding Conference, Chicago, IL
Funding Sources (list updated)- Schedule -Hotel-Registration
Edward Kaye, Inspiration Mobility, will be covering for Leasing News

April 30-May 1: AGLF Conference, Austin, Texas

May 5–7: Equipment Finance Connect, Nashville, Tenn.
https://equipmentfinanceconnect.com

May 20: deBanked Broker Fair, New York City
https://brokerfair.org/register
Pooja Nene, Balboa Capital, Broker Relations Manager, will be covering for Leasing News.

June 4-7: National Automotive Finance Association Annual Conference, Fort Worth, TX
Conference Info: https://www.nafassociation.com/naf2024#Hotel

Sept. 4-5:  AACFB Commercial Financing Expo New Orleans, LA

Sept. 10-12, CFLA Conference, St. John's, NL, Canada

Oct. 16-18: NVLA Conference, Clearwater Beach, Florida
https://www.nvla.org/page/2024conference
Sloan Schickler, Esq., Schickler & Schickler, wlll be covering the conference for Leasing News. She is also presenting there.

Oct. 27-29: 63rd ELFA Annual Convention, Austin, TX

Nov. 11-14: NEFA Funding Symposium, Indianapolis, Indiana

To be listed, email: kitmenkin@leasingnews.org

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When It's Time to Move On
by Ken Lubin, ZRG Partners

Know when to cut the cord. It happens in business, sports, you current job, and anything else that involves leadership. Once you start going down the road of hope versus certainty, you must be willing to get out.

I see it with deals that I negotiate and with interpersonal relationships. that people are in. Once they start hoping that that person will come back to them or that deal may close if we do this, it’s too late. You must be proactive versus worrying about it after the fact; it should have been done six months ago.

The most important decisions a leader can make is understanding when to get out. You don't want to be the person who always "buys high, sells low. “You want to be the person who "buys low, sells high." You don't want to be on the downward trajectory. Your career is more important than the job you have now.

Ken Lubin
Managing Director
ZRG Partners, LLC
Americas I EMEA I Asia Pacific
C: 508-733-4789
https://www.linkedin.com/in/klubin

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China BYD is selling EVs everywhere with India the largest buyer to date (India has passed China in population). Tesla has plans for an EV plant in Mexico and India to catch up.

Currently, the top 10 EV companies make up 65% of the overall market.

Given that BYD already outsold Tesla in the fourth quarter of 2023 (526,000 compared to 485,000), the Chinese company is expected to surpass Elon Musk’s automaker before the end of the year.

Currently, Tesla holds a 19.9% share of the market, closely followed by BYD with 17.1%.

In 2022, the Chinese automaker overtook Tesla as the top producer of EVs, when non-BEVs are included in sales totals. It produced 1.8 million vehicles compared to Tesla’s 1.3 million.

BYD has relied on stable domestic sales performance but is also expanding its international presence. The company began selling in Europe a little over a year ago and plans to build factories in European countries to avoid EU tariffs on Chinese car imports.

Another Chinese automaker, GAC Aion, secured the third spot on our list, with SAIC-GM-Wuling and Volkswagen falling to fourth and fifth, respectively.

Luxury brands BMW and Mercedes-Benz accelerated their electrification efforts, ranking sixth and eighth, while Hyundai Group’s Hyundai and KIA maintained their positions compared to the previous year.

In total, global sales of EVs, including BEVs, PHEVs (Plug-in Hybrid Electric Vehicles), and FCVs (Fuel Cell Vehicles), reached 13 million units in 2023, with a growth rate of 29.8% compared to 2022.

The number, however, represents a significant slowdown from the 54.2% growth rate in 2022.

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Watch at Home
by Fernando Croce, Leasing News Movie Reviewer

A former football linebacker turned action specialist, Carl Weathers (1948-2024) exuded brawny presence and sly humor. So check out our list for some of his best roles, from the flashy opponent in a blockbuster franchise to hilarious roles in beloved comedies.

Rocky (1976): You’d be hard-pressed to find a more elementally thrilling saga of hard-knocks gumption and achievement than director John Avildsen’s Oscar-winning drama, which made Sylvester Stallone a star and proved to be Weathers’ breakout. Stallone stars as Rocky Balboa, a young small-time Philadelphia boxer struggling to make ends meet while fighting for a stab at the big time. When not shyly courting his beloved Adrian (Talia Shire) or dealing with his grumpy old trainer Mickey (Burgess Meredith), he strives for a life-changing bout with heavyweight champion Apollo Creed (Weathers). Though at first little more than the hero’s opponent, Creed grew into a far more interesting character in the subsequent sequels, thanks in no small part to Weathers’ strong presence and scene-stealing personality.

Predator (1987): Weathers is an integral part of this all-star Eighties testosterone-fest, directed by John McTiernan the year before his breakout with the original “Die Hard.” Set in the Latin American jungle, the plot follows a dangerous mission by an American military rescue team led by Major Alan “Dutch” Schaefer (Arnold Schwarzenegger). By his side is CIA officer (and Vietnam War comrade) Al Dillon (Weathers), as well as a badass motley crew that includes Bill Duke and Jesse Ventura. Local guerrillas turn out to be the least of their worries when they find themselves taken down one by one by a strange, unseen being—an interplanetary warrior that will put their survival skills to the test. The result is amaster class in pure, muscular filmmaking that towers above its assortedsequels and remakes.

Action Jackson (1988): Weathers enjoysa rare lead in this entertainingly over-the-topthrillerfrom stuntman-turned-director Craig R. Baxley. Jericho “Action” Jackson (Weathers) is a Detroit police detective so tough that his very name is enough to make outlaws tremble. His archnemesis is Peter Dellaplane (Crag T. Nelson), a businessman whose veneer of respectability hides a ruthless criminal operation. With the help of the mogul’s wife, Patrice (Sharon Stone), and mistress, Sydney (Vanity), Jackson starts to investigate a series of murders that point to Dellaplane’s rise in political power. When a frame-up sends his own department on his trail, Jackson must work to bring down the culprit and clear his name. Weathers’ slambang breeziness and Baxley’s literally explosive handling make this a solid package.

Happy Gilmore (1996): Shifting from action to comedy, Weathers scored an affable supporting role in this Adam Sandler favorite. Sandler plays the eponymous character, a hothead who dreams of playing professional hockey but, when his beloved grandmother (Frances Bay) is in danger of losing her home, ends up using his mighty swing for a golf tournament. When his short temper and foul mouth become a hit with the audience, his rival, the arrogant Shooter McGavin (Christopher McDonald), arranges for Happy to be suspended. Help comes from “Chubbs” Peterson (Weathers), a seasoned pro golfer whose career was cut short after a fateful brush with a hungry alligator. Directed by Sandler regular Dennis Dugan, this underdog crowd-pleaser is one of the comedian’s funniest (and surprisingly touching) early efforts.

Arrested Development: Weathers always had a sly sense of humor, which he amply displayed in his recurring role in this beloved comedy series about the trials and tribulations of the notorious Bluth family. Playing a hilariously penny-pinching version of himself, Weathers interacts mainly with Tobias Funke (David Cross), a former psychoanalyst who’s chasing a hopeless dream of becoming a performer. He bumps into Weathers and asks him for advice on achieving his goals, though the actor plays along only to get free food and drinks. Whether hitting on neurotic divorcee Lucille Austero (Liza Minnelli), directing his own episode of “Scandalmakers,” advertising junk food or hoping to turn a discarded bone into hearty stew, Weathers was always a delight to watch in an exceptional bit of self-caricature.

Fernando Croce is a nationally recognized film reviewer and has been contributing to Leasing News since 2008. His reviews appear each Friday.

Labrador Retriever
Concord, California  Adopt-a-Dog

Bruno

Male
2 Years Old
Neutered
75 lbs.

What Bruno's NICST Trainer Says, “Bruno is a goofy, playful, loving boy who loves to play fetch, chew on bones, swim, and nap in the sun. Bruno is food motivated, quick to learn new skills, and engages well with his handlers. He is easily managed by handlers that focus their attention on him. We received Bruno from Golden Gate Lab Rescue -- he was originally an owner -surrender to their rescue organization -- then we evaluated him while he was in his initial foster home. “
What Bruno's Rescue Rep Says, “ Bruno is currently still in the care of NICST. Bruno would do best in a quieter (non-city) environment. A home with another dog that can mentor Bruno would be ideal. No idea how Bruno is with cats. Bruno has had little, if any, exposure to young children. An ongoing rigorous exercise and training program would be great for Bruno.”

Medical: Bruno is in great health. Neutered, microchipped, current on vax, and heartworm negative.

Located In: Concord.
If you are willing to foster (or adopt) Bruno, please contact Rescue Rep Dave at david.c.ely@sbcglobal.net

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AACFB Announces Scholarship Recipients
of High School Seniors and Students

News Briefs

Electric vehicle maker facing bankruptcy
    negotiates for lifeline
https://www.thestreet.com/electric-vehicles/electric-vehicle-maker-facing-bankruptcy-risk-negotiates-for-lifeline

Unilever to cut 7,500 jobs and spin off its
    ice cream business, which includes Ben & Jerry's
https://www.pressdemocrat.com/article/business/unilever-to-cut-7500-jobs-and-spin-off-its-ice-cream-business-which-inclu/

Here’s how much Coca-Cola’s top execs took home
    last year, 1,799 times the median pay of a worker
https://www.ajc.com/news/atlanta-news/coca-cola-top-exec-took-home-25-million-last-year/QHIZPAB6WND6DMKFGDL43D2ZDE/

Sports Illustrated’s print magazine to stay alive
    through deal with new publisher
https://www.mercurynews.com/2024/03/19/sports-illustrateds-print-magazine-to-stay-alive-through-deal-with-new-publisher/

8 incidents in 2 weeks: What's going
    with United's planes?
https://www.pressdemocrat.com/article/business/8-incidents-in-2-weeks-whats-going-on-with-uniteds-planes/

Japan Raises Interest Rates for First Time
    in 17 Years
https://www.bostonglobe.com/business/?p1=BGMenu_Sections

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Is It Time to Retire the Term
“Women Winemakers?”
https://robbreport-com.cdn.ampproject.org/c/s/robbreport.com/food-drink/wine/women-winemakers-1235546966/a

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Sports Briefs---

NFL considers rule changes that
    include challenges for penalties
https://www.pressdemocrat.com/article/sports/nfl-considers-rule-changes-that-include-challenges-for-penalties/

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California News Briefs---

Bad Bunny shoots pool, drinks Coronas at
     San Francisco dive after selling out Chase Center
https://www.sfgate.com/culture-events/article/sf-bad-bunny-pool-dive-bar-19263654.php

Phantom landmark under the Bay Bridge
    a train station marked by tragedy
https://www.sfgate.com/local/article/phantom-sf-bay-bridge-train-terminal-19257500.php

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Gimme that Wine

 

http://www.youtube.com/watch?v=EJnQoi8DSE8    

Wine of the week: Lucy, 2023 Santa Lucia Highlands,
    Monterey County Rosé of Pinot Noir
https://www.pressdemocrat.com/article/lifestyle/wine-of-the-week-lucy-2023-santa-lucia-highlands-monterey-county-rose-of/

10 women making their mark on the Sonoma,
Napa county wine industry
https://www.pressdemocrat.com/article/lifestyle/10-women-making-their-mark-on-the-sonoma-napa-county-wine-industry/

Founding Patz & Hall winemaker repurchases
Sonoma Valley vintner
https://www.pressdemocrat.com/article/industrynews/founding-patz-hall-winemaker-repurchases-sonoma-valley-vintner/

‘It’s like Napa 30 years ago’: Big-name winemakers
are decamping to this lesser-known region
https://www.sfchronicle.com/food/wine/article/napa-winemakers-paso-robles-18696043.php

Boathouse Vineyards' 2022 Cabernet Franc
Outshines 17 International Entries
https://www.winebusiness.com/news/article/284915

The World's Most Wanted Malbecs
    Prices
https://www.sfchronicle.com/food/wine/article/napa-winemakers-paso-robles-18696043.phper Bottle