Surprise! Surprise! Surprise!
NYAG Will Run for Gov/Goes After 19 More Leasing Companies

After issuing a press release that a settlement was reached with GE Capital over 100 NorVergence equipment leases in New York State, New York Attorney General Eliot Spitzer has announced he is running for Governor. The New York Times reported:

“Elliot Spitzer, the New York state attorney general who has built a nationwide reputation as an aggressive pursuer of white collar crime, said today he is running for governor.

“Mr. Spitzer borrowed a page from another Democratic candidate, Howard Dean, who made an unsuccessful run for president, by announcing on his Website - as well as in phone calls to reporters and supporters - that he will be a gubernatorial candidate.

" ‘I'm running for governor," Mr. Spitzer said on www.spitzer2006.com, in a section called "Eliot's Blog." "I want to fix what's broken. It's what I do best'."

“In his statement posted today, he said that as governor, he would ‘bring people together whether they like it or not...We did it in the financial industry and other sectors and we can do it in government," he concluded.

After making the settlement with GE Capital, Spitzer now is joining the attorney general's of Florida, Illinois, Massachusetts and New Jersey with the intention to take legal steps to block 19 leasing companies in New York state from forcing small businesses to make payments on equipment leases that are no longer of use to them and were allegedly sold with “telephone service contracts” that no longer exist due to the bankruptcy of NorVergence.

The Justice Department is also reportedly opening a criminal probe into NorVergence, though people familiar with the case say charges may not be brought against NorVergence leader Peter Salzano or his brother Tom, who was a consultant (there is a controversy about who was really running the company. Both are allegedly back in the digital telephone business in New Jersey. Alex Wolf or Robert J. Fine may be named in the action. ) The company is in bankruptcy with the deadline to file a proof of claim is Feb. 28, 2005.

As Leasing News noted in previous editions, even New York Senator Hilliary Clinton has gotten into the act.

"I am extremely troubled by this situation," Clinton told the New York Daily News on October 7. "My office is currently looking into these serious complaints and has contacted the state Attorney General's office."

A spokesman for Eliot Spitzer confirmed the attorney general's office had received a call from Clinton's office and promised to share the results of the investigation with her.

Spitzer, 45, is so far the only declared candidate for the state's top job. Gov. George E. Pataki, a Republican who has been in office for nearly 10 years, has not said yet whether he will seek a fourth term in 2006.

According to "www.fightthescam.com," 41 leasing companies are involved:

1 ABB Equipment Leasing CT
2 Bank One IL
3 BB&T NC
4 CCL – Commerce Commercial Leasing PA
5 Celtic Bank UT
6 Cincinnati Financial Corp. OH
7 CIT Technology Financing NJ
8 CitiCapital
9 Court Square Leasing PA
10 Credential Leasing PA
11 Crown Bank Leasing FL
12 De Lage Landen PA
13 Dolphin Capital FL
14 First Corporation
15 First Lease
16 Firstcorp OR
17 GE Capital CT
18 IFC Credit Corp. IL
19 ILC – Information Leasing Corp. OH
20 Insight Financial Corp IL
21 Interchange Capital NJ
22 Irwin Business IN
23 Lakeland Bank NJ
24 Liberty Bank CT
25 Madison Capital IL
26 National Penn Bank PA
27 OFC Capital/ALFA Financial GA
28 Patriot Leasing PA
29 Penn Bank Leasing
30 PFG Commerical Finance
31 Popular Leasing MO
32 Preferred Capital, Inc. OH
33 Primary Financial Corp. PA
34 Source One Capital
35 Sterling National Bank NY
36 Studebaker – Worthington NY
37 TFC Express Leasing RI
38 Toshiba America Info Systems CA
39 US Express Leasing NJ
40 USbancorp MN
41 Wells Fargo Financial Leasing NY