Friday, August 10, 2007
Headlines--- Correction: Brad Peterson was not “President" ######## surrounding the article denotes it is a “press release”
------------------------------------------------------------------- Correction: Brad Peterson was not “President” of Pentech. http://www.leasingnews.org/#marlin -------------------------------------------------------------- Classified Ads---Legal San Diego, CA To place a free “job wanted” ad here, please go to: For a full listing of all “job wanted” ads, please go to: -------------------------------------------------------------- Dwight Galloway goes home from the hospital
For readers who are not on our mailing list, you may not have seen this story about NetBank Business Financial President Dwight Galloway’s emergency operation. About Dwight:
Over half our readers access Leasing News direct on the web site. -------------------------------------------------------------- Bank and Leasing Stocks take hit Dow Loses 3.5 Percent, Credit Market Tightens. Global markets tumble as U.S., European central banks pump more than $150 billion into financial system to keep it running smoothly. Japanese stocks dropped on Friday on concern subprime mortgage losses will spread. Some analysts called the “mini panic” of the Dow Jones a “needed cleansing of the marketplace” and seemed to take it in stride, although without much glee. Banks and leasing companies particularly took a hit. Alphabetically: Bank of America $1.35 (2.72%) CIT $2.41 (6.48%) Keycorp was down $2.21 (6.20%) Marlin was down $1.09 (5.99%) Microfinancial was down $ 0.21 (3.59%) Chesswood Income Fund dba Pawnee Leasing (one month) US Bancorp was down $1.12 (3.61%) Wells Fargo was down $0.83 (2.37%) Except for Pawnee Leasing, which is 30 days as it is on the Canadian Exchange, the rest are five day reports to demonstrate the last five days, not just yesterday. CIT Financial took the biggest hit in this group, 6.48%, followed by Key Corp with 6.2%, and Marlin Business Services at 5.99%. The news about CIT Financial home mortgage exit may have been a factor, but Key Corp is a surprise, particularly since their 6/30/07 filing with the SEC on August 8, 2007 was very good. $17.39; Marlin has not traded this low since their IPO in November 2003. In December of 2003 the price exceeded $18.00 for the first time. Marlin’s 6/30/07 filing on August 8, 2007 (easy to read format) Key Corp 6/30/07 filing on August 8, 2007 CIT SEC filing (90 pages:) -------------------------------------------------------------- The Fed to lower prime rate?
The U.S. Federal Reserve added $24 billion in reserves to keep its benchmark overnight interest rate at 5.25 percent. This was in effect lowering the prime rate to meet the current economic conditions. The next scheduled meeting of the Open Market Committee of the Federal Reserve is September 18th. 2007.
There is speculation that a special meeting may be held to lower the interest rate. Whether .25 is enough is speculation, as well as is the flowing of money more serious than inflation, and whether the Fed will wait until September 18th. Surely the rate will be lowered before the October 30-31 meeting. Remember the good old days when the only thing we had to fear, was fear itself?
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-------------------------------------------------------------- FTC presses for preliminary judgment against IFC
Illinois Eastern District Judge Joan B. Gotschall extended the final deadline for briefs on Morton Grove, Illinois, IFC Credit Corporation's motion to dismiss the Federal Trade Commission (FTC) NorVergence lease case, and the FTC's motion for a preliminary injunction, from August 1 to August 7. Each side filed its final brief by the deadline. Previous story: FTC’S RESPONSE TO IFC’S MOTION TO DISMISS IFC CREDIT CORPORATION’S REPLY BRIEF IN SUPPORT OF ITS MOTION TO DISMISS PLAINTIFF FEDERAL TRADE COMMISSION’S COMPLAINT FOR INJUNCTIVE AND EQUITABLE RELIEF ORAL ARGUMENT REQUESTED 20 pages FTC REPLY TO IFC OPPOSITION -------------------------------------------------------------- CIT off lease computer thief gets three years
Kaveh Niakan, 44, pleaded guilty to two counts of grand theft in return for prosecutors dropping more than 30 similar charges involving equipment from CIT Group in Florida. Niakan was director of asset management at the company's Jacksonville office. When computers were returned to CIT at the end of a lease, Niakan had them shipped to other businesses for resale without CIT's knowledge. Niakan agreed to pay $300,000 in restitution, Assistant State Attorney Stephen Siegel said. But the first payments will be $200 a month under Weatherby's order, which the judge said will be reviewed. He'll be on probation for seven years after the prison term. --------------------------------------------------------------
“Site Inspections: The Inspector General” by Barry S. Marks, Esq. Remember that one with Danny Kaye? Something about a private being mistaken for an important Prussian military officer. It could be argued that many leasing companies treat inspections with all the seriousness of slapstick comedy. This is a pity because inspections of leased equipment are not only a good defense against fraud; they protect the lessor against a variety of potential losses. At the outset, we must admit that inspections are not cheap. Whether a third-party service is used or the lessor takes the time to make an on-site inspection itself, time and/or money must be expended. In the internet age, this flies in the face of our real-time 24/7 immediate gratification business methodology. The fact that we do so much business online and over the telephone is one of the principal arguments in favor of site inspections. Consider also the place of the originator in the leasing business. Once upon a time the broker or other originator was the one person who actually met the vendor, actually knew the lessee, actually served as the liaison between the customer and the big, impersonal bank. The more we are able to do deals quickly without personal interaction, the more we make the argument that the broker has no place in the transaction and everything can be done online. This is more than mere theory and fond reminisces by an aging lease lawyer. It is no surprise that the spread of the internet and reliance on electronic interface with vendors and customers has coincided with the rise of fraud losses and creative scams. Many, although not all, fraudulent financings would have failed if someone had taken the time to inspect the equipment upon its delivery. The most common type of fraud remains one in which the equipment does not exist or materially differs from the description in the financing. Even if inspections are only made occasionally, in the way TASA does full searches at airports, the threat of random inspections should discourage all but the boldest crooks. Inspections serve purposes other than avoiding fraud. An inspection during the term will determine whether it has been properly installed and is being protected. Anyone who engages in true leases and relies on residual values probably has a war story about equipment that was egregiously misused and had no value at the end of the term. We had occasion to work with a major lessor a few years ago who leased three generator units designed to work together to provide power to a large facility. One unit was destroyed in a storm and the lessee, without bothering to consult the lessor simply continued to operate with two units, both of which were thoroughly burned out by the end of the lease term. Despite having a strong position legally, the best the lessor could do was reach a compromise with the lessee in order to avoid litigation. It would have been much better to catch the lessee before the equipment was ruined. Inspections can also protect against potential liability. This is something of a two-edged sword, however. We have seen very few cases in which lessors have been hit with large judgments due to damage caused by leased equipment outside of the vicarious liability cases involving motor vehicles. This is because, in most cases, the lessor must be shown to be negligent before liability will attach for damaged caused by the equipment. Where a lessor does not bother to inspect the equipment, it may leave itself open to an argument that it has shirked at least a theoretical obligation to be responsible for “its” property. Put yourself on the witness stand and answer the following question “Mr. Lessor, your lease permitted you to inspect the equipment and you make a substantial profit off its use. Did you not feel you had any responsibility to insure that the equipment was properly used and maintained in accordance with the terms of your lease?” (Make no mistake, we do not think much of this argument or the lawyers who would raise it, but it presents a tempting target). Of course, the other edge to the sword is that if the equipment is inspected the inspection must be careful and professional. Inspecting equipment and missing important issues in maintenance or use can be even worse than not inspecting at all. Another reason to inspect during the term is the simple and practical matter of knowing where your equipment is located should you need to recover it. Whatever the lease may say, many lessees forget about their obligation to notify the lessor before moving the equipment. This can result in a nasty surprise if the lessor must recover the equipment following a default as well as resulting in unforeseen property and other tax issues, licensing requirements and other nasty trouble. (Remember that under the revised Uniform Commercial Code, it is no longer necessary to know where the equipment is located in order to perfect or maintain perfection. On the other hand, movement of the equipment is often the result of a change of the lessee’s principal place of business or a merger, sale or other action that could affect the lessor’s security interest). One of the other downsides to inspection is that some lessees will go to great lengths to defraud even a careful lessor. The fabled LILA fraud involved switching identification plates on a roomful of heavy equipment so that each inspector found a plate stating that the equipment was leased from his leasing company. (A friend of ours once confided that his leasing company made the mistake of leasing the plate-making equipment to the LILA crooks!). In sum, careful inspections of the equipment at delivery and during the term are not only advisable, they may be a minimum requirement for good leasing practice. If the value of individual deals is too low to merit routine inspection across the board, at least spot inspections on a random basis would seem advisable and this fact should be disclosed to potential customers up front: You cannot enjoy the benefits of a threat unless the threat is made and appears real. Now, for special recognition and a drink at the next NAELB convention, who can complete the following sentence from another Danny Kaye classic? “The pellet in the poison is in the flagon with the dragon….”? BARRY S. MARKS Barry S. Marks concentrates his practice in the areas of equipment leasing, commercial lending and finance. He has significant experience negotiating, drafting and providing legal counsel with respect to a large variety of finance transactions. Barry is listed in The Best Lawyers in America®, is a Director Emeritas - National Association of Equipment Leasing Brokers, is a Past Member of Legal Committee of the Equipment Leasing and Finance Association, is currently on the Board of Editors for the Journal of Equipment Lease and Financing and Leader's Equipment Leasing Newsletter and was the first attorney to obtain the designation of a Certified Lease Professional. Barry is also co-editor of , a recipient of the Bill Granieri Award for Education in Equipment Leasing, National Association of Equipment Lessors (1999) and a frequent lecturer on business and commercial law issues. He has co-authored three books and chapters in two legal treatises. -------------------------------------------------------------- Vote: “Yes” or “No” for more Site Inspections
-------------------------------------------------------------- Evans Bancorp second Quarter Loss In the second quarter of 2007, Evans Bancorp recorded a net loss of $(139) thousand, compared with net income of $1.07 million. For the six months ended June 30, 2007, net income was $1.15 million. "We are taking measures to change the operating and sales environment at Evans in order to improve our efficiency and grow revenue. We are implementing accountability measures that should drive better execution of everything we do," The Bank has 11 branches located in Western New York. Evans National Leasing, Inc., an indirect wholly-owned subsidiary of Evans National Bank is a general business equipment leasing company with customers throughout the U.S. Full Press Release: --------------------------------------------------------------- Five Point Capital Offers Guaranteed Lower Lease Payments or $500 Cash
SAN DIEGO, -- San Diego-based equipment leasing firm Five Point Capital announced today a new lease payment guarantee program for small business owners. The Lowest Payment Guarantee program offers a $500 cash guarantee that Five Point Capital can provide the lowest payment on any qualifying equipment lease. The guarantee offer is valid for new or used equipment, and is available to both new and established qualifying customers. For complete details visit http://www.fivepointcapital.com/lowest.
"Our goal is to be small business owners' one source for all of their equipment leasing needs. When you combine our guaranteed lowest payment with the best customer service in the industry, our customers can rest easy knowing they're getting the best possible equipment lease payment. We are willing to back it with a $500 cash guarantee," states Co-CEO Dan Feder. Every Five Point Capital customer is assigned an account executive who has specific industry knowledge about the customer's business. As an award-winning, Inc. 500 company, Five Point Capital leases almost every type of new and used equipment for a wide diversity of businesses including, but not limited to: trucking, restaurants, automotive repair, construction, excavation, multimedia, manufacturing, telecommunications, printing, packaging, waste management, and more.
Tom Brainerd, Vice President of Marketing, adds, "Guarantees are nothing new to our industry. Companies are always claiming to have the 'best prices' or the 'best service.' What's different about our Lowest Payment Guarantee program is that we are willing to put our money where our mouth is." The Lowest Payment Guarantee is available to all qualifying customers and small businesses. Contact Five Point Capital for details at About Five Point Capital Emerging as one of the nation's leaders in small ticket leasing, Five Point Capital (FPC) was co-founded by Dave Gilbert and Dan Feder in 1999 on the principle that "leasing can help any company grow." Currently the San Diego-based firm employs over 180 and occupies 30,000 sq. ft. at 10525 Vista Sorrento Parkway in San Diego. Five Point Capital serves thousands of businesses nationwide, and has doubled revenues annually since its inception. Small businesses benefit with their high-performance customer service and personal attention. Five Point Capital ranked No. 82 on the 2006 Inc. 500 America's Fastest Growing Private Companies. The company is a member of the Equipment Leasing and Finance Association and the United Association of Equipment Leasing.
### Press Release ########################### Odessa Technologies, Inc. Celebrates 100th Hire
Bangalore, India and Philadelphia, PA---Odessa Technologies, Inc., the maker of LeaseWave™, is proud to welcome the one hundredth member to the Odessa team. While the company has grown strongly each year for the past decade, recent growth has been due to both increasing recognition in the leasing industry and sustained internal efforts to attract new talent. Throughout FY2006, Odessa has made company expansion a top priority and has aggressively pursued the best candidates in both the leasing and software industries. New employment in the software development and support departments is central to Odessa’s overall mission: providing a comprehensive and reliable lease management software product that serves the equipment, vehicle and fleet leasing industry. Odessa employs the brightest minds in software development and engineering to guarantee that its lease management software suite is the best on the market. Working from a strong, industry-standard software platform (Microsoft .NET 2.0), Odessa’s software design and engineering departments ensure that LeaseWave™, the company’s flagship product, is always at the cutting edge of both technology and functionality. Additionally, by distributing its staff between two offices – one in Bangalore, India and one in Philadelphia, PA – Odessa Technologies ensures client and technical support literally around the clock. Indeed, Odessa prides itself on staffing a committed support team which strives to provide timely solutions to clients’ concerns. Ruchira Chakravarty, Director of Human Resources for Odessa Technologies, prides the company on being able to expand while still meeting current employees’ needs, without leaving anyone behind. “We take employees with us and make them stakeholders in our growth. Not only do they feel involved and responsible for bringing the correct people on-board, but they also help smooth the transition of new hires into, what we call, the Odessa way. “Relating to the company’s culture is extremely important as it gives you a sense of belonging. That process begins on the day of joining; our goal is to provide every Odessa team member an environment that is conducive to both professional and personal growth.” About Odessa Technologies, Inc. ### Press Release ########################### Relational Technology Solutions Expands Vertical Focus on Relational's Healthcare Financing Solutions Offer Progressive Leasing Capabilities for Accelerating Technology Adoption at Hospitals and Healthcare Organizations ROLLING MEADOWS, Ill.----Relational Technology Solutions (RTS), one of the largest independent technology leasing and converged technology solutions providers in North America, today announced the expansion of its leasing services to include a focus on healthcare equipment financing. Relational's Healthcare Financing Solutions are designed to offer leasing and financing options for mid-sized healthcare providers seeking to deploy the latest advances in Imaging Diagnostic, Medical/Surgical, and Picture Archiving and Communications Systems (PACS) equipment for optimum patient care. "Relational brings strong financial backing, a rich 16-year heritage in leasing and financing solutions, and deep mid-market industry expertise to the healthcare industry," said Jeff Ehlers, chief executive officer at Relational Technology Solutions. "The company's unique financing and leasing options are designed to support medium-sized healthcare providers in identifying, acquiring and disposing of state-of-the-art medical equipment while concurrently aiding them in conserving capital and managing costs." According to the Equipment Leasing Association, in 2007 the healthcare equipment leasing market is projected to exceed $8 billion in volume. Through its Healthcare Financing Solutions, Relational is poised to partner with small and mid-sized healthcare organizations and design optimum leasing structures that satisfy organizational needs and comply with budgetary pressures specific to both private and non-profit healthcare organizations. Relational's healthcare footprint is bolstered by existing relationships with a variety of public and private hospitals, specialty practices and academic institutions. "Our organization was focused on launching a new, Texas-based healthcare facility earlier this year," said Michael L. Murphy, chief financial officer at Rockwall Hospitals Incorporated, a general partner of Patients Medical Center, LTD, a 61-bed hospital that opened in Houston on April 3. "Relational's ability to provide the financing in a timely manner helped us to acquire all the necessary medical equipment and open the hospital on time." Likewise, the company's commitment to the medical community is further demonstrated by the recent publication of a feature story in hfm, the official magazine of the Healthcare Financial Management Association. Entitled "Making the Right Long-Term Prescription for Medical Equipment Financing," this Relational byline offers perspective on how hospital financial executives can intensify their assessments of new technology by tapping into both direct and indirect information sources. The article is available online at: http://www.rts.com/docs/hfm.pdf. Built on the company's unique "total solution" approach to the financing, acquisition and disposition of technology assets, Relational's Healthcare Financing Solutions will allow organizations to bundle the financing of healthcare equipment with the acquisition of technology infrastructure solutions. As a result, these organizations can optimize the return on their investments and benefit from a reduced total cost of ownership. Through its proven independent technology assessment methodology, Relational can also assist healthcare providers in the selection of the most appropriate IT infrastructure for their unique business needs. "This comprehensive financing solution ensures that healthcare providers are optimally positioned with the best technology for meeting patient needs and satisfying growing regulatory requirements related to computer-based patient records, clinical documentation and diagnostics," concluded Relational's Ehlers. "Additionally, our flexible leasing options offer healthcare organizations a significant degree of protection against product obsolescence, as these providers will now have access to a cost-effective resource for upgrading to the most advanced medical equipment available." About Relational Technology Solutions Relational Technology Solutions (RTS) is a premier independent technology and financial solutions provider dedicated to helping its clients solve business challenges with an integrated suite of solutions for technology acquisition, finance and disposition. Founded in 1990, the company now manages nearly $1 billion in assets for Fortune 2000 and midmarket companies across all industries. ### Press Release ########################### Trinity Industries, Inc. Announces Expansion and Extension of DALLAS, -- Trinity Industries, Inc. (NYSE: TRN - News) today announced that its subsidiary, Trinity Industries Leasing Company ("TILC"), has increased its non-recourse warehouse facility from $375 million to $400 million and extended the availability period of the facility to August, 2009. The facility provides TILC with more favorable terms, including pricing and advance rate, than the previous facility. "We are pleased with this extension," said William A. McWhirter, Trinity's Senior Vice President and Chief Financial Officer. "This facility has supported the growth of our internal lease fleet and will continue to provide TILC with the capital needed to sustain that growth. The new terms give us additional flexibility, which enhances our ability to offer highly attractive lease financing to our customers." Trinity Industries, Inc., headquartered in Dallas, Texas, is a holding company that owns a variety of market-leading businesses which provide products and services to the industrial, energy, transportation and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net. ### Press Release ########################### Westover Financial Inc. Launches Medical Equipment Finance/Lease Unit Westover Financial, Inc. announces the formation of their medical equipment financing division and Web site. This is in response to increased demand from doctors, clinics, dentists, hospitals, medical equipment vendors and other health care providers. Santa Ana, CA (PRWEB) August 8, 2007 -- Westover Financial, Inc. announces the formation of a new, niche specific, equipment financing division, Westover Medical Finance. This is in response to the need for creative, structured and economical equipment financing solutions sought by the medical marketplace. This division will provide equipment financing and leasing solutions to many of the problems encountered in the medical and dental industry. It will also be able to access a variety of lenders to accommodate a variety of equipment financing or leasing scenarios unique to the industry. “We have seen a dramatic spike in our medical business the last four to five years,” said Steve Jones, President of Westover. “It makes sense for us to dedicate specialized resources to the market since we believe there is significant growth ahead.” “During this time we have been able to determine what’s important to the doctors or other decision makers when they look to finance equipment and we tailor specific programs accordingly. Because of this and interestingly enough, a good portion of our business comes from equipment vendor referrals as well.” In conjunction with this, a new company Web site, www.westovermedicalfinance.com has been completed and is available for customers, medical equipment vendors and potential clients as well. Westover Financial, Inc., headquartered in Santa Ana, CA was founded in 1984 and has funded over $500,000,000. in equipment purchases for commercial entities. It serves the needs of their customers nationwide from the home office as well as branch offices in San Francisco, Tampa, Austin and Los Angeles. From the Web site, Westover Medical Finance also offers a free “Medical Equipment Financing Newsletter” issued quarterly. As well as a free “Insider’s Checklist When Financing/Leasing Medical Equipment”. This helps owners and decision-makers save time and money when engaging in this process. For more information contact Steve Jones at Westover Financial, Inc 400 N. Tustin Ave. #140 Santa Ana, CA 92705; or 800-982-5868 x104. ### Press Release ########################### Cause of Beau Clarke death revealed—“Adult” rated
Beau Clarke, the late president of Icon Capital, died in England, and as Leasing News reported, the cause of death was not known at the time. Since he was head of one of the largest securitized companies in the leasing industry, perhaps the largest, it is claimed by the Monitor, Leasing News includes this story for those who would like to know http://leasingnews.org/PDF/Tycoon_Died.pdf ----------------------------------------------------------------
News Briefs---- Baltimore: Alan B. Fabian indicted $4.5MM Lease Scam/$32MM Fraud GE India's T.P. Chopra: 'We Have Ridden the Wave of India's Growth' Fitch Revises Conseco's Rating Outlook to Negative; Affirms IDR at 'BB+' http://www.fitchratings.com/corporate/events/press_releases_detail.cfm?pr_id=363784& 30-year mortgage rates at lowest level since early June Reverse mortgages move forward—Dallas News reports ELFA gets new web site: take a look News Analysis---Floyd Norris ---------------------------------------------------------------
You May have Missed--- Fisher-Price Toy Recall: Lead Poisoning: If you have any of these, you can get your money back, or at least throw the toy out. ---------------------------------------------------------------
Sports Briefs---- Bonds' No. 756 may not equal millions Coach Bill Walsh recalled with smiles by all those he led Clemens, Torre Suspended for their actions Tuesday night in Toronto ----------------------------------------------------------------
“Gimme that Wine” Napa Valley 2007 Vintage: “The kind of year you’d wish for.” Marilyn Merlot, the prized cult wine named in honor of actress, turns 21 Paso Robles, CA Wine Industry Has $1.8 Billion Impact Wine Boom: 22 local area wineries translated into $75 million for Lake County in 2006 Wineries ban buses to stop guzzling guests California Wine Tours Goes Green: Six new Hybrids A view from the vineyards on climate change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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