You may click on the headlines to go to the story or scroll---

 

 

 Headlines---

 

    Classified Ads---Credit                     

        Economic Events This Week

            “Fin Pac” IPO “in a few weeks”

                Industry Leader Ron Caruso on “ SILO”

                    Gym Leasing Ponzi Scheme

                        RW Professional Up-Date  

    Hansabank to Expand Russian Operation

        Exchange Rate: Europe Should Be Buying U.S.

            Business Leasing News May Edition

                Atlas America Completes Public Offering

                    Doug Cain joins GMAC Equip. Finance

                        Donna M. Wesemann Sales Manager

    Ameritrans Reports Loss Fiscal Year 2004 3rd Q

        Jetworks Formed by Industry Veteran

            Charter One New Healthcare Finance Initiative

                News Briefs---

                    Sports Briefs----

                        “Gimme that Wine”

                            This Day in American History

                    Baseball Poem

 

 

########  surrounding the article denotes it is a “press release”

 

-------------------------------------------------------------------------------

 

 

Classified Ads---Credit

 

Credit: Atlanta, GA. VP Credit/Operations/Sr. Credit Officer. 15yrs exp. in equipment leasing. Strong financial analysis and management skills. Experience developing and maintaining profitable customer/vendor relationships. Email:credops@msn.com

 

Credit: Atlanta, GA.

Senior Credit Officer in middle-market equip. finance, vendor, 3rd party, specialty, flow credit to the fortune 1000. Team builder, originations capable, strong work ethic, ability to multi-task. Email: kyletrust@hotmail.com

   

Credit: Atlanta, GA.

10 yrs experience in

credit/collections/recovery/documentation in the leasing industry. P&L responsibility,

team builder & strong portfolio mgnt skills. email: mortimerga@adelphia.net

 

Credit: Boston Ma.

Challenging position where my skills, professional experience, organization, leadership, strategic thinking, creativity, energy, passion, competitive nature will enable me to define opportunities and personal development. Email: bernd.janet@verizon.net

 

Credit: Corona, CA.

VP credit Consumer Credit prime/sub prime Auto lending/leasing/mortgages. 20+yrs exp. If you are looking for someone to affect the bottom line I am that person. Will relocate. Email:amosca2000@yahoo.com

     

Credit: Danbury, CT.

Skilled in team building, management & training.Seasoned credit, portfolio and risk management professional.

Experienced in developing, implementing underwriting, portfolio management policies & procedures.

email: vgjmoro@aol.com

 

Credit/Documentation: Fort Lee NJ

3 Years Experience. Looking in NJ/NY. Email: angitravis@mail.com

   

Credit: Long Beach, NY. Credit officer w/more

than 20 years of experience. Seeking position in which I can utilize my credit-collections, communication &management skills. Email:michaelschaubeck@webtv.net

    

 

Credit: Los Angeles, CA

Over 15 years experience in Credit/Operations with Small Ticket and transactions up to $500,000.00. CLP, with excellent relationships with most major lenders. Email:jonbh123@earthlink.net

  

Credit: Mill Valley, CA

Senior corporate officer with financial services credit background. M and A, fund raising and workout expertise. Email:nywb@aol.com

    

 

Credit: New Jersey, NJ

Credit Analyst with 10+ years experience in small-ticket lending up to $500,000. Experience with both vendor-direct and with brokers.

Email: b.leavy@worldnet.att.net

 

Credit: New York, NY

3+ years of leasing credit / contracts experience. Currently in the leasing industry and moving to NY! Exp. working at both funding source and broker.

Email: lease4you@mail.com

  

 

Credit: New York, NY.

V.P. Credit & Collections w/23 years exp.looking for a situation where I can utilize my varied & extensive knowledge of credit/ collections/risk-management & leasing. Email:rcouzzi@yahoo.com

 

Credit: New York, NY Credit officer with banking and leasing background; strong analytical and communication/PC skills with lending and portfolio management experience. Email: michaelschaubeck@webtv.net

   

Credit: Phoenix, AZ.

Credit/Leasing Manager- 8 years underwriting. Proven performer,strong negotiator and sales support. Worked with the best- Randy Schiell, Chuck Brazier, Jim Lahti.

Contact: Elizabeth Rose (480)510-7434  Email: ravenfinance@aol.com

 

Credit: San Francisco, CA. 10+ years Credit Analyst experience underwriting for a direct lessor, regional bank and vendor leasing company. Have CLP and will make decisions

 ( won't rely on a FICO score for enlightenment.) Email: pmtorres1@yahoo.com

 

Credit Manager: Westlake, OH

7+ years Credit/Underwriting experience Comp lit. Please email me for copy of job description at

mgallo@comfingrp.com

 

 

   full list of all classified “Job Wanted” ads at:

 

      http://64.125.68.90/LeasingNews/JobPostings.htm

 

   We Help You Find Jobs and have many testimonials.  “Free”                                 

        http://64.125.68.90/LeasingNews/PostingForm.asp

      

 

[headlines]

---------------------------------------------------------------------------------------------------

  

Economic Events This Week

 

 

May 19

Wednesday

Balance of Trade: March

Federal Budget: April

 

May 20

Thursday

Producer Prices: April

Retail Sales: April

Weekly Jobless Claims

 

May 21

Friday

Inventory-Sales Ratio: March

Capacity Use: April

Consumer Price Index: April

 

[headlines]

--------------------------------------------------------------------------------------------------

“Fin Pac” IPO “in a few weeks”

 

The $80.50 Financial Pacific Leasing IPO offering will be “ in a few weeks, as soon as it received SEC clearance, “ according to a spokesperson for Piper Jaffray , 800 Nicollet Mall, Minneapolis, Minnesota 55402, or by telephone at 800-333-6000 , one of the agents where you may obtain a prospectus.

 

Located in Federal Way, close to Tacoma, Washington, the company known in the trade as “Fin Pac,” has a unique market place with over 450 broker nationwide in the small ticket market place, specializing in unusual equipment, situations such as working from your home, and not seeking direct or vendor business.

 

A full story is available at:

 

http://www.leasingnews.org/Conscious-Top%20Stories/Fin_pac_prosp_avail.htm

Accounting

Accounting: PricewaterhouseCoopers seeks executives with experience in equipment leasing to help clients improve their leasing businesses by assessing "as is" conditions and designing and implementing solutions to operational issues.  PwC also seeks CPA's with a broad based knowledge of FAS13 and familiarity with accounting for leases with simple and complex transaction structures. Email: anthony.g.anderson@us.pwc.com About the Company: PricewaterhouseCoopers, New York, NY.

 

 

Industry Leader Ron Caruso on “ SILO”

 

 

By:  Ron Caruso, Equipment Finance Journal

 

For a period of time, the leasing industry has been in the sights of Congress. We have been painted with the same brush used to tar and feather the likes of Tyco, WorldCom, Enron, et.al.  Not the type of company your mother would like you to be keeping. We’ve been branded as the purveyors of scam transactions that rip off the U.S. taxpayer. With the fury of the righteous, Congress is about to take action vowing to put an end to all of this so-called abuse. 

 

Just coincidentally, they are also attempting to enact a new budget. Unfortunately, every time they add up the amount they project for revenues, it falls short  (far short) of the amount they project for expenditures. What can they do?  Well, they can look for additional sources of revenue, such as closing the so-called loopholes that were used by the leasing industry. By doing this, they will prevent the continued abuse (in their eyes) perpetrated by certain members of the leasing fraternity, perhaps even allow certain provisos to be retroactive to punish the offenders and generate the additional revenue they need. Sounds like a win-win proposition, right? Well, not exactly.

 

To begin with, the invective hurled at the leasing industry and the characterizations (ENRON-like,etc.) are without merit. True, there were some uses of the tax code that caused indignation, especially when applied to assets used by foreign municipalities, but now “owned” for tax purposes by U.S. corporations, resulting in U.S. tax benefits. However, unlike the companies mentioned above, no crimes were committed, and no indictments were issued. Is this distinction too subtle? 

 

The reality is the tax code was stretched and if Congress has a problem with that, the answer is all too obvious: change the tax code. But in doing that be careful you don’t kill the golden goose, or in this case, our still recovering economy. The measures being considered by Congress to curb this abuse and punish the abusers range from significant to draconian. It’s time to get off the soap box, calm down and think and act with a little more detachment.

 

Big ticket leasing has helped a number of companies and municipalities and provided a significant lift to our economy. Lessors in this market segment have taken their lumps as well. All one has to do is look at all the airplanes parked in the desert to appreciate this. It can continue to provide a significant amount of financing for new equipment.   This is important, given where the economy is currently, and where new capital expenditures are not. Yes, business is increasing its expenditures for IT and related hardware/software. But new investment in other types of equipment is still lagging. At a stage when corporate profits are rebounding, consumers continue to spend and employment is on an up tick, caution must be exercised. 

 

What is vital at this time is leadership from our government. Someone needs to be the voice of reason and detachment, and bring the disparate parties together, to work together, to find a solution that benefits all. Will this happen? Well until the shouting dies down, such a voice has little chance of being heard. Stay tuned.

 

  ( to subscribe, please go to: www.efj.com  )

[headlines]

---------------------------------------------------------------------------------

Gym Leasing Ponzi Scheme

 

Minnesota Attorney General Mike Hatch has accused Cameron J. Lewis  of operating a pyramid scheme by using money from newly enlisted schools - not grants or donations - to make token reimbursements to schools that signed up early to buy or lease fitness equipment. Many of the schools were left unable to pay off bank loans or satisfy leasing terms.

 

600 schools in 20 states reportedly bought $77.5 million worth of weight machines, treadmills and other equipment with much of it

leased from various leasing companies.

 

Cameron set up a foundation with the promise that private donations or government grants would cover the cost of the equipment or

the lease payments.

 

 

Chris Essman, treasurer for Bexley City Schools in Ohio says the school district has received $70,000 in reimbursements. It still owes over $140,000 in lease payments on the equipment.

 

An investigation by The Associated Press reveals Lewis has had a string of failed businesses, a history of personal bankruptcy and used his nonprofit foundation to give himself a $317,358 salary.

 

According to AP, Lewis makes for an unlikely philanthropist; he claims to have poured $1.6 million of his own money into the foundation. But when filing for bankruptcy in 1996, he listed $6,840 in assets, including a six-year-old Isuzi truck and an electric guitar, with nearly $20,000 in liabilities.

 

Tax returns for the National School Fitness Foundation reportedly show Lewis was collecting a $317,358 salary, but he claims that salary covered the foundation's first two years. He said his present

income from the foundation is $185,000 per year plus expenses.

 

Francine Giani, director of Utah's Consumer Protection Division, is

 

Utah schools have filed no complaints, ``which makes our job a little more tasking,'' she added.

 

Lewis, meanwhile, told the Associated Press he was committed to improving the lives of overweight school kids by providing exercise machines and a training regimen.

 

``The sad thing is that many kids are obese and the likelihood they can get past that in adolescence is slim to none. It's a sad, sad fact,'' he told AP. ``Here we've got a program that really works.''

 

On the Net:

 

National School Fitness Foundation: http://www.nsff.net

[headlines]

--------------------------------------------------------------------------

RW Professional Up-Date  

 

4/6/04 all counsel to agree on jurors who will return for Jury Selection. Jury Selection 4/12/04 @ 9:00 a.m. Consent to Magistrate Judge selecting jury by dfts and govt. No adjournments of Jury Selection date will be granted

 

  WestLaw

 

United States District Court,

E.D. New York.

UNITED STATES of America,

v.

RW PROFESSIONAL LEASING SERVICES CORP., also known as "Professional Leasing Services," Rochelle Besser, also known as "Rochelle Drayer," Barry Drayer, Roger Drayer, Adam Drayer, Susan Cottrell, Myrna Katz, and Stephen Barker, Defendants.

No. 02 CV 767(ADS)(MLO).

May 4, 2004.

 

Background: Defendants were charged with conspiracy to commit bank fraud and wire fraud and money laundering. Defendants filed various pretrial motions.

 

Holdings: The District Court, Spatt, J., held that:

(1) defendants were entitled to suppression hearing on claim that third    

      party acted as government agent in seizing items;

(2) defendant was entitled to hearing on claim that officers coerced

      statements by threatening to arrest members of his family;

(3) defendant invoked Fifth Amendment right to counsel;

(4) Bruton did not require exclusion of statements at joint trial;

(5) evidence relating to acts of alleged co-conspirator was relevant to

      conspiracy counts;

(6) defendant was not entitled to severance of trials; and

(7) defendants were not entitled to bill of particulars.

 

      Motions granted in part and denied in part.

 

In prosecution for conspiracies to commit bank and wire fraud and to launder money, which involved obtaining loans under false pretenses from bank, defendants would not be granted bill of particulars detailing which allegedly fraudulent schemes corresponded to which loans, explaining how loss figures were calculated, or stating where proceeds of each loan were secreted, as such level of detail was neither required nor necessary to prepare defense. Fed.Rules Cr.Proc.Rule 7(f), 18 U.S.C.A.

 

[32]

 

110 Criminal Law

110XX Trial

110XX(A) Preliminary Proceedings

110k627.5 Discovery Prior to and Incident to Trial

110k627.7 Statements, Disclosure of

110k627.7(3) k. Statements of Witnesses or Prospective Witnesses. Most Cited Cases

 

Government's representation that it would produce statements of all prospective witnesses three days before trial was sufficient to satisfy its obligation to produce statements that it intended to use at trial or were relevant to defense, such that pretrial request to compel production would be denied. Fed.Rules Cr.Proc.Rule 16(a)(1), 18 U.S.C.A.

 

MEMORANDUM OF DECISION AND ORDER

 

SPATT, District Judge.

*1 This case involves charges of conspiracy to commit bank fraud and wire fraud and money laundering. Presently before the Court are the following motions by RW Professional Leasing Services, Corp. ("PLS"), Rochelle Besser, Barry Drayer, Roger Drayer, Adam Drayer, Susan Cottrell, and Stephen Barker (collectively, the "defendants"): (1) to suppress documents obtained directly by a confidential source referred to as "CS-1" in the Government's search warrant application, and any evidence seized by the Government from PLS's office; (2) to suppress Roger Drayer's post-arrest statements; (3) to preclude evidence concerning the alleged fraudulent loans obtained by PLS on behalf of Hospitality Services of Middle Tennessee ("HSMT"); (4) to dismiss the indictment with respect to defendant Adam Drayer, or alternatively, to sever his trial; (5) for the production of all Brady and Giglio materials; (6) for an order directing the Government to provide a bill of particulars; and (7) for an order directing the Government to provide statements and the grand jury testimony of PLS employees.

I. BACKGROUND

On or about April 2, 2003, along with Payaddi Shivashankar, the defendants were indicted and charged with one count of conspiracy to commit bank fraud and wire fraud, 18 U.S.C. § 371, five counts of bank fraud, 18 U.S.C. § 1344, and one count of money laundering, 18 U.S.C. § 1986(h). The following facts are taken from the superseding indictment ("indictment"). PLS maintained business locations in Island Park, New York, and Wellesley, Massachusetts. The indictment charges, in relevant part, that Rochelle Besser, Barry Drayer, Susan Cottrell, Roger Drayer, and Roger Drayer's son Adam Drayer (collectively, the "PLS defendants") operated a medical equipment financing company, in which they arranged financing for the leasing of medical equipment by medical providers and supplied medical providers with working capital loans. PLS obtained loans from financial institutions for the purported purpose of purchasing medical equipment that would be leased to medical providers. In many instances, the leases and the medical equipment served as collateral for the loans.

The indictment charges that PLS devised a scheme to provide the financial institutions with sham documentation creating the false impression that the medical providers were leasing equipment from PLS and that PLS issued phony equipment invoices directly to the medical providers for payments due under the lease. The indictment further charges that the PLS defendants, among other things: (1) intentionally retained lease prepayments, rather than remitting them to the financial institutions; (2) concealed prepayments and defaults by medical providers by creating false checks that were designed to make it appear as though the medical providers were continuing to make payments under the leases; (3) fraudulently induced lenders to fund multiple loans on the basis of a single lease; (4) obtained loans from lenders on the basis of leases that had been cancelled by medical providers; (5) presented escrow agreements to banks to induce them to fund loans, knowing that escrow accounts would not be established and no funds would be held in escrow for the banks; and (6) converted loan proceeds to PLS's own use.

*2 The indictment provides that, instead of establishing escrow accounts for the leases being financed by the financial institutions as required by the escrow agreements, PLS maintained one bank account that received approximately $92 million in loan proceeds wired by the lending institutions, and a second bank account known as the "E-Account," which was used by PLS as an operating account to receive lease payments and lease prepayments from the medical providers and for other purposes. The bank account and the E-Account were maintained by PLS at the same financial institution.

After the loan proceeds were wired into the first account, they were transferred by PLS into the E-Account, where they were commingled with lease payments and lease prepayments. Instead of using the loan proceeds for the purchase of medical equipment, as PLS had promised to do, the PLS defendants converted a substantial portion of the loan proceeds to their own uses. In particular, the commingled funds were transferred by check or wire from the E- Account to (1) pay financial obligations of PLS; (2) make lease payments in order to conceal the medical providers' default status from lenders; and (3) another account maintained by PLS in order to disguise the proceeds and facilitate their conversions. The indictment states that the PLS defendants fraudulently converted at least the sum of $28 million.

II. DISCUSSION

A. Motion to Suppress all Evidence obtained by "CS-1"

The defendants identify a confidential source ("CS-1") as former PLS employee Frank Zambaras. They argue that Zambaras acted as a de facto Government agent and that, therefore, all items seized by him and all evidence derived from those items, including items seized pursuant to the search warrant, should be suppressed. Alternatively, the defendants request an evidentiary hearing to determine whether Zambaras acted as a Government instrument or agent.

[1][2] The Fourth Amendment provides that "the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated...." U.S. Const. amend. IV. It is well-settled that the "surreptitious search of premises by a private party does not violate the Fourth Amendment" unless such individual is acting as an instrument or agent of the government in obtaining evidence. United States v. Bennett, 709 F.2d 803, 805 (2d Cir.1983). The Supreme Court has made clear that it is " 'immaterial' whether the government originated the idea for a search or joined it while it was in progress." United States v. Knoll, 16 F.3d 1313, 1320 (2d Cir.1994) (quoting Lustig v. United States, 338 U.S. 74, 78-79, 69 S.Ct. 1372, 93 L.Ed. 1819 (1949)). If the government " 'was in it before the object of the search was completely accomplished [by the private party, it] must be deemed to have participated in it .' " Id. (quoting Lustig, 338 U.S. at 78-79)). Thus, the critical issue is "the point in time when the object of the search has been completed. If the object has been realized, the government cannot later become a party to it. By the same token, it may not expand the scope of an ongoing private search unless it has an independent right to do so." Id.

*3 An evidentiary hearing on a motion to suppress "ordinarily is required if the moving papers are sufficiently definite, specific, and nonconjectural to enable the court to conclude that contested issues of fact going to the validity of the search are in question." United States v. Pena, 961 F.2d 333, 339 (2d Cir.1992) (citations and quotations omitted). A defendant seeking a hearing on a suppression motion bears the burden of showing the existence of disputed issues of material fact. See id. at 338. However, a district court is not required to hold an evidentiary hearing if the defendant's "moving papers did not state sufficient facts which, if proven, would have required the granting of the relief requested." United States v. Culotta, 413 F.2d 1343, 1349 (2d Cir.1969). Further, a court need not hold an evidentiary hearing when the "defendant's allegations are general and conclusory or are based on suspicion and conjecture." United States v. Wallace, No. 97 CR 975, 1998 WL 10874, at *30 (S.D.N.Y. July 17, 1998) (citation omitted).

[3] According to the defendants, the circumstances surrounding the recovery of items by Zambaras from the PLS office "lead to the conclusion that the FBI directed or at least encouraged the actions of Zambaras in his surreptitious search and seizure of such items." The defendants point out that, in a June 20, 2002 complaint and affidavit, Agent Rondie Peiscop-Grau stated that Zambaras "has been supplying the [Government] with information and documents" about PLS's operation since on or about June 13, 2002. Agent Peiscop-Grau further stated that Zambaras provided a file "relating to OD-1, an optometrist from California" and "four other files reflecting the defendants' rental of boxes from Mail Boxes, Etc."

In addition, the defendants assert that a photocopy of a property receipt reveals that Zambaras provided several items to the Government on June 18, 2002, three days prior to the arrest of Barry Drayer, Rochelle Besser and Roger Drayer. The defendants also contend that a photocopy of a computer disk appears to show that, at some point, Zambaras provided the Government with an actual computer disk containing copies of RW checks. The defendants state that this disk was not generated by any of the PLS defendants. Based on this, the defendants contend that the computer disk and the other documents were seized by Zambaras without PLS's authorization and with the knowledge of the Government.

Further, the defendants state that, on or about June 13, 2002, Zambaras was terminated by PLS. Several days later, when Zambaras was no longer on the payroll, several PLS employees observed him at the PLS office making an "unusual" number of photocopies. In an April 1, 2004 supplemental affidavit, Roger Drayer states that he saw Zambaras at the photocopy machine for "several hours." According to the defendants, Zambaras was copying and stealing PLS files. Further, in a February 12, 2004 affidavit, Domenica Califano, another tenant in the building in which PLS is located, asserts that Zambaras was observed on June 21, 2002 handing the FBI agents a computer disk and accompanying FBI agents, while a search warrant was being executed inside the PLS office.

*4 In response, the Government contends that there is nothing in Agent Rondie-Grau's affidavit to suggest when, where, or how the documents supplied by Zambaras were obtained. The Government further contends that there is no evidence that the FBI directed or approved a private search of PLS's office.

In the Court's view, the defendants have made a sufficient showing that contested issues of fact exist regarding whether Zambaras was working on behalf of the Government at the time he obtained documents. In sum, the defendants contend that Zambaras was acting at the behest of the Government, based on the following: (1) the language in the affidavit of Agent Peiscop-Grau reveals that Zambaras provided the Government with information and documents in the week preceding the search of the PLS office on June 21, 2002; (2) Roger Drayer's observation regarding the "unusual amount" of photocopying by Zambaras after the FBI met with him on June 13, 2002; (3) the FBI receipt indicating Zambaras gave documents to Agent Peiscop-Grau on June 18, 2002; (4) the copy of the computer disk that had "PLS Checks" written upon it but was not generated by any of the PLS defendants; and (5) the observations of an independent third- party witness that Zambaras was actually assisting the FBI in the execution of the search warrant. Based on these allegations, the Court finds that an evidentiary hearing is necessary to determine whether there was Government involvement in Zambaras's seizure of the documents. Accordingly, United States Magistrate Judge Michael L. Orenstein is requested to conduct a suppression hearing with regard to this issue at his earliest convenience and report to the Court. The Court will defer its decision on this motion until after the determination of the suppression hearing.

B. The Motion to Suppress Roger Drayer's Post-Arrest Statement

1. As to Voluntariness

The defendants moves to suppress Roger Drayer's post-arrest statements made on June 21, 2002, to FBI Agents Vincent Gerardi and Michael Lender, which were memorialized by the agents in an FBI form 302. The defendants argue that his statements should be suppressed on the grounds that (1) they were involuntary; (2) they were obtained in violation of his Fifth Amendment right to counsel; and (3) admitting the statements would violate the Bruton rule.

[4] The Fifth Amendment right against self-incrimination requires a court to exclude from criminal proceedings involuntary statements produced by government threats or coercion. Green v. Scully, 850 F.2d 894, 900 (2d Cir.), cert. denied, 488 U.S. 945, 109 S.Ct. 374, 102 L.Ed.2d 363 (1988). Because custodial interrogation is inherently coercive, see Dickerson v. United States, 530 U.S. 428, 435, 120 S.Ct. 2326, 147 L.Ed.2d 405 (2000), law enforcement officers must provide a suspect with Miranda warnings prior to interrogation to safeguard a defendant's privilege against self incrimination. United States v. Ramirez, 79 F.3d 298, 304 (2d Cir.), cert. denied, 519 U.S. 850, 117 S.Ct. 140, 136 L.Ed.2d 87 (1996). Interrogation "refers not only to express questioning, but also to any words or actions on the part of the police (other than those normally attendant to arrest and custody) that the police should know are reasonably likely to elicit an incriminating response from the suspect." Rhode Island v. Innis, 446 U.S. 291, 301, 100 S.Ct. 1682, 64 L.Ed.2d 297 (1980).

*5 [5] To determine whether a defendant waived his Fifth Amendment rights, the Court must decide whether the waiver was made with the "full awareness of the right being waived and of the consequences of waiving that right," United States v. Jaswal, 47 F.3d 539, 542 (2d Cir.1995), and whether the confession or statement was the "product of a free and deliberate choice rather than intimidation, coercion, or deception," Moran v. Burbine, 475 U.S. 412, 421, 106 S.Ct. 1135, 89 L.Ed.2d 410 (1986). A defendant's confession or statement "must not be extracted by any sort of threats or violence, nor obtained by any direct or implied promises, however slight, nor by the exertion by any improper influence." Malloy v. Hogan, 378 U.S. 1, 7, 84 S.Ct. 1489, 12 L.Ed.2d 653 (1964). Coercion may be found where a defendant's statement is "obtained under circumstances that overbear the defendant's will at the time it is given...." United States v. Anderson, 926 F.2d 96, 99 (2d Cir.1999). Whether a statement is voluntarily made or a product of government coercion depends on the totality of the circumstances. United States v. Gaines, 295 F.3d 293, 298 (2d Cir.2002) (citing Tankleff v. Senkowski, 135 F.3d 235, 244-45 (2d Cir.1998)).

[6] Promises of leniency, without more, do not invalidate a Miranda waiver. See United States v. Guarno, 819 F.2d 28, 31 (2d Cir.1987). Although material misrepresentations based on unfulfillable or other improper promises might overbear a defendant's will, see United States v. Ruggles, 70 F.3d 262, 265 (2d Cir.1995), "a confession is not involuntary merely because the suspect was promised leniency if he cooperated with law enforcement officials.' " United States v. Bye, 919 F.2d 6, 9 (2d Cir.1990) (quoting Guarno, 819 F.2d at 31)). Thus, whether promises of leniency for his children overbore the defendant's will in this case, thereby rendering his waiver involuntary, depends on the promises made.

[7] In the present case, the defendants apparently concede that Miranda warnings were given. Rather, the defendants contend that Roger Drayer's statements to the FBI agents were involuntary. As noted above, one of the factors the Court must consider when determining whether a statement was voluntarily made is whether the government agents know that their conduct is reasonably likely to elicit an incriminating response from the suspect. Rhode Island, 446 U.S. at 301.

According to the defendants, when Roger Drayer was arrested, FBI agents handcuffed him in front of his son, Adam Drayer, and warned Adam "you too are a hair away from being arrested." Shortly thereafter, the agents informed Roger Drayer that his daughter, Jennifer Tarantino, was also going to be arrested that day. He was then transported to FBI headquarters where he indicated that he would need an attorney. Before an attorney was provided, the defendants contend that one of the FBI agents "implied" that his children Adam Drayer and Jennifer Tarantino would go to jail if he did not make a statement and tell them about PLS's operation. Based on these circumstances, the defendants contend that Roger Drayer was coerced to make a statement because of concern for his children.

*6 In response, the Government denies that Roger Drayer's statement was the product of coercion. Any statements made to Roger Drayer by the FBI, asserts the Government, were in the nature of permissible and truthful advice concerning his post-arrest circumstances.

[8][9] The Court finds that disputed issues of fact exist regarding the circumstances in which the Government obtained Roger Drayer's statements. A defendant's statement that is induced by government threats to arrest members of the suspect's family may render his statement involuntary. See, e.g., Rogers v. Richmond, 365 U.S. 534, 544-48, 81 S.Ct. 735, 5 L.Ed.2d 760 (1961) (finding that a confession was coerced because the defendant was told his wife would be taken in for questioning). In the Court's view, the defendants have advanced enough facts to demonstrate that disputed issues of fact exist regarding whether the agents exercised undue psychological pressure on Roger Drayer so that his will was overcome at the time he made his statements, thereby rendering his statements involuntary. Because the parties dispute the circumstances surrounding Roger Drayer's statements, the Court concludes that it cannot decide the defendants' motion to suppress Roger Drayer's statements without an evidentiary hearing. Accordingly, United States Magistrate Judge Michael L. Orenstein is requested to conduct a suppression hearing and report to the Court with regard to the issue of voluntariness.

2. As to his Invocation of his Right to Counsel

Next, the defendants argue that the statements by Roger Drayer should be suppressed because they were elicited after he invoked his right to counsel. After Roger Drayer was arrested, he was placed in an FBI vehicle and driven to FBI headquarters. During the drive, one of the agents asked him if he had an attorney, to which he responded that he "would want an attorney appointed to me." According to the defendants, this amounted to a Fifth Amendment invocation of counsel under Edwards v. Arizona, 451 U.S. 477, 484-85, 101 S.Ct. 1880, 68 L.Ed.2d 378 (1981), On the other hand, the Government asserts that Roger Drayer's statement regarding the appointment of counsel referred to his Sixth Amendment right to have counsel appointed to defend him against the charges at issue. The Government contends that the statement was in response to a routine inquiry by an FBI agent who was seeking that information for purposes of his impending arraignment. The Government also asserts that this response was viewed as ambiguous and that, in any event, Roger Drayer voluntarily signed a written waiver form and consented to be interviewed.

[10][11] It is well-settled that a Sixth Amendment right to counsel attaches only at or after the time that adversary judicial proceedings have been initiated against the suspect, " 'whether by way of formal charge, preliminary hearing, indictment, information, or arraignment.' " United States v. Smith, 778 F.2d 925, 931-32 (2d Cir.1985) (citing Kirby v. Illinois, 406 U.S. 682, 689, 92 S.Ct. 1877, 32 L.Ed.2d 411 (1972)). Here, the Court rejects the Government's argument that Roger Drayer's statement that he wanted to have an attorney appointed referred to his Sixth Amendment right. It is undisputed that this statement was made immediately after his arrest but before arraignment. The Second Circuit has held that the Sixth Amendment right to counsel does not arise at the time of the arrest. Smith, 778 F.2d at 932. Because the period in question was before the commencement of an adversary judicial proceeding, the Sixth Amendment is not applicable.

*7 [12] Rather, the issue turns on whether Roger Drayer's right to counsel under the Fifth Amendment was violated. As previously stated, the Fifth Amendment requires that, once a suspect is in custody and subject to interrogation, government agents must apprise the suspect of his right to contact an attorney, and to have an attorney present during questioning. Miranda v. Arizona, 384 U.S. 436, 467-71, 86 S.Ct. 1602, 16 L.Ed.2d 694 (1966). In Edwards, the Supreme Court held that, once the right to counsel is invoked, the interrogation must cease until counsel is present, unless the suspect thereafter indicates a waiver by initiating further communication with law enforcement. 451 U.S. at 484-85. A defendant may invoke his right to counsel "in any manner and at any stage of the process" that counsel is desired. Miranda, 384 U.S. at 444-45.

[13][14][15] Invocation of the Fifth Amendment requires the suspect to make "some statement that can reasonably be construed to be expression of a desire for the assistance of an attorney in dealing with custodial interrogation by the police." McNeil v. Wisconsin, 501 U.S. 171, 178, 111 S.Ct. 2204, 115 L.Ed.2d 158 (1991). Reference to an attorney that is ambiguous or equivocal is insufficient to invoke the Fifth Amendment right to cause law enforcement to cease their questioning. Davis v. United States, 512 U.S. 452, 459, 114 S.Ct. 2350, 129 L.Ed.2d 362 (1994). In addition, the Court is mindful that it "must give a broad, rather than a narrow, interpretation to a defendant's request for counsel." United States v. Quiroz, 13 F.3d 505, 511 (2d Cir.1993) (internal quotations and citation omitted). Indeed, any "doubts must be resolved in favor of protecting the constitutional claim." Michigan v. Jackson, 475 U.S. 625, 633, 106 S.Ct. 1404, 89 L.Ed.2d 631 (1986).

[16] In this case, there is no dispute that Roger Drayer stated that he "would want an attorney appointed for me." The Court finds that his statement was an unambiguous and unequivocal assertion of his right to and need for counsel. His statement was sufficient to put the FBI agents on notice that he was requesting counsel and that, therefore, they were required to refrain from questioning him until counsel was made available to him. See Edwards, 451 U.S. at 484-85. Nevertheless, this rule does not "foreclose finding a waiver of Fifth Amendment protections after counsel has been requested, provided the accused has initiated the conversation or discussion with the authorities." Minnick v. Mississippi, 498 U.S. 146, 156, 111 S.Ct. 486, 112 L.Ed.2d 489 (1990).

The parties dispute whether Roger Drayer voluntarily signed a written waiver form and consented to be interviewed. Again, the defendants assert that he was coerced to answer questions due to his concern for his children. Because the parties dispute whether Roger Drayer voluntarily waived his Fifth Amendment right to counsel, the Court will defer decision on this issue, as it finds that a suppression hearing is necessary. Accordingly, United States Magistrate Judge Michael L. Orenstein is requested to conduct a suppression hearing and report to the Court with regard to the waiver issue.

3. As to the Bruton Rule

*8 [17] Finally, the defendants argue that Roger Drayer's statements to the FBI agents must be precluded pursuant to the rule in Bruton v. United States, 391 U.S. 123, 126, 88 S.Ct. 1620, 20 L.Ed.2d 476 (1968). In Bruton, the Supreme Court held that the government is prohibited from introducing a defendant's statement at trial if it implicates a co-defendant in a joint trial because the co-defendant would be denied his Sixth Amendment right to confront his accuser. Id. at 128. The Supreme Court later limited the Bruton rule, holding that the Sixth Amendment is not violated where a proper limiting instruction is given to the jury not to consider the statement against the non- declarant and the statement is redacted to eliminate the co-defendant's name and any reference to his or her existence. Richardson v. Marsh, 481 U.S. 200, 211, 107 S.Ct. 1702, 95 L.Ed.2d 176 (1987). The statement must be appropriately redacted so that it does not in any way indicate the identity or existence of the deleted codefendant. Gray v. Maryland, 523 U.S. 185, 196, 118 S.Ct. 1151, 140 L.Ed.2d 294 (1998) ("we conclude that Richardson placed outside the scope of Bruton's Rule those statements that incriminate inferentially"); see also United States v. Smith, 198 F.3d 377, 385 (2d Cir.1999) ("In addition, the plea allocution was not incriminating on its face because it did not directly implicate Smith. Therefore, we find no violation of Gray.").

[18] Here, the Government does not oppose redacting the statements as provided by Bruton, Richardson, and Gray and does not object to a limiting instruction being given to the jury regarding the use of the statements. Nevertheless, the defendants argue that, because this case involves a family business, there is no way to separate Roger Drayer's statements from the accusation against his co-defendants. The Government contends, and the Court agrees, that there is no rule barring the admission of a defendant's inculpatory statement merely because some co-defendants are members of the defendant's family. However, at this time, the Court declines to decide the potential Bruton issues. Given the absence of a proposed redacted statement, the Court is unable to determine whether, on its face, the redacted statement sufficiently complies with the standards set forth in Bruton, Richardson, and Gray. Therefore, the defendants' motion to suppress Roger Drayer's statement on the ground that its admission would allegedly violate the Bruton rule is denied without prejudice and with leave to renew.

C. Motion to Suppress Evidence concerning HSMT

[19] The defendants state that they have been charged with two counts of conspiracy: conspiracy to commit bank fraud and wire fraud (count one) and conspiracy to commit money laundering (count seven). The defendants contend that there will be evidence presented at trial concerning a third conspiracy. According to the defendants, this third conspiracy relates to allegations concerning money funded to HSMT. The defendants assert that Payaddi Shivashankar, an HSMT employee, is at the center of these allegations. For example, the defendants state that, in the loan applications, Shivashankar allegedly falsely represented that the money was to be used to finance the purchase of medical equipment for HSMT and that the indictment alleges that the HSMT loans contained forged signatures of doctors. The defendants contend that the actions by Shivashankar and the HSMT partners were undertaken independent of the PLS defendants. The defendants further contend that there is no evidence that the PLS defendants were aware of the forged signatures or any other misconduct on the part of Shivashankar or any other principals or employees of HSMT. Because the indictment does not charge this separate conspiracy, argue the defendants, all evidence concerning the HSMT loans should be precluded at the trial.

*9 The defendants' argument is without merit. As the Government properly points out, whether the PLS defendants knew that Shivashankar or HSMT principals or employees forged signatures in order to further the scheme is immaterial. See United States v. Zichettello, 208 F.3d 72, 100 (2d Cir.2000) ("There is no rule requiring the government to prove that a conspirator knew of all criminal acts by insiders in furtherance of the conspiracy."). In addition, the indictment here charged one conspiracy to defraud financial institutions by obtaining financing under false pretenses and describes a scheme in which the PLS defendants and Shivashankar agreed to achieve that objective on behalf of HSMT. Furthermore, even assuming proof of multiple conspiracies, generally, this is a question of fact for the jury. United States v. Vazquez, 113 F.3d 383, 386 (2d Cir.1997). Accordingly, the defendants' motion to suppress all the evidence concerning the HSMT loans at trial is denied.

D. Motion to Dismiss the Indictment against Adam Drayer or to Sever his Trial

[20] The defendants move to dismiss the indictment against Adam Drayer on the ground that "there is insufficient evidence to connect Adam Drayer to the conspiracy." Insufficiency of the evidence before a grand jury is an insufficient ground to dismiss a facially valid indictment. See United States v. Casamento, 887 F.2d 1141, 1182 (2d Cir.1989) ("An indictment, if valid on its face, may not be challenged on the ground that it is based on inadequate evidence.").

[21] In addition, no defects in the indictment against Adam Drayer warrant dismissal. An indictment need only track the language of the statute charged and state the approximate time and place of the alleged crime. See United States v. Pirro, 212 F.3d 86, 92 (2d Cir.2000) ("We have consistently upheld indictments that do little more than to track the language of the statute charged and state the time and place (in approximate terms) of the alleged crime.") (internal quotations and citations omitted). Because the indictment here more than satisfies these requirements, the motion to dismiss the indictment against Adam Drayer is denied.

In the alternative, pursuant to Rule 14 of the Federal Rules of Criminal Procedure, the defendants argue that the Court should sever Adam Drayer's trial from that of the remaining defendants because joint trials of these offenses and these defendants would be severely prejudicial. In particular, the defendants argue that, due to the familial relationships between Adam Drayer and his co-defendants and his minor role in the alleged offenses, severance is necessary.

[22][23] Rule 14 empowers a court to grant a severance "if it appears that a defendant ... is prejudiced by a joinder of ... defendants ... for trial together...." Fed.R.Crim.P. 14. A court should sever trials of co-defendants under Rule 14 only if there is a serious risk that a joint trial would compromise a specific trial right of one of the defendants, or prevent the jury from making a reliable judgment about guilt or lack of guilt. Zafiro v. United States, 506 U.S. 534, 539, 113 S.Ct. 933, 122 L.Ed.2d 317 (1993); United States v. Rahman, 189 F.3d 88, 122 (2d Cir.1999). Even if some prejudice is shown, Rule 14 does not require severance. See United States v. Haynes, 16 F.3d 29, 32 (2d Cir.1994). Rather, "limiting instructions often will suffice to cure any risk of prejudice." Zafiro, 506 U.S. at 539.

*10 [24][25] The Court finds that severance is not necessary in this case. First, "differences in degree of guilt and possibly degree of notoriety" of defendants do not require that there be separate trials. United States v. Aloi, 511 F.2d 585, 598 (2d Cir.), cert. denied, 423 U.S. 1015, 96 S.Ct. 447, 46 L.Ed.2d 386 (1975). Indeed, "differing levels of culpability and proof are inevitable in any multi-defendant trial and, standing alone, are insufficient grounds for separate trials." United States v. Carson, 702 F.2d 351, 367 (2d Cir.1983). Second, there is no reason to conclude that a jury would be unable to distinguish among family members in finding guilt or lack of guilt. Finally, even if the Court severed Adam Drayer's trial from that of his co-defendants, much of the evidence introduced in one trial to establish the conspiracy would be introduced in the other. See United States v. Rosa, 11 F.3d 315, 341 (2d Cir.1993) ("Evidence at the joint trial of alleged co- conspirators that, because of the alleged conspiratorial nature of the illegal activity, would have been admissible at a separate trial of the moving defendant is neither spillover nor prejudicial."); United States v. Muyet, 945 F.Supp. 586, 596 (S.D.N.Y.1996) ("[E]ven if the Court were to grant severance, much of the evidence regarding ... co-defendants' acts of violence would be admissible in ... [their] trial as proof of the existence and nature of the conspiracy .").

Moreover, to the extent that the evidence against one defendant may not relate to another, the Court will either redact or issue limiting instructions to cure any possible prejudice. Zafiro, 506 U.S. at 539. Thus, the Court finds that the defendants have not demonstrated the existence of a serious risk that a joint trial will compromise a specific trial right or prevent the jury from making a reliable judgment about guilt or lack of guilt. Id.; Rahman, 189 F.3d 122. Accordingly, the Court denies the motion by the defendants for severance as to defendant Adam Drayer.

E. Motion to Produce Brady and Giglio Materials

[26] The defendants move for the disclosure of all Brady and Giglio materials. The Government acknowledges its duty to disclose exculpatory evidence pursuant to Brady v. Maryland, 373 U.S. 83, 87, 83 S.Ct. 1194, 10 L.Ed.2d 215 (1963), and represents that it will disclose any Brady materials when they become known. This representation by the Government is a sufficient basis for denying an application to compel disclosure under Brady.

[27][28] In addition, the Government states that it will abide by its obligations to disclose impeachment materials pursuant to Giglio v.. United States, 405 U.S. 150, 154-55, 92 S.Ct. 763, 31 L.Ed.2d 104 (1972). The Government further represents that it will disclose all Giglio material three days prior to the trial. As there is no pre-trial discovery right to Giglio materials, see United States v.. Nixon, 418 U.S. 683, 701, 94 S.Ct. 3090, 41 L.Ed.2d 1039 (1974), the Court accepts the Government's representation that it will produce such materials three days in advance of the trial. Accordingly, the Court denies the defendants' motion seeking disclosure of all Brady and Giglio material.

F. Motion for a Bill of Particulars

*11 Under Rule 7 of the Federal Rules of Criminal Procedure, a district court "may direct the filing of a bill of particulars." Fed.R.Civ.P. 7(f). A bill of particulars enables a defendant "to identify with sufficient particularity the nature of the charge pending against him, thereby enabling the defendant to prepare for trial, to prevent surprise, and to interpose a plea of double jeopardy should he be prosecuted a second time for the same offense." United States v. Bortnovsky, 820 F.2d 572, 574 (2d Cir.1987) (citations omitted). In the defendants' request for a bill of particulars, they ask the Government, among other things, (1) to identify which allegedly fraudulent schemes correspond to which loans; (2) to explain how the loss figures were calculated; and (3) to state where the Government believes the proceeds of the crimes were secreted or what documents support the Government's case with respect to each individual allegation for each loan.

[29][30] To determine a motion for a bill of particulars, " 'the important question is whether the information sought is necessary, not whether it is helpful.' " United States v. Amendolara, No. 01 CR 694, 2002 U.S. Dist. LEXIS 19981, at *12 (S.D.N.Y. Oct. 15, 2002) (quoting United States v. Facciolo, 753 F.Supp. 449, 451 (S.D.N.Y.1990)) The decision to grant a motion for a bill of particulars is within the sound discretion of the district court. See United States v. Walsh, 194 F.3d 37, 47 (2d Cir.1999) (citation omitted). Where the defendant is adequately informed of the charges against him, the Government need not particularize all of its evidence. United States v. Torres, 901 F.2d 205, 234 (2d Cir.2000). "Acquisition of evidentiary detail is not a function of a bill of particulars." Id. Indeed, "[t]he proper scope and function of a bill of particulars is not to obtain disclosure of evidence or witnesses to be offered by the Government at trial...." United States v. Strawberry, 892 F.Supp. 519, 526 (S.D.N.Y.1995) (citing United States v. Salazar, 485 F.2d 1272, 1278 (2d Cir.1973)).

[31] In this case, the Court finds that the indictment sufficiently informs the defendants of the nature of the charges against them, namely a conspiracy to commit bank and wire fraud and a conspiracy to commit money laundering, thereby enabling them to prepare a defense in this trial. Moreover, the Government supplied a letter to the defendants, dated December 17, 2003, outlining the specific fraudulent loans that it intends to refer to at the trial. The Court agrees with the Government that the level of detail the defendants seek is neither required nor necessary to enable them to prepare a defense and avoid unfair surprise at the trial. Accordingly, the motion for a bill of particulars is denied.

G. Motion to Provide all Statements and Grand Jury Testimony of PLS Employees

[32] The defendants request that the Court order the Government to produce any statements of the defendants, including employees of PLS, in accordance with Rule 16 of the Federal Rules of Criminal Procedure. In particular, the defendants request the statements made by former employee Zambaras. Rule 16 entitles the defendants to discovery materials that the government intends to introduce at the trial or that is material to their defense. Fed.R.Crim.P. 16(a)(1). The Government represents that it will produce the statements of all prospective witnesses, including Zambaras, three days prior to the trial. The Court has no basis to conclude that the Government will do otherwise with regard to its obligations under Rule 16. Accordingly, based on the Government's assurance, the defendants' request to order production of Rule 16 materials is denied.

III. CONCLUSION

*12 Based on the foregoing, it is hereby

ORDERED, that the defendants' motion to suppress documents obtained by Frank Zambaras is DEFERRED, pending the outcome of the suppression hearing; and it is further ORDERED, that the motion to suppress the documents is referred to United States Magistrate Judge Michael L. Orenstein, at his earliest convenience, to conduct a suppression hearing and report to the Court regarding whether Frank Zambaras was working as a government instrument or agent; and it is further ORDERED, that the defendants' motion to suppress Roger Drayer's post-arrest statements made on June 21, 2002 to the FBI agents is DEFERRED, pending the outcome of the suppression hearing; and it is further ORDERED, that the defendants' motion to suppress Roger Drayer's post-arrest statements is referred to United States Magistrate Judge Michael L. Orenstein to conduct a suppression hearing and report to the Court at his earliest convenience; and it is further ORDERED, that the defendants' motion to preclude Roger Drayer's post-arrest statements based on the Bruton rule is DENIED without prejudice and with leave to renew; and it is further ORDERED, that the defendants' motion to preclude evidence concerning HSMT is DENIED; and it is further ORDERED, that the defendants' motion to dismiss the indictment with respect to defendant Adam Drayer or to sever his trial is DENIED; and it is further ORDERED, that the defendants' motion for a production of all Brady and Giglio materials is DENIED on the condition stated; and it is further ORDERED, that the defendants' motion for an order directing the Government to provide a bill of particulars is DENIED; and it is further ORDERED, that the defendants' motion for an order directing the Government to provide the statements and the grand jury testimony of PLS employees pursuant to Fed.R.Civ.P. 16 is DENIED on the condition stated. SO ORDERED. E.D.N.Y.,2004.

 

    Please note:

 

“  MINUTE ENTRY as to Payaddi Shivashankar (7); Case before Judge Wall on 2/24/04 @ 11:13 a.m., for Criminal Cause for Pleading. Dft Shivashankar present in custody with CJA counsel Edward Jenks. Govt: Geoffrey Kaiser. CD 04-3. Dft enters plea of GUILTY to Count One (of a seven Count) Superseding Indictment. Sentencing set for 6/25/04 @ 9:30 a.m. before Judge Spatt. Dft remains in custody. Magistrate Judge Wall recommends that the District Court accept the guilty plea. (Coleman, Laurie)”

from: https://ecf.nyed.uscourts.gov/cgi-bin/HistDocQry.pl?544373250123187-L

ShowDktTxt_1-0-191093-143-

 

   ( He was one of the original indicted, and perhaps it is from seeing too many “Law

and Order” television shows, but the impression is he is going to turn state’s evidence

on an appeal arrangement and thus the “early” guilty plea. editor )

 

  Previous stories on RW Professional Leasing:

 

                 http://www.leasingnews.org/Conscious-Top%20Stories/RW_stories.htm

 

Hansabank to Expand Russian Operation

 

Hansabank Group, reportedly the Baltic's biggest financial services company, has announced its plans  to expand its presence in neighboring Russia by setting up a new bank or acquiring an existing one and increasing its leasing operations in the former Soviet Union.

 

The majority owner of Hansabank is the Swedish banking group ForeningsSparbanken, which has operated in Russia through its Hansa Leasing Russia subsidiary since 2002.    

``Our primary target is not to win a very dramatic market share but to help our clients expand in Russia,'' Druvis Murmanis, the newly appointed head of Hansabank's Russian operations, told The Associated Press.

 

Murmanis did not specify which Russian banks Hansabank might be targeting, but he said the new outlet would help it serve its Baltic and Scandinavian clients and a limited number of Russian customers.

[headlines]

-------------------------------------------------------------------------------

Exchange Rate : Europe Should Be Buying U.S.

 

from Leasing Gems by Jeffrey Taylor

 

 

From an European perspective, American assets look downright inexpensive. Weakened by huge U.S. trade deficits and low interest rates, the dollar has plunged 32 percent since its October 2000 peak. And with merger-and-acquisition activity heating up on both sides of the Atlantic, one might expect a "European invasion" like the 1998-2000 spree that led to BP-Amoco-Arco, Vodafone-AirTouch, and Daimler- Chrysler.

 

So why did European companies strike only 97 first- quarter deals in the United States this year, down from 133 in a year-earlier period when overall global M&A activity was far weaker? Blame it on exchange rates.

 

Exchange rates dictate that U.S. companies should shun European acquisitions. For example, Home Depot CEO Robert Nardelli scotched January rumors of a possible British deal earlier this year by calling the idea "dumb," and arguing that "there couldn't be a worse time to do an international acquisition, with the euro at $1.25 to $1.28."

 

Lately, Americans have moved to snap up 160 European businesses in the latest quarter-most of them in small or midsize deals-including Yahoo's $574 million (475 million euro) offer for France-based Internet company Kelkoo.

 

Indeed, in dollar-value terms, American buying of European assets is an emerging trend, building on last year's doubling of announced U.S. cross-border deal- making from $36.3 billion to $74.8 billion-led by General Electric's $9.5 billion plan to buy British medical- diagnostics company Amersham.

 

The reasons for this seeming flip-flop of European and American roles start with an old M&A adage: acquisition decisions are based far more on strategy and fit than on currency values.

 

"While the economy is improving, continental Europe still has some concerns going forward," suggests Henri Servaes, professor of finance at London Business School. Amid slow growth, many European companies, especially those in the euro-zone, are still restructuring to cut costs."

 

One problem with buying American assets to take advantage of the weak dollar, is that the cash flows eventually coming from the purchase must be repatriated at the future exchange rate, which is difficult to predict.

 

Companies enamored of the exchange-rate advantages of a transatlantic transaction typically forget the risks inherent in that type of deal. Transactions are often more complex, while presenting higher regulatory and cultural hurdles.

---

 

Note from Jeffrey

 

If you believe the theories enumerated in the above excerpt, one could easily conclude that to solve the world's economic problems, every country has to adopt the same currency. As a result weak currencies would rise and strong currencies would fall to worldwide economic equilibrium

 

Which currency would you pick? Any suggestions? Please e-mail me your thoughts. I am going to be lecturing in London at The Leasing Academy and Sorrento, Italy for the Pan-European Leaseurope Conference this fall and would love to hear from my readers.

 

 

 

    email: jtaylor@executivecaliber.ws

   voice: 801-299-9332

   web: http://executivecaliber.ws

 

[headlines]

--------------------------------------------------------------------------------------------------

 

Equipment Sales Representative

 

Equip. Leasing Sales Rep: Strong sales and bus. dev. skills needed. Dev/manage portfolio, initiate bus. in upper Midwest . 3-4 yr  leasing exp. www.associatedbank.com or e-mail: abmil@associatedbank.com About the Company: Associated Banc-Corp is a diversified multibank holding company with $15.5 billion in total assets. Headquartered in Green Bay, Wisconsin .  Associated has more than 200 banking locations across Wisconsin, Illinois and Minnesota.

Business Leasing News May Edition

 

 

Lessees in Bankruptcy Declare Open Season on True Leasing

  Lenders Perform Four Key Tasks in Texas Wind Energy Projects

General Aviation Begins to Grow, Presenting Financing Opportunities

   States Increase Tax Receipts, But Shortfalls Persist

Leasing 101: What is "Revenue Recognition"?

   BLN Briefs: TRIA Extension Debated; CIOs Reduce Tech Spending; Cape Town Bill Introduced

  Training Offered

Feedback;

 

http://two.leasingnews.org/loose_files/Bus_Leasing_News.htm

 

[headlines]

### Press Release ######################################

RAI Announces Closing of Subsidiary's Initial Public Offering and Certain Management Changes

 

 

Resource America Inc.(Nasdaq:REXI) (the "Company") announced  that its subsidiary Atlas America, Inc. (Nasdaq:ATLS) has completed an initial public offering of shares of its common stock. Atlas America sold 2,300,000 shares at a price of $15.50 per share through underwriters Friedman, Billings, Ramsey & Co., Inc. and KeyBanc Capital Markets.

 

The net proceeds of the offering of $33.2 million after deducting underwriting discounts, will be distributed to Resource America in the form of a repayment of inter-company debt and a non-taxable dividend. Resource America continues to own approximately 82.3% of ATLS common stock.

 

The underwriters have been granted an over-allotment option for an additional 345,000 shares of common stock exercisable within thirty days. The over-allotment option, if fully exercised, would generate an additional $5.0 million in net proceeds for distribution to Resource America, thus reducing its ownership to 80.2%.

 

Resource America intends to distribute all of its remaining ATLS shares to REXI's common stockholders in the form of a tax-free dividend anticipated to occur by the end of 2004. The dividend is contingent upon the satisfaction or waiver of a variety of conditions, including, among other things, the receipt of a favorable tax ruling from the Internal Revenue Service. Accordingly, the distribution may not occur at the contemplated time and may not occur at all.

 

In connection with the initial public offering by Atlas America, Inc., the Company also announces changes in executive responsibility. Edward E. Cohen, CEO of the Company, is retiring from his position as CEO of the Company, but will continue as non-executive Chairman. Mr. Cohen also serves as Chairman and CEO of Atlas America, Inc. Jonathan Z. Cohen will assume the responsibilities of CEO of Resource America, Inc. and continue as President of the Company.

 

For more complete information about Atlas America, Inc. and the offering, you may obtain a prospectus by submitting requests to Ms. Kathy Innis, Friedman, Billings, Ramsey, 1001 19th Street, North Arlington, Virginia, 22209.

 

Resource America, Inc. is an asset management company that uses industry- specific expertise to generate and administer investment opportunities for its own account and for outside investors in the energy, financial services, real estate and equipment leasing industries. For more information please visit our website at www.resourceamerica.com or contact Investor Relations at pschreiber@resourceamerica.com.

 

Statements made in this release may include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release.

 

CONTACT: Resource America Inc., Philadelphia

Pamela Schreiber,

215-546-5005

Fax: 215-546-5388

 

[headlines]

### Press Release #####################################

Doug Cain joins GMAC Commercial Finance’s Equipment Finance Division

 

 

SOUTHFIELD, Mich.— GMAC Commercial Finance (GMAC CF), part of General Motors Acceptance Corporation (GMAC) since 1999, announces that Doug Cain has recently joined the company’s Equipment Finance Division’s (EFD) legal team as vice president/counsel based in the Atlanta, Ga. office.

 

Cain most recently served as AVP counsel for ORIX Financial Services for the past three years. At ORIX, Cain worked on a wide range of commercial finance and syndications matters, including lending and leasing transactions involving various asset classes. Prior to joining ORIX, Cain spent two years with Peachtree Franchise Finance representing lenders in secured lending transactions involving franchise restaurants, gas stations and convenience stores.

 

Cain is a graduate of Emroy University School of Law and holds a J.D. degree.

 

GMAC Commercial Finance, considered a leader in its segment of the financial services market, provides asset-based lending, equipment finance/leasing, structured finance and factoring services to a wide variety of middle-market clients in diverse industries. Loan facilities are in the $1 million to $200 million range. With locations in the United States, Canada, Hong Kong and the United Kingdom, the Company is positioned to provide lending services worldwide.

 

GMAC Commercial Finance is part of GMAC Financial Services. GMACFS has been a wholly owned subsidiary of General Motors Corporation since 1919. Located in Atlanta, Ga., the Equipment Finance Division can be reached at 678 553-2700.

 

 

Sites of Reference:

http://gmaccf.com

 

CONTACT:

Kim Rutherford

GMAC Commercial Finance

Phone Number: 248.358.8322

Fax Number: 248.350.2733

E-mail: krutherford@gmaccf.com

 

[headlines]

### Press Relese #####################################

Patriot Commercial Leasing Company, Inc. Appoints Donna M. Wesemann Sales Manager

 

POTTSTOWN, Pa. - - Patriot Bank (Nasdaq: PBIX) announced the appointment of Donna M. Wesemann as sales manager of Patriot Commercial Leasing Company, Inc.  In this role, Wesemann will lead the company's sales development efforts, including management of sales and marketing.

 

A graduate of Hallahan Catholic High School, Philadelphia, Pa., Wesemann attended Pennsylvania State University and has taken finance courses through the Pennsylvania Bankers Association.

 

Wesemann has over 20 years experience in the leasing industry. She joined Patriot Commercial Leasing in 1999 and has been its top producer for the last four years. Prior to joining Patriot, Wesemann was vice president and sales manager, National Penn Bank, Boyertown, Pa., and vice president, American Business Leasing, Bala Cynwyd, Pa.

 

Wesemann resides Blue Bell, Pa.

 

Patriot Bank Corp. is a full service financial institution with 17 branches in Montgomery, Berks, Lehigh, Northampton, and Chester counties. In addition to its strong consumer retail banking services, Patriot Bank specializes in business banking needs, providing a wide range of commercial banking products and personalized service to small and medium-sized businesses. Patriot Bank offers a full line of checking, savings, loan and investment products for both consumer and business needs.

 

Contact: Ken Collins, President

Patriot Commercial Leasing Company, Inc.

610-705-4999

www.patriotbank.com

 

[headlines]

 

News Briefs---

 

Oil Prices Surge; Gas Prices Hit Record

http://www.washingtonpost.com/wp-dyn/articles/A35177-2004May18.html

 

Consumers win Supreme Court bankruptcy rulings

http://www.signonsandiego.com/news/business/20040517-1401-scotus-bankruptcy.html

 

National Housing Survey Shows that Key ‘Gaps’ Pose a Challenge to Expanding Homeownership

http://www.hispanicprwire.c Consumers win Supreme Court bankruptcy rulings

http://www.signonsandiego.com/news/business/20040517-1401-scotus-

bankruptcy.htmlom/news_in.php?id=2212&cha=14

 

UPS shipping data provide a real-time look at economy

http://www.ajc.com/business/content/business/0504/16ups.html

 

Offshoring of U.S. jobs accelerating, researchers say

http://www.usatoday.com/money/companies/management/2004-05-17-more-outsourcing_x.htm

 

Japanese Economy Grew 1.4 Percent in 1Q

http://www.washingtonpost.com/wp-dyn/articles/A35287-2004May18.html

 

Sheldon Adelson Opens Casino in Macau

http://www.washingtonpost.com/wp-dyn/articles/A35290-2004May18.html

 

[headlines]

-----------------------------------------------------------------------------------------------

Sports Briefs---

 

Unwelcome home/Sharks pushed to brink of elimination

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/05/18/SHARKS.TMP

 

Madhouse and Wade Inspiring the Heat

http://www.nytimes.com/2004/05/18/sports/basketball/18heat.html

 

Shannon Sharp Replaces Deion Sanders on ``The NFL

http://www.theredzone.org/news/showarticle.asp?ArticleID=1157

 

Another day of Giants' bloopers—Skip Bayless

http://www.mercurynews.com/mld/mercurynews/sports/columnists/skip

_bayless/8685234.htm?1c

 

[headlines]

------------------------------------------------------------------------------------------------

“Gimme that Wine”

 

Owner of Château Lafite Proposes a Deal That Would Give It a Napa Valley Presence

   ----Frank J. Prial

http://www.nytimes.com/2004/05/18/business/18wine.html

 

Domaine Drouhin Oregon to Open to the Public

http://www.winespectator.com/Wine/Daily/News/0,1145,2461,00.html

 

Beringer Vineyards Introduces Bilingual Label for America's Top-Selling Bottled Wine

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news

_view&newsId=20040517005311&newsLang=en

 

Mouton-Rothschild Owner Buys Neighboring Bordeaux Estate

http://www.winespectator.com/Wine/Daily/News/0,1145,2473,00.html

 

French wine producers outraged at TV criticism of industry

http://news.scotsman.com/entertainment.cfm?id=561752004

 

Screw caps return, as wineries work to put a lid on cork taint

http://www.modbee.com/columnists/moran/story/8574790p-9431658c.html

 

New Stemware Accessory Offers Solution to Dishwasher Dilemma

( however not recommend for Reidel and other special wine glasses)

http://www.winespectator.com/Wine/Daily/News/0,1145,2463,00.html

 

Online New Wine Appreciation Class Available

http://www.vino.com/press/press_release.asp?PRID=338

 

[headlines]

-------------------------------------------------------------------------------

This Day in American History

 

((  fyi 1291- Acre, the last territory in Palestine taken by the first Crusaders, fell to invading Moslem armies. It signaled the end of a Christian "military presence" in the Near East. (Afterwards, friars sought to spread the gospel by preaching instead.) )

    1631 -The General Court of the Massachusetts Bay Colony decreed that 'no man shall be admitted to the body politic but such as are members of some of the churches within the limits' of the colony. (Separation of church and state was an unthinkable concept in early American colonialism. In contrast to what is taught in schools, most were not

escaping for religious freedoms, but were missionaries with strong prejudices against

other religious groups except for their own.)

    1652- Rhode Island enacted a slavery emancipation law: “No blacken mankind or white...(maybe) forced by covenant bond or otherwise to serve any man or his assignees longer than ten years, or until they come to be 24 years of age, if they be taken in under 15, from the time of their coming within the Liberties of the Colonies, and at the end of termed of ten years...( are to be set) free, as is the manner with the English servants. And that man that will not let them goe free, or shall sell them elsewhere, to that end that they may be enslaved to others for a long time, he or they shall forfeit to theColonie forty pounds.”

    1766- The Church of the United Brethren in Christ was organized in Lancaster, PA, under the leadership of Martin Boehm, 41, and Philip William Otterbein, 39. (It became a branch of the Evangelical United Brethren in 1946.)

    1798 - The first Secretary of the U.S. Navy was appointed. He was Benjamin Stoddert.

      http://www.history.navy.mil/bios/stoddert.htm

     http://www.mariner.org/usnavy/05/05d.htm

    1827 -- US: Josiah Warren opens his first Time Store in Cincinnati, Ohio — the first commercial cooperative. Warren, Josiah, 1798–1874, American reformer & anarchist, b. Boston. An early follower of Robert Owen, he soon rejected Owen's political socialism, advocating instead anarchy based on “the sovereignty of the individual.” Warren founded several “equity” or "time" stores, with the idea of exchanging goods for an equivalent amount of labor & on the principle that cost should be the limit of price. He also established three utopian colonies; the most successful was Modern Times (1851–c.1860) , Long Island, N.Y. (now Brentwood). The most important of his publications was True Civilization (1863, 5th ed. 1875).

http://faculty.evansville.edu/ck6/bstud/warren.html

See "The Lemonade Ocean & Modern Times" by Hakim Bey,

http://www.evolutionzone.com/kulturezone/bey/lemonade.ocean.and.modern.times.html

http://www.blancmange.net/tmh/articles/manifesto.shtml
http://www.blackcrayon.com/people/warren/

    1852- Massachusetts rules all school-age children must attend school
    1860 --Republican Party nominates Abraham Lincoln for president     1863- A new sport became available to Americans  with the introduction of roller skating by James L. Plimpton. Plimpton invented the four-wheel skate, which worked on rubber pads, thus permitting skaters to change direction by shifting their weight to one side or the other without lift the wheels of the skate off the ground.  Roller skating became fashionable in New York City and soon spread to other cities.  In Newport, R.I., the Roller Skating Association leased the Atlantic House and turned its dinning room and plaza into a skating  rink.  In Chicago, the Casino could accommodate 3000 spectators and 1000 skaters.  In San Francisco, a rink advertised 5000 pairs of skates available for rent.     1872 -- Bertrand Russell born (1872-1970), Trelleck, Wales.  Philosopher, mathematician & social critic, one of the most widely read philosophers of this century. Awarded Nobel for Literature, 1950. Outspoken pacifist, imprisoned during WWI. Abandoned pacifism during WWII, but was a leading figure in the antinuclear movement. Imprisoned in 1961 for taking part in a demonstration in Whitehall. A pioneer of logical positivism. I took a course from him at UCLA and have read most of his books.
http://www.mcmaster.ca/russdocs/russell.htm http://www.kirjasto.sci.fi/brussell.htm
http://www.sci.fi/~phinnweb/links/philosophy.html
    1896- Plessy v. Ferguson: the Supreme Court ruled separate-but-equal facilities constitutional on intrastate railroads. For fifty years, the Plessy v. Ferguson decision upheld the principle of racial segregation. Across the country, laws mandated separate accommodations on buses and trains, and in hotels, theaters, and schools. http://memory.loc.gov/ammem/today/may18.html
    1911-Blues Shouter Big Joe Turner born Kansas, City, Mo
    1912—Perry Como Birthday
    1922-Trombonist Kai Winding born Aarhus, Denmark
    1927 - Grauman's Chinese Theater on Hollywood Boulevard was opened, the first of the Fox chain of movie theaters. The lavish 2,200 seat theater cost $1 million to build. Its first film was shown on this date, Cecil B. DeMille's King of Kings, at the high price of $2.00 per seat. It was later renamed Mann's Chinese Theater.
    1927 --  Bath, Michigan School Disaster. Andrew Kehoe, seeking revenge against the community for taxes imposed on his farm to pay for a new school, set off a TNT bomb in the school, killing 43 people, including 39 grade-school children. After the explosion, Kehoe killed his wife, then drove his truck back, loaded with dynamite & nails, to the school, & set it off, killing himself & the school superintendent.

    1931-Bix Biederbecke joins Casa Loma Band for a date at Metroplitan Hotel, Boston.

    1944- the Allies Captured Monte Cassino ( you may remember the movie ).  There had been five Allied attempts to take the German position at The Benedictine abbey at Monte Cassino.  Although the abbey had been reduced to rubble, it served as a bunker for the Germans and they could relay all activity in the area to airplanes and giant cannot attacks. In the spring of 1944 Marshal Alphonese Pierre Juin devised an operation that crossed the mountainous regions behind the fortress like structure, using Moroccan troops of the French Expeditionary Force. Specially trained for mountain operations, they climbed 4,850 feet to locate a pass.  On May 15, 1944, they attached the Germans from behind. On May 18, Polish troops attached to this force took Monte Cassino.

    1946---Top Hits

All Through the Day - Perry Como

The Gypsy - The Ink Spots

Shoo Fly Pie - The Stan Kenton Orchestra (vocal: June Christy)

New Spanish Two Step - Bob Wills

    1952 -- US / Canada: Which Side Are You on? Paul Robeson, in dramatic defiance of government’s ban on his leaving US soil, standing on a flatbed truck parked one foot inside the US border at the Peace Arch, in Blaine, Washington, speaks and sings to a crowd of 40,000 Canadians & Americans gathered on both sides of the border.

(My father Lawrence Menkin was a recipient of the Paul Robeson Award for

producing and writing “Harlem Detective” in the early 1950’s for WOR-TV)

http://www.bayarearobeson.org/Chronology_7.htm

    1953 - The first woman to fly faster than the speed of sound, Jacqueline Cochran, piloted an F-86 Sabrejet over California at an average speed of 652.337 miles-per- hour.

    1954---Top Hits

Wanted - Perry Como

Little Things Mean a Lot - Kitty Kallen

If You Love Me (Really Love Me) - Kay Starr

I Really Don’t Want to Know - Eddy Arnold

    1957-The Chicago White Sox and the Baltimore Orioles played a 1-1 tie, a game called precisely at 10:20pm so that the White Sox could catch a train out of Baltimore.  The Orioles’ Dick Williams hit a home run on the game’s last pitch to tie the game and avoid defeat.  The game was replayed from the beginning at a later date, and Baltimore won.

    1962---Top Hits

Soldier Boy - The Shirelles

Stranger on the Shore - Mr. Acker Bilk

She Cried - Jay & The Americans

She Thinks I Still Care - George Jones

    1965 -- Outer Space: Gene Roddenberry suggests 16 names -- including Kirk -- for Star Trek Captain. It will never fly say some. And small hand held devices that

you can talk as if you are on a telephone anywhere, who would believe it. In

the Next Generation they were on the shirt that you could turn on with a touch

or vocal command.

    1969- Apollo 10  began their orbit to circle the moon ten times.

    1969 -- The Klamath tribe wins $4.1 million for loss of Oregon lands during fraudulent government surveys in 1880s.  

    1970---Top Hits

American Woman/No Sugar Tonight - The Guess Who

Vehicle - The Ides of March

Cecilia - Simon & Garfunkel

My Love - Sonny James

    1974 - "The Streak" started a 3-week run at number one on the "Billboard" pop music chart. The novelty tune by Ray Stevens was about people running nekkid where they shouldn’t be nekkid, like, in public. It was the second number one hit for the comedian who made numerous appearances on Andy Williams’ TV show in the late 1960s, as well as his own show in the summer of 1970. His first number one hit, just prior to "The Streak", was "Everything is Beautiful". Both songs won gold records, as did his comedic "Gitarzan", a top ten hit in 1969. Stevens has been the top novelty recording artist of the past three decades.

    1978---Top Hits

If I Can’t Have You - Yvonne Elliman

The Closer I Get to You - Roberta Flack with Donny Hathaway

With a Little Luck - Wings

It’s All Wrong, But It’s All Right - Dolly Parton

    1978- The Buddy Holly Story, a film starring Gary Busey as Holly, has its world premiere in Dallas. The movie will be a critical and commercial success.

    1980 - 9,677-foot Mt. St. Helens, quiet for 93 years, blew its top. The volcanic blast was five hundred times more powerful than the atomic bomb that leveled Hiroshima. Steam and ash erupted more than eleven miles into the sky and darkened skies in a 160-mile radius. Forest fires erupted around the volcano and burned out of control. The eruption, and those that followed, left some sixty dead and caused damage amounting to nearly three billion dollars.

http://vulcan.wr.usgs.gov/Imgs/Gif/Pictograms/may18_sequence.gif

    1982 Unification Church founder Reverend Sun Myung Moon convicted of tax evasion

    1986---Top Hits

Greatest Love of All - Whitney Houston

Why Can’t This Be Love - Van Halen

What Have You Done for Me Lateley - Janet Jackson

Ain’t Misbehavin’ - Hank Williams, Jr.

    1987 - Thunderstorms in Kansas, developing along a cold front, spawned tornadoes at Emporia and Toledo, produced wind gusts to 65 mph at Fort Scott, and produced golf ball size hail in the Kansas City area. Unseasonably hot weather prevailed ahead of the cold front. Pomona NJ reported a record high of 93 degrees, and Altus, OK, hit 100 degrees.

    1988- A's Dave Stewart breaks a major league record committing his twelfth balk of the season.

    1990 - Thunderstorms produced severe weather in the central U.S. spawning a sixteen tornadoes, including a dozen in Nebraska. Thunderstorms also produced hail four inches in diameter at Perryton TX, wind gusts to 84 mph at Ellis KS, and high winds which caused nearly two million dollars damage at Sutherland NE. Thunderstorms deluged Sioux City IA with up to eight inches of rain, resulting in a record flood crest on Perry Creek and at least 4.5 million dollars damage.

    1991-Gertrude Belle Ellon, co-recipient of the 1988 Nobel Prize in Medicine, became the first woman inducted as a member of the National Inventors Hall of Fame.  Elion’s researched to the development of leukemia-fighting drugs and immunosuppressant Imuran, which is used in kidney transplants.

    1992 - The CBS season finale of TV sitcom Murphy Brown aired, with the title character, played by Emmy-winner Candice Bergen, giving birth to an illegitimate son. Vice President Dan Quayle publicly lambasted the comedy, saying that the program "glorified" single-parenthood, and that it made a mockery of families with fathers. He went on to comment that "Murphy Brown" lacked the judgment to be a proper role model for young women, and that her actions were immoral. Despite the national unpopularity of his criticisms, Quayle did not back down from his stand against the popular show, providing fodder for many stand-up comics.

    1997 Tiger Woods wins Byron Nelson Golf Classic

    2000- Mark McGwire passes Mickey Mantle into eighth place on the all-time home run career list with 539. 'Big Mac' goes deep three times as the Cardinals beat the Phillies, 7-2.

 

    Stanley Cup Champions This Date

 

     1971---Montreal Canadiens

[headlines]

---------------------------------------------------------------------------------------------------------

Baseball Poem

Crouching low, I sing the blues

The aches are now a part of me

Blocking home, I sing the blues

0, the aches are now a part of me

Bruises, bumps, and scrapes

Have worn me down, can't you see?

 

My knees sing the blues

They sing 'em when I stoop and bend

My knees sing the blues

0, they sing 'em when I stoop and bend

They crunch, crackle, pop

The hurtful noises never end.

 

My fingers sing the blues

When I grip a ball or make a fist

0, my fingers sing the blues

When I grip a ball or make a fist

The knuckles moan and cry

By fire every one is kissed

 

Crouching low, I sing the blues

The aches are now a part of me

Blocking home, I sing the blues

0, these aches are now a part of me

Too many bruises, bumps, and scrapes

I'm nothing like I used to be.

 

No, nothing like I used to be

[headlines]