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Kit Menkin's Leasing News www.leasingnews.org
Thursday, September 19, 2002 Accurate, fair and
unbiased news for the equipment Leasing Industry Wednesday’s Leasing
News posted www.leasingnews.org at
1:15pm PDT ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- e-Mail Removal
Form: \http://65.209.205.32/LeasingNews/removalform.asp ----------------------------------------------------------------------------- Pictures from the Past
------------------------------------------------------------------------------------------------ Help Wanted ads Classified Ads: http://65.209.205.32/LeasingNews/JobPostingsWanted.htm Credit:Atlanta,Irvine, Portland, Scottsdale-. "UAEL" Please e-mail Resume
to: QuintonBerry@CapitalWerks.com including salary range, industry strengths,
and desired location Credit: Tustin, CA
"UAEL" Credit/Documentation: Tustin Calif. Looking for credit and
documentation person. Full or par- time available. Will train. Contact
Barbara 714- 573-9804 or Email bgriffith@socalleasing.com Credit: New York, CT
"ELA" Looking for Credit people who are willing to relocate for
the right position. We have different opportunities for each skill set.
Email:hgolden@tmdg.com Customer Service: Marshall, MN "UAEL" New Customer Service Management position to supervise a team
of representatives regarding current accounts and invoicing questions.
Ensures correspondence handled efficiently and in timely manner. Email:tom.landmark@themanifestgroup.com Documentation:Atlanta,Irvine, Portland, Scottsdale-. "UAEL" -Please e-mail Resume to: QuintonBerry@CapitalWerks.com including
salary range, industry strengths, and desired location . Funding: Atlanta,Irvine, Portland, Scottsdale- . "UAEL" Please e-mail Resume to: QuintonBerry@CapitalWerks.com including
salary range, industry strengths, and desired location Headlines--- Alert--Hiram Communications-- Alert News
Stories we are working on--- eLNA
Drops The "e"- The Lessors Networking Association Explosion
in Refinancing Leaves Lenders Swamped Banks
call neighbors to locate debtors--Wells Fargo Reaction
to "I Regret Sitting for the CLP Exam Next Month" CVB
Financial Announces 52nd Consecutive Cash Dividend Kozlowski
Can't Make Bail???? Sell One of Your Van Gogh's Amtrak
Chief Proposes More Cuts---Truckers Happy! Silicon Valley
Security Expert & CEO Says Government Can Secure Internet ### Denotes Press Release _______________________________________________________________________ Alert--Hiram Communications--- Alert Please advise all Leasing Companies to beware of a vendor
who goes by the name of "Hiram Communications". Address is: 6217 St Clair Avenue Cleveland,
OH 44103 ph:
216/426-9100 There is no such vendor and they are using cell phones to
operate a phony business. The
applications submitted have phone numbers that refer you to a cell phone
voice mail. We even caught the
guy pretending to be a bank for a bank reference by answering his cell
phone in his car as Dollar Bank in Cleveland. Another app received had
a Sterling Bank listed as a bank reference.
When called it was of course a cell phone and some guy named Brian
answered the phone as Sterling Auto Sales.
The supposed sales manager/owner is someone named Mike (no
last name). Hiram Communications e-mail address is : sales@hiramcommunications.com Recommend all small ticket lenders beware of this vendor. ( Name With Held ) ------------------------------------------------------------------------------------------------------- In Case You Missed this Free Report---Excellent say our readers: http://www.leasingnews.org/PDFFiles/study_leasing.pdf =============================================================== $1,993,500,000 Loss http://biz.yahoo.com/fin/l/c/cit.html http://biz.yahoo.com/e/l/c/cit.html Stock Report: http://finance.yahoo.com/q?s=CIT&d=t ------------------------------------------------------------------------------------------------------ Eric with his daughter
Riley, 1 ½ years old at the time the picture was taken. She
is two years old today. Eric Sidebotham: I'm a Southern California native and attended California
State Long Beach, graduating with a degree in Business Finance in June of 1992.
Upon graduation, I made contact with Balboa Capital via an on-campus
interview. That was the beginning of my career in equipment leasing
that now spans ten years. Specific to Balboa Capital, I was hired as an account executive
and completed a comprehensive sales training program. In the beginning, my compensation was comprised of a modest base salary and a
commission program that increased progressively based on performance. During my tenure at Balboa Capital, I set company records
for gross margin production, residual income, and customer satisfaction.
I wrote over 2,000 individual leases personally and my personal income grew
well into the six-figure range. As
would be expected, this income was derived principally from commissions paid upfront on commenced lease
transactions and on realized residual income. In April of 2000, I realized a lifetime goal of becoming
a small business owner when I started Genesis Commercial Capital with two
partners. Despite the recent challenges of the equipment leasing industry and
the U.S. economy, we've built a consistently profitable business with
15 total employees and a bright future. As a partner at Genesis Commercial Capital, I remain actively involved in selling small ticket leases.
Additionally, I am the acting sales manager and get involved with all business
matters, no matter how big or small.
My compensation is now completely dependent on the profitability of Genesis Commercial Capital. Eric Sidebotham Joining Eric will be: Jim Raeder http://www.leasingnews.org/articles.doc/Raeder_bio.htm Ignacio Sanchez http://www.leasingnews.org/articles.doc/Sanchez_bio.htm Richard Shapiro http://www.leasingnews.org/articles.doc/Shapiro_bio.htm Tony Sherwin http://www.leasingnews.org/articles.doc/Sherwin_bio.htm October 5, 2002
San Diego United Association of Equipment Leasing Annual
Conference and Exhibition "Top
Gun" 45 Exhibitors---Including
Larry Grant at Transportation Alliance Bank (This
fellow is hot!!!) Leasing News will
present two workshops 9:45am "Top Gun Salespeople" 11:00am "Tom Gun " Sales Managers "Top Gun" Salesmen continually earn over $250,000
a year, according to their W2. Get a clear picture of how they got started, what propels them each step of the way to becoming a "partner"
and also earning the profits and net worth of the company.
What makes them different, how do they approach sales, none have appeared in a conference workshop before. www.uael.org ------------------------------------------------------------------------------------------------------- News Stories we are working on: MSM Capital, Irvine, CA 93 page bankruptcy filing lists $1.25 million
owed to creditors for deposits. Are these “Advance Rentals” or “Security Deposits.” MSM Capital was not returning Advance Rentals for over a year, according
to complaints Leasing News received. Also
the reason for their demise: earnings. The BK filings signed by president Mike Cingari speaks for itself;
no defense. for not paying personal property taxes, employees, funding
sources, and keeping advance rentals for over a year. American Medical Capital, Southern California, Looks like Tony Rico not only stiffed brokers, vendors, but
received over $1.4 million in fundings that “disappeared.” Creditors include Sovereign, Heartland, Citicorp. We are trying to get statements. So
far they aren’t talking. In up-dating our “eLease” section, there are four companies
having major cash flow problems. One barely made it through June,
and needed the new funding.
Two have recently changed their name and direction, for good reason ( lack of income), another with
“finance” in its name is reportedly having some real serious problems, one
major software company who changed presidents this year may be going under
sooner than they expect, and as we try to get some confirmations,
we will be up-dating this section.
Two years ago there were almost three dozen. We haven’t been putting them on the list as we have
been only mentioning leasing companies. We hope to beat one with
their “press release” announcement. Direct from “insiders” worried about
their next job—not gossip. Several superbrokers are not returning advance rentals, telling
the applicants they don’t have the money---they spent it. We are about to break news with two of them, maybe this week. Times are getting tougher and
more and more brokers/superbrokers are getting “desperate.” We get hackers. We get listed as Spam. Companies don’t like us telling the truth or “making” super brokers and lessors
return advance rentals or being listed on our Alert or Bulletin
Board. We are up, then down, but you can always read Kit Menkin’s
Leasing News at www.leasingnews.org
We post Monday through Friday ( except for Holidays). We hope to move to a Unix Sun Cobalt computer with new software,
under its third day of testing before we migrate. If e-mail comes back, or I don’t respond, you can always
reach me at kitm@aol.com (since AOL first started 1989 or 1990, always there; reliable.)
I prefer kitmenkin@leasingnews.org as I don’t
use the instant messenger and may not check messages until at home. Editor ------------------------------------------------------------------------------------------------------------ ### ###################################################### eLNA Drops The "e"- The Lessors Networking Association
(Network Newswire)
Atlanta, GA - Lessors.com, Inc. has completed the merger between the eLessors
Networking Association (eLNA) and The Lessors Network. Effective immediately,
the eLessors Networking Association has changed its name to the Lessors
Networking Association (LNA) to more accurately reflect the networking
culture of its membership, programs and events. (Another example of the
demise of eLease companies.Editor ) The Lessors Network is an equipment leasing portal, facilitating
free access to news, information, products and services from different
Internet sources. The Lessors Network web site has been rated as one of
the most highly trafficked equipment leasing sites on the Internet and
is expected to provide LNA members extraordinary exposure and access to
a global audience. Lessors.com, Inc. is now accepting bids for the URL, www.eLessors.com.
About The Lessors Networking Association (LNA) The Lessors Networking Association (LNA), the only industry
association to actually limit membership and event attendance, represents
an elite group of senior business executives from the equipment leasing
and technology business sectors. (It also is the only “privately owned and operated” network
association. Editor) ############## ############################################# -------------------------------------------------------------------------------------------- Explosion in Refinancing Leaves Lenders Swamped By Sandra Fleishman Washington Post Staff Writer It's official: America is in the middle of the biggest mortgage-refinancing
wave ever. Driven by record-low interest rates, an "unprecedented"
number of people have applied to refinance during the past eight weeks,
the Mortgage Bankers Association of America said yesterday. The "massive wave" of applicants "now surpasses
the refinance wave that we experienced last October and November,"
the time of the previous high, said Phil Colling, an economist with the
association. The boom is saving homeowners money but stretching the resources
of the lending industry and such related industries as appraisers, title
companies, surveyors and even messenger services. Some homeowners looking for loans complain of not getting
calls returned. Bankers, brokers, title firms and surveyors say they are
doing their best, working longer hours and adding temporary staff. Surveys by the mortgage bankers and other groups that follow
the lending industry have found rates at or near 40-year lows for several
weeks, with 30-year loans available for around 6 percent. A tenth of a
percentage point shift in the interest rate on a $100,000, 30-year loan
means a difference of about $7 a month in the payment. "We're definitely stretched," said Charles N. Vance,
area manager for Wells Fargo Home Mortgage Inc., which is tied with Washington
Mutual Inc. as the nation's biggest originator of home loans. "Everything in the whole industry is backed up,"
said Jonathan Levy, vice president of Professionals Title & Escrow
Co., based in Rockville. While most firms are trying to hire and train new workers,
industry players said they are benefiting this go-round from advances
in computer technology that speed up processing and approval. "In some cases, you can get an approval right off the
laptop," Vance said. New loan programs also allow borrowers to skip some steps
in the refinancing process. For instance, if existing Wells Fargo customers have good
credit and want to refinance without taking out any cash, many are eligible
for a "TimeSaver Refi," which does not require an appraisal
or a full credit check. The mortgage bankers group expresses the number of refinance
applications as an index, rather than as a raw number. The group reported
yesterday that the refinance index for the week ended Sept. 13 was above
4,000 for the eighth consecutive week. That's the same number of weeks as during last fall's record
boom. But the index this time has exceeded 5,000 for six of the last eight
weeks and went above 6,000 two weeks ago. In 2001, the index exceeded 5,000 only three times. (The
index and the group's other loan-application indexes equaled 100 in March
1990.) Mortgage industry players say one difference in this boom
is that borrowers have jumped back into line again and again as interest
rates have dropped because of the availability of "no cost"
loans. "Several borrowers have been back to me seven times
over the last two years to refinance because they are in programs where
the lender is paying for it all," Levy said. Demand is so high, he said, that settlements are being held
all month. In the past, borrowers tried to close near the end of the month
to save on interest. Levy's Rockville branch is doing 10 to 20 closings
a day. The good times for borrowers will continue as long as the
economy remains sluggish and there are no signs of inflation, Colling
said. Even if interest rates go lower, he said, he doesn't see
how loan applications could increase, "because there are just so
many applications that companies can take." He added, "There are only 24 hours in a day, there are
only so many people taking applications out there, and companies can only
hire so many temporary people to help." Bureau of Labor Statistics data show dramatic growth in the
mortgage banking and brokerage industry. Preliminary estimates for August
show 377,000 employees -- about 2,000 more than estimated for July and
17,000 more than in April. A year ago, the total was 335,500. --------------------------------------------------------------------------------------------------- Banks call neighbors to locate debtors Concord woman files a police complaint about the action by
Wells Fargo By Janet Adamy CONTRA COSTA TIMES Sally Johnson thought the call she got from Wells Fargo last
month was a hoax. After confirming that Johnson lived next door to one of the
bank's customers, a Wells Fargo representative politely asked her to ask her neighbor to
call the bank. The representative wouldn't say why -- just that the matter
was urgent and private. Johnson refused. Suspicious that the caller wasn't really
from Wells Fargo, she called the bank's main toll-free number. Even the
person who handled her call didn't think Wells Fargo would do something
like that, Johnson said. But the call turned out to be legitimate. The practice is
a standard way of tracking down elusive debtors that Wells Fargo, Bank
of America and independent debt collection agencies have used for several
years. The banks say they enlist neighbors as a last resort when
they can't contact customers who are not paying their bills. They stress
that they don't tell the neighbor they're calling about bill collection
because that is prohibited by federal and state law. But Johnson and privacy advocates say the calls are an infringement
on both parties' privacy, as well as an unfair imposition on neighbors. "I think they were trying to get me to work for them
without being paid," said Johnson, a Concord resident. "I shouldn't
be knowing that the Wells Fargo bank wants to talk to these people." Even though the Wells Fargo caller insisted he wasn't a bill
collector, the call made Johnson wonder whether her neighbors had debt
problems. One consumer advocate questions whether calling neighbors
falls within the scope of federal and state laws that govern bill collection.
Under the Fair Debt Collection Practices Act, bill collectors are allowed
to call a third party to confirm or correct the debtor's location. "I don't think going over to give you a message fits
that rule," said Linda Sherry, a spokesperson for Consumer Action,
a San Francisco-based consumer advocacy group. The federal act -- it mirrors
state laws governing debt collection -- doesn't directly address having
a neighbor relay a message from a collector. But Ron Sargis, legal counsel for the California Association
of Collectors, said that as long as the collector is using the neighbor
to help locate the debtor -- perhaps the customer isn't responding to
letters -- it stays within the scope of the law. Enlisting third parties to be "junior debt collection
agents," however, probably falls on the wrong side of that act, he
said. Calling neighbors is not something that banks and collection
agencies do often. Sargis estimate that only about 2 percent to 3 percent
of collection accounts necessitate a call to a neighbor. But with 54 million
accounts assigned to debt collection in California annually, according
to Sargis' research, that's about 1 million neighbor calls each year. Part of the reason collectors seldom use the tactic is because
it costs money to find and call neighbors. The banks would not detail how they find neighbors, but consumer
advocates say they probably use reverse directories that organize phone
numbers by address or information brokers that private investigators and
attorneys use to find people. Wells Fargo said it only uses databases of public information. The banks would not detail what the threshold is for resorting
to a neighbor call. They did say they don't do it often. Not all banks do this. Washington Mutual doesn't ask neighbors
to relay messages, a spokesman said. And Citibank said it only asks neighbors
to verify the customer's address and phone number, but doesn't ask them
to deliver messages, a spokesman said. Debt collection isn't the only time banks rely on neighbors
to find their customers. A Wells Fargo representative said the bank may
use it to find a person who has received an inheritance. "It's kind of similar to if you've got a FedEx delivered
and you're not home," said Wells Fargo spokeswoman Donna Uchida.
"Sometimes they leave it with a neighbor." Wells Fargo and BofA would not give details on how effective
the neighbor calls are. They also offered few specifics on the number
of complaints they generate. A Wells Fargo spokesman said that information
is proprietary, but that Johnson's complaint was the first he was aware
of. A BofA spokeswoman said the department that handles the practice
doesn't track complaints, but that she suspected neighbors may not be
happy about getting the calls. Johnson was so upset when Wells Fargo called her that she
filed a complaint with the Concord police alleging the bank invaded her
privacy. And she doesn't understand why Wells Fargo couldn't use one of
its own workers to pass the message along. There's a bank branch located
one-quarter mile from her home. "They're all over the place," she said. -------------------------------------------------------------------------------------------------------- " I Regret Sitting for the CLP Exam Next Month" from the $4,000
a Day Lease Trainer Popular Newsletter “Lease Training for the Leasing Professionals” http://executivecaliber.ws/sys-tmpl/clp/ Jeffrey, I received your newsletter this morning. I enjoy
receiving it and find it informative
and very worthwhile publication.
As the current President of the
CLP Board of Directors, I took an exceptional interest in your article on the
CLP program and feel compelled to make a few comments. How can you regret
something you've yet to experience? The Lease Professionals Handbook
is only one source of information. One of the problems the Foundation
faces is the "fear factor" of taking the test and your article feeds
that mentality. We openly admit that the test and the educational material
is outdated and needs to be improved. We are not perfect in any way
but it is the start of something good which I and many feel strongly committed
to. A major task of the Foundation is underway in re-writing the test.
We are currently gathering all the lease education material we can for
our "library" so the Foundation can be a more complete reference source.
We would be extremely fortunate to have you be a part of the test re-write
project and invite your participation. In many conversations over
the years with ELA, their position has been "when the program becomes accepted
by more people and the industry, we will become involved". There
are many people working hard on that effort. We look forward to you being
a Certified Lease Professional and thank you for your support. Coincidentally,
I also received an email this morning from Cliff McKensie on the CLP
program. Please note his message. James R. Lahti, CLP Affiliated Corporate
Services, Inc. 1550 Waters Ridge
Road, Lewisville, TX 75057 972-221-7335, Fax:
972-221-7336 Austin Area Office:
10804 Ridgeway, Suite 100, Jonestown, TX 78645 512-267-5445, Fax:
512-267-5443 From: "Cliff
E. McKenzie, CLP" <FinanciaLogic@msn.com> To: "'Jim Lahti'"
<jrl@acsitx.com>; <CWSpurdle@msn.com> Jim, Thank you for your
time in getting the meeting set up. In regards to CLP,
I would like to share: Certified Leasing
Professional (CLP) is the only title in the entire industry of finance that recognizes those few people who
have strived to be the best in the
leasing industry. As the head of a
FinanciaLogic, Inc. a company that sets atop 4 major credit arms/financial relationships, it is important that
those major companies believe that they
have hired the best person possible to lead their sales effort and be entrusted
with the greatest asset - their customer base. The CLP provides that certification. In addition to FinanciaLogic,
I also lead FinanciaLogic Consulting Services, Inc.. This
company provides expert review and testimony as to what is and what is not a lease.
These services usually terminate with depositions and trial. As a CLP, the courts consider me an expert
in my field. The question I would
ask anyone in our industry that does not have the CLP is simple. In competition, will the prospect believe you
have all the same talents as someone who has been certified? Passing thought,
is your accountant a CPA? Thank you for your
work on CLP program, Cliff --- I think that my friend Jeff Taylor is getting pre-examination jitters, just as every taker of the CLP examination has gotten.
In the two years that the CLP Foundation has been in existence much
has been accomplished by many dedicated volunteers. We are in the process of updating the examination, we are looking into an updated
and modular study guide and we are formulating new education programs.
I really do not believe that Jeff is sorry he is taking the exam.
I do know that he will feel better after he has completed it. The major reason that potential candidates do not follow through and sit for the
CLP exam is fear, fear of taking the test, fear of failing and fear of
the resulting embarrassment. The
examination has been and will continue to be a full day affair is to test the candidate's ability to react under
time pressure, the same pressure that is felt meeting with a customer
to close a transaction and being asked to explain the lease
terms, tax and accounting consequences and payment calculations. Those candidates who do not pass are more prepared and usually do much better
the second time around. The CLP Foundation
offers a mentor program whereby a candidate can take the examination confidentially with the assistance
of a mentor. We do not think CLP is for everyone, just those who are proud
of their achievements in the leasing industry, interested in furthering
their education and those who want to be recognized for the excellence
that the CLP confers. Steven B. Geller, CLP Leasing Solutions LLC 20 Dike Drive Wesley Hills, New York 10952 845-362-6106 fax 845-354-2803 cell 914-552-0842 --- Jeff, As a former CLP (I am no longer in the leasing industry)
I was interested by your article. When
the CLP exam was first instituted by WAEL, I felt privileged to have been qualified to sit for the first battery
of exams and was among the first eight CLPs so designated. It feels like that was back in 1890, though I think it was actually 1980. I remember acing the selection on lease law and collections as I actually wrote
that part of it. The following year, those of us who passed the exam were
asked by WAEL to conduct workshops on various topics and to assist in re-writing
the exam. Jeff Wong and I worked on the sections mentioned above. Back then I wore my CLP designation on my sleeve (at first
figuratively, and then literally after Ken Goodman had cufflinks designed for
us). I participated on the CLP committee and eventually made a contribution
to the Leasing Professional's Handbook (first addition, so I don't
know if my chapter is still in the current edition.) For years the designation meant little to any except those who either held it or those who
desired it. It was very ego-satisfying. Today there are many more than eight CLPs, many of whom include
my old cronies and most of whom are very active in the industry.
I had hoped the designation would have come to mean something, but from the
sound of your letter, I'm not sure it tests much more than one's ability
to recall various facts, and many of those having less meaning and being less
topical. Still, I wish you the best of luck in taking the exam. I believe that in order for some things to evolve, they require the assistance of those
who have vision, and they are often the ones who can say, "This cow is
not sacred. I can change it." As
a CLP, you can help make the designation more meaningful. I believe that people who care about their profession should
be as active in that profession as they can afford to be. I receive your newsletter and I know (aside from the money incentive) people train other
people because they are passionate about what they do. I believe you are that kind of a person. As a recruiter working in the financial arena, designations
make a difference. When
I introduce a candidate with a designation, whether it's a CLP, a CPA, a CMA, a CFA, or any of several others that apply
to their trade, I tell them to wear that badge proudly. So long as it has not been smeared, it is a major accomplishment, if for no other reason
than to show that we can deal with the pressure of sitting through a tough
exam long after we though we'd taken our last. Good luck, Hal Horowitz To learn more about the CLP Foundation, please go here: http://www.leasingnews.org/links_10.htm --------------------------------------------------------------------------------------------- CVB Financial Corp. Announces 52nd Consecutive Cash Dividend ( Golden West Financial is a specialty finance company, which
provides auto leasing, equipment leasing and real estate loan brokerage
services.) ONTARIO, Calif.--CVB Financial Corp. (Nasdaq:CVBF) announced
a fourteen-cent ($0.14) per share dividend for the third quarter of 2002. The dividend was approved at the regularly scheduled board
of directors meeting on Sept. 18, 2002. It will be payable on Oct. 17,
2002, to shareholders of record as of Oct. 2, 2002. "This is our 52nd consecutive quarterly cash dividend.
It reflects the continued superior performance of CVB Financial Corp.,"
stated D. Linn Wiley, president and chief executive officer of CVB Financial
and Citizens Business Bank. "We are pleased to be able to provide
our shareholders with this cash return on their investment." CVB Financial, with $2.8 billion in assets, operates Citizens
Business Bank, the largest bank with headquarters in the Southern California
Inland Empire region. The bank's Wealth Management Group based in Pasadena,
Calif. has nearly $1 billion in assets under administration. The company recently completed the acquisition of Western
Security Bank and the acquisition of Golden West Financial Services. Western
Security Bank was a single unit bank located in the Toluca Lake area of
Burbank, Calif. They had $149.2 million in total assets, $138.6 million
in deposits and $95.4 million in loans at the time the transaction was
completed on June 28, 2002. Golden West Financial is a specialty finance
company, which provides auto leasing, equipment leasing and real estate
loan brokerage services. Citizens Business Bank specializes in serving business and
professional clientele through 32 business financial centers in 25 cities
in the Inland Empire, Los Angeles County, Orange County and the Central
Valley areas of California. Shares of CVB Financial common stock are listed on the Nasdaq
under the ticker symbol of CVBF. For more information, visit the company's
Web site at www.cbbank.com. CONTACT: CVB Financial Corp., Ontario D. Linn Wiley, 909/980-4030 SOURCE: CVB Financial Corp. ############# #############################################
Kozlowski Can't Make Bail???? Sell One of Your Van Gogh’s AOL News Wire (Sept. 18) - Former Tyco International chief executive L.
Dennis Kozlowski, who allegedly used company funds to buy a $15,000 umbrella
stand and a $17,100 traveling toilette box, cannot make bail and could
be sent to jail Thursday. Kozlowski was indicted last week for massive fraud. His lawyers
told Manhattan Supreme Court Judge Michael Obus that Kozlowski is flat
broke and cannot access bank accounts because they are frozen. Earlier, Tyco revealed it paid for a $6,000 shower curtain,
a $2,200 wastebasket and many other expensive items for Kozlowski's New
York City apartment. Tyco accused Kozlowski of recklessly tapping company funds,
including more than $1 million for his wife's birthday party in Sardinia
last year. The event's planners called for gladiators and an ice sculpture
of Michelangelo's David with vodka streaming from his penis into crystal
glasses, according to Tyco's filing. Other unauthorized expenses Kozlowski allegedly incurred
include a $6,300 sewing basket, a $445 pin cushion, a $1,650 notebook
and $5,960 for sheets. At last week's arraignment, the judge released Kozlowski
on a $100 million personal recognizance bond that was to be secured by
$10 million in personal assets. Tyco's former chief financial officer,
Mark Swartz, was released on a $50 million bond, secured by $5 million
in personal funds. Lawyers for Swartz also said he couldn't make bail. Both men were ordered to come up with the nece |
