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August 3, 2001 Headlines---- Feds file charges on PinnFund founder College Grads and Lease Execs Go to GE—USA Today Story Metropolitan Financial Corp. Reports Second Quarter Loss ( how the feds and banks react with losses ) Friday-Odds and Ends Manifest Ins. Policy/ Chris Ciarrocchi says "hello!”/A Dream?/Some Kind Words --------------------------------------------------------------------------------------------- Feds file charges on PinnFund founder By Mike Freeman UNION-TRIBUNE
STAFF WRITER The U.S. Attorney's Office yesterday filed a criminal complaint against Michael J. Fanghella, founder of PinnFund USA in Carlsbad. He faces charges of transporting $7.3 million in stolen funds across state lines to benefit his ex-girlfriend, Kelly Cook. Fanghella also is charged with filing false financial statements with the U.S. Department of Housing and Urban Development to receive a HUD certification needed for PinnFund's mortgage business. In part, authorities filed the criminal charges yesterday to make sure Fanghella remains behind bars. He surrendered to U.S. marshals in San Diego Wednesday after four months as a fugitive. Lawyers speculate that more sweeping criminal charges could be filed soon, not only against Fanghella but against others involved in the case. "I would expect a (grand jury indictment) that would involve more money, more counts and possibly more individuals than Michael Fanghella," said Robert Hickey of McKenna & Cuneo, a San Diego law firm hired to help hunt down PinnFund-related assets, which will be sold to recover some of the millions lost by investors. Fanghella stood by his attorneys yesterday at a hearing before U.S. District Judge Marilyn Huff. When Huff asked him if he understood his rights, Fanghella answered in a hoarse voice, "Yes, your honor." He will be held at the Metropolitan Correctional Center in downtown San Diego at least until a detention hearing, which is scheduled for Aug. 23. It is unclear how much prison time Fanghella could face as a result of the two charges filed yesterday. His attorney Ezekiel Cortez and Assistant U.S. Attorney Kevin Kelly both declined to comment after the hearing. In March, the U.S. Securities and Exchange Commission accused Fanghella, Oakland resident James Hillman and companies they controlled with bilking at least 166 investors out of $330 million. The SEC charges were filed in a civil complaint, which is less severe than criminal charges. But the U.S. Attorney's Office also has been investigating the case from the beginning, issuing subpoenas for records from PinnFund and others. PinnFund was a high-risk mortgage lender that used investor money to fund home loans for people with bad credit. The SEC contends that Fanghella diverted $109 million of investor funds to pay for his lavish lifestyle, including $14 million in gifts to Cook. According to the SEC, an additional $95 million went to cover operating losses at PinnFund, and the rest went to pay investors in what authorities describe as a classic Ponzi scheme, in which money from new investors was used to pay interest to earlier investors. Fanghella disappeared after the SEC filed its civil charges in March. Huff issued a warrant for his arrest for contempt of court after he failed to appear. For four months, authorities speculated that Fanghella was living in Barbados, where he had a home and bank accounts. His attorney on Wednesday denied that Fanghella had been in the Caribbean. Mike Freeman's e-mail address is mike.freeman@uniontrib.com. His phone number is (760) 476-8209. --------------------------------------------------------------------------------------------- Friday—Odds and Ends Manifest Insurance Policy Testimony from Hal Hayden Just a note to add to your comments about the Manifest Group and their broker "insurance" policy. Although always skeptical of these things since I've experienced the worst from some funders in the past, I can vouch for the integrity that Manifest displays when it comes to the issue of protecting a broker's vendor and customer relationships. When we sold our company in 1995, we retained ownership of the existing portfolio. Although TMG had no reason to believe that they would ever see another new lease from us, their staff bent over backward to work closely with us for the next 5 years as leases matured and we negotiated purchase options, etc. There are others that probably will do the same for a broker, but they are few and far between. Hal Hayden HalH@CapitalStream.com Chris Ciarrocchi says "hello!”---reports where former Advanta staff is today It's great to see my name in lights!!!! "Chris Ciarrocchi says "goodbye". (this is noted on the Leasing News list when Advanta closed its broker business.) I hope all is well, with your power problems, and a slow economy, it's great to still see your website is still available to catch up on the latest leasing news. Well, I am currently employed with UBS PaineWebber as a Financial Advisor. And I'm enjoying every challenging day that the markets put in front of us. Just to keep you up dated on what many Advantians are doing: Jane Hackforth, was married in England in June of this year becoming , Jane Smith. Ron Cinalli, is now currently employed with Marlin Leasing, in the National Accounts Group. Bill Beard, is currently employed with Household Finance, in NE Philadelphia. Sheri Mathers, is currently employed with All Bases Covered, an IT solutions company. All are well. I wish you and your staff a healthy and happy summer. And I hope to here from you soon. Best Regards, Chris Ciarrocchi christopher.ciarrocchi@ubspainewebber.com UBS Paine Webber 3200 Center Square West 1500 Market Street Philadelphia, PA 19102-2187 1-800-345-7941 ext 2010 ~~~ Travis Foxx Has A Dream? or a Nightmare? Watching all of this GE Capital activity made me think of the UAEL Fall Conference in Tucson (three years ago, or was it four?) You were undoubtedly present as well at the luncheon, where Sudhir Amembal was the Keynote speaker. The topic was the future of the leasing industry, and among Mr. Amembal's comments were that brokers that had been in the business for some time would be selling out as an exit strategy, and there would be a conglomeration of these smaller operations. The larger entities that resulted would form alliances to get even better economies of scale, etc... Then, as a (half?) joke he stated "and they will all be bought by GE Capital". I clearly recall the room breaking out in a chuckle at the joke, and then stopping just as suddenly, and becoming very quiet for a moment or two, before he continued on... Or was that just a dream I had once? Travis Foxx travisfoxx@merchantcapital.net Need financing for your growing business? Merchant Capital - "Financing for Entrepreneurs" http://www.merchantcapital.net ( Perhaps a nightmare would be appropriate. Yes, I was there. It was no dream. You described it perfectly, except you had to be there to get Sudhir Amembal timing. He has an accent and uses it always to his advantage in speaking. He can be quite witty, as well as accurate. He got us all laughing, until we realized he may be serious. He definitely is a premier leader in our industry. editor ) ~~~~ “No Longer Any Trial of ELA Weekly Newsletter”-- Daniel Aubainn writes: It was recently brought to my attention that you had placed the following information in your newsletter: "The Equipment Leasing Association Newsletter covers information weekly that is not available at other associations on line and the great majority is not covered by other leasing newspapers, such as the Monitor or Leasing News. Members of ELA get a lot for their membership dues. You may be able to obtain a"free trial subscription," or subscription without the links to the full stories ( I think the "nuggets" they publish are perfect for the busy reader. I also think for the lessor or leasing professional, this is excellent, current information. editor )" This is not true. ELA's ENEWS newsletter is a Members Only service. I know Katie Plona may have offered prospective members a "peek" at a newsletter to get them interested in membership but we do not offer "trial subscriptions or subscriptions without the links". Please correct this in a future edition of Leasing News. I have received several requests generated by your newsletter. Thanks and keep up the good work. Daniel Daniel Aubain Database Manager Daniel Aubain <daubain@ELAMAIL.COM> Equipment Leasing Association Direct: (703) 516-8377 Main: (703) 527-8655 FAX: (703) 527-2649 Website: http://www.elaonline.com/ ( Yes, we miss Katie Plony. But you can buy a pass...or you may ask for an exception, as per ELA policy, and perhaps the new membership director will make them available on a limited basis: ) 24 Hour All
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Association The Correct Answer is “No” The Gramm-Leach-Bliley (GLB) financial services modernization bill passed in 1999 requires financial companies to annually send customers a copy of their policies for sharing and selling their personal information to other companies and to set up a mechanism by which customers can opt-out of such sharing or selling of their personal information. Is your company sending out its privacy policy to customers? The correct answer for a leasing company who leases to companies only is: no. http://www.leasingnews.org/archives/August01/8-01-01.htm Some Kind Words.... A word of encouragement for you ..... You and I have exchanged only a few thoughts and words, but I read your input into this industry and I am encouraged by your professionalism. I am sure that I speak for many silent business people. There will always be jerks out there in any endeavor. That's just life. You are an asset to many. Keep focused and the faith and know that you are providing a great service. Don't let the jerks into your world. Best Regards, Bob Blake ~~~ re: Sunday Sermon Hit the nail right on the head. Rick Wilbur ~~~~~ What Readers Like at Leasing News---- You always seem to have something good to point out. Your Sunday Sermon this week is an excellent commentary, "more better" than usual! Especially liked your suggestion to join an association, get involved, take an assignment, show responsibility, care about your profession.....would add...seek relationships with like minded individuals.....amen Cheers from Charlie Bancroft ~~~~ I applaud your review of our present economy. As a small business owner, have felt the weakening of the economy and realized more competition on fewer transactions. However it is in these kinds of situations that our company has grown and our honesty with our clients has been most rewarded. All this talk of ethics in a slowing down economy would seem like mixing oil and water, but it has done nothing but improve Quest's bottom line. In fact we are having our best month in our 3 1/2 years in business. I do indeed see the glass as half full and I appreciate others that have the same vision. Keep up the good work! Lance Blount, V.P. Quest Financial Corporation ~~~~ Your Leasing News was passed on to me. I like your writing style and openness. The newsletter fills a need in the market, particularly in regard to forward looking developments. We're in a specialized niche within the Semiconductor Industry, but I would like to have you put me on your mailing list if possible. Sandy Garrett CEO, The Garrett Group ~~~ First time browser - interesting stuff. Keep it up. Thomas J. Becker ~~~~ United Association of Equipment Leasing MINNESOTA REGIONAL EVENT Wednesday, August 14, 2001 "You've Asked For It, You've Got It!" Meeting & Roundtable Discussion "Hiring and Retaining Good People" 4:00pm - 6:00pm Dinner & Networking 6:00pm - 8:00pm Overview: What kind of success are you experiencing in recruiting and hiring sales people and internal people? What innovative compensation and/or benefit plans are you utilizing to hire and retain your top performers? What candidate background(s) have you found lead to hiring the most successful people? Location: Bayview Event Center 687 Excelsior Boulevard Excelsior, MN (952) 470-2224 Price: $18.00 per person* *Price is for meeting and roundtable discussion only. Dinner not included. Registration Form: Name: Company: Address: Phone: Fax: Email: Payment: Check Visa/MC Amex Credit Card #/Expiration Date: Name on Card: Joanie Dalton - Managing Director UAEL - United Association of Equipment Leasing 520 Third Street, #201 Oakland, CA 94607 (510) 444-9235 x27 (510) 444-1346 fax joanie@uael.org College Grads and Lease Execs Go to GE—USA Today Story (In case you missed this story yesterday in USA Today, here is a good story of why an executive would want to join GE---and if I were working at CIT, here is where I would apply first. editor.) Companies know where to go for a CEO GE's graduates By Gary Strauss USA TODAY—Thursday, August 2, 2001 GE may bring good things to life. Lately, former GE executives have been bringing good things to other firms. Led by legendary CEO Jack |
