Richard Shapiro is Back in the Leasing Business

president. At the time he was vice-president, National Broker Division, Tri-Continental Leasing Corporation, a division of a major telephone company. He had served as vice present and member of the Executive Committee.

“I am looking forward to a very dynamic year for WAEL in 1984, “Bob said.” We are projecting a membership of 400 firms by year end and further expansion of the benefits available to WAEL members. Development of a new long range plan for WAEL and completion of our certification guidelines are two of the exciting projects on next year’s agenda. With the support of the very capable and enthusiastic Board members and Committee Chairpersons that have been selected, we will see some very significant achievements.”

WAEL Newsline, December, 1983

He was recruited by Don Smith and Hy Bren of Interlease, San Francisco in 1974,

from Union Bank. He learned from this “super broker” and “discounter” enough to start his own leasing company in the late 1970’s, where Ben Millerbus served as his sales manager. They had a direct sales force. In the next downturn of the industry, the company split up: Millerbus left to start Pentek Leasing, San Jose, CA and Jacobson, well-known for his late night poker games, set up a broker “private label” and direct for Tri-Continental Leasing, then located in Mountain View, CA ( next to Sunnyvale). In one of the next economic down turns, the telephone company divested itself of this division. Bob then went to work for Amembal, Deane & Associates. From memory, he was here about a year before he left the leasing business to join Hewlett-Packard, where he is today, a supervisor in the engineering department, I am led to believe. . He lives in the Half Moon Bay area, California. Attempts to reach him for a statement have not connected. He has been angry at Kit Menkin for several years for not attending his birthday party, and that’s Bob.

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Richard Shapiro is Back in the Leasing Business!!!

I do have a story to tell, I will take a few days to think about it and

you can expect my e-mail by the end of this week or the beginning of next.

I am back in the "Business", but this time with a large public company

that will treat me well and my new customer base are consumers instead of

business owners.

I do miss the Leasing Industry and all the hard work that I did, there are

some real good people that didn't deserve the way they were treated from

companies like MSM Capital, Saddleback Financial, GSC Capital and others.

Richard Shapiro

Richard_Shapiro@Countrywide.Com

http://www.leasingnews.org/articles.doc/Shapiro_bio.htm

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"Brokers Beware"

I thought I would share a rather bad experience with a so-called lender / broker I ran into a couple of months back. These are the type of people that really hurt our industry and reputation with both lessees and lenders.

If you are a broker and run into an individual or company like the one here, run away as fast as you can. And as the wise man once said "If it is too good to be

true, in the end ....it usually is"

This company is from Southern California and I admit I didn't run a full D&B on them before getting involved. I should have, it brought up lots of questions that were not answered in the end. They came very highly recommended from a reputable lender

back East that was also surprised as to what they actually were in the end. (Any company that has the word 'Bank or Bankers' in their name, should, in my opinion, actually BE a bank!!!)

This company, that will go unnamed, represented themselves as a lender or agent of large financial institutions that would be considered a 'niche' lender and unavailable to most brokers. They have a full website and do a lot of medical financing. They had

very aggressive pricing available or they had sources that will do tougher credits with low floating rates. The bottom line is whatever you would send to him for a 'look see' was going to be approved. That's the good news.

The bad news is their 'lenders' require a non-refundable application fee, consulting fee, origination fee, whatever they call it, to submit the package to their credit committee. A very sizable fee at that. And naturally, in the end, their credit committee

would decline the deal and ********** would keep the fee. .

There is not a lender out there that charges for submitting an application, end of story, not one I've found (except this one). So, be very careful of who you are working with and sending your good clients to. And if it looks like a duck..........and quacks like a duck..........well, you know!

. And have a Very Happy New Year!!!!

Name withheld

P.S. I did file a complaint with the California Attorney General’s office.

(There is a company with a website that states: “Rates as low as 3.8% up to 15 year amortization.”

http://www.ticbankers.com/services.html.

No street address or city on their web site. They apparently do not belong to any leasing associations and the Better Business Bureau has no record:

TIC Bankers

30011 Ivy Glenn Drive, Suite 221

Laguna Niguel CA 92677

Business Started: Unknown

File Open Date: 01/22/01

Last Report Date: 03/24/01

Principal Contact: Unknown.

Phone: Not Available

Fax: Not Available

EMail: Not Available

Web Address: Not Available

Bureau ID: 13146721

Any reader that may be able to give us a reference of TIC Capital, Inc. d.b.a. TIC Bankers, please

go to www.leasingnews.org and utilize our contact form. )

Rates mixed in Treasury bill auction

By Associated Press

WASHINGTON (AP) Interest rates on short-term Treasury securities were mixed in Monday's auction, with rates on six-month bills dropping to their lowest level on record.

The Treasury Department sold $14 billion in three-month bills at a discount rate of 1.185 percent, unchanged from last week. An additional $16 billion was sold in six- month bills at a rate of 1.220 percent, down from 1.240 percent.

The six-month rate was the lowest since the government began selling these bills on a regular basis in 1958.

The new discount rates understate the actual return to investors 1.207 percent for three-month bills with a $10,000 bill selling for $9,970 and 1.245 percent for a six- month bill selling for $9,938.30.

In a separate report, the Federal Reserve said Monday that the average yield for one- year constant maturity Treasury bills, the most popular index for making changes in adjustable rate mortgages, dipped to 1.41 percent last week from 1.43 percent the previous week.

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Comdisco delays annual report

By Associated Press

WASHINGTON (Dow Jones/AP) Comdisco Holding Co. Monday said it delayed filing its annual report with the Securities and Exchange Commission in order to resolve accounting issues related to its emergence from bankruptcy.

Comdisco said the report, previously scheduled for Monday, would be released January 14.

The company emerged from Chapter 11 bankruptcy on Aug. 12 with a plan to sell off remaining assets over three years.

The company said it will adopt fresh-start reporting and is determining the impact on its financial statements.

Rosemont, Ill.-based Comdisco leased computer, medical, telecommunications and other high-tech equipment and provided security for corporate computer systems. It filed for bankruptcy in July 2001.

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Open Letter for New Year’s ---- Mark Murray

Now that you are back in the North Pole, Santa, maybe you could help

me out with a great New Year's present

You see I just started a new commission-only leasing job and I haven't done

a deal yet. In fact, the few deals I have found tend to implode or

self-destruct before my very eyes. Either the customer can't decide, the

vendor can't deliver, or the lender can't approve. If its not the rate, its

the term, if its not the term its the pre-payment penalty, if its not

pre-payment penalty its the credit, and if its not the credit its a secret

and no one's talkin'.

The only common denominator in all of my deals are the morons who are

customers and the hammerheads who call themselves vendors. Some of these

mental midgets have had the audacity to suggest that I'm overbearing and

abrasive, like gum on their shoe. So I call'em a couple times a day for a

months on end. Big deal! If they'd just return my calls, I'd stop buggin'

em! Why don't they know that? They have no idea how tough it is out here.

I don't know if its because I'm short, because I'm Irish, or because I'm

losing my hair, or all of the above. The leasing business is just brutal.

Santa, I have learned to live with all the curses and curveballs life has

thrown at me.

Perhaps you ran out of money, or maybe some of the people on your

list were not nice, but naughty; maybe even real naughty.

You know, right now, I just don't care, so if you could send me a list of who you were

not able to deliver to, whether they were naughty or nice, I don't care,

even Dennis Kozoloski,if he wants to a radio radar for his yacht that

he travels to the Bahamas to visit his money.

That's all I want for New Year's. Names and numbers for all the other losers out there who have told you what they want for Christmas, but didn’t deserve a present

from you. I'm especially interested in those who want airplanes, buses,

tractors & trailers, computers, phone systems, construction equipment, office

furniture, machine tools, printing presses, cranes, lasers, fork lifts, concrete

trucks, and any other kind of equipment they come up with.

It sure would make it one Happy 2003 for my family and I..

Mark Murray

Lease Finance Group

Eden Prairie, MN 55344

952 562 1509

mark@leasefinance.com

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Cartoon---We Try Harder!!!

http://two.leasingnews.org/cartoons/wetryharder.gif

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We Get Letters----

Hi. In 1935, you have birthday of sportscaster and Hall of Fame pitcher, but

don't name Sandy Koufax as the person.

Have a very happy new year.

Barbara B. Low

President

BIBLIO.TECH

P.O. Box 657

Lincoln, MA 01773

781-259-0524

(Right you are!!! As usual! Editor)

----

Re: Leasing News story December 30 on MSM Capital

Excellent journalism. Congratulations

Regards,

Barry Reitman

KEYSTONE EQUIPMENT LEASING, INC.

baldguy@keystoneleasing.com

http://www.keystoneleasing.com

1-800-225-3489

1-800-BALDGUY

-----

Hi Kit:

I got tickets to the 49er playoff game next week and will be heading up

your way to watch it. Haven't been to five NFL games in the last 20

years so I guess it's about time. Do I need my parka and mittens for

Candlestick?

I promise to root for your 49ers, even though I'm an ex NYer. I would

imagine you occasionally have the same pangs when SF plays the Giants.

Growing up in the Bronx meant that my first football game was at Yankee

stadium watching the old football Yankees in the late forties. They had

a great running back named Buddy Young who used to play without a

helmet. He'd probably last about 20 minutes doing that today.

My next claim to fame in NY football circles was being at the '69 (or

was it '68) Championship when Unitas, Ameche and the Colts beat the

Giants in overtime. Word was they didn't kick the field goal because

Carroll Rosenbloom, their owner, had a lot of money on the game and

insisted on covering the spread.

Anyway, thanks for the football update in Leasing News this morning.

That's how I found out who's playing (:-)).

Have a great 2003.

Ken Goodman

kendg@msn.com

(If it rains, bring rain gear, and most important are the shoes. Wear

boots, if you can. It will make a tremendous difference.

No umbrella's, so rain gear, including boots, if it rains.

We beat the Giants in the first game and have a good record against

them, but you never know at this time of the year, especially with

our poor coaching.

Go Niners!!!!

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Resource America Reports $8.6 million loss for Fiscal Yr Ended September 30, 2002

For the fourth quarter and fiscal year ended September 30, 2002, the Company reported a net loss of $8.6 million and $3.3 million, respectively, as compared to a loss of $123,000 and net income of $9.8 million for the fourth quarter and fiscal year ended September 30, 2001, respectively.

PHILADELPHIA--( Resource America, Inc. (NASDAQ:REXI) (the "Company") reported earnings from continuing operations of $787,000 or $.04 per fully-diluted share and $8.4 million or $.47 per fully-diluted share for the fourth quarter and fiscal year ended September 30, 2002, respectively, as compared to $3.4 million or $.19 and $14.1 million or $.76 for the fourth quarter and fiscal year ended September 30, 2001, respectively. Included in net income from continuing operations in the fourth quarter and fiscal year ended September 30, 2002 was a non-cash charge of $1.0 million resulting from the settlement of a law suit.

In connection with the Company's release from many of the terms of the covenant not to compete with the successor purchaser of its equipment leasing subsidiary, Fidelity Leasing, Inc. (sold in August 2000 for $583.0 million including the assumption of $431.0 in debt) and in settlement of various claims arising from the sale, the Company has realized a $9.4 million loss net of taxes from discontinued operations. As a result of escrow provisions established at the time of sale, the Company believes that this settlement will result in a net cash cost to the company after taxes of $3.1 million. This settlement will leave the Company's present equipment leasing subsidiary, LEAF Financial Corporation, free to exploit what the company believes to be substantial growth opportunities in expanding its asset management business.

EBITDDA (earnings before interest, taxes, depreciation, depletion and amortization) for the fourth quarter and fiscal year ended September 30, 2002 was $6.9 million and $35.7 million, respectively, as compared to $10.3 million and $46.2 million for the fourth quarter and fiscal year ended September 30, 2001, respectively. EBITDDA without the charge for the settlement would have been $7.9 million and $36.7 million for the fourth quarter and fiscal year ended September 30, 2002, respectively. The Company also reports record revenues for fiscal 2002 of $120.8 million.

$.19 for the fourth quarter and fiscal year ended September 30, 2002, respectively, as compared to a loss of $.01 and net income of $.53 for the fourth quarter and fiscal year ended September 30, 2001, respectively.

Resource America, Inc. is a proprietary 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, real estate finance and financial services industries. At September 30, 2002, the Company managed approximately $1.2 billion in these sectors as follows:

Energy assets.............................. $360.3 million

Real estate finance assets................. $628.4 million

Financial services assets.................. $169.2 million

CONTACT:

Resource America, Inc., Philadelphia

Steven Kessler, 215/546-5005

215/546-4785 (fax)

######################### ###################################

As Paper Checks Disappear, So May Some Fed Jobs

Electronic Payments Mean Less Work at Regional Banks

By John M. Berry

Washington Post Staff Writer

Like other companies facing a decline in business, the Federal Reserve has warned employees at its 12 regional banks that some of them might lose their jobs in coming months -- because the volume of checks being cleared by the Fed is declining.

The regional reserve banks handle about 40 percent of the nation's checks. Often the paper checks must be transported over long distances before they get back to the institution where the check writer has an account. And more than 5,000 of the Fed's 23,000-plus employees help process those checks.

In a typical letter sent this month to Fed employees, Robert D. McTeer Jr., president of the Dallas Federal Reserve Bank, said: "The Federal Reserve's national check business has experienced significant losses in volume and revenue over a period of many months. This volume loss is attributable to a number of factors including consolidations in the financial services industry and greater use of electronic payments."

McTeer said the presidents of the 12 reserve banks recently began a review of how to cut costs and "probably consolidation of some check operations."

"These initiatives are likely to result in downsizing of staff to achieve the efficiencies necessary on a national basis," he said.

"This review is expected to consider the full range of options available to us, including voluntary and involuntary separation policies, adopting special severance programs not currently available, and, possibly, early retirement options," he added.

Most of the employees likely to be affected work night shifts, physically handling the billions of pieces of paper, running them through machines that route them to the banks on which they are drawn, and keeping a running total of the amounts to be credited and debited to each institution.

According to a Fed survey, checks were used in almost 60 percent of all non-cash retail transactions in 2000. But that share had been declining for years, and after peaking in the 1990s, the number of checks being written began to decline, too. By 2000 the total number of checks written was 42.5 billion, down from 49.5 billion in 1995. In contrast, in 2000 there were 15 billion credit card and 8.3 billion debit card transactions.

Because of a little-known federal law, the Fed is required to make a "profit" on its check-clearing and other payment services. The law was passed to ensure that the central bank charges a high enough price for services that private companies or organizations would not be at a competitive disadvantage. As a result, the Fed is supposed to charge enough to cover a variety of imputed costs, such as a return on its investment in check-processing equipment, and an imputed profit similar to that a private provider would seek to earn.

Estimates presented in October to the Fed Board in Washington showed that the system would receive an estimated $913 million from all its priced services -- about 85 percent involve check processing -- with expenses of $898 million, leaving a pro forma profit of $15 million. That "profit," however, was only about 92 percent of its target.

In response, the board raised fees for processing checks by 3 percent, effective Thursday. At the same time, because of increased efficiencies, fees for all types of electronic payment services were lowered about 5 percent.

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Sales of existing homes fell last month, remain on track for record year

By Jeannine Aversa

ASSOCIATED PRESS

WASHINGTON – Fewer previously owned homes were sold in November, but sales for all of 2002 are on track for the best year on record as some of the lowest mortgage rates seen in decades beckon people to buy.

The National Association of Realtors reported Monday that sales of existing homes slipped to a seasonally adjusted annual rate of 5.56 million in November, a 3.5 percent decline from the previous month.

The slippage came after sales jumped by 5.9 percent in October to a rate of 5.76 million, the fourth-highest monthly pace on record.

Even with November's drop, sales remained quite good, racking up the sixth best month ever and running 5.9 percent above the sales pace of November 2001.

The housing market has been one of few bright spots for an economy struggling to regain its footing after being knocked down by last year's recession.

"Housing has remained a lone oasis of strength, keeping the recession of 2001 mild and helping to keep the economy away from a new recession this year," said economist Richard Yamarone of Argus Research Corp.

Stoked by low mortgage rates, sales of both existing and new homes are expected to set records this year, which would outpace the previous all-time high sales registered in 2001, economists predicted.

"For all of 2002, we'll easily surpass the record of 5.3 million sales in 2001, with sales topping the 5.5 million level," said David Lereah, chief economist for the National Association of Realtors.

On Wall Street, the Dow Jones industrial average gained 29.07 points to close at 8,332.85 in quiet trading.

Low 2002 mortgage rates encouraged many people to refinance their home mortgages. The extra monthly cash that homeowners save by refinancing mortgages at lower interest rates has helped consumer spending remain the primary force that has kept the economy going this year.

The average interest rate on a 30-year fixed-rate mortgage was 6.07 percent in November, down from 6.11 percent in October. Last week, rates on 30-year mortgages dropped to a new low of 5.93 percent, according to Freddie Mac, the mortgage company. It began tracking mortgage rates in 1971.

Another factor motivating home buyers is solid appreciation of housing values. That offers people attractive investments, especially given the turbulent stock market, economists said.

The national median price for an existing home in November was $161,400, which represented a 9.7 percent increase from November a year ago and the biggest monthly increase since July 1987, Lereah said.

The Realtors group predicts that for all of 2002, the median housing price will show a 7 percent increase from the previous year, which would be the largest annual gain since 1980.

Last week, the government reported that sales of new single-family homes in November jumped by 5.7 percent to a seasonally adjusted annual rate of 1.07 million, the highest monthly level on record.

Economists had predicted sales of existing homes would slow in November after registering such a brisk pace in October.

By region, sales of existing homes in the Midwest fell 3.9 percent in November from the previous month to a rate of 1.22 million. In the South, sales dropped 4.8 percent to a rate of 2.20 million, and in the Northeast sales went down 5.9 percent to a pace of 640,000. In the West, sales were flat at a rate of 1.5 million.

Looking ahead to 2003, "the housing market will be settling into a somewhat slower but historically healthy pace," said Cathy Whatley, president of the Realtors group.

After cutting interest rates in November, Federal Reserve Chairman Alan Greenspan and his colleagues decided this month to hold rates steady at a 41-year low. Economists believe the Fed will keep rates at that low level at its next meeting in late January.

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Tyco Admits Using Accounting Tricks to Inflate Earnings

By ANDREW ROSS SORKIN and ALEX BERENSON

New York Times

Tyco International engaged for years in financial gimmickry to inflate its

earnings, the company acknowledged yesterday, saying that it would erase $382 million in profits it had previously claimed.

Tyco said that a five-month internal investigation had uncovered a corporate culture that openly encouraged managers to push the rules of accounting to mislead investors about the company's results. A memorandum to employees at one division directed them to find cost savings by "financial engineering." At another unit, employees were told to "create stories" to justify an accounting change that would improve Tyco's earnings.

Until now, Tyco had contended that financial abuses at the company were not

widespread and that most of the abuses were related to the criminal charges that its former chief executive, L. Dennis Kozlowski, had looted the company of hundreds of millions of dollars.

The report said that many of the accounting maneuvers at Tyco, while stretching the rules, did not violate generally accepted practices and therefore did not require additional restatement.

Released after the stock market closed at 4 p.m., the report was prepared by a team of accountants and lawyers hired by Tyco's board in April. The team was led by David A. Boies, a lawyer who has been hired frequently by companies under a cloud.

Given the extensive size of Tyco's operations — which produced $36 billion in revenue last year selling everything from surgical supplies and security alarm services to plastic hangers and undersea fiber optic cable — the investigators cautioned that they had not uncovered "systemic or significant fraud."

Still, the 33-page final report makes clear that the integrity of the company's earnings suffered from "a pattern of using aggressive accounting that, even when not erroneous, was undertaken with the purpose and effect of increasing reported results above what they would have been."

The report also detailed more instances of excessive personal spending of company funds by Mr. Kozlowski beyond his extensive art collection, redecorated homes and his now infamous $6,000 shower curtain. These included a newly discovered $110,000 hotel bill paid by Tyco for a 13-day stay in London.

Tyco, which is nominally based in Bermuda to help it escape income taxes, was built into an extensive conglomerate during a late 1990's buying spree engineered by Mr. Kozlowski from its headquarters in Exeter, N.H., and offices in Boca Raton, Fla., and New York, where he also maintained residences. The company employs about 267,000 people around the world.

While Tyco remains a viable business, the abuses uncovered at the company cap a year of spectacular corporate failures at Enron, WorldCom and Global Crossing. Other scandals, including disclosures of abuses at Adelphia and other big companies, along with revelations about extensive conflicts of interest in Wall Street research, helped depress the stock market by undermining investor confidence in the integrity of corporate earnings.

The report and the restatement are part of Tyco's effort to put its troubled past behind it and move forward under its new chief executive, Edward D. Breen, a former president of Motorola who took up the post in July after Mr. Kozlowski was arrested. The company said that in the future it planned to pursue much more conservative accounting practices, which has already resulted in a lower earnings forecast for 2003.

For the 2002 fiscal year, which ended Sept. 30, the company previously reported a net loss of $9.1 billion after a series of earlier write-offs. Tyco's accounting, tax and executive pay practices continue to be investigated by the Securities and Exchange Commission, the Manhattan district attorney's office, federal lawyers in New Hampshire and the Internal Revenue Service.

In a separate filing with the S.E.C. yesterday, the company said that it had received subpoenas for the "production of voluminous documents in connection with various investigations into our governance, management, operations, accounting and related controls" and that it could face large penalties as a result of the investigations.

Some investors may be relieved that the abuses uncovered by the investigation did not add up to a huge sum. Yesterday, before the report was released, Tyco's stock rose 20 cents, to $15.35.

But the report, by describing in detail abuses Tyco has long vehemently denied, calls into question the techniques Mr. Kozlowski used to create his conglomerate. It demonstrates how Tyco regularly put pressure on its many acquisition targets to report lower earnings just before being bought so that Tyco could sharply increase its profits as soon as the deal was completed. Investors had long suspected that Tyco's huge year-over-year growth was a result of artificial inflation of its short-term earnings in a way that could be sustained only by constantly acquiring more businesses.

________________________________________________________________________

The List—End of Year-Up Date

full list in both alphabetical and chronological sequence at:

http://www.leasingnews.org/list.htm

Telemark, Syracuse, NY (12/2002) Wells Fargo Financial Leasing, Inc., Telmark LLC and Agway Inc. have signed a definitive agreement in which Wells Fargo Financial Leasing, Inc. would purchase substantially all of the assets of Telmark LLC, Agway's agricultural lease financing subsidiary. The purchase is expected to close by March 1, 2003. The acquisition includes approximately $650 million in lease receivables and is subject to obtaining appropriate approvals, including the approval of the U. S. Bankruptcy Court for the Northern District of New York. On October 1, 2002, Agway Inc. and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Telmark was not included in Agway's Chapter 11 filing. (TFS) a subsidiary of Agway Inc. (7/2001) discontinued its broker program in May.; TFS specialized in agricultural, turf and arbor and light construction industries. According to Mark Hartman, Manager of Broker Programs, the Parent made the decision to terminate its third party originations unit to concentrate its efforts on direct vendor markets.

Microfinancial, 12/2002-----The Board of Directors of MicroFinancial Inc. (NYSE:MFI) has suspended its dividend to comply with the Company's banking agreements. (11/2002) Leasecomm closes, shuts off all brokers, won't fund deals approved "Goes Down---CEO Sells $500,000 Stock Before the News." ( Microfinancial Stories )Waltham, MA (8/2001) Leasecomm, Attorney General investigating, many complaints on line.

Sun Bancorp, Inc. (Nasdaq: SUBI) (12/2002) announced that it has reached a definitive agreement to acquire Bank Capital Services Corporation, a leasing company headquartered in Wilkes-Barre, Pennsylvania. Bank Capital is owned by Gary Cook, president, and Carol Phillips, chief financial officer, and provides outsourcing of major equipment and auto leasing for banks. Services provided by Bank Capital include data processing, administration, and marketing of leasing. Terms of the acquisition were not disclosed. "More and more businesses are utilizing leasing each year because it is a cost-effective way to increase efficiency, production and profits. The addition of Bank Capital to the Sun organization will enable us to bring our leasing program in-house. It complements our customer relationship management strategy and fits with our focus on diversifying revenue sources," commented Robert J. McCormack, president and chief executive officer of Sun Bancorp, Inc.

Funding Tree, 12/2002---Complaints continue about Funding Tree operation in Nevada keeping advance rentals. (10/2002) In the last episode, Kendra Bernal had resigned (went back to jail), a new president was named, and according to the attorney of record, the hearing before the California Department of Corporations was cancelled. The corporation did not have a Finance Lender's License to conduct business, and further was ordered to desist. The Funding Tree was appealing, until Kendra Bernal was arrested for violating parole. It appears The Funding Tree has moved to the State of Nevada, where a license is not required. Leasing News has two complaints, one in Maryland, the other in Kentucky, where advance rentals have been paid, one where the vendor has not been paid for the limousine, but leasing payments were taken out of the lessee bank by ACH. Riverside, CA ( 6/2002) New president says there is hope past vendors and brokers will be paid. Dept. of Corp. "cease and desist order" still in place. Riverside DA Jerry Fox warns, "Don't take advance rentals if there is no lease approval. "(6/2002) Kendra Bernal arrested for allegedly violating parole (5/2002) More complaints, although e-mails say some deals have funded and vendors have been paid---hope--- (5/ 2002) Many more complaints (4/2002) Many complaints. Vendors/brokers not paid.

Steelcase (12/2002) -Major captive lessor reports Results $31M Loss for Third Quarter Fiscal 2003. "The economy has still not seen any meaningful improvement in business capital spending, which is key to our industry's recovery," said James P. Keane, chief financial officer. "Within our industry, it is typical to see a seasonal reduction in fourth quarter shipments, although the amount varies from year to year. Our order and bid activity remains volatile, but appears to be confirming we will see a modest decrease in fourth quarter shipments versus the third quarter, even with an extra shipping week. We are taking steps across our businesses that will help us stimulate additional demand and compete aggressively to win new business."

Commercial Money Center Southern CA, 12/2002---Commercial Money Center Bankruptcy Docket for case 02-09721 (12/2002) Ameriana Bancorp to Boost Reserves 4Q re: Commercial Money Center (Nasdaq: ASBI) announces that it will set aside additional reserves of up to $5.6 million in the Company's fourth quarter ending December 31, 2002. This action will reduce fourth quarter after-tax net income approximately $3.4 million or $1.08 per share, resulting in a net loss for both the quarter and full year. In 2001, Ameriana reported net income of $1,216,000 or $0.39 per diluted share for the fourth quarter and full-year net income of $3,800,000 or $1.21 per diluted share. Approximately $4.7 million of the additional reserves to be set aside pertain to Ameriana's investment in a pool of leases acquired from the Commercial Money Center ("CMC"), a now- bankrupt equipment leasing company. Ameriana originally purchased two separate pools of equipment lease receivables totaling $12,000,000 from CMC in June and September 2001, of which approximately $10,900,000 currently remains unpaid. Each lease in the pools was backed by a surety bond issued by one of two insurance companies rated at least "A" by Moody's Investors Services. The bonds guaranteed payment of all amounts due under the leases in the event of default by the lessee. Each pool was sold under a Sales and Service Agreement by which the insurers serviced the leases. In each case, the insurers assigned their servicing rights and responsibilities to Commercial Servicing Corporation, an affiliate of CMC, which also has filed bankruptcy. When the lease pools went into default earlier this year, one insurer made payments for several months under a reservation of rights while the other refused to make any payments. Both insurers now claim they were defrauded by CMC and are denying responsibility for payment. Ameriana is one of a number of financial institutions around the country that purchased interests in lease pools from CMC. All of the CMC lease pools are in default and in litigation. The Federal Panel on Multi-District Litigation has taken control over most of the federal actions involving the insurers of the lease pools and has assigned them to the U.S. District Court for the Northern District of Ohio, Eastern Division, for consolidated pre-trial purposes. (NetBank has $80 million as part of the suit, among others.) (10/2002) Deadline for filing for claims for Commercial Money Center has been extended since the proceedings were converted to a Chapter 7. The CURRENT attorney is Bradley Shraiberg and his phone number is 561.395.0500. He is the contact until a further motion is filed to have him removed (he said for geographical reasons, as it is now moving to the Southern District of California Bankruptcy court in San Diego .) (Read about CMC) (6/2002) files voluntary bankruptcy, #11, in Florida, all hell breaks loose (5/2002) Gets worse, officers may go to jail (4/2002) Many, many complaints; reports of leases where equipment never existed, paying for leases that do not exist, much behind the scenes on the reputation of the founders, lawyers having a field day, San Diego FBI investigating all.(3/2002) Throws in the towel, 128 employees out of work, Dir. of Marketing Bill Hanson not paid, goes back to work for himself, bringing Gil Evans and his son Ty with him. closes door, leaving many unpaid bills and questions, especially about Kiosk leasing. (2/2002) Returns $1.2 Million to Date admit many complaints by applicants, vendors, and brokers. Fails to secure insurance line of credit after September 11th.

Conseco Finance Vendor Service 12/2002---In the third- largest bankruptcy in U.S. history, Conseco Inc. filed for Chapter 11 protection after four months of talks with creditors to restructure the insurance and finance company's $6.5 billion in debt. Although the filing was not surprising given Conseco's recent woes, it marked a dramatic downfall for a company whose stock was once a Wall Street darling. From 1988 to 1998, the company's stock averaged a total return of 47 percent per year and Conseco shares traded as high as $58. Today, the stock trades at less than a nickel per share. The filing follows a years long tailspin after the conglomerate's aggressive acquisition strategy in the 1990s backfired. ( 12/2000) purchased by Wells Fargo Leasing.

PinnFund/Leasing 12/2002--A former employee of defunct PinnFund USA, a Carlsbad mortgage lender that imploded in March 2001 when regulators uncovered a $300-million pyramid scheme, pleaded guilty to lying to a federal grand jury. U.S. Attorney Carol Lam said Kimberly Hulihee admitted that she provided false testimony on Nov. 14 to a federal grand jury investigating the removal of files and other materials from a PinnFund subsidiary - PinnLease USA Inc. Hulihee, 38, was the former office manager of PinnLease, and later a company linked to former PinnLease President Tommy Larsen called Aloha Pacific Leasing. Hulihee is the second person to plead guilty to criminal charges in the PinnFund fraud. Former PinnFund chief executive Michael Fanghella also has admitted to myriad federal charges. He is cooperating with authorities and remains behind bars in the Metropolitan Correctional Center in San Diego awaiting sentencing. Larsen faces a pending civil suit related to the PinnFund fraud but no criminal charges, according to court documents. (8/2002) Federal authorities plan to auction expensive wine, jewelry and coins seized from the Ramona house of John D. Garitta, the former PinnFund USA chief financial officer who pleaded guilty last week to securities fraud charges. Merchandise to be sold at the auction includes more than 400 bottles of wine worth an estimated $163,000, $480,000 in jewelry and gems and $19,000 in collectible coins. The auction will be held in Rancho Dominguez in the Los Angeles area. (7/2002) investors in Carlsbad's defunct PinnFund USA sue the PricewaterhouseCoopers Accounting Firm for failing to detect fraud at the Company. (4/2002) the Receiver in the case filed a lawsuit against Tommy Larsen, related companies and a law firm, in bankruptcy court. It's a preference that may climb to $6.7 million. Larsen denies it all, and says, "prove it!" (12/2001 ) a top Executive Officer to turn over $47 deal/judge makes okay as it favors return of investor money. (11/2001) Girlfriend to return millions. (8/2001) Fanghella pleads not guilty to all charges, remains in jail. (8/2001) A federal grand jury indicted PinnFund USA founder Michael J.Fanghella 20-count indictment; 19 counts in the indictment carry a maximum penalty of 10 years in prison and a $250,000 fine. One count -- filing false financial information with the U.S. Dept of housing and Urban Development -- carries a maximum penalty of 30 years in prison and a $1 million fine. (8/2001) In San Diego Feds file charges for filing false financial statements plus criminal charges for bilking at least 166 investors out of $330 million after Fanghella turns self in. (7/2001 ) Barbados Court Freezes PinnFund Exec's Assets (6/2001) Leasing News considers it a “not guilty” judgment against Tommy Larsen, but Larsen’s lawyer basically agreed to comply with the temporary restraining order of March 23 and agreed that Mr. Larsen would give an accounting of any possible gains he received that rightfully belong to PinnFund. Since he gave in to everything the receiver wanted, he was not held in contempt. The records shows that being acquitted or not guilty was not what happened. The judge found he wasn't in contempt because, going forward, he agreed to cooperate fully. (6/ 2001) Judge Hands Down $109 M Default Judgment in PinnFund Scandal. Bounty Hunters Get the Nod to Go Get 'Em (4/2001) Judge continues freeze of assets. Founder of PinnFund skips bail, judge issues arrest warrant ( 3/2001) PinnFund out of money, closes all offices, including leasing. Newspaper stories say “Millions of dollars are gone.” (3/2001) PinnLease USA to Fold 47 Nationwide Offices-- $100 Million Fraud, reads like a tabloid story, perhaps largest fraud in West Coast history.

M&I First National Leasing Corp. of Milwaukee, Wisconsin (12/2002-) Closes four offices in the states of Texas, Tennessee, Georgia