LEASING
NEWS 12/04/2000
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receive Leasing News kitmenkin@leasing
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---also
ON LINE at www.leasingnews.org---
HEADLINES---
eMarketcapital.com Enters the Internet Fray
AccessPoint Signs
Up BuildPoint/Contruction Industry Leasing On Line
Pay
Telephone Leasing Fraud Hits California Hardest
Homans
Reports on Asia and Philipine Marketplace Economy
DVI
Closes $274 Million Securitization
Charlie
Lester Joins the Leasing News Advisory Board:
Charlie Lester
President-LPI
Financial Services, Inc.
4180 Providence Road, Suite 210
Marietta, GA
30062
1-800-573-7796
Specializing in working capital loan for Medical
Professionals.
We are proud to add Mr. Lester, not only a leader in the
leasing industry, but a highly ethical and well-respected individual, who is also
not afraid to speak out. His credentials are impeccable and knowledge about equipment
leasing and financing is of the highest caliber.
Editorial Advisory Board
Andrew Thorn, Thalman Finance
Bob Baker, Wildwood Financial
Bob Rodi,
LeaseNow
Bob Teichman, Teichman Financial Training
Bruce Kropschot, Kropschot
Financial Services
Ginny Young, Brava Capital
Ken Greene, Attorney
Mike Graneri, Graneri and Associates
Phil Dushay, Global Leasing
Rob Yohe,
Yohe and Associates
Steve Crane, Bank of the West
eMarketcapital.com
New Internet-Linked Leasing Intermediary Off to a Fast Start with Gerber Scientific.
PHOENIXVILLE, Pa.--(BUSINESS WIRE)--Dec. 4, 2000--eMarket Capital, Inc.
(www.emarketcapital.com) announced today that Gerber Scientific will use the company's
patent-pending online service to offer lease financing to their customers.
"We are excited about working with this important U.S. manufacturing company,"
said Jonathan Moran, eMarket's founder and CEO. "Both Gerber Scientific and its
customers will benefit from our service."
Moran explained, "Our service
revolutionizes the entire lease financing process for both the manufacturer and
the customer. The manufacturer can provide customers with a quick and easy way
to get multiple lease offers. The customer has the information necessary to compare
lease terms on an apples-to-apples basis. And the service is free to both manufacturer
and customer. It's a win-win situation for the manufacturer and its customers."
According to Gary Bennett, senior vice president of finance and CFO for Gerber
Scientific, "eMarket Capital's online solution provides our customers with an
innovative financing alternative to our established leasing program. Attractive
lease financing is a proven driver of our sales and we expect this relationship
with eMarket Capital to contribute to our growth."
Based in South Windsor,
Conn., Gerber Scientific produces computer-based systems, equipment, software
and supplies. Gerber Scientific customers will apply for a lease on a secure web
site. eMarket Capital, which builds and maintains the site, forwards the application
to multiple lenders after filtering it to meet lender criteria, including credit-scoring
criteria. Lenders respond within two business days. Customers can compare offers
based on annual percentage rate, net present value and other information and make
an informed decision about which lease is best.
Moran points out that
while the customer applies for the lease over the Internet, eMarket Capital is
a very high-touch, service-oriented business. "We have real live people working
directly with manufacturers and their customers to make sure deals close smoothly,"
he said. "And while the lease transaction is Internet-based, the equipment sale
doesn't have to be - and in most cases, won't be. Most high-ticket equipment sales
involve a lot of personal selling. So the equipment manufacturer's sales representative
complete the sale just like always, then refers the customer to the Web site."
eMarket Capital focuses on leasing transactions in the $5,000 to $1 million
range which makes up more than half of the $200 billion yearly leasing market.
"These deals are typically less complicated and more suited to the quick turnaround
nature of the Internet," Moran said. "Drill presses, electron microscopes, computer
networks and medical laser equipment are just a few of the items that hundreds
of thousands of companies will acquire through lease financing this year."
eMarket Capital is a privately held company. Internet Capital Group, (NASDAQ:
ICGE), (www.internetcapital.com), a business-to-business (B2B) e-commerce company,
recently announced that it has taken a stake in eMarket Capital, for approximately
$5 million in cash.
For more information visit the eMarket Capital's Web
site at www.emarketcapital.com or telephone
800-994-4369.
CONTACT:
HiTechPR
Mark Bruce, 203/321-1242
Homans
on the Hong Kong and Mania Market
From what I saw/heard on my trip, and
what I read/hear here, I think there is the distinct possibility of a "hard landing"
here and I think you will very likely see the Fed move away from a tightening
bias, if not going to a loosening bias and reducing short term rates. In the mean
time be thankful we are not in East/SouthEast Asia.
I am just back from
a trip to Hong Kong and Manila, where I spoke with banking people in both places,
as well as some old friends of mine who are now in senior positions in the Philippine
Government.
First of all there is virtually no medium term business lending,
that I can see, in most East Asian and SouthEast Asian Countries. So, we would
have no business, unless it is lending/leasing equipment to local subsidiaries.
of US corporations.
A friend of mine, who is a senior credit person with
a major US bank in Hong Kong, with credit authority over Hong Kong, Taiwan, a
number of SE Asian countries as well as Australia and New Zealand, told me that
they are only doing revolving credit in East/SouthEast Asia and most of what they
are doing now is cutting back existing lines. He also showed me a report that
basically said that the conditions that lead to the "meltdown" in 1998 still exist
in most Asian countries, specifically industrial overcapacity, real estate overcapacity,
and the inability of banks to dispose of the bad loans they had on their books
during and after 1998. The report went on to say that the only country that had
done anything toward addressing these problems was China, which has let a number
of businesses fail and has moved to liquidate non-performing loans in its banking
system. Finally, the report expressed the opinion that no Asian country could
successfully compete against China on the basis of price.
So, if there
is overcapacity in many East/SouthEast Asian countries and they cannot compete
with China on the basis of price, what are they going to do? Try to export to
the US, perhaps?
It is worth remembering that the 1998 Asian meltdown
had two effects here. First, it lead to a virtual "tax cut," because import prices
were reduced for many things like computer components, textiles, etc..
Second the Asian meltdown was a major reason why the Fed reduced short term rates
several times in 1998. It may be wise to look for more of the same this time.
I lived in the Philippines for 2 years, in the mid '70's. This trip was the first
trip back in 20 years. Lots of high rise buildings have been built since I was
last there. And I mean lots. Who is occupying them? I had dinner with some of
friends of mine, in Manila, and I told them than not a single high rise building
has been built in downtown Los Angeles in twelve years. They thought I was pulling
their collective leg. This seems to be another sign, however localized, of overcapacity.
It may also be a sign of mis-allocation of capital. People can get financing for
a building but not for a business, so build a building.
My God-Daughter,
who I had not seen since she was 4, is now 24 and is an assistant manager of a
bank in Makati, Manila's business district. She told me that they are offering
home mortgages with 20 year terms, 30% down and a rate of about 17%. What does
that say about the bank's view of real estate prices? If there is overcapacity
and the prospect of deflation in East/SouthEast Asia what is the bank's real rate
of interest.
Maybe we should all buy shares in Filipino banks.
We may be going into a difficult credit market here, but we all should be thankful
we are not trying to do business in East Asia.
-- Bob Homans/Norden Capital
rhomans@nordencapital.com
Let me personally
recommend
For Christmas:
www.mendocinoark.com
For business or personal gifts a Stan Beckman Original signed Print www.stanbeckman.com
AccessPoint Signs Up BuildPoint/Contruction Industry Leasing On Line
(
their press release )
BuildPoint, the leading e-commerce company for the
construction industry, announced the immediate availability of AccessPoint, a
product of eLease, to provide an integrated, online tool for contractors to secure
funding for the leasing of capital equipment such as heavy construction and modular
office space. The Web-based leasing process, offered at no charge through a partnership
with eLease, enhances BuildPoint's ability to serve as a one-stop shop for busy
construction professionals. The service broadens the range of e-commerce offerings
available through BuildPoint's Financial Marketplace, which currently offers commercial
lending and builder's risk insurance services to its community of more than 35,000
contractors. Eighty percent of all U.S. businesses lease their equipment. The
leasing process is typically time-consuming and paper-intensive; it can take weeks
for one lease to be checked, double-checked and approved. With eLease, contractors
save valuable time by automating the process. In minutes, users of the BuildPoint.com
Financial Marketplace can apply for a lease online and submit a request for quote
to eLease. "By using AccessPoint, customers no longer have to worry about time-consuming
and traditional methods of leasing equipment," said Ivan Wolkind, CEO of eLease.
"In our partnership with BuildPoint, we are providing them with the industry's
first standardized platform for delivering automated workflow and Web-enabled
leasing solutions." "The addition of eLease to our Financial Marketplace means
that contractors now have a centralized online resource for lending, leasing and
insurance services," said Will Hsu, vice president of product development at BuildPoint.
"We partnered with eLease to advance another step toward delivering a comprehensive
set of time-saving, cost-cutting services to construction professionals." Using
the eLease system on BuildPoint.com is hassle-free and time-efficient. What previously
took contractors hours can be done in a few minutes. Contractors submit an application
for an online credit check from eLease. It takes only a few minutes to fill out
the required information and contractors receive an immediate response. Once the
check is complete, the contractor's first application is pre-approved and the
information does not need to be re-entered for future lease applications. Contractors
can track the status of their pending leases online at any time. The service is
free to acc ess -- contractors pay only the financing costs applicable to the
agreement made with eLease. The following features highlight process efficiencies
gained by using AccessPoint: QuickQuote Lessees can easily find a lease to suit
their needs. Using comprehensive comparison functionality, a lessee can instantly
reviewuate multiple leases with differing lease terms, end of term options, rate
factors, documentation requirements, etc. LeaseTrack Lessees can track processes,
add equipment lists, monitor the status of their lease and submit documentation
electronically. Enhanced User Experience Users save time by entering data only
once and having an automated system that facilitates and provides visibility into
the leasing process.
DVI
Closes $274 Million ABS
DVI announced the successful completion of a $273.6
million equipment lease asset-backed securitization. This transaction represents
the third equipment securitization completed by the Company this year, which together
total $647 million. The securitized assets were originally owned by the Company's
wholly-owned subsidiary, DVI Financial Services and are comprised of loans and
leases secured by medical equipment. This transaction was co-led by Banc One Capital
Markets and Merrill Lynch. Fitch and Moody's Investor Service rated each of the
securitization classes of notes with 88% of the notes rated AAA. DVI has a history
of 27 successful asset-backed securitizations, and, since its initial transaction
of $21.3 million in 1991, has placed $3.1 billion in the market. Steven R. Garfinkel,
executive vice president and CFO, commented, "DVI is pleased with the execution
of this transaction and the continued strong reception of DVI notes in this market.
We continue to use the asset-backed securitization market as part of our balanced
use of the capital markets to meet our growth requirements." Commenting further,
Garfinkel stated, "This market offers DVI very cost efficient capital in which
we can match fund our asset-backed notes. DVI transactions continue to sell on
terms that match the leaders in this market."
California
Leads Multi-State Private Pay Phone Investment Sweep;
Thousands of Trusting
Investors
Get a Wrong Number
LOS ANGELES--(BUSINESS WIRE)--Dec.
4, 2000--The California Department of Corporations today announced the first results
of an ongoing 20-state sweep of Customer Owned Coin Operated Telephone (COCOT)
investment schemes operating throughout the United States. Beginning October 23,
2000, the Department issued 143 Desist and Refrain Orders to 89 individuals and
54 entities in California and seven other states for the illegal and fraudulent
offer and sale of securities, and for acting as securities broker-dealers without
a license.
The schemes offered investors the opportunity to own private
pay phones with promises of steady profits and low risk. Instead, the Department
of Corporations charged, these companies failed to disclose that the risk of loss
of invested funds in the offerings were substantial. Moreover, court orders had
been issued against the companies by other states, and there were conflicts of
interest on the part of officers and promoters involved in the securities offerings.
In addition, some entities had filed for bankruptcy and withheld other negative
information from the investors. One of the biggest sellers of customer owned telephone
investments, ETS Payphones, Inc. of Lithia Springs, Georgia, filed for Chapter
11 bankruptcy protection in Delaware on September 11, 2000, and has consented
to an injunction by the Securities and Exchange Commission (SEC). The 20 states
involved in the telephone project, operating through the North American Securities
Administrators Association (NASAA), have consulted bankruptcy counsel and are
seeking to protect the interests of investors in the bankruptcy action. Another
seller of COCOT investments, Phoenix Telecom, LLC of Sunnyvale, Texas, was placed
into receivership at the request of the SEC in Georgia in August 2000.
Investors were solicited by insurance agents and financial planners, through websites
and cold calling. In a typical deal, investors paid as much as $7,000 for a private
pay phone, that was worth much less, and then entered into a management or leasing
agreement with the promoters to manage the phones for them and split the profits.
Promoters claimed that profits were guaranteed whether the individual phones owned
by the investor were profitable or not, which regulators claim is indicative of
commingling of invested funds and fraud.
The Department of Corporations
warns potential investors that private pay phones are only as good as the location,
the equipment, and the support provided to the owners. Investors that are not
familiar with telephone equipment and the telecommunications marketplace should
consider these investments highly risky.
The recent offerings in Customer
Owned Coin Operated Telephones are the latest in a series of high tech investments
marketed to California investors. Other high-risk and questionable promotions
touted include investments in 900 numbers, Internet products or services, wireless
cable licenses, personal communication services, and other high tech products
in offerings that downplay the risks and emphasize the potential profitability
of new technology products.
The Department of Corporations is a licensing
and regulatory agency reporting to Business, Transportation and Housing Agency
Secretary Maria Contreras-Sweet and Governor Gray Davis. The department is responsible
for the regulation of securities, franchises, off-exchange commodities, investment
and financial services, independent escrows, consumer and commercial finance lending,
and residential mortgage lending. Additional information, or a complaint form,
can be obtained from the Department of Corporations' website at www.corp.ca.gov.
Below is a fact sheet containing a list of the companies and individuals to which
the Department of Corporations' Desist and Refrain Orders were issued during the
sweep.
CUSTOMER
OWNED COIN OPERATED TELEPHONE
(COCOT)
FACT SHEET
1. Paul Rubera
Alpha Telcom, Inc.
ATC, Inc.
2751
Highland Avenue
Grants Pass, OR 97526
Activity: Operated COCOT program.
Violations: Illegal offer and sale of securities; Fraudulent
offer and sale
of securities.
2. Jerold Benjamin Clawson
Jerry Deland Beacham
H. Ellis Ragland, Jr.
Phoenix Telecom, LLC
Charter Payphones, LLC
2611 Belt Line Road, No.200
Sunnyvale, TX 75182
Activity: Operated
COCOT program.
Violation: Illegal offer and sale of securities.
3.
Jerold Benjamin Clawson
Jerry Deland Beacham
H. Ellis Ragland, Jr.
Phoenix Telecom, LLC
2611 Belt Line Road, No.200
Sunnyvale, TX 75182
Activity: Operated COCOT program.
Violation: Fraudulent offer and sale of
securities.
4. William Munier
Interactive Technologies, Inc.
394
W. Main Street, Suite B-17
Henderson, TN 37075
Activity: Operated
COCOT program.
Violation: Illegal offer and sale of securities.
5.
Clyde A. Sinclair
TRI Financial Group, Inc.
900 E. Front Street, Suite
150
Traverse City, MI 49686
Activity: Marketed COCOT program to insurance
agents.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer
activity.
6. Dave Reisner
Trinity Financial Group
18600 E. 37th
Terrace, Suite 105
Independence, MO 64057
Activity: Marketed COCOT
program to insurance agents.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity.
7. Brian Chelsa
TSI Group,
Inc.
800 Monroe NW, Suite 201
Grand Rapids, MI 49503
Activity:
Marketed COCOT program to insurance agents.
Violations: Illegal offer and
sale of securities; Unlicensed
broker-dealer activity.
8. Ross Rambach
Strategic Partnership Alliance, LLC
131 Gaerky Creek Road
Ashland, OR
97520
Activity: Marketed COCOT program to insurance agents.
Violations:
Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
9. Lisa Grisaffi
333 N. Palm Canyon Drive, Suite 113
Palm Springs, CA
92262
Activity: Offered and sold COCOT programs.
Violations: Illegal
offer and sale of securities; Unlicensed
broker-dealer activity.
10.
Dennis Scheller
40779 Jean Road East
Oakhurst, CA 93644
Activity:
Offered and sold COCOT programs.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity.
11. Henrietta Gleason
Senior
Citizens Financial Services
4140 Oceanside Boulevard, Suite 159
Oceanside,
CA 92056
Activity: Offered and sold COCOT programs.
Violations: Illegal
offer and sale of securities; Unlicensed
broker-dealer activity.
12.
Jeff Marasso
501 San Miguel Road
Bonita, CA 91902
Activity: Offered
and sold COCOT programs.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity.
13. Mark R. Peters
Revenue
Resources & Associates
2171 Junipera Serra Boulevard
Daly City, CA 94014
Activity: Offered and sold COCOT programs.
Violations: Illegal offer and sale
of securities; Unlicensed
broker-dealer activity.
14. Marvin Galliher
13196 Casa Grande Avenue
Lakeside, CA 92040
Activity: Offered and
sold COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
15. Patrick Thomas
10221 Slater Avenue, No.219
Fountain Valley, CA 92040
Activity: Offered and sold COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer
activity.
16. Pierre Rusconi
2821 Castro Valley Boulevard
Castro
Valley, CA 94546
Activity: Offered and sold COCOT programs.
Violations:
Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
17. Robert Runyen
15068 Rosecrans Avenue, Suite 194
La Mirada, CA 90638
Activity: Offered and sold COCOT programs.
Violations: Illegal offer and sale
of securities; Unlicensed
broker-dealer activity.
18. Stephen W. Brittain
Senior Benefits 333 N.
Palm Canyon, No.113A Palm Springs, CA 92262
Activity: Offered and sold COCOT programs.
Violations: Illegal offer and sale
of securities; Unlicensed
broker-dealer activity.
19. Yuail Enwia
2018 Glen Harbor Drive
Ceres, CA 95307
Activity: Offered and sold
COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
20. Chris Cameron
4570 Campus Drive
Newport
Beach, CA 97660
Activity: Offered and sold COCOT programs.
Violations:
Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
21. Jeffrey Mitchell
333 N. Palm Canyon Drive, Suite 113A
Palm Springs,
CA 92262
Activity: Offered and sold COCOT programs.
Violations: Illegal
offer and sale of securities; Unlicensed
broker-dealer activity.
22.
Lorna Cunamay
166 Camino del Sol
Vallejo, CA 94591
Activity: Offered
and sold COCOT programs.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity.
23. Kenneth Ratto
Amador Sales
2391 Arden Way, Suite 219
Sacramento, CA 95825
Activity: Offered and
sold COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
24. Ed Prentice
River City Financial 3600
American River Drive
Sacramento, CA 95864
Activity: Offered and sold
COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
25. Robert A. Nylund
Carson Valley Sales,
Inc. 3620 American River Drive, Suite 220
Sacramento, CA 95864
Activity:
Offered and sold COCOT programs.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity.
26. William J. Wolf
P.O. Box
28627
San Diego, CA 92198
Activity: Offered and sold COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer
activity.
27. David Haefner
Haefner Financial 3986 Ardmore Drive
San Diego, CA 92111
Activity: Offered and sold COCOT programs.
Violations:
Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
28. Brian Dahlke
5694 Mission Center Road, No.128
San Diego, CA 92108
Activity: Offered and sold COCOT programs.
Violations: Illegal offer
and sale of securities; Unlicensed
broker-dealer activity.
29. Ernie
Souders
2133 High Street
Selma, CA 93662
Activity: Offered and
sold COCOT programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
30. Gregory Smith
1932 Boulder Road
Alpine,
CA 91901
Activity: Offered and sold COCOT programs.
Violations: Illegal
offer and sale of securities; Unlicensed
broker-dealer activity.
31.
Charles E. Edwards
ETS Payphones, Inc. 561 Thornton Road, Ste. K
Lithia
Springs, GA 30122
Activity: Operated COCOT program.
Violations: Illegal
offer and sale of securities; Fraudulent
offer and sale of securities.
32. Jean E. Hayes
Curtis G. Hayes HFG Communications, Inc.
11691 Seminole
Boulevard
Seminole, FL 33778
Activity: Marketing company for ETS Payphones,
Inc.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer
activity; Fraudulent offer and sale of securities.
33. Tom Murray
National
Communications Marketing, Inc.
20423 State Road 7, Suite 109
Boca Raton,
FL 33498
Activity: Marketing company for ETS Payphones, Inc.
Violations:
Illegal offer and sale of securities; Unlicensed
broker-dealer activity; Fraudulent
offer and sale of securities.
34. Gary E. Moran
Garmor Financial Services,
Inc.
8908 Rocky Run Court, Suite 101
Tampa, FL 33634-1116
Activity:
Offered and sold COCOT programs.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity; Fraudulent offer and sale of securities.
35. Scott Sewall (a.k.a. Scott Sewell)
Payphone Connection, Inc.
224 Parnell
Street
Merritt Island, FL 32953
Activity: Operated COCOT program.
Violations: Illegal offer and sale of securities; Fraudulent offer
and
sale of securities.
36. Jack Lawrence Bispo
Woo Young Choi
BFG
Marketing, LLC
1802 Oak Street, No.4
Bakersfield, CA 93301
Activity:
Offered and sold COCOT programs.
Violations: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity; Fraudulent offer and sale of securities.
37. Robert L. Chaffee
Midwest Financial Associates, Inc.
733 Gratiot
P.O. Box 14388
Saginaw, MI 48601
Activity: Offered and sold COCOT
programs.
Violations: Illegal offer and sale of securities; Unlicensed
broker-dealer activity.
38. Patti Swisher
Payphoneincome.com Innovative
Financial Solutions Alternative Income Products
2552 Bristol Terrace St.
Joseph,
MI 49085
Activity: Offered and sold COCOT programs.
Violations: Illegal
offer and sale of securities; Unlicensed
broker-dealer activity.
39.
David Deville
10244 Wescott Avenue
Sunland, CA 91040-3233
Activity:
Offered and sold COCOT programs.
Action: Illegal offer and sale of securities;
Unlicensed
broker-dealer activity.
CONTACT:
California Department
of Corporations
G.W. McDonald, 213/576-7615
Julie Stewart, 916/323-7120
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