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July 10, 2001 SDI
Capital Filed BK
The List is Up-dated and readable at: http://www.leasingnews.org/list.htm
(We send the entire list from time-to-time, but regularly send only the "up-dates." The list is so long, it breaks up in "text format", plus makes for too long a download. We strongly recommend you go to the website posting: http://www.leasingnews.org/list.htm
------------------- Kit, here's a couple you missed:
3/99
Tokai Financial Services sold to De Lage Landen
Please withhold my name.
Thanks ps, nice site. very informative.
~~~~ In reviewing the "List" I noticed that the following was published "First International Bancorp ( 1/2001 ) to be acquired by UPS Capital First State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing division-$64 million---" I am not aware of any other leasing company by that name (especially in Albuquerque!)and assume that it was our company, First Capital Group. We were sold by First State Bancorporation in March 2000 for approximately $62.5MM. We were acquired by First Banks, Inc. of St.Louis. Since that time we have grown from $62.5MM to $175MM and are continuing to do business in the middle market arena.
Thanks!
David
W. Friiede
(Thank you. I thought we had corrected it before. Somehow in the up-dating, we went back to the original version. I will correct it. I appreciate you pointing it out. editor )
Stan and Scott Daniels---Car 54 Where Are You?
"SDI Capital filed for Chapter 11 bankruptcy protection on June 27 in Orange County. Attorney is Jeffrey I. Golden (714) 966-1000."
Name Withheld
Stan Daniels was the president and his son Scott was an officer. It is reported that Scott has started a "superbroker" operation and is contacting brokers to send him business.
We have tried to reach both Stan and Scott Daniels at their home, and whoever we call, they appear to be in their telephone but the mobile number, when we call " is out of the area and not reachable at this time."
~~~
"I received a notice from the court yesterday, and must say I am very surprised. I thought for sure they would not file and just walk away. I wonder what the BK court will say when they find out that the Daniels had bonuses themselves 1 million dollars each in December, and they have the nerve to say they had no personal funds. Not even enough to pay for the medical insurance that deducted from our pay checks. Where do you think the bonus money came from? "
Kit, my last 3 jobs in the Leasing Industry have ended up in disaster. Greed, manipulation from the ownership and of course the shaft, for those who cared enough to do it right. I wonder when and if things will ever change ? Good luck to those left in this Industry with any heart and soul, as for my self I am done !!!"
Name Withheld
( Note this person is high up in administration, and do not want to give any further identity. Leasing News has been talking to this "name withheld" for quite some time and gives the person high creditability. editor )
----------------------------------------------------------------------------------------- Tacoman charged with evading taxes on $3.2 million yacht
Seattle, Wash.,- A Tacoma executive was charged with filing false documents to evade paying more than $280,000 in sales and watercraft excise taxes on a custom-built 73-foot yacht.
The Criminal Justice Division of the Attorney General's Office charged Michael Albert Price, 55, with a felony for allegedly claiming that he paid $690,000 for the Price's Waterhouse, a yacht he had built at a cost of $3.2 million. Paperwork submitted to the Department of Licensing falsely stated that Price had paid $53,820 in sales tax on the lesser amount, when in fact no sales tax was ever paid.
The maximum penalty for offering a false instrument for filing or record is five years in jail and a $10,000 fine, plus costs, restitution and assessments. Price is founder and majority stockholder of T&W Financial Corporation, an equipment leasing company headquartered in Tacoma that currently is in bankruptcy reorganization.
Charging papers allege that Price falsified paperwork to show that he had purchased the vessel from T&W Leasing Company in May 1999. A Department of Revenue investigation indicated that the leasing company was fictitious, and Price actually had contracted with Northcoast Yachts in Tacoma to build the hull and Cap Sante Marine in Anacortes to complete construction.
Price had a previous run-in with the Department of Revenue in the early 1990s, according to the charging papers. He purchased a 53-foot motor vessel in 1990 in the name of Waterhouse Charters. He did not pay sales tax at the time because he maintained that the vessel was going to be operated strictly as a charter vessel. A Department of Revenue investigation determined that Price had in fact used the vessel for personal purposes, triggering imposition of sales tax. Price appealed, but ended up paying $24,600 in taxes and interest in August 1999.
The Department turned to the Criminal Justice Division of the Attorney General's Office after discovering that Price had allegedly attempted to defraud the state again. The Criminal Justice Division investigates tax-related white-collar crime. Its principal investigator is Darryl Roosendaal, (206) 464-6430.
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Textron Financial Makes It Official re: Small Ticket/Vendor Finance Operations
As Leasing News originally reported on July 2nd, Textron Financial, headquartered in Providence, RI, announced its plans to a select group of brokers about restructuring its business divisions supporting small ticket leasing and vendor finance programs.
In subsequent issues, Leasing News outlined other changes going on, and the effort of a group of originators to start their own independent leasing company. Several of the vendor programs, originally brought in from Nations Bank was thought to be a good way to consolidate their captive finance programs for Jacobsen, EZGo, Cushman and other vendors associated their "golf" division., plus perhaps Hunter Automotive and Steinway Pianos.
Leasing News also reported most of the people involved in the Textron operation felt liberated after the decision was made. The morale and atmosphere there had not been good for some time with some in fighting from another department, it was alleged. The $430 Million receivable was also decided to be put up for sale ( Leasing News has not confirmed this ).
We have attempted to contact several spokespersons for Textron Financial.
It appears the small ticket equipment financing functions will be moved to its Small Business Direct group that was acquired in early June and is based in Little Rock, Arkansas. As a result, Textron Financial will eliminate its Lake Oswego, OR and Providence, RI functions that previously handled small ticket equipment financing as support for these programs are migrated to the Small Business Direct operation over the next 30-60 days. The unofficial target date is August 1, 2001. We are told a formal statement was mailed to all parties who will be affected. We will publish it when we receive a copy.
Where are you Jim Merrilees? Today? Tomorrow?
European Bank American Makes it "Official"
Leasing News reported on June 7, 2001, when Citicorp ordered European American to cease third party origination by June 30. As they did with Copelco, Citicorp does not like brokerage business.
European American President Ira Romoff resigned. It was expected Fred Anderson will be on the streets shortly, along with Omar Diaz and Rich Illich ( I hope we have these names spelled correct as this was just telephoned in to us from the crab fest being held by the Eastern Association of Equipment Leasing in Hanover, Maryland.
Reportedly in a recent letter, Ira Romoff, executive vice president of EAB and head of its Lease Financing Department, made the announcement official, that he will be leaving the Company at the end of the summer. The company's leasing activities will be run by CitiCapital, with its Lease Lending Division headed by Dave Frankel at the head of the Leasing Lending Division. It is reported that within CitiCapital, Frank McCaughey will continue to head up the Vehicle Lease Financing unit. It is also reported that EAB's leasing subsidiaries in the U.S. will continue to originate equipment leasing and financing transactions for CitiCapital.
Romoff also noted that after closing, which is expected at the end of July, 2001, Fred Anderson's group will not longer accept applications for equipment lease discounting, although fundings will take place until all commitments are honored. After a short transition, Anderson and his equipment lease funding team will be leaving CitiCapital. ------------------------------------------------------------------------------------------------------------
Does the new FTC opinion letter change anything?
How significant is the recent FTC revision of the July 26, 2000 Medine staff opinion letter concerning the FCRA? The FTC revision states that it is reasonable to assume that when an individual accepts personal liability for a business debt there is a permissible purpose under Section 604(a)(3)(A) for the lender to obtain a consumer credit report. The question then becomes when can it be logically assumed that an individual has accepted personal liability for a business debt?
Does a credit application that is filled out and submitted constitute acceptance of liability on the part of those named in the application? The crux of the issue has always been that a written authorization - a signed document is what is required for the lessor to pull the consumer credit report. The FTC revision only reinforces this reality. A signed authorization must be obtained from individual proprietors, co-signers, or guarantors prior to pulling their individual credit reports. Otherwise, the logical assumption would be that an individual assumes personal liability for a business debt simply by having their personal data added to a form!
Electronic signatures are a fast, economical and convenient way for leasing companies to get credit applications signed rather than submitted - to get the written authorizations required by funders and credit agencies BEFORE pulling credit reports. Simply present the application or authorization for signing via email, at $0.75 per signature, Yozons, www.yozons.com offers lessors an insurance policy they can't afford not to have.
Robert Kommer VP Marketing/Sales Yozons Inc. rkommer@yozon.com 206.463.9657 JDR Complaint regarding Residuals and Payoffs
Michael Wagner of Dimension Funding, California originally expressed difficulties with JDR Capital, who basically is a "portfolio" as the owners are continuing with their existing "lessor" leasing company, as per Bob Wayne in May:
" We are out of the broker business as JDR Capital, but we are still functioning as FORINT Financial, and working with select brokers at JDR Capital who when we get the leases approved, they get them signed."
It appears Michael Wagner was "satisfied" with JDR Capital:
"I heard from Jennifer Birney (jbirney@jdrcapital.com) she was extremely helpful. Please advise others to contact her if necessary. Thanks for the help and I'm sorry I didn't notify you sooner."
Regards.
Michael Wagner mwagner@dimensionfunding.com
( I would also like to add that our Bulletin Board does not get the use that it has had in the past as most postings are resolved by the parties. Although Leasing News is not an ombudsman, we have helped "facilitate" many amicable resolutions. editor. )
Where is Larry Brittingham from JDR fame??
John Jensen john@cambridgeleasing.com cambridgecommerce.com ############## #################### ###################
LENDX Announces New Agreement with Alcoa to Deliver Web-based Equipment Financing Applications SAN FRANCISCO, CA -- LENDX, Inc., the leading provider of management applications and commerce services for equipment finance, today announced that Alcoa has selected LENDX's Lifecycle Suite to automate its equipment financing processes. The implementation of LENDX's applications will enable Alcoa to establish enterprise-wide procedures, collaborate with capital providers, and manage outstanding financings - all through a web-based interface. The companies have agreed to a contract through June 2004. By implementing LENDX's web-based applications, Alcoa will now be able to access centralized, real-time information about equipment financing transactions. The processing and maintenance of hundreds of schedules will be streamlined throughout the company.
"With LENDX's applications and services we will be able to exercise unprecedented visibility and control throughout the entire equipment financing process. From standardization of important financing guidelines through the collaboration with lenders to ongoing portfolio management, we will be able to standardize processes throughout the company. This leverages the company's existing investment in equipment and capital to realize a significant cost savings," said Judy Schrecker, Treasurer - North America, Alcoa.
"Our web-based applications address all phases of the equipment finance lifecycle to deliver efficiency, cost savings and unprecedented control," said Lou Vigliotti, CFO of LENDX. "We're looking forward to working with Alcoa to significantly streamline equipment financing processes both within the company and with their various suppliers."
About Alcoa
Alcoa is the world's leading producer of primary aluminum, fabricating aluminum and alumina. It is active in all major aspects of the industry -- technology, mining, refining, smelting, fabricating and recycling. It has operations in 37 countries.
About LENDX
LENDX is the leading provider of management applications and commerce services for equipment finance and other financing instruments. Its integrated suite of web-based applications and services improves efficiency, increases control and reduces costs by providing large companies with solutions that address the entire financing lifecycle. Delivered as a hosted service, LENDX applications and related services provide secure and intuitive solutions for managing financing obligations that can be fully deployed in days. Additional information about LENDX is available by calling (877) 905.3639 or via the Internet at http://www.lendx.com.
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Web Van May Have Run Out of Gas ( what a trite headline ), but the grocery business is doing very well:
Safeway's second-quarter earnings climb 9%
San Diego Union-Tribune
Grocery chain Safeway Inc. met Wall Street's expectations, reporting a 9 percent increase in second-quarter earnings.
For the three months ended June 16, Safeway said yesterday it posted net earnings of $307.3 million, or 59 cents per share, compared with $280.9 million, or 55 cents per share, in the year-earlier quarter.
Excluding a charge for the company's investment in its online presence, GroceryWorks.com, the company earned $325.1 million, or 63 cents per share, matching analysts predictions.
Same store sales, which includes redesigned stores, rose 1.7 percent for the quarter. Safeway's total sales increased 8 percent to $8.0 billion.
Safeway is one of the largest food and drug retailers in North America, with 1,688 stores in several western states. The company also owns stores operating as Vons, Dominick's and Randall/Tom Thumb.
During the first two quarters of 2001, Safeway opened 37 new stores and closed 21 locations.
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