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July 13, 2001
Funder
OnLine Acquires BrokerWare, Inc., of Tampa, Florida
You
Are the Problem---If You Don't "Blow the Whistle" by Bob Baker, CLP
Friday
the Thirteenth ( some say feels that way every day in the leasing business )
___###denotes company press release___________________________________ ------------------------------------------------------------------------------------------------------------
"When the Going Gets Tough..."
Equipment Leasing Association
ELA is the most successful with attendance of all the leasing associations. There is a true cross section of the industry. A larger turn-out, and a real cross section. This Florida event promises to be the best ever, and that is not hype from ELA---that is this editor's opinion. Why? Here are----
Some Highlights:
Sunday:
Golf Tournament and welcome reception Evening Welcome Reception
Monday:
Adrian Slywotzky, Merced Management
Exhibits
Open
Noon---John Kasich, Managing Director, Investment Banking Group, Lehman Brothers
To
learn more, go to www.elaonline.com/events/2001/Annconv/ September
24 Last day to register and to be included in the pre-registration list.
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Odds and Ends----
Scoops Du Jour
Where do we get our "scoops."
From our readers. The T&W Mike Price Tax Story came from Travis Foxx:
"I stumbled upon this quite by accident, while researching something on the State of Washington Dept. of Revenue homepage (http://dor.wa.gov) It was rather prominently displayed.
"Some days things just go from bad to worse.
"Keep up the great work!"
Travis Foxx travisfoxx@merchantcapital.net
+++++++
The Daniels Strike Again
We have tried to reach both Stan and Scott Daniels of the now bankrupt SDI Capital. There are many questions, regarding back pay, bonuses last year, small investors who are worried about getting their investment back, plus to verify what we hear, such as:
"I have just found out that Scott and Stanley Daniels have just opened another business. The name of the new business is Compass One decision Analysis Group incorporated 6/7/2001. Both of the Daniels have bought property in Canada at the whooping price of 350k each and paid in cash....... Now I know how they are spending there bonus.
"Please pass this information along to all of your readers. I'm sure there are allot more people that they have hurt that can use this information to there benefit."
Name Withheld
+++++++
Message from Brittingham----
Hello Mr. Menkin:
I received a call from one of my friends in Tacoma today indicating that I made "the news". Whew, glad it wasn't the obituaries!
Given the topic: "Where is Larry Brittingham???" I felt it appropriate to send you this e-mail.
Please post this notice for my friends and colleagues who wish to keep in contact. Feel free to reach me directly at (856) 753-3940, or e-mail larryb@bee.net
I've recently read some of the articles you post and enjoy your editorial commentary. Thank you, I wish you well and continued leasing success.
Sincerely,
Larry
Brittingham
+ + + .
Cynthia Spurdle New Address
Hi to all of my family and friends.; Hope your summer is going well.
I just wanted all of you to know that I "moved again." My new E-mail address is cynthia.w.spurdle@verizon.netGood health and happiness to one and all!
Cindy
~~~
Blasé?
( Are you still with the CLP Foundation? "Yes, in fact we are putting the final touches on our web site. It should be up shortly. I'll let you know," she answered No Reaction---
I must admit we must be getting blasé about layoffs. A few months ago, readers would write and react, and now we are "used to it?"
"I'm sorry to say I was one of three people let got last Tuesday from a sales staff of five. This decision was completely unexpected as I had been a consistent producer. I was told the decision was made in order to "improve the bottom line" which is a major concern these days. Very disconcerting to say the least as Fisher-Anderson is a fine company.
"But, what's done is done and I'm now looking for a new position. Your newsletter will become even more important as I search this difficult job market."
Betty Ferrero Baferrero@aol.com
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You Are the Problem---If You Don't "Blow the Whistle" Bob Baker,CLP I had to respond to a comment in the Leasing News yesterday by Russ Runnells regarding some of the bad apples in our industry. My comments here are not directed at Russ as his observations are right on. Also, Bob Rodi is also correct in his statement that if things appear to be to good to be true they probably are. If we deal with these slime bags out of greed and look the other way we again are part of the problem. This industry is unregulated and it is absolutely true that if we don't do a much better job of policing ourselves the government will. Here is the problem as I see it. It is not the job of the various leasing associations to police the industry. The CLP foundation deals only with violations of the CLP's themselves. The old saying " You are either part of the Solution or part of the Problem---" certainly applies here. If you are aware of unethical business practices it is YOUR RESPONSIBILITY to blow the whistle. Every association contains within it the capability to deal with these companies and individuals. However, a complaint in writing is necessary to put the weight of the associations in motion. If you become aware of situations and ignore them YOU ARE THE PROBLEM! Other than normal disputes over commissions and disagreements very few complaints are brought to the attention of the associations. When they have been they have been dealt with severely. The bottom line here is simply when you become aware of individuals or companies dealing fraudulently, unscrupulously, or illegally deal with it!! Blow the whistle, file complaints and let the associations, courts, and law enforcement deal with these scumbags and we will all benefit. If you don't want to get involved that's fine too-- but don't cry on my shoulder when the Feds do! Bob
Baker CLP + + + Joe Bonanno, Esq. NAELB Legal Counsel I wish to respond to the correspondence from Mr. Runnalls. I agree with Mr. Runnalls that many unethical participants plague the industry, but he is overlooking the fact that there are just as many, if not more ethical participants that have been in this industry for a number of years. As you can surmise, I strongly disagree with Mr. Runnalls' statements as to the effect and role of leasing associations. First and foremost, I disagree with his statement that the only contribution of associations is "education (big deal)." The NAELB and myself have written and conducted many educational seminars on fraud prevention, how to read between the lines and look for problems with customers, vendors and other industry participants and despite the fact that this statement may sound somewhat self-serving, have been pleased to hear from many individuals that they have "taken it up a level" and have been able to read between the lines and spot potential problems and have the sound business judgment to walk away from potentially bad and problematic deals. Second, associations in and of themselves, in no matter what industry or profession, can only do so much and cannot regulate every participant in an industry. By analogy to my profession, every state has its own bar associations and in my state we have a statewide association, city bar associations and county bar associations. All of them advance education and have many educational programs. However, the attorney code of ethics is regulated and enforced by the state agency that grants licenses to attorneys to practice law. The leverage they have is the ability to suspend or revoke one's license to their livelihood. Clearly, the bar associations do not have that leverage. And even despite the leverage that the state agency has, believe it or not, there are still attorneys that believe they can get away with something and for whatever reason choose to live close to the edge and that either lose of have their license suspended. My point is that even when that kind of authority is lurking in the background, even then there are still participants that cross the line. Therefore, leasing industry associations like the NAELB and others that take the initiative to have a code of ethics and an enforcement mechanism in place to enforce their code have taken a great step in the leasing industry. It is very rare for associations to both put forth education, ethics and enforcement of ethics and in our industry, we have associations that have done just that. But, there is only so much that an association can do. We can take action against our own members and help them to resolve disputes with other members and in the extreme case, expel an offending party from membership. However, associations have no leverage or enforcement mechanisms over non-members. Therefore, education and information exchange is much more than a "big deal" and becomes important to the avoiding of problems. The value of membership in an association involves much more than a narrow focus on education, rather, it encompasses many more things such as information exchange, the sharing of experiences and stories, networking and a whole host of other benefits as well. At the NAELB, we strive to provide as many services and benefits as possible to our members. I believe that we are doing something right, as evidenced by our membership growth in this turbulent leasing economy. So, I wish that Mr. Runnalls would take note of the role that associations can play and the many benefits that associations can provide. Joe
Bonanno ++ ++++ Historical Viewpoint via Hal Horowitz I couldn't agree with Bob Rodi and Russ Runnalls more with regards to the fact that something must be done to govern the ethical behavior of the leasing industry. I don't agree that self-policing is the answer anymore. That's a joke. Back in the early 80s, one of my first WAEL (remember that name?) responsibilities was as chairperson of the Standards Committee. The standards had only recently been adopted and those were exciting times. I created a Newsline column titled something like the Ethics Corner and wrote articles monthly either regarding the Standards individually, or addressing general Standards issues. My goal was to make the general readership aware of the fact that there was a code of ethics and what they were. I also invited guest writers for the column. One very poignant article was written by Bob Jacobson III. It questioned the "toothless ness" of the Standards. I was also instrumental in having at least two questions of Standard incorporated into the CLP exam. In addition, we actually heard complaints on Standards issues. Articles. CLP awareness. Hearings. And I'm sure over the years I haven't been involved, a lot more has been done to try to make the Standards meaningful. And judging from recent articles and Russ' correspondence, to what end? Only to see many in the leasing industry scoff at their intent. As I read about what is going on in the leasing industry, I do not regret for a moment getting out of it. Unfortunately the good that leasing does has too low a profile to overcome the stain left by the crooks in the industry. I don't want to fight that battle any more. If I were an active member of the leasing community today, I would be lobbying like hell for regulation. The response to this position might elicit a response from your readership expressing joy that I'm no longer in the industry. Let me add my voice to theirs. Hal Horowitz Hal
T. Horowitz "It is my mission to collaborate with my clients in order to further their success by identifying professionals of uncommon ability to whom my clients might not otherwise have access and who will make a valuable contribution to my clients' goals." Workplace
consultants Beverly Kaye and Sharon Jordan-Evans for their book, " Love-'Em or
Lose 'Em: Getting Good People to Stay," asked 8,000 people why they stayed at
a company. +++ Historic Viewpoint by Mark Speros, COF Russ Runnals, CLP and Bob Rodi, CLP are right on target (as usual) regarding the sorry state of ethical business practices in theequipment leasing industry today. As a COF (Certified Old Fart) in this industry I can assure you that the various "Organizations"(?) in the equipment leasing industry (ELA, EAEL, NAELB, CPL Foundation & UAEL) have, since their inception, advocated ethical standards for their members. Unfortunately for the industry and the ethical companies and individuals in our industry, this posturing has not resulted in any enforceable action by these organizations to self police the industry. The attorneys (generic) always caution the associations that they are at risk of adverse legal action when they try to enforce ethical standards. So how come state bar associations can sanction attorneys, medical associations sanction physicians, or dental associations sanction dentists who conduct their practices in violation of the ethical standards established by their respective associations? Are we second class citizens who do not enjoy the same protection against unethical practices that are generally enjoyed by any professional association? The legal professional members of these associations need to re-evaluate their objections to self policing and come up with suggestions for the Standards Committees to use in enforcing sanctions for unethical practices. If all of the unproductive hot air generated by the various ethical standards committees over the years could be harnessed, there would be no California power crisis. Mark
Speros, ----------------------------------------------------------------------------------------------------------- · Friday the Thirteenth Did you know: Friday got its name from a Norse deity worshipped on the sixth day - either Frigg (goddess of marriage and fertility) or Freya (goddess of sex and fertility) or both, the two having understandably been confused with one another over time. It is said ... If 13 people sit down to dinner together, all will die within the year. The Turks so disliked the number 13 that it was practically expunged from their vocabulary (Brewer, 1894). Many cities do not have a 13th Street or a 13th Avenue. Many buildings don't have a 13th floor. If you have 13 letters in your name, you will have the devil's luck (Jack the Ripper, Charles Manson, Jeffrey Dahmer, Theodore Bundy and Albert De Salvo all have 13 letters in their names). One of the more concrete early taboos connected with the number 13 is said to have started with the Hindus, who believed (for reasons I haven't been able to ascertain) that it was always unlucky for 13 people to gather in one place - say, for dinner. Interestingly enough, exactly the same superstition has been attributed to the Vikings, though many scholars regard this and the accompanying mythological explanation as apocryphal. In any case, the story has been told as follows: Twelve gods were invited to a banquet at Valhalla. Loki, the Evil One, god of mischief, had been excluded from the guest list but chose to crash the party, bringing the total to 13. True to form, Loki raised hell by inciting Hod, the blind god of winter, to attack Balder the Good, who happened to be a favorite of the gods. Hod took a spear of mistletoe offered by Loki and hurled it at Balder, killing him instantly. All of Valhalla grieved. And although one might take the moral of this story to be "Beware of uninvited guests bearing mistletoe," the Norse themselves supposedly concluded that 13 people at a dinner party is just plain bad luck. As if to prove the point, the Bible tells us that there were exactly 13 present at the Last Supper. One of the guests - er, apostles - went on to betray Jesus Christ, setting the stage for the crucifixion. Did I mention the crucifixion took place on a Friday? Senate takes procedural vote on bill as U.S. bankruptcies soar By Marcy Gordon WASHINGTON With the slumping economy bringing a surge in bankruptcy filings, the Senate on Thursday took a procedural vote on a House-passed bill making it harder for people to wipe away their debts in court. Opponents say the legislation would remove a crucial financial safety net for people who have lost their jobs or face huge medical bills. The tally was 88-10 in the Democratic-controlled Senate to resume work on the sweeping overhaul of bankruptcy laws. Senate aides said the bill and an alternate version sponsored by Sen. Patrick Leahy, D-Vt., chairman of the Senate Judiciary Committee, could be submitted to House and Senate negotiators in the coming days. President Bush signaled earlier this year he would sign the bill, which passed the House on March 1 but has been stalled since. "We have a no-nonsense president in the White House who understands the importance of personal responsibility," Sen. Orrin Hatch, R-Utah, said in debate before the vote. The legislation applies a new standard for determining whether people filing for bankruptcy should be forced to repay their debts under a court-approved reorganization plan rather than having them dissolved. If a debtor is found to have sufficient income to repay at least 25 percent of the debt over five years, a reorganization plan generally would be required. The House bill debated on Thursday does not contain a provision in an earlier Senate version putting a $125,000 national cap on homestead exemptions under bankruptcy. The provision was designed to prevent wealthy debtors from shielding their assets in luxury homes in the states with unlimited exemptions: Florida, Iowa, Kansas, South Dakota and Texas. Bush is strongly opposed to such a cap, which would limit to $125,000 the amount of home equity that debtors can keep out of the reach of creditors in bankruptcy proceedings. Its inclusion in a final bankruptcy bill was considered a likely obstacle to Bush's signing it. Proponents of the legislation, which has been pushed by banks and credit card companies for nearly four years, say stricter laws are needed to stop abuse of the bankruptcy system by people who can afford to repay their debts. "With the Senate acting today, an end to bankruptcy misuse is finally in sight," said Steve Pfister, senior vice president for government relations at the National Retail Federation, which represents department, discount, Internet and other types of stores. "Bad debts have to be passed on to consumers and drive up the cost of every product sold," he said. Opponents insist that credit card companies, mailing out millions of offers of new credit, have recklessly loosened their credit-granting standards and are at least partly responsible for the surge in consumer debt. The bill "punishes the vulnerable and it rewards the big banks and credit card companies for their poor practices," said Sen. Paul Wellstone, D-Minn., a leading opponent of the legislation. "We are heading into hard economic times ... and we're going to make it hard for people to rebuild their lives." Fresh news of economic distress came Thursday with a government report that the number of workers filing new claims for state unemployment insurance last week surged to a nine-year high. Bankruptcy filings by consumers and businesses, meanwhile, jumped 17.5 percent in the first three months of the year, the Administrative Office of the U.S. Courts reported recently. Filings reached 366,841 in the January-March period, highest ever for a first quarter, and up from 312,335 a year earlier. The American Bankruptcy Institute, an independent group of bankruptcy judges, lawyers and experts, expects filings to reach a record this year. Personal bankruptcies reached a record 1.4 million in 1998 in a strong economy, up more than 300 percent since 1980, but declined to about 1.3 million in 1999 and 1.2 million last year. Voting against the motion to proceed on the bankruptcy bill were Democratic Sens. Barbara Boxer of California, Jon Corzine of New Jersey, Mark Dayton and Wellstone of Minnesota, Christopher Dodd of Connecticut, Richard Durbin of Illinois, Russell Feingold of Wisconsin and Tom Harkin of Iowa, and two Republicans: Sam Brownback of Kansas and Kay Bailey Hutchison of Texas. Sen. Peter Fitzgerald, R-Ill., voted present to avoid a conflict of interest because his family owns a bank. Sen. Maria Cantwell, D-Wash., did not vote. ##### ####################### ################### Funder OnLine Acquires Leasing Software Leader BrokerWare, Inc. Agreement with highly respected software company enhances Funder OnLine s leadership position Funder OnLine of Toronto, Ontario, today announced that it has reached agreement to acquire BrokerWare, Inc. of Tampa, Florida. The deal, valued at several million dollars and scheduled to close in July 2001, further enhances Funder OnLine s growth strategy as it continues to solidify its position as North America s leading B2B eBusiness Services Provider (BSP) specifically geared towards the fast-growing online financing industry. BrokerWare is highly respected in the lease finance industry for providing highly effective and efficient software solutions. Incorporated in 1995, BrokerWare works with an impressive client list which includes major U.S. leasing and financing companies, such as Relational Funding Inc., FNF Capital Inc. and Transamerica. Under the terms of the deal, BrokerWare s President, Mike Cumby, will join Funder OnLine as President of U.S. Operations. Cumby, founder of BrokerWare, has the expertise and leadership to continue Funder s expansion into the U.S. market. The new BrokerWare Division of Funder OnLine will operate from BrokerWare s offices in Tampa. Agreement Fuels Growth We have the contacts, profile and track record required for the combined business to take full advantage of the market opportunities in North America, explains Mike Cumby, President, BrokerWare. With the merger between these companies, Funder OnLine now has the most complete suite of products and services for the equipment lease/loan/rental industry. We are positioned as the natural partner for companies interested in taking their equipment financing business online. We are extremely excited about joining forces with BrokerWare, says Cha Loh, VP, Business & Strategic Development for Funder OnLine. Strategically, this is a merger of equals. Both companies have been developing online financing solutions since the mid 1990 s. Taking best practices from each organization will enable us to grow our business through enriched offerings, leading-edge technology solutions and deep industry knowledge. Our association with BrokerWare strengthens our position as the most experienced BSP servicing the equipment financing industry." About BrokerWare BrokerWare, Inc. is a software, networking and consulting organization dedicated to the leasing industries. BrokerWare, based in Tampa, FL, has processed over $2 billion of equipment financing transactions since 1995. BrokerWare is the creator of ISIS, the premier front-end Windows NT, SQL software package for lenders, and ISIS Online, a complete Internet based, application entry and lease processing system. BrokerWare empowers its clients by making their services accessible worldwide through Internet and online services. Leasing companies across the United States who understand the needs of their customers and want to implement the technology needed to gain a competitive edge are benefiting from BrokerWare's innovative expertise. About Funder OnLine Funder OnLine is North America s leading B2B eBusiness Services Provider (BSP) specifically geared towards the fast-growing online financing industry. Funder OnLine has set itself apart from its competitors by maintaining steady, measured growth through employing the latest technologies and utilising its deep understanding of the financial services industry. Since 1994, Funder OnLine has processed more than $10 billion in financial transactions and has retained each of its client partnerships.
For more information about Funder OnLine please contact Brian Rosevear or Paul
Keable at Strategic Objectives. ########### ###################### ############## GE Capital Wins by Exiting Info Tech and Auto Leasing By Christine Richard, Dow Jones Newswires General Electric Capital demonstrated a surprising ability to translate falling second quarter revenues into a record quarter for earnings. While parent company General Electric pulled off the same reporting feat, no where was the divergence between revenues and earnings more striking than GE Capital. Revenues fell by 13% in the second quarter at GE Capital compared with a rise in earnings of 16%. GE Capital is one of the largest issuers in the high-grade corporate bond market with $77 billion in outstanding long-term debt and $117 billion in outstanding short-term debt at the end of the first quarter. It also is the only U.S. finance company to carry a triple-A rating. Nicholas Heymann, an equity analyst at Prudential Securities in New York, says that an initial look at GE Capital's revenue decline is a bit of a shocker. "You look at the revenue down 13% and say to yourself, 'Wow where are the holes?'" Heymann said. But he said the sharp decline in revenues while earnings surged is the result of GE Capital realigning itself in the right areas of financing. Among the areas in which GE Capital has sharply curtailed or discontinued its operations are auto leases and information technology services. Auto lease financing rapidly is becoming a losing proposition because of the aggressive discounting supporting sales, said Heymann. "We're looking at tens of billions of dollars of nightmares because the (auto) industry is trashing residual values of leases," said Heymann. "GE is not there anymore," said Heymann. "They took losses of around $75 million and got out." A GE spokesman confirmed that GE Capital was not initiating any new auto leasing business. Meanwhile, GE Capital also sharply curtailed its operations that offered information technology products and services, particularly aimed at startup and Internet companies. Companies such as Lucent Technologies and Comdisco have posted huge losses on their efforts to finance products and service sales to startups companies. "IT services has been a train wreck," said Heymann, referring to information technology. GE Capital "reported revenues down 13% and earnings up 16%, which means clearly some revenues are more profitable than others," said Richard Lane, an analyst with Moody's Investor's Service. Lane says GE Capital's ability to focus on those parts of the business that are the better earners was evident during a difficult second quarter. "We wouldn't want to see revenues decline for a prolonged period of time but for a particular quarter it's not an issue," said Lane. The areas in which GE Capital has seen big gains in financing revenues include consumer finance, specialized finance, commercial finance, analysts said. "It's (second quarter results) the type of news we expect from someone like GE which is rated triple-A," said Lane. "It speaks to the diversification of the business and it's illustrative of the strength of management and market positions." ### ############# Edwin C. Sigel, Ltd., Announces Promotion Edwin C. Sigel, Ltd., CPA's and Lease Portfolio Managers, Northbrook, Illinois, announces that Jodi Hoskins, CPA has been promoted to the position of Senior Accountant, Lease Portfolio Management. Jodi is a seasoned professional and has been with ECS for over seven years. Jodi specializes in lease accounting and multiple-state sales tax preparation and is a member of the AICPA and the Illinois CPA Society. ####### courtesy elaonline.com -------------------------------------------------------------------------------------------------- ####################################################### ### Used Equipment Central Renamed Asset Management Central Arlington,
VA -- Overwhelmed asset managers now have a complete package of tools and services
on line to help them successfully manage the used equipment landscape at the newly
re-named AssetManagmentCentral.com, Mark Wygonik, Vice President, Business Development
for the Equipment Leasing Association (ELA) announced today. Formerly known as
UsedEquipmentCentral.com, the site has all the same products and features the
Asset Management community has come to expect, but has been re-named to better
describe the services available online. ###
############# www.leasingnews.org
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