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June 4, 2001 Headlines--- EAEL Membership Down 24% Former PinnLease Pres. Larsen “Not Guilty” Sierra Cities Affiliate Program Healthy Under American Express First Commerce Becomes “Bancpartners” Patrick Bennett Wins Sentence Appeal in Largest Leasing Swindle Position Open; primarily in SDI Capital Market Surprise!!! Robert J. Merritt, Group CEO, CIT Equipment Financing to Retire; Burr Named Successor ( will not be ELA Chairman next year ) Financial Federal Corporation Announces Record Earnings for Third Quarter --------------------------------------------------------------------------------------------- Eastern Association of Equipment Leasing Membership Down 24% As of today---EAEL has 213 members compared to 240 at 12/31/00. Expo is EAEL's biggest and best event. It is being held September 24 at the Sheraton Meadowlands in East Rutherford, NJ. We have one day filled with workshops, exhibitors and this year we are delighted to present Everett M. Ehrlich an Economist who appears regularly on National Public Radio's Morning Edition. Perhaps you would consider being our guest of EAEL's expo. Perhaps you could mention that the EAEL is holding its third annual crab feast at Gunnings Restaurant in Hanover, MD on June 7 ( Friday ). To date we have 71 confirmed registrants. Not only is this a great networking opportunity, but a great way to enjoy crab in true Maryland style. For additional information, please contact EAEL office at 914 381 5830 or email us at amfnyc@eael.org. Thanks—Alison 82 signed up to date for our crab feast. Not too late to join the group. (When we did our year-end survey, it was reported to us by EAEL there were 279 members http://www.leasingnews.org/links_section.htm The membership non-renewal is normally 15% to 20%, so this would be slightly higher and not out of line with the many companies no longer in business and the state of the leasing economy. (We have been looking for more information about Eastern Association of Equipment Leasing activities and support all leasing associations equally. We hope the crab feast is a great networking success. We will promote the September 24 Sheraton Meadowlands Conference in East Rutherford, NJ editor ) --------------------------------------------------------------------------------------------- Former PinnLease President Tommy Larsen “Not Guilty” Tommy Larsen, President of Aloha Pacific Leasing , was acquitted of all “contempt” charges on Friday. He says, “ They were ridiculous. What trade secrets in leasing could I steal? Customers follow you, if you are doing a good job for them. “ The contempt charges were posted as public knowledge on the PinnFund.com web site. “ The fact is PinnLease was very profitable, “ Larsen says. “ We had nothing to do with PinnFund management of money or operation. We were a separate company. All these accusations were totally hearsay. We always made money at PinnLease. The operation was clean and well-managed.” Here is an official memo from
M Richardson Lynn, Jr., Muns,
Wagner, Anastopulos &
Lynn,APC Subject Security and Exchange Commission v PinnFund USA Inc etc. at United States District Court (Southern District of California) Case No. 01 CV 0496 H(LAB) Date: June
1 2001 TO WHOM IT MAY
CONCERN: This law firm is counsel for
Tommy Larsen. In connection
with the above-referenced
action, the Receiver for PinnFund USA, inc.(“PinnFund”)
brought an order to show cause
re: civil contempt against
Tommy Larsen in connection
with a temporary restraining
order issued by the court
on March 23, 2001 against
PinnFund and related entities.
On behalf of Tommy Larsen,
our office submitted extensive
written opposition to the
0CS re: contempt on May 31
2001. The issue was heard
before U.S. District Judge
Marilyn L. Huff on June 1
2001. The court found that
Mr. Larsen was not in
contempt of any court order
based on his past conduct.
The court indicated that Mr.
Larsen would be subject to
the temporary restraining
order on a prospective
basis and would be required
to comply with the order to
the extent tie was capable
of doing so. As a practical
matter, this simply means
that Mr. Larsen will be required
to provide information within
his knowledge and control
regarding PinnLease transactions. The court further specifically
ruled that it was proper for
Mr. Larsen to receive personal
mail which was delivered to
the former office of PinnLease.
The court made no finding
that Mr. Larsen improperly
utilized proprietary information
of PinnLease or engaged in
any other improper conduct
in the past. The court also
made no finding that Mr. Larsen,
by becoming employed by Aloha
Pacific Leasing, was engaging
in wrongful conduct in violation
of his former employment contract
with PinnLease. The introduction from the eight page response spells it out best.: “The principal shareholders of
PinnLease are Michael Fanghella
and Keith Grubba.”) PinnLease
occupied office space in the
Carlsbad, California building
complex of PinnFund. PinnLease
was in the equipment leasing
business, a different business
than PinnFund. Larsen was
not a director or shareholder
in PinnLease, and was never
an officer, director, shareholder
or employee of PinnFund. The evidentiary showing put forth
by the receiver to support
a civil contempt citation
against Larsen is riddled
with holes and deficiencies,
as demonstrated below. First,
it is not at all clear that
the court’s March 23,
2001 temporary restraining
order (TRO) has any applicability
to Larsen. Second, Larsen
did not have notice of the
TRO. Third, the evidentiary
showing by the receiver in
support of the civil contempt
citation is based on inadmissible
hearsay. Fourth, on the merits,
the contempt points charged
by the receiver are wrong;
Larsen is not liable for civil
contempt even if he were subject
to the court’s TRO issued
on March 23. It is frankly difficult to understand the motivation for the receiver pursuing this matter against a peripheral non-party to this action, given the major claims which the receiver has against the party defendants, who, unlike Larsen, were closely involved in the day-to-day operations of Pinnfund. At all times the court must keep in mind that Larsen was never at any time an officer, director, shareholder or employee of PinnFund, and at no time had any involvement in the management or day-to-day operation of PinnFund. There may well be several culprits ( in addition to Mr. Fanghella) for the wrongs that were perpetrated upon PinnFund investors, but Tommy Larsen was clearly not one of those culprits. Leasing News thinks it would only be fair for the PinnFund.com website to post this and the news of acquittal for Tommy Larsen, now president o Aloha Pacific Leasing, 440 South Melrose Drive, Suite 100, Vista, Ca. 92083. He is “not guilty”---officially, too. ######## ############# ############################## Financial Federal Corporation Announces Record Earnings for Third Fiscal Quarter Ended April 30, 2001
NEW YORK--(BUSINESS WIRE)--June 4, 2001--Financial Federal Corporation (NYSE: FIF), a nationwide independent financial services company specializing in equipment finance and leasing for middle market businesses, announced record net earnings for the quarter ended April 30, 2001. Record Quarterly Earnings: Earnings for the quarter ended April 30, 2001 were $8,010,000, a 17% increase over the $6,838,000 earned in quarter ended April 30, 2000. Diluted earnings per share for the fiscal quarters ended April 30, 2001 and 2000 were $0.44 and $0.39, respectively, an increase of 13%. Year to date Earnings: For the nine months ended April 30, 2001, net earnings were $23,012,000, versus $19,825,000 for the comparable period last year, an increase of 16%. Diluted earnings per share for the nine months ended April 30, 2001 and 2000 were $1.28 and $1.13, respectively, an increase of 13%. Receivables Growth and Credit Quality: New business originated in the quarter ended April 30, 2001 was $190,000,000. Finance receivables at April 30, 2001 were $1.279 billion, a 19% increase from April 30, 2000. Delinquent receivables (more than 60 days past due) at April 30, 2001 were 2.3% of finance receivables compared to 1.9% for the prior quarter, and receivables on non-accrual were 2.2% of finance receivables compared to 1.9% for the prior quarter. Annualized net charge-offs, as a percentage of average finance receivables, were 0.19% for the April 2001 quarter compared to 0.16% for the prior quarter. The allowance for possible losses was maintained at 1.66% of finance receivables. Paul R. Sinsheimer, Chairman and CEO, remarked: "I am pleased to report the Company's 48th consecutive quarter of record earnings and receivables outstanding, despite a challenging business environment. Although some of the industries served by the company have been impacted by inclement weather and an economic slowdown, the Company's net charge-offs continue to be among the lowest in our peer group. I am encouraged by an improving competitive landscape since many competitors have either exited the marketplace or changed their strategies for acquiring new business. "The Company has relocated its Phoenix operations center to southern California and expanded its presence on the West Coast, with the addition of several senior managers and marketing personnel. We believe that the California operations center positions the Company to further penetrate one of the most dynamic markets in the US." Steve F. Groth, CFO, commented: "The combination of prudent growth, reduced interest costs, and a low operating expense ratio has resulted in a 17% return on equity for the quarter. Capital formation has kept pace with the Company's growth rate, resulting in continued conservative financial leverage." Financial Federal Corporation specializes in financing industrial, commercial and professional equipment through installment sales and leasing programs for manufacturers, dealers and end users nationwide. In addition to its New York office, the Company has six full-service operations centers in Texas, Illinois, New Jersey, North Carolina, Georgia and California, and numerous additional marketing locations throughout the country. For additional information, please visit us at www.financialfederal.com. ########## ################## ####################### Sierra Cities Affiliate Program Healthy Under American Express In regard to the letter posted last week on Sierra Cities canceling their affiliate programs, that is only for direct consumer apps and vendor programs. Vendors that use them direct will be signing new agreements under the name of AMEX. The broker program is alive and well wit no changes. I spoke to my rep. this AM Gary W. Psaledas Western Equipment Financing, Inc. 505-286-5437, Fax 505-286-5438 = = I heard from Hank Johnson this AM...he explained that the communication relative to the "FirstSierra Affiliates" had nothing to do with the broker program that he says is up and running and doing well. Except for their high rates we find their program to be very good and hope it remains so. Name Withheld --------------------------------------------------------------------------------------------- JUST GOT NOTICE THAT PATRIOT COMMERCIAL LEASING IN PENNSYLVANIA IS NO LONGER DOING BROKER BUSINESS. I think they have kept a few key brokers. Interesting enough the person I spoke to said their performance of the broker business was better than that of the vendor side. Bob Bell --------------------------------------------------------------------------------------------- Positions Open Leasing News mentioned we are working on a “Classified Section.” Steve Chriest is doing the planning and actual work. We do want to help the people who were recently let go at several companies, so we will print these e-mails and hope to have a classified section due earlier than we had originally planned. This is putting pressure on Steve, and the difference between what we are doing and others have done is simple: Steve is a former broker, super broker, lessor, so he has practical experience. Our advisory board are people who make their living in the leasing industry and the viewpoint is one that they have direct and long term experience. Here are some we have received to date: Innovative Lease Services currently has positions available in our Carlsbad, CA office. We have an immediate need for Vendor Service Sales Representatives. Interested parties may view a job description on our website at www.ilslease.com or may contact Neil Clark, HR Manager at (800)438-1470 Ext. 209. With the recent demise / changes in many Southern California Lessors and Brokers we invite any inquiries from sales orientated personnel. Andrew S. Nere ils@ilslease.com Innovative Lease Services, Inc. (800)438-1470 Ext. 204 - - - We would also be very interested in employing sales reps that are looking for work. I believe we have a good thing going and would like to expand our presence. Andrew Thorn athorn@nowlease.com Thalman Financial, Inc. Apple Valley, Ca. 800-707-1864 - - Name: John Power Address = 7545 Irvine Center Dr. City = Irvine State = CA Zipcode = 92618 Phone = 9494537517 Fax = 9494283117 Email = jpower@msmcapital.com Source = Add me to the mailing list = yes Comments = I would like to offer former SDI Capital employees, employment.
= = = Any sales people in the Metro-Portland area who are looking for a placement should contact Paul Bob or John Taylor at Ablenet. We have 3 private offices waiting for Mr. or Ms. Right.
Our business as seen continued growth and we would like a few (more) good men to join the team.
Paul: paul@able-net.com Ext. 21 John: taylor@able-net.com Ext. 13 Paul D. Bob, CLP Chief Executive Officer 5050 SW Griffith Dr., Ste 101 Beaverton, OR 97005-2932 www.able-net.com 800-255-7430 ext. 21 Fax: (253) 660-8796 ########### ############## ########################### First Commerce Leasing now BancPartners Six months into its merger with a Dallas firm, First Commerce Leasing Inc. has dropped that name in favor of BancPartners Leasing. At the end of 2000, First Commerce merged with Dallas-based Affiliated Corporate Services Inc. through a stock exchange deal expected to increase the combined company's volume by as much as 30 percent this year. At the time, Jim Lahti said both businesses would continue operating under their respective names but would be owned by a new entity, First Commerce Holdings Inc. First Commerce largely retained its name but continued to promote its private-label leasing program, BancPartners Leasing. All of its operations -- led by president Warren Hawkins -- now share the BancPartners name. BancPartners executive assistant Melissa Wright says the change became official June 1. "All of our ads have been changed," she says. This month, BancPartners added five new employees with more than 70 years of combined professional experience, including a lead generation officer and a credit manager. "We're working hard to grow," Wright says. BancPartners Leasing provides master lease lines of credit, from $25,000 to $5 million, to a variety of industries in Alabama and Tennessee. Hawkins has projected a 2001 lease volume of more than $25 million. Headquartered in the Dallas suburb of Lewisville, ACSI specializes in small-ticket commercial equipment financing for small and mid-sized businesses. During the last four years, ACSI |