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

Amfnyc@aol.com

 

 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.

 

 

 

        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

bob@independentleasing.com

---------------------------------------------------------------------------------------------

  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 originated more than $36 million in equipment leases and projects as much as $16 million in 2001. In the Feb. 9, 2001, edition of BBJ, Hawkins said the merger would give First Commerce a strong presence in the Dallas area and provide growth opportunities for its BancPartners Leasing division. BancPartners enjoys partnerships with eight Alabama banks and five in Tennessee, through which the company acts as the banks' leasing division via outsourcing arrangements. "There's a dynamic banking market in Central Texas that we're pursuing," Hawkins said.

 

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

---------------------------------------------------------------------------------------------

  Spirit

 

In your blurb about the NAELB you refer to the friendly spirit between members. For your  information French expression you use, which is proper in English, is spelled: "esprit de corps" in either language.

 

Claude Lanselle

clglsng@pacbell.net

 

In reading the story, I knew it was spelled incorrectly, and in doing too many things before sending it out, I forgot to correct it.  The French have such a great language,

this was perfect to describe the high spirit of the members feel toward each other.

 

 

     www.leasingpress.com   and  Nigeria Scam

 

First, thanks for the kind words about our book. James Johnson has created a website including an index and other information; we plan to post common leasing Q's and A's there later this summer. www.leasingpress.com.

 

Next, I appreciate your posting Buzz Thomas's info on NAELB. We are hoping that brokers and funders alike recognize that tough times are the worst times to try to "go it alone" - Join NAELB, or if you prefer, UAEL, EAEL or ELA: somewhere you can network, learn and keep abreast of opportunities, scams, who's good and who's bad.

 

Speaking of which, the reason I think the feds aren't after all those email (formerly fax and US Mail) scams is that they're too busy laughing their b*tts off. It's a pity, of course, because the emails would stop if no one ever answered them. Maybe someone can send back a nice computer virus with a smiley face!

 

Barry Marks

bmarks@blik.com

www.blik.com

www.leaselawyer.com

www.leasingpress.com

 

---------------------------------------------------------------------------------------------

  Equipment Leasing Association Information Programs

 

 

In a subsequent newsletter, you may be interested in carrying a story about the ELA's research and information programs.  I read your earlier positive comments about the association's advocacy activities--both state and federal.  Wondered if you and your readers are aware of the fact that the ELA is the primary source of data about the $280 billion equipment leasing and finance market.  The annual Survey of Industry Activity report for 2001 will be published in mid-July.  It is rich in statistical, operations, and financial information about the 106 leasing companies that responded.  I would be happy to provide you some information about the results when they are available.

 

 

Ralph Petta

VP-Industry Services

Equipment Leasing Association

(703) 516-8364

fax (703) 522-7099

email: rpetta@elamail.com

 

  ( We definitely look forward to learning more. editor )

Former President of Aloha Leasing ( not relation with Aloha Pacific )

   Sentence to Be Reduced?????!

 

Judge Ordered to Reconsider Prison Sentence in Largest Leasing Swindle Case of Record

 

 By STEPHANIE FLANDERS , New York Times

 

The sentence of a Syracuse businessman who was convicted of one of the largest financial swindles in United States history was vacated yesterday by a federal appeals court because the sentencing judge had said the actions of the businessman's wife would determine how long he spent in jail.

 

The businessman, Patrick R. Bennett, was sentenced in April 2000 by Judge John S. Martin of United States District Court to either 20 years or 30 years in prison, depending on whether his wife turned over the family house and other property to creditors. Judge Martin had accused the Bennett’s of trying to protect their $400,000 home — on a horse farm near Syracuse — and other assets from efforts to provide restitution to 10,000 investors who lost more than $600 million at the hands of Mr. Bennett.

 

The three-judge panel of the United States Court of Appeals for the Second Circuit upheld Mr. Bennett's conviction but vacated his sentence, meaning that prosecutors will have to go back to the judge for a new sentence. The panel said it found "very little precedent" for the District Court judge's approach.

 

"It is unusual for a sentencing judge to select a presumptive sentence and then state that sentence will be increased if some action the judge deems appropriate is not taken," the Appeals court wrote. "It is even more unusual to use the threat of an increased sentence to compel action by someone other than the defendant."

 

The office of Mary Jo White, the United States attorney for the Southern District of New York, had no comment yesterday on the appeal court's action. The office had previously pressed for the maximum sentence possible for Mr. Bennett. And even the lower figure of 20 years would have made the judge's earlier sentence one of the longest for a white-collar crime.

 

Mr. Bennett was convicted over the course of two jury trials in Manhattan in 1999 on charges of bank fraud, money laundering, securities fraud and perjury. In the trials, prosecutors said that he had used his company, Bennett Funding Group of Syracuse, to defraud unsuspecting investors, many of them elderly.

 

Some investors testified at the trial, saying that Mr. Bennett's fraud had wiped out much of their savings and ruined their lives.

 

When Mr. Bennett was convicted, he was ordered to hand over $109 million to the government. The government later accused Mr. Bennett of hiding assets from the company's investors and other creditors by transferring them to his wife. But during the trial, Mr. Bennett's wife, Gwen K. Bennett, refused to respond to questions on the issue and claimed that the assets were rightfully hers.

 

When sentencing Mr. Bennett last year, Judge Martin called attention to the devastating impact on defrauded investors of seeing Mrs. Bennett living on a horse farm while they were living in poverty.

 

The appeals judges said that by offering to reduce the length of Mr. Bennett's sentence if his wife gave up her property, Judge Martin had sought to induce Mrs. Bennett to give up her statutory rights. "The impermissibility of imposing punishment for that purpose is not avoided simply because Mrs. Bennett stood her ground and refused to accept the sentencing judge's offer not to enhance her husband's sentence if she capitulated," the opinion said.

 

The government has obtained an order of forfeiture to seize the farm, subject to a separate appeal. There is no expectation that Mr. Bennett will be released from prison as a result of yesterday's judgment.

 

( The Bennett Funding Group scandal is the largest in the history of the

leasing industry. To read more, go to:  http://www.bennett-funding.com/

 

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

 

Robert J. Merritt, Group CEO, CIT Equipment Financing to Retire; Burr Named Successor

 

After 28 years of service, CIT Equipment Financing Group CEO Robert J. Merritt will retire this fall. Merritt is Chairman-elect of the Equipment Leasing Association (ELA) and was slated to become Chairman of ELA in October 2001. With his retirement from CIT, Merritt will not serve as ELA Chairman this fall.

 

“Through Bob’s leadership Equipment Financing has evolved into a nationally recognized powerhouse in the equipment financing arena. During his years with CIT, Bob has developed a team of talented and experienced professionals…. All of us thank Bob for his dedication, support, and strong performance over the years,” stated Albert R. Gamper, Jr. , Chairman, President and Chief Executive Officer of The CIT Group, Inc. in a letter to his CIT colleagues.

 

Effective June 1, John Burr, President of CIT’s Equipment Financing’s North America Construction and Transportation Division, will assume the role of Chief Operating Officer reporting to Merritt. Following a period of transition, Burr will assume the role of Group CEO of Equipment Financing. As COO, Burr will have the following Equipment Financing business units reporting to him: National Industrial Equipment Financing Division, Small Business Lending, Technology Rental & Services, as well as the North America Construction and Transportation Division.

 

About CIT

 

With over $50 billion in managed assets, CIT is a leading diversified finance company offering vendor, equipment, commercial, factoring, consumer and structured financing capabilities. CIT operates extensively in the United States and Canada with strategic locations in Europe, Latin and South America, and the Pacific Rim. Founded in 1908, CIT is recognized as a leader in many of the markets it serves. For more information visit www.cit.com. On Friday, June 1, Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC), a diversified manufacturing and services company announced its acquisition of CIT.

Sites of Reference:

http://www.cit.com