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June 19, 2001
Joe Bonnano, Esq.-Sean Wheeler/1lease : NCC Enterprises Fraud/Scam Alert Cooper/White/Cooper---Article 9 GE's Immelt Sees No Chance of Deal with Honeywell Lehman Doing Very Well Fed Ex Boxes at Post Offices
Instant Credit Modifications Based on Market and Risk Fluctuations Made Simple through MicroBilt
#### denotes press release
Sean Wheeler/1lease National Association of Equipment Leasing Brokers
In reading your recent newsletter with the comments from Sean Wheeler About the NAELB, I felt that I must of course set the record straight. By no means do I wish to open up the entire issue, it is an issue that is done. I just want to respond to the comments made by Mr. Wheeler about the process. As to Mr. Wheeler's comments point by point:
1. "One Lease has never been a member of the NAELB." That is correct.
2. "Directional Funding was also never a member." That is incorrect. Directional Funding was a member, submitted under the name of Marilyn Delerio. However, once the EFG issue surfaced, a review of the membership application showed that Directional's membership was paid for with Sean Wheeler's American Express card. That was one of the factors that showed The relationship between EFG and Directional Funding.
3. [The sharing of office space] "is the entire reason for the NAELB thinking there was a connection between the two companies." There were many factors that were brought to my attention that showed similarities and connections between the two companies, not just one. One connection would not raise a suspicion, many connections would.
4. "We had separate phone and fax numbers from EFG throughout this time." This is incorrect, letterhead shows the same phone, fax and address. At One point in time, they may have changed but they were not different "throughout this time."
From the perspective of the NAELB, please be aware that one isolated similarity would not rise to the level warranting action by the NAELB. And in complete hindsight, if there had never been a problem with EFG, then there never would have been any issues with Directional Funding, Direct Funding.Net or One Lease. Also, any action taken is only taken by the full board of directors, not just me.
I am not revisiting this issue, just responding to the points Mr. Wheeler made as it pertains to One Lease.
Joe Bonanno NAELB Legal Counsel attyjgb@aol.com (781) 391-7800 www.leasingissues.com
RE: NCC Enterprises Fraud/Scam Alert
Greetings:
Earlier in the year there were multiple posts to this board regarding a fraud/scam alert concerning Tulsa, Oklahoma company NCC Enterprises Inc. and/or NCC Equipment Company, as well as its owner Orbra Gahm. The respective links to these posts are listed below.
The issue concerns allegedly fraudulent transactions wherein Mr. Gahm attempts to raise operating capital for business owners by selling their existing equipment to Lessors under the guise of a true vendor sale from NCC. The business owner then defaults on the equipment lease and Mr. Gahm disclaims any wrongdoing claiming no improper conduct with his "sale-leaseback" transaction.
We represent a lender who is involved with this type of fraudulent transaction with NCC Enterprises and would greatly appreciate anyone else who has had similar occurrences with NCC or Orb Gahm to please contact me to discuss same.
Very truly yours,
Daniel D. Draper, III Rhodes, Hieronymus, Jones, Tucker & Gable, P.L.L.C. 100 W. 5th St., Ste. 400 Tulsa, OK 74103-4287 (918) 582-1173 (918) 592-3390 (fax) ddraper@rhodesokla.com COOPER, WHITE & COOPER LLP Transitioning to Revised Article 9 ALERT!
Article 9 of the Uniform Commercial Code has been revised by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. The following highlights the relevant changes to Article 9, discusses the transition rules, and suggests steps to be taken by secured parties before Revised Article 9 becomes effective:
Revised Article 9
Revised Article 9's Transition Rules: The transition rules, in part 7 of Revised Article 9, govern the transition from former Article 9 to Revised Article 9.
Actions to Take in Anticipation of Revised Article 9
For more information, call Jeff Wong or Barry Dubin (or your usual CWC contact) 201
CALIFORNIA STREET, SEVENTEENTH FLOOR * SAN FRANCISCO, CALIFORNIA 94111 * 1333
N. CALIFORNIA BOULEVARD * WALNUT CREEK, CALIFORNIA 94596 * This Alert is intended to provide accurate and authoritative information but does not constitute legal advice. Our readers are encouraged to contact our attorneys if legal advice is desired. Let's Get on With Business What the hell is everyone bitching about? As a person in the leasing business you cannot for some reason get a deal approved. OK, it happens. Now, you send it somewhere else and that company gets it approved. What is the big deal whether they are another broker, a super broker or a funder? You couldn't get it done but someone else did. Go sell the deal, collect your commission and be damn glad that other company was there to help. Jerry Withrow United Association of Equipment Leasing Salt Lake City Region Presents: Anatomy of a Lease 101 Thursday,
July 19, 2001 History of Leasing This segment covers in brief the evolution of leasing from 'captives' to modern day leasing. A brief discussion of the classification of leases from the perspective of accountants, the IRS and the law will be included. Credit We'll overview this process to give some insight into the role and purpose of credit, the elements of small, medium and large ticket credit decisions, and credit enhancements. Documentation Included in this discussion will be an overview of 12 lease documents and their purpose. A short discussion will also cover sales, property and income taxes. Funding Included in this topic are discussions regarding Sources of financing for the Broker, Lessor and funder, a 'due diligence' checklist, and an introductory discussion of discounts, reserves and holdbacks. Collections This topic includes introductory discussions of the signs of delinquency, progression of the collection process and remedies. We'll also explore types of repossession and the concept of the commercially reasonable sale. Sign Me Up for Anatomy of a Lease 101 on Thursday, July 19, 2001! Name: Company: Address: City/State/Zip: Phone: Fax: Email: Web Address:
UAEL Member @ $99.00 (Circle One) Check Enclosed Visa/MC Amex Account Number: Expiration Date: Name On Card: Signature: Joanie
Dalton - Managing Director Father's Day Thank you for the words of encouragement about Father's Day. Your Dad sounds like a great man -- too few great men around these days. I lost my Mother in January, so Mother's Day was tough, but I had a wonderful day with my Dad, yesterday. Had a BBQ over at my sister's house in Willow Glen. Spent about 5 hours just talking and enjoying my Dad. What a great day. He is an inspiration and great example of Fatherhood to me. He raised 10 children and every one of us is doing very well. He is very wise as well -- we all continue to seek him out for advice on life issues (marriage, children, business decisions.....) He has 25 grandchildren and 3 great grandchildren to boast about, as well. He is truly my Hero. Thanks for helping me relive it this morning for a few minutes. Brendon Cross ( Thank you. No complaints on the Father's Day message. And thank you all for the encouragement as people who did not want to receive "Sunday Sermon" were removed. If you want to be removed from the list, please let me know. Editor. GE's Immelt Sees No Chance of Deal .c The Associated Press PARIS (AP) - General Electric Co. president Jeffrey Immelt said in an interview published Tuesday there was ``zero'' chance his company's $41 billion merger with U.S. technology firm Honeywell International Inc. would go ahead. ``The indications we have from the European Commission lead us to think the offer won't be accepted,'' Immelt told the French daily Le Monde, referring to the executive arm of the 15-nation European Union. The deal has so far failed to win clearance from European regulators. ``The percentage is zero,'' he said when asked to estimate the chances of a successful conclusion to the proposed acquisition, which would create one of the world's largest industrial companies. In midday trading Tuesday on the New York Stock Exchange, Honeywell shares were down $2.05 a share, or 5.1 percent, to $37.95 while GE shares rose 17 cents to $49.17. Immelt is due to take over as chairman of General Electric when Jack Welch, who delayed his retirement to see through the Honeywell deal, steps down later this year. Although the deal won conditional clearance in Washington last month, the merger has run into serious trouble with EU regulators, who are reportedly demanding GE sell off billions worth of assets. GE has said the EU rejected its final offer for divestitures as insufficient. In the Le Monde interview, Immelt rejected suggestions that GE's hints that it is preparing for life without Honeywell were a political maneuver, designed to increase pressure on European authorities. ``General Electric doesn't want to transform this competition issue into a U.S.-Europe problem,'' Immelt said. ``This matter is based on economic facts. We don't agree with the commission but we don't intend to run crying to politicians.'' ``We haven't withdrawn the offer because we haven't reached agreement with Honeywell and we don't want to do it unilaterally,'' he added. On Monday, Honeywell's board of directors reaffirmed its full commitment to the deal. Immelt, who was in Paris this weekend to visit the Paris Air Show, told Le Monde that GE's position ``is so far removed from the European Commission's that we don't think it's wise to make a political matter out of it.'' The EU must decide by July 12 whether or not to approve the deal. It has expressed concern that a combined GE-Honeywell will be able to exploit its dominance in aircraft engines to win advantages in other areas of business, such as aircraft leasing and avionics. On Monday, the EU's top antitrust regulator said the Europeans were not the only ones with reservations about the merger. Competition Commissioner Mario Monti said the proposed deal had raised strong concerns among airlines and aircraft equipment makers on both sides of the Atlantic. U.S. Trade Representative Robert Zoellick said in a briefing Monday in Washington he was disappointed by the EU's opposition. ``Obviously we're disappointed,'' Zoellick said. ``The U.S. antitrust authorities approved the deal. We certainly respect the sovereign EU process in terms of its review.'' ``If it ends up this way, it's an unfortunate result,'' he said. On the Net: http://www.ge.com http://www.honeywell.com #### ################## ################## ############### (King of Prussia, PA, June 19, 2001) - Crane and heavy lift manufacturer, Grove, announced today that it has selected eMarket Capital, Inc. (www.eMarketCapital.com) as a principal source of customer financing for U.S. and Canadian customers. eMarket Capital is a Web-based service that uses a patent-pending bidding process to facilitate the leasing of capital equipment for manufacturers' customers and distributors in North America. "In today's economic climate, companies lean towards the preservation of their capital, so leasing becomes an even more attractive option than purchasing. We are glad to be able to provide equipment manufacturers like Grove with an easy, on-line tool to make the leasing process easier, faster, and fairer for their customers," said Jonathan Moran, eMarket Capital Founder and President. Founded in 1947 by Dwight L. Grove, John L. Grove and Wayne Nicarry in south-central Pennsylvania, the company originally known as Grove Manufacturing Company started out producing farm wagons in a small, rented two-car garage in the village of Shady Grove, Pennsylvania. Within two years, Grove was manufacturing its own commercial yard crane to assist in the transport and manufacturing process of bulky steel plates. Today, Grove is a leader in the manufacturing of mobile hydraulic cranes and aerial work platforms. "eMarket Capital not only understands business from the manufacturer's point of view, but also Grove's specific markets. And the company offers an innovative product that works, backed by a team of service-oriented finance professionals. We expect eMarket Capital's services to provide a real benefit to our customers, distributors and our sales and management team," said David W. Hull, Grove Director of Trade Finance. How eMarket Capital Works eMarket Capital provides private-label leasing services that help manufacturers like Grove close more deals by making competitive lease financing available to their customers. eMarket Capital establishes a customized leasing Web site for each participating manufacturer. Each Web site is operated under the manufacturer's brand name and includes a limited number of lenders who are experienced in equipment financing and who collectively can cater to a broad range of credit risks and types. Customers fill out a single on-line application, and through eMarket Capital's patent-pending Web-based process, receive multiple offers within two business days. Offers are submitted to the customer in a format that simplifies the process of making an "apples-to-apples" comparison. Lenders pay a below-market origination fee only when they complete a deal through one of the Web sites. The service targets capital equipment purchases from $5,000 to $1 million. Transactions in this range represent over 50 percent of the overall market, which analysts expect to grow 5 to 8 percent a year . ##### ################## #################
Instant Credit Modifications Based on Market and Risk Fluctuations Made Simple through MicroBilt KENNESAW, Ga.--( Decision Table Eliminates Hours of Development for Credit Managers Who Want to Revolutionize Their Application Process MicroBilt today announced the release of their Decision Table product which provides a tool for credit managers to automate their internal or online application process with instant decisioning. MicroBilt, a nationwide leader in credit bureau data access and retrieval, provides credit solutions to over 30,000 companies nationwide. Credit managers who wish to automate their credit process can eliminate countless hours in development costs utilizing the Decision Table feature through MicroBilts Software Developers Kit (SDK). Utilizing either their own credit application or MicroBilts, credit managers simply define the levels of decisioning they require and what products each customer level will be offered. Instant user interface accessibility provides users access to their decision trees for instant credit modifications based on market and risk fluctuations. Decision Table can retrieve credit data from credit bureaus, apply a company's credit decision criteria and deliver an answer back to customers in two to three seconds. Companies such as FinMax are interfacing Decision Table to their web sites for instant, online credit decisions. FinMax, an e-commerce site, which enables a vehicle dealer to input customer information into a database and then routes pricing offers back to the dealer, has beta tested Decision Table for its filtering capabilities. Decision Table allows FinMax to provide its dealer participants with lender recommendations based customer credit information. According to FinMax Chief Operating Officer, Sean Ryan, This capability is crucial to FinMax in our quest to reduce processing time and costs to all parties involved in the credit transaction. Decision Table acts as a quick and easy credit filter that companies can modify based on market conditions, states MicroBilt President, Ken Hill. MicroBilt delivers the tools that small and midsize lenders without technical resources need to make real-time credit decisions and manage risk efficiently. About MicroBilt MicroBilt, a division of Bristol Investments, Ltd., is the North American leader in credit bureau data access and retrieval, providing credit solutions to the Financial (banking, mortgages, home equity, credit union, collections), Rental or Leasing, Health Care, Insurance, Law Enforcement, Educational (Universities, Colleges and institutions of higher learning) and Utilities (gas, electric, cellular, cable, telephone) industries. MicroBilt provides interfaces with the three consumer bureaus, Equifax (NYSE: EFX), Experian (London Stock Exchange: GUS) and Trans Union and the two commercial bureaus, Dun & Bradstreet (NYSE:DNB) and Experian Business. Bureau data is available via dedicated terminals, dial-up software, Internet web site access (www.creditcommander.com), or through an integrated custom interface utilizing the Software Developers Kit. The company also enables web sites to enhance their content offerings by delivering a CreditCommander.com co-branded site to their established online communities. MicroBilt services over 30,000 customers throughout the United States and Canada. Formerly a First Data Corporation (NYSE: FDC) subsidiary, MicroBilt Corporation (www.MicroBilt.com), maintains offices in Georgia, New Jersey, New York, South Carolina, Arizona, Illinois and California. CONTACT:
MicroBilt Corporation #### ################### ####################### AP Business FedEx
Boxes Going Up at Post Offices WASHINGTON (AP) -- Nationwide installation of Federal Express drop boxes at post offices got under way Tuesday. FedEx and the post office announced a business alliance in January. It calls for FedEx to carry Express, Priority and first-class mail on its national aviation system and to place its collection boxes outside postal facilities. ''Ultimately this business alliance will strengthen the Postal Service, help it manage its costs, grow revenue and improve services,'' said Patricia M. Gibert, a vice president of the postal service. Depending on the final number of drop boxes placed at post offices, FedEx will pay the Postal Service between $126 million and $232 million over the seven-year term of the deal. The U.S. Postal Service said it expects to save about $1 billion in its air transportation costs while extending the market of its Express Mail next-day, and Priority two-day services. FedEx Express has available capacity during the day that meets postal requirements. The seven-year $6.3 billion transport contract also has guarantees by FedEx Express to ensure on-time performance with the network. In March, the post office and FedEx began testing the use of the drop boxes by placing 113 of them in Charlotte, N.C., and Fort Lauderdale, Fla. National deployment will begin by expanding this to 38 more markets, for an estimated 3,000 drop boxes, by the end of July. During August and September it will grow to 70 additional markets, with plans for further expansion through mid-November. The post office said other overnight package delivery companies may place collection boxes at post offices on similar terms. Postal workers will not handle or accept FedEx products. FedEx employees provide both the service and maintenance of the drop boxes. National implementation of the transportation network will begin Aug. 27. Lehman's Tops Expectations NEW YORK (AP) -- A steep drop in its investment banking business depressed second-quarter earnings at Goldman Sachs Group Inc., but the brokerage giant's profits still managed to meet analysts' expectations. Rival Lehman Brothers Holdings Inc. fared better, topping Wall Street's profit estimates thanks in part to a rise in its debt underwriting and capital markets businesses. < ^Goldman Sachs Group Inc.= Goldman Sachs earned $577 million, or $1.06 a share in the quarter ended May 25, compared with earnings of $755 million, or $1.48 a share, in the same period a year ago. Goldman's profits met the estimates of analysts surveyed by Thomson Financial/First Call. That helped boost Goldman's stock by 85 cents to $89.50 in morning trading Tuesday on the New York Stock Exchange. Net revenues in the quarter were $3.99 billion, down slightly from $4.15 billion a year ago. That was particularly hurt by the significant drop in its investment banking business, where revenues were down 51 percent. But the decline was stemmed by sharp gains in its fixed income, commodity and currency businesses. Goldman is one of the world's leaders in mergers and acquisitions and new stock underwriting. In a statement, the brokerage firm's chairman and chief executive Henry Paulson Jr. noted that the company was operating in a ''challenging business environment.'' ''We continue to feel the impact of difficult economic and market conditions, and the near-term outlook remains uncertain,'' Paulson said. For the first six months of its fiscal year, Goldman earned $1.35 billion, or $2.46 a share, compared with $1.64 billion, or $3.23 a share in the same period a year ago. Revenues were $8.72 billion, up from $8.65 billion. < ^Lehman Brothers Holdings Inc.= Lehman earned $430 million, or $1.38 a share, in the quarter ended May 31, compared with earnings of $378 million, or $1.39 a share, in the same period a year ago. The results topped estimates of $1.14 a share by analysts surveyed by Thomson Financial/First Call. Lehman's stock shot up Tuesday on the better-than-expected report, rising $4.79 to $72.09 in morning trading on the New York Stock Exchange. Revenues for the quarter were $2.02 billion, compared with $1.76 billion a year ago. That was helped by a boost in its revenue from debt underwriting, which more than doubled from the year before, and a gain in its capital markets business. For the first six months of the year, Lehman earned $817 million, or $2.77 a share, compared with $919 million, or $3.23 a share in the same period a year ago. Revenues for the six months totaled $3.91 billion, compared with $3.96 billion.
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