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Kit Menkin’s Leasing News www.leasingnews.org Tuesday, June 11, 2002 Accurate, fair and unbiased news for the equipment Leasing Industry Headlines---- Centerpoint Financial, Colorado Summit Introduces Next Generation Solution MSM Capital, Irvine, California-NASBA Landlinemag.org—CMC/FundingTree Scoop Tuesday---Odds and Ends Andrew Thorn Report re: Auto responder Message Tyco Replaces Chief Lawyer, Is Hit With Downgrade of Debt Changes will consolidate responsibility, Amtrak president says eLessors Leasing Company White Pages OneWorld Leasing Launched as Leasing Cooperative—up-date Venture capitalists sustained 27.8 percent loss during 2001 New study says nonprofit arts groups generate $134 billion annually Landlinesmag.org December Issue about Commercial Money Center ### Denotes Press Release ( The List to be up-dated this week ) ------------------------------------------------------------------------------------------- Centerpoint Financial, Colorado Leasing News would like to compliment Centerpoint Director of Marketing Chuck Brazier for the two faxes to all Centerpoint Brokers, returning all telephone calls, doing his best as an employee to protect all parties involved. This has not been the norm recently, and our hat is off to him, even if he won’t give Leasing News a comment. It is refreshing to see someone who cares, who has integrity, and handles situations in the “deepest hour” with the concern of helping others. I hope this appreciation is viewed favorably by his “customers” and “employer.” In the years reporting about companies “in trouble,” this is the first situation where help has been asked. Chuck Brazier has our deepest respect as you learn a person’s character when their back is against the wall. Leasing News hopes Mr. Brazier is setting an example for others to follow who find themselves in similar situations. His action is truly one of valor in the business battlefront. Editor In addition to CapitalWerks offering to help, as reported yesterday, here are two other companies who will to come to aid: In response to the Centerpoint Financial situation, Butler Capital Corporation stands ready to review all approved backlog at Centerpoint to provide a funding solution, under the following guidelines: ** Minimum 12.75% Yield to Butler based on transaction credit risk. ** Documented on Butler Capital Corporation documents. ** Broker profit to be determined on a transactional basis. ** Hard Copy of Centerpoint approval and credit package required. ** QuikTrak equipment inspection. ** 1st & last payment in advance. ** Clean D&B. ** Satisfactory CBR. Thanks. Mitch Larkin Butler Capital Corporation 800-928-8537 (phone) 410-771-0295 (fax) ---- Summit Funding to the Rescue Name = BRUCE LARSEN Address = 661 E. BURNSVILLE PARKWAY City = BURNSVILLE State = MN Zipcode = 55337 Phone = 952-890-5092 Fax = 952-890-5103 Email = summitfunding@aol.com Source = Add me to the mailing list = Comments = Kit--I was sorry to hear about the Centerpoint situation. None of us like to hear about another funding source biting the dust. Resiliency will become a catch phrase to all very soon. To assist any of the brokers that are having some difficulty getting their deals bought that went to Centerpoint, I would also be willing to assist any of them that need a hoe for their deals under, say, $12,500. I am an "authorized affiliate" of Leasecomm and they are real good at start-ups, "B" and "C" credits. They require FMV and have high rates, but, they have a fairly large credit window; Maximum of 8 broker points. If I can help, I will where I can. ---------------------------------------------------------------------------------------------- ##################### ###################################### Summit Introduces Next Generation Solution Summit
National, Inc., the leading U.S. owned provider of SQL based lease accounting
software and services for the leasing industry, is pleased to announce
its next generation solutions supporting Oracle 9i database platforms:
ULTIMA, iNnova, and AppLink. ULTIMA
is the new flagship system from Summit. This 32-bit Windows based system
manages complex lease and loan portfolios and seamlessly integrates
with major 3rd party products. ULTIMA has
all the functionality of our OPTIMA MS SQL product with
additional features including Customizable User Interface, Internal
Reporting, Enhanced Security Options, and it’s Internet enabled.
ULTIMA is the ultimate Oracle platform solution. iNnova
is a comprehensive and cost effective core accounting and management
application for small to mid size vehicle and equipment leasing companies.
This 32-bit Windows based system was designed to increase user efficiency
and reduce data entry errors. iNnova runs on MS SQL or
Oracle database platforms and can be installed at your location on a
dedicated server or used through the WEB as an ASP service. AppLink,
Summit’s front-end, web-enabled Application Processor and Credit
Management system, provides a complete solution for tracking leases
in progress. AppLink was designed with User Defined flexibility to
mold to a company’s individual business processes. This system
interfaces with the major credit bureaus for online gathering of information,
email and contact management software, general accounting packages,
custom report writers, and most any back-end system including Summit’s
ULTIMA, OPTIMA, and iNnova systems.
Summit’s
high value products are designed with state-of-the-art technology to
increase operating efficiency and lower IT and Administration costs.
These systems are modular and tailored to meet the needs of small, medium,
and large enterprises in the vehicle and equipment leasing industries. For
more information, please visit our website at www.summitnational.com . ############## ################################################ ---------------------------------------------------------------------------------------- MSM Capital, Irvine, California A reliable source states the skeleton staff is really a skeleton staff, as “MSM Capital recently (last night) fired their funding people, their IT guy and their credit guy, and the only people left there are Vipul Parmar, Mike Cingari and Rob Pardini.” Reportedly they are going into sales at NASBA Capital, located in Laguna Niguel, CA, owned and operated by “former” partner Doug Milinor. Contacted by Leasing News, Mr. Milinor said it was no true, they would not be working for NASBA and there is no “relationship.” A January, 2002, UCC filing shows a former relationship: http://www.leasingnews.org/docs/Doc3.htm ( see the secured party lines. editor ) --------------------------------------------------------------------------------------------------- Landlinemag.org Has the Scoop on CMC and others, Plus The Funding Tree “You might want to know the latest -- Kendra Bernal was arrested a couple weeks ago! “I got my information from Riverside DA Investigator Jerry Fox. The DA prosecuting the case is Karen Gorham. I'm still trying to get a copy of the court complaint (Case No. RIF103811) by mail. Kendra was already on probation (Case no. RIF75158), which she obviously violated. “If you want to read the articles I've done on CMC and a few others (not including Kendra Bernal -- this is my newest investigation), check out: http://www.landlinemag.com/Archives/2001/Dec2001/Your_Money/easy_money.html “and the latest one (scroll to the bottom story) http://www.landlinemag.com/todays_news/Daily/April02/041902.htm “I haven't written the story about Kendra Bernal yet, but your input will help me finish it. Thanks, Rene (You bet. Editor) Here is the latest article: The
Official Publication The
Owner-Operator Independent Drivers Association (OOIDA) Since the
first report on Commercial Money Center Inc., Growth 1 Funding Corp.
and other advance fee loan companies (Dec/Jan, Land Line), three OOIDA
members - Johnnie L. Banner, Steven D. Long Sr. and Lonnie Byers - received
refunds from Growth 1 and Funder Direct. However, more small-business
truckers have reported losing thousands to this new breed of loan sharks
who promised equipment financing, took their money and gave them nothing
but excuses. OOIDA member
Lawrence E. McCafferty of Fernley, NV, is still waiting for his $2,573
refund from Growth 1 for a failed truck financing deal. OOIDA member
Maxie McIntosh of Perris, CA, also paid $2,573 to Growth 1 on April
3, 2001, but the finance company never came through with the funding.
Roxanna Munoz, senior underwriter for Growth 1, has agreed to look into
refunds for McIntosh and McCafferty. Based in San Diego, CA, Growth
1 is owned by Dane Moore, but most owner-operators report dealing with
Munoz. At least
five owner-operators reported problems with Commercial Money Center,
headquartered in Las Vegas with an office in Escondido, CA. Burrell
L. Lee Jr., OOIDA member from Radcliff, KY, gave CMC $5,194.53 in advanced
payments plus $220 for processing fees and $175 for a Quicktrak inspection
on May 8, 2001, to finance a truck. For his money, he received no financing,
no equipment and no refund. The same rings true for owner-operator Dane
Stieben, of Colby, KS, who paid $5,840 to CMC; Phil and Victoria Stone,
of Nortonville, KY, paid $4,520.56 to finance a trailer with CMC; and
Galloway Transport, of Grandville, GA, who reported to the Federal Trade
Commission it paid $2,000 to CMC for financing. Senitteau
Norton of Boulderick Farms and Norton Refrigeration financed three trucks
through CMC, and then some refrigerated trailers in October 2000. To
finance the trailers, Norton paid $4,787.26 in advanced payments plus
a $220 processing fee and $175 for a Quiktrak inspection. Soon after
she picked up the trailers and had them licensed, the dealership repossessed
them because CMC never paid for the equipment. Since the financing fell
through on the trailers, she asked CMC to apply the trailer down payment
toward her truck payments, but CMC refused. With no trailers to go with
their trucks, Norton's company could not earn enough money to pay for
the trucks and eventually lost them, too. These owner-operators
may have lost up to $5,000 each to CMC, but OOIDA members Darren Purrier
of Las Vegas, Henry Brown of Phoenix, AZ, and Patricia Breeden of Stafford,
VA, are paying CMC's 48-50 percent interest rates. Purrier says when
he confronted CMC about the high interest rates, he was told the rates
were completely legal because it was a lease, not a loan. Purrier
says recent major repair work has made it difficult to keep up with
the lease payments. When the Purriers tried to get a deferment, a CMC
representative told them they must miss the payment before CMC would
send them deferment paperwork. However, the rep didn't tell the Purriers
about the more than $300 in fees they were charged for the deferment. Brown says
the truck he received is not the one described on his paperwork and
he still can't get a legal title for the truck. Munoz says
CMC is out of business. Attempts to confirm this information were met
with a full voice mailbox at CMC's California office and a know-nothing
receptionist at the Las Vegas headquarters, where company execs were
unavailable for comment. The receptionist deferred all questions to
a Mr. Gwarder (correct spelling not given), who was in a deposition
April 4. However, a representative at U.S. Bancorp, who now services
CMC's lease contracts, did say the California office is closed, but
the Las Vegas office currently is open. Although
CMC and Growth 1 received the most complaints from owner-operators,
a few other companies each received one complaint. Of those, Commercial
Leasing of Louisiana, an agent of Florida-based company International
Corporate Finance Ltd., took the most money from one individual. Marti
Wright of South Star Transport in El Paso, TX, paid Commercial Leasing
more than $20,000 to finance three new trucks, which were repossessed
about a month after delivery because the finance company never paid
the dealer. Telephone numbers for Commercial Leasing are disconnected. All complaints
were forwarded to the Federal Trade Commission; the appropriate state's
attorney general and a private attorney for review. Some owner-operators
have sought help from district attorneys in the counties where these
companies operate. If you
have experienced similar problems, make an official report to the FTC
at 1-877-382-4357 and the attorney general in your state and the state
where the company is located. Your attorney general's office should
be listed in the government pages of your local telephone directory. When a
consumer calls these agencies, they usually will send the consumer a
complaint form. It is very important to follow through with the complaint
by filling out the necessary forms and returning them to the appropriate
agencies along with copies (not originals) of all relevant documents.
As with any business transaction, keep copies of all contracts, invoices,
receipts and correspondence, including any complaint forms filed with
various agencies. --Rene
Tankersley, feature editor ----------------------------------------------------------------------------------- Tuesday---Odds and Ends I think Judy Garland had to have been born before 1932 (she wasn't 37 when she died and she wasn't in Wizard of Oz when she was 6 or 7 (I think Wizard was 1939). Barbara Low President BIBLIO.TECH P.O.Box 657 Lincoln, MA 01773 781-259-0524 bibliotech@leasingsourcebook.com A typo on my part. I have been trying to be more careful. Here is some information on her 80th anniversary and celebratioin at the Judy Garland Museum. http://www.thejudyroom.com/timeline.html http://www.judygarlandmuseum.com/ ------------------------
Kit: Who is Dickey Wells? I knew a Dick Wells ( local radio personality) years ago here in North Jersey/NY State area...real nice guy..great speaking voice! Regards, Shawn McGill mcgill23@netscape.net P.S. Abe Vigoda is alive and well. Now doing TV commercials for YES Network here in the NY area. Was at the Yankee-Giants Game Saturday... that Bonds shot was the longest home run I've ever witnessed in my 35 years plus of watching baseball. The guy is amazing!!!!! Dickey Wells was a trombone player for County Basie for over twenty years. One of the best known tunes is "Dickey's Dream." I could not find any information on him on the web. The Basie Band was my favorite and at one time I could name all the sidemen on all his recordings ( can’t do today, sorry ). Abe Vigoda is one of my favorite character actors. He was great in the movies and also on TV, especially in “Barney Miller.” That Bond is something else, no doubt!!!! --- Hopalong Cassidy—Name His and Sidekick Pal-Lucky Horse-topper I win, send me the money! Herb Brantley Hbrantley@markiiicredit.com Mark III Credit Corp Right on the horse. Lucky was one of the sidekicks, but on TV it was Gabby Hayes playing "Windy." Gabby Hayes was the most famous sidekick; however, this was a trick question as William Boyd had many sidekicks: Jimmy Ellison as Johnny Nelson George "Gabby" Hayes –Windy Halliday Russell Hayden as Lucky Jenkins Britt Wood as Speedy McGinnis Andy Clyde as California Carlson Brad King as Johnny Nelson Jay Kirby as Johnny Travers George Reeves as Lin Bradley Jimmy Rogers as Jimmy Rogers (Trivia Note: Jimmy Rogers was Will Rogers' son.) Rand Brooks as Lucky Jenkins Edgar Buchanan as Red Connors (1/2 hr. series for TV) http://www.hopalong.com/hoppyfaq.htm Andrew Thorn Report re: Auto responder Message “This is a very exciting week for me and I will be out of the office and somewhat slow to respond. “I am competing in my very first Iron Man Triathlon. What does this mean? It means I will swim 2.4 miles, ride 112 miles (on a bicycle) and run (or walk or crawl) 26.2 miles in a race in Provo Utah. “I hope to finish in less than 12 hours I only get 17. I will be checking in and hope to find time to respond. “ Andrew’s Report: Hello Kit, Thanks for printing my auto responder. I thought I would give you a report on the Inaugural event in Utah. The race started a little earlier than scheduled at about 6:55 AM. We entered the water at about 6:40 AM. As soon as we got into the water the wind began to howl. They said it was about 40 mph. Utah Lake is very shallow and the waves grew to about 5 feet high and white caps were everywhere. I swam as hard as I have ever swum and made it to the far buoy which had blown away. Search and rescue helicopters were everywhere and boats were nearly sinking because the waves were coming in. I began the swim back and found only later that I was following buoys that were now floating with the winds. Many times after being nearly suffocated by water entering in my breathing strokes, I thought I might not make it in, but I stayed calm and did not panic and flipped over and did the elementary backstroke which proved to be a successful stroke. I swam toward a boat which eventually guided me in the harbor, which ended up being the wrong harbor. It was the most adventurous thing I have ever done and know that I would not have entered the water if it wasn't for the race. After I exited the water I learned that they had cancelled the swim portion and that a 53 year old man from Redondo Beach, had died in the water. There were four more people missing and they sent out the search and rescue boats to find them. We were not allowed to go on with the bike and run portions until every one was accounted for which amounted to a delay until about 10:40 am for me. The bike and run was shortened and it was a very emotional day. I finished in 6 hours and 18 minutes, a 68 mile bike ride and a 13.1 mile run. 992 out of 1435. It was very disappointing to have trained so hard, only to have the weather shorten the event. Apparently, the man who died had a heart attack in the water before the race began. It was amazing and I think the swim would have challenged most navy seals. I have registered for next years event it will be June 7, 2003. I will need to maintain the level of fitness that I have reached. I learned an interesting thing that I thought I would share. This was my first race. I was worried about how I would feel when people passed me along the way. What I learned was that it was a complete inspiration to be passed. It energized my spirit. When I passed people it discouraged me because many of them were struggling. I thought about how life is sometimes just the opposite for many of us. Some seem to rejoice over other peoples suffering and feel jealous or less competent when somebody else passes them and does something better. True competitors will be inspired by others successes and look for ways to lift and help those struggling. I also learned how valuable support is. People sat outside their homes and cheered us on as we went by. This really lifted my soul also. How easy is it to say good job to somebody. Sorry to be so long, Andrew Andrew Thorn __________________________________________________________________ Tyco Replaces Chief Lawyer, Is Hit With Downgrade of Debt By Ben White Washington Post Staff Writer NEW YORK-- Tyco International Ltd., under investigation for possible misuse of corporate funds, replaced its top lawyer today, while a credit-rating agency downgraded the conglomerate's debt to junk status and lowered its assessment of the financial services unit Tyco hopes to sell to raise much-needed cash. Fitch Ratings analyst Philip S. Walker Jr. said the downgrades would not "trigger" any provisions in Tyco loans calling for faster payment. Triggers, which hinge on credit-rating downgrades as well as a borrowers stock price, can cause a cash crisis, such as the one that helped drive Enron Corp. into bankruptcy court last year. Both Standard & Poor's Corp. and Moody's Investors Service Inc., the nation's other leading rating agencies, reduced Tyco's debt to one notch above junk status last week. Tyco's stock has fallen dramatically since its chief executive, L. Dennis Kozlowski, resigned last week, a day before he was indicted by a New York state grand jury on charges of evading more than $1 million in sales taxes on $13.2 million in rare paintings. The stock yesterday rose $1.30, or 13 percent, to $11.40, but was still off 80 percent for the year. Tyco officials have repeatedly said the company faces no cash crisis and will be able to pay back the billions of dollars of debt that will come due next year. They are expecting to sell or make an initial public offering of stock in their financial services subsidiary, CIT, to generate as much as $6.5 billion, though some analysts have said CIT could yield significantly less than that. The Securities and Exchange Commission has not yet approved the IPO, a holdup Tyco executives blame on technical glitches. If they cannot sell CIT, Tyco executives say they have many other assets they could put on the block to raise cash in an emergency. The announcement that Tyco had named someone to replace Mark Belnick as general counsel drew a bitter response from Belnick's lawyer. Stanley Arkin accused Josh Berman, a Tyco vice president and board member, and David Boies, a well-known outside lawyer the company recently hired to head an internal investigation, of staging a "savage assault" to give Boies total control of the firm's legal strategy. Tyco called the assertions "ludicrous" and said Belnick was "among the persons being investigated." Tyco named Irving Gutin, who has held the post before, to replace Belnick. Tyco "is determined to have a fair and complete investigation of any allegations of improper conduct by any of its personnel," the statement said. "The company lost confidence in Mr. Belnick's willingness and ability to conduct a fair and complete investigation, in part because of his unwillingness to cooperate in the investigation of himself and because of his attempt to control the course of that investigation." The statement concluded: "The assertion by Mr. Belnick's lawyer that the Board of Directors acted to protect anyone's 'turf' is ludicrous and is an attempt to distract attention from his client's serious problems." In an interview, Arkin said Tyco hired Boies to "do a discreet job" handling the expanding investigation of Tyco and Kozlowski by the Manhattan district attorney's office. Arkin said that Boies confronted Belnick over the weekend and told him that he, Boies, would be handling the investigation personally. "He said, 'I'm the guy who will deal with the district attorney. I'm the guy who will deal with' " the Securities and Exchange Commission. " 'I'm the guy who is in charge,' " Arkin said of Boies's alleged confrontation of Belnick. "Belnick said, 'No, you can't do that.' And ultimately Boies got Berman to fire Belnick." Boies's office said he was traveling and unavailable for comment. Berman declined to comment. An official in the district attorney's office would not comment on whether Belnick was a focus of the investigation. According to papers filed with the SEC, Belnick was due to be paid $10.6 million if he stayed with the firm through October 2003. Arkin said Belnick was not fired for cause and should be paid the entire amount as well as additional damages. The district attorney's office, a source said, is now trying to determine whether Tyco violated New York or federal securities laws by paying for real estate and goods for executives without disclosing the payments to investors. Specifically, investigators are attempting to determine whether Tyco improperly paid for an $18 million Manhattan apartment and a $2.5 million home in Boca Raton, Fla., that once belonged to Michael A. Ashcroft, a British nobleman who joined Tyco's board in 1997 after the conglomerate merged with Ashcroft's security systems firm, ADT Ltd. In downgrading CIT, Fitch cited the turmoil at the parent company and the amount of debt the firm will have to repay in the near future. Fitch said it was simultaneously lowering Tyco's senior debt and commercial paper ratings to junk status. Fitch said it gave CIT a higher rating because it still believes the finance arm will separate from Tyco in the near future. Fitch said that as a separate entity, CIT has "leading market positions in a variety of business segments." ---- (more in depth version of the news ) Tyco Turmoil Deepens as It Fires Lawyer By ALEX BERENSON New York Times The turmoil at Tyco International worsened yesterday as the company fired its general counsel, Mark A. Belnick, setting off a public fight over the reasons for his dismissal. Tyco said Mr. Belnick was fired because he was impeding the company's internal investigation into whether it had paid the personal expenses of its senior executives and made undisclosed loans to them. Some Tyco officials think Mr. Belnick improperly used company money to buy or furnish an apartment at a ski area in Utah, a person close to Tyco's board said. But Stanley S. Arkin, a lawyer for Mr. Belnick, said Mr. Belnick had been fired after losing a power struggle with Joshua S. Berman, a Tyco vice president and director, and David Boies, a lawyer who was hired in April to represent Tyco's governance committee. Mr. Belnick has done nothing wrong and is cooperating with the Manhattan district attorney's criminal investigation of Tyco, Mr. Arkin said. Mr. Belnick's dismissal is another blow for Tyco, whose stock has plunged this year amid investor jitters about its accounting practices, management credibility and $24 billion in debt. Last Monday, L. Dennis Kozlowski resigned as chairman and chief executive, one day before being indicted on charges of evading more than $1 million in New York State sales taxes. Tyco has not named a successor to Mr. Kozlowski, who pleaded not guilty to the charges. Shares of Tyco rose $1.30 yesterday, or over 12 percent, to $11.40. But the stock has fallen 81 percent this year, costing investors $95 billion. Mr. Belnick is highly regarded in New York's legal community and 15 years ago served as a senior lawyer for the Senate committee that investigated the Iran-contra scandal. He was deeply shaken by his firing, according to people who know him. Mr. Arkin declined to make Mr. Belnick available for comment. An investigator in the district attorney's office said yesterday that Mr. Belnick was not a target of the criminal inquiry, which grew out of a narrower investigation into Mr. Kozlowski's suspected tax evasion. "There are a lot of people with a lot of different motives" for Mr. Belnick's firing, this investigator said. The battle between Mr. Belnick and Tyco has engulfed several well-known lawyers, including Mr. Boies, who represented the government in its attempt to break up Microsoft, and William McLucas, the former enforcement director of the Securities and Exchange Commission. Mr. McLucas and Lewis Liman, a former deputy chief in the United States attorney's office in Manhattan, are partners at Wilmer, Cutler & Pickering, which has represented Tyco in the past. It was most recently retained by Mr. Belnick after Tyco was told that prosecutors were investigating Mr. Kozlowski. But over the last 10 days, as both Tyco's internal inquiry and the criminal investigation have widened, Mr. Boies and Wilmer, Cutler have jockeyed for control over the investigation. Now, with the firing of Mr. Belnick, Mr. Boies seems to be firmly in charge, with the approval of Tyco's board. Mr. McLucas and Mr. Liman both declined to comment yesterday. Mr. Boies said: "I have known Mr. Belnick for 20 years, and I have always had a good regard for him, and I had entirely expected he would give me his full cooperation. Unfortunately, he did not. He will have to explain the reason." Tyco said in a two-sentence statement yesterday that it had replaced Mr. Belnick with Irving Gutin, a senior vice president for mergers and acquisitions and the general counsel from 1981 to 1986. Later, the company said it "is determined to have a fair and complete investigation of any allegations of improper conduct by any of its personnel." Tyco said it had "lost confidence in Mr. Belnick's willingness and ability to conduct a fair and complete investigation, in part because of his unwillingness to cooperate in the investigation of himself." A person close to Tyco's board said Mr. Belnick had refused to allow Mr. Boies's firm, Boies, Schiller & Flexner, to work with Wilmer, Cutler on interviewing employees or reviewing documents. John Fort, Tyco's lead outside director, told Mr. Belnick several times last week that he needed to be more cooperative, this person said. But on Sunday, Mr. Belnick reneged on an agreement he had made to allow Mr. Boies's firm greater freedom to investigate. Tyco's board was informed of Mr. Belnick's action and voted unanimously to fire him, this person said. "This was not anything that Josh Berman was leading," this person said. "Mark was ill advised not to cooperate with the investigation." In a telephone interview from Italy, Mr. Arkin disputed that account. He said Mr. Belnick was dismissed at the behest of Mr. Berman, who has been a Tyco director for 35 years, and Mr. Boies. Mr. Berman and Mr. Belnick have clashed ever since Tyco hired Mr. Belnick in 1998, Mr. Arkin said. Mr. Berman objected when Mr. Belnick moved Tyco's legal work away from Kramer Levin Naftalis & Frankel, a New York law firm where Mr. Berman worked, he said. "There's been a lot of kind of nasty warfare going on here," Mr. Arkin said. Paul S. Pearlman, managing partner of Kramer Levin, said that Mr. Berman had worked part time for the firm from 1985 to 2000, a period when he also worked for Tyco. Mr. Pearlman said that Mr. Berman no longer worked for Kramer Levin and did not receive any compensation from Kramer Levin related to fees the firm was paid by Tyco. Mr. Pearlman did not respond to questions about whether Mr. Berman had ever had his pay tied to the amount of work Kramer Levin did for Tyco. Several lawyers involved in the investigation said that Mr. Berman had used Tyco's corporate offices in Florida or New Hampshire as his personal address, which would have allowed him to avoid New York State income taxes. Neither Florida nor New Hampshire have state taxes. Mr. Berman did not return a call for comment, and the investigator said prosecutors had not examined that allegation. According to public records, he has a New York State driver's license that lists his address as Kramer Levin's headquarters in Manhattan. He also has an address at Tyco's offices in Boca Raton, Fla. ________________________________________________________________ Changes will consolidate responsibility, Amtrak president says
By Laurence Arnold ASSOCIATED PRESS WASHINGTON – Amtrak's governing board has approved a reorganization plan that will consolidate authority and get rid of unnecessary oversight, the railway's new president said Monday. In a special advisory to workers, David Gunn said changes approved by Amtrak's board will "streamline decision-making and clearly assign authority and responsibility." For example, Gunn said 16 different people currently share some responsibility for cars and locomotives, including five senior vice presidents, two vice presidents and three regional vice presidents. In the new chain of command, that responsibility will be divided among five people. Gunn also plans to slash the number of "vice president" titles from 84 to about 20, a step likely to lead to a reduction in personnel, Amtrak spokesman Bill Schulz said. He said there are no details yet on possible staff cuts, however. Gunn also will consolidate Amtrak's three railroad operating divisions – Intercity, Northeast Corridor and Amtrak West, which now are distinct business units – and its mail and express business into company headquarters in Washington. Until now, the individual units could make their own decisions on budget priorities and day-to-day operations. Existing division offices in Chicago, Philadelphia and Oakland, Calif., will remain open, but only to handle local operations, not to make policy decisions. It is the second major restructuring effort in less than a year. Gunn's predecessor, George Warrington, last July announced Amtrak would offer early retirement incentives and seek ways to cut costs and eliminate "overlapping operations." |