Kit Menkin's Leasing News

           Wednesday, June 26, 2002

Accurate, fair and unbiased news for the equipment Leasing Industry



WorldCom Finds $3.8 Billion Error, Fires CFO

  What Has American Express Buried from Its Stockholders???

    Report: Martha Stewart facing wider probe in stock sale

      Up-Date on RW Professional Leasing Arrests

       UAEL Managing Director Joanie Dalton Resigns

        Fed meets with little expectations of changes in interest rates

Leasing Co-op: Six Showing--- Seven on the Line!!!

  Fitch Expects To Raise CIT's Senior Debt To 'A'

    Yahoo closing streaming radio, video services

      eLNA Breaks All The Rules! Invites Monitor Top 100 Free

         Amtrak Postpones Shutdown---"Very,Very Close," Mineta says

             Wednesday---Odds and End

              Mahr Federal Selects eMarket Capital

                Fitch Rates Marlin Leasing Receivables

ePlus Reports Record Fiscal Year-End Net Earnings of $8.9 Million



### Denotes Press Release



WorldCom Finds $3.8 Billion Error, Fires CFO


By Peter Henderson


SAN FRANCISCO (Reuters) - WorldCom Inc., the No. 2 U.S. long- distance carrier, on Tuesday said it had fired its chief financial officer after uncovering improper accounting of almost $4 billion in expenses, in the latest financial scandal to rock Corporate America.


WorldCom also said it would cut 17,000 jobs, or more than 20 percent of its work force, starting on Friday, a cost-cutting move expected to save $900 million on an annual basis.


The Clinton, Mississippi-based company said that accounting irregularities involving expenses misrecorded as capital expenditures had inflated its cash flow and that otherwise it would have reported a net loss for 2001 and the first quarter of 2002.


The accounting irregularities, which did not conform to Generally Accepted Accounting Principles, included transfers between internal accounts of $3.06 billion in 2001 and $797 million in the first quarter of 2002.


Accounting firm Andersen, whose role as the auditor of Enron helped lead to the energy trader's collapse, had audited WorldCom's financial statements for 2001.


Shares of WorldCom had plunged in after hours trading on Tuesday following a report by CNBC that the company had uncovered accounting irregularities.


The stock fell to 20 cents a share on the Island system from a close of 83 cents on Nasdaq. The previous closing low was 87 cents, while the stock had traded as high as $16.06 in the past 52 weeks.


WorldCom also said it had fired Chief Financial Officer Scott Sullivan and accepted the resignation of David Myers as senior vice president and controller.


"Our senior management team is shocked by these discoveries," said John Sidgmore, WorldCom CEO for less than two months.


"I want to assure our customers and employees that the company remains viable and committed to a long-term future. Our services are in no way affected by this matter," he said in a statement.


WorldCom said it had notified the Securities and Exchange Commission ( news - web sites) and had asked auditor KPMG to undertake a comprehensive review of its financial statements for 2001,



  What Has American Express Buried from Its Stockholders???



American Express/Sierra Cities---The Portfolio’s

October 22,2001  Leasing News


We asked the questions as part of our story on the acquisition of Sierra Cities by American Express. Was history repeating itself? Were deals being made “to look the other way?” Did Thomas Depping specifically “remove” the personal guarantee portion from the portfolio of Barry Drayer at RW Professional Leasing or did one ever exist?



“I hope this is not the same Professional Leasing on the east coast that took Old Kent Leasing for a ride on many fraudulent transactions with dental practices. If it is, I can tell everyone how it was done and what to look for since I had to charge-off the money and we ended up settling with Professional Leasing as well. If anyone wants some insight I would be happy to provide it.”


Leasing news called, spoke to the person, and then confirmed the person’s position,

and also received similar information from our source that it was true:


“A fictitious vendor supplied an application for a dental practice installing "NEW" medical equipment. All credit checks were completed on the customer etc.  Only if the lessee defaulted would you ever know that there was in fact no new equipment. The equipment description on the vendor invoice was either for existing equipment that was in some cases over 20 years old or it never existed. These were in fact loans. We had a couple of lessee's so afraid of being sued and going to jail for fraud that they signed statements and admitted just how much cash they received. Needless to say the cash the lessee received was a lot less than the amount funded to Professional Leasing. The lessees claimed this vendor solicited them to supply additional cash for the business and all they would have to do is ‘sign on the dotted line’.”.


Our original source who was involved, said that a settlement was made for a much smaller amount on the condition that Old Kent would not go public about the losses on Professional Leasing’s role in these deals. This was reported in Leasing News earlier as being discussed at a Chinese Restaurant in Houston.


It was reported to Leasing News by one of the 40 or more former vice- presidents of Sierra Cities, and confirmed by three other highly reliable sources that RW Professional Leasing was allegedly double dipping or even triple dipping deals (same deal to ATT and First Sierra and banks doing business with RW) and when RW received a payoff from a recourse client, they allegedly did not always payoff the deal at the original funding source. In addition, reliable sources have told Leasing News that Tom Depping refunded most of the reserves RW had with Sierra Cities in return for a promise of more volume. Now American Express has the portfolio and small in-house reserves from RW to cover repurchases. American Express has reportedly audited the books, interviewed Greg McIntosh, among others, and found the loss potential, but they are allegedly not sure how to proceed since there is no personal guarantee from Barry Drayer. Leasing News has not been able to confirm or deny this.


These were among the questions we wanted to ask, including the rumor of a bankruptcy as a means to avoid repayments to American Express. Was RW double or triple dipping deals and when RW received a payoff from a recourse client, did they always payoff the funding source? These sources say the statement is accurate, but what does Mr. Drayer say? In addition, we are told, Tom Depping refunded most of the reserves RW had with First Sierra in return for a promise of more volume. Is this true? Will the Securities Exchange Commission or a Court of Law be the arbitrator? Has American Express decided to sweep this under the carpet, just as Vanguard and Old Kent reportedly did?


 Now American Express has the portfolio and small in-house reserves from RW to cover repurchases. American Express has reportedly audited the books and found the loss potential, but they are not sure how to proceed since there is no personal guarantee from Barry Drayer. Reportedly there was such an arrangement before the acquisition. Was a deal made? Leasing News believes papers have been signed, but cannot get confirmation or denial.


We will have more, including the inside of the MidAm Portfolio story.


(Well, it appears the MidAm Portfolio story is about to come home to roost, too.

How long can American Express avoid these questions.  It took the Feds ten months

to catch the Drayers.  Editor )




Report: Martha Stewart facing wider probe in stock sale


By Associated Press


NEW YORK (AP) Martha Stewart may be facing a wider probe of her sale of ImClone Systems Inc. shares, including possible charges of obstruction of justice and making false statements.


In a story posted on its Web site late Tuesday, The Wall Street Journal, citing an unnamed source familiar with the case, said federal prosecutors widened their probe and are investigating whether Stewart misled prosecutors in divulging details about her sale of ImClone stock.


Congressional investigators are examining whether Stewart had inside information when she sold nearly 4,000 shares of the biotech company a day before the Food and Drug Administration announced that it had decided not to consider ImClone's experimental drug for combating colorectal cancer, Erbitux.


Stewart, who commands a multimedia empire and a profitable corporation, increasingly is under the glare of government scrutiny and tabloid attention bringing investor displeasure. Shares of her company, Martha Stewart Living Omnimedia, have fallen amid questions about her ImClone stock sale. Omnimedia stock is traded on the New York Stock Exchange, of which Stewart recently became a director.


Stewart, in her weekly appearance on CBS' ''The Early Show,'' said Tuesday: ''I think this will all be resolved in the very near future and I will be exonerated.''




Up-Date on RW Professional Leasing Arrests



By Robert E. Kessler



Long Island



Four officials of an Island Park-based leasing company were arrested by FBI agents Friday on charges that they engaged in a complex series of schemes to defraud lending institutions around the country of millions of dollars in loans that were ostensibly meant to finance the leasing of medical equipment.


Agents hurriedly raided the offices of RW Leasing Services at 4584 Austin Blvd., Island Park, and a satellite office in Wellesley, Mass., because an informant told investigators the company's records were being destroyed, according to Assistant U.S. Attorney Gary Brown and an FBI affidavit filed in support of a search warrant.


One official of the firm said several officers were planning to flee to Greece with their families, according to the affidavit.


An ongoing investigation indicated that at least 12 banks nationwide had possible losses of more than $6.5 million, the affidavit said.


But the informant said that as many as 90 other loans may have been involved in the scheme, indicating the alleged fraud might be as large as $200 million.


Brown said in U.S. District Court in Central Islip late Friday that the case was "conservatively a tremendous fraud."


RW Leasing Services has specialized for 20 years in obtaining loans for physicians, dentists, veterinarians and optometrists to finance the long-term leasing of expensive medical equipment such as X-ray machines. The company then managed the leases, collecting payments on the loans and passing them on to the lending institutions, the affidavit said.


Among the various frauds in which the company allegedly engaged were: obtaining loans and not passing them on to their medical clients; obtaining loans for nonexistent practices and pocketing the money; and obtaining loans from several banks for the same lease.


Brad Simon, the attorney for the president of the company, Rochelle Besser, said his client was not guilty and he "will defend the case vigorously." Besser was held as a possible flight risk pending a hearing tomorrow in U.S. District Court in Central Islip.


Others arrested were Besser's brothers, senior vice president Barry Drayer and Roger Drayer, whose title was not given; and Jennifer Tarantino, Roger Drayer's daughter, a company employee. They were released on varying bails.



UAEL Managing Director  Joanie Dalton Resigns


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" United Association of Equipment Leasing Executive Committee, Bob Fisher, CLP President; Bette Kerhoulas, CLP Vice President; James Coston, Secretary/Treasurer and Chick Brazier, CLP Immediate Past President, along with Joe Woodley, CEO of UAEL announced today that Joanie Dalton, COO of UAEL has submitted her resignation effective July 3rd, 2002.


Joanie has been with UAEL since March of 1999.  Mrs. Dalton has decided to pursue another opportunity outside the non-profit Association arena.


The Officers, Board of Directors and Staff of UAEL wish her success in her new endeavor."



Bob Fisher, CLP



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“Position Too Good to Turn Down”


Elevated from her position several times, originally brought in by past executive director

Dr. Raymond Williams, Joanie Dalton says she was “offered the position of a lifetime.”

She has watched the organization grow to over 400 members, become more financially

stable, and guided it through what former President Chuck Brazier called “rocky times,”

helping to build a strong foundation.


Her family has always been in the restaurant/hotel industry, and her background was with

catering at the Cruiseline for eight and one half years, the catering convention manager of

the San Francisco Peninsula. She came to UAEL on March, 1999 to manage the conventions, grew into other administrative duties, and was made.


October 3,2000, Dr. Williams was “dismissed.” He served for almost eight years, following Jon Bednerick, CAE. He was very popular among the membership. The operation was left up to Joanie Dalton and Cindy Spurdle, formerly with the

National Association of Equipment Leasing Brokers and now with the Certified

Leasing Professional Foundation.


Year 2000 UAEL President Bob Rodi, CLP,announced: “Joan Dalton is appointed Managing Director of the United Association of Equipment Leasing effective

January 1, 2001.”


There were questions about her experience, but members rallied behind her, and the board of directors gave her full support.


November 20,2001 Leasing News Report:


Ex-WAEL Prez to Be New Chief Executive Officer


Joe Woodley, CLP,  is the new full-time  United Association of Equipment Leasing  ( UAEL )Chief Executive Officer.  He will continue at Westover Financial.  Steve Jones is the president of Westover. He was president of the organization in 1987, when it was the Western Association of Equipment Lessors


Joanie Dalton,  former executive  former meeting planner, executive director, has been elevated to Chief Operating Officer.


2001 president Chuck Brazier, CLP, Centerpoint Financial,

says it is “ time to get the executive committee out of running the office and to spend more time with members, listening to them, providing solutions, and being more active.


“This will provide consistent leadership, giving Joanie more time to run the

office, work on conferences.  It will give management more time to work

with members, plus give time to the executive committee to meet with

committees, make committees work, and bring balance back to our



Since the departure of long time executive vice-president Dr. Raymond Williams, CAE,  Joanie Dalton along with the executive committee, utilized “outsourcing” to keep the budget in line.


“ This is a very, very positive move for our association, “ Joanie Dalton said.

“ It is also both very positive for me personally and professionally…to have

a mentor such as Joe Woodley is perfect.  We can provide more benefits to

our members. 2002 will be an exciting year for UAEL.”




In an exclusive interview with Leasing News, she appeared very “up” and happy.


“The position was too good to turn down, “ she said. “It was not just the more money, but a company car ,and practically no commute, as they are located in South San Francisco.


“ I know and enjoy the restaurant and hotel only reservation was leaving Joe,

who has been wonderful to work with.  He is very dedicated to the industry, “she added.  “I will be around to help him, at any time. I will miss you all, but out of the blue,

I was offered this chance of a lifetime. ”



Fed meets with little expectations of changes in interest rates


By Jeannine Aversa




WASHINGTON – Faced with an economy that's not showing much gusto, the Federal Reserve probably will hold short-term interest rates at 40-year lows through the summer, giving borrowers yet more time to take advantage of low-cost financing.


That's the growing feeling among economists as Federal Reserve Chairman Alan Greenspan and his Federal Open Market Committee colleagues began a two-day meeting Tuesday to discuss interest rate policy.


Reinforcing that view was a report that showed consumer confidence fell in June to a four-month low. The Conference Board, which calculates the index, said confidence was hurt by accounting scandals and worries about jobs.


By keeping interest rates low, the Fed's goal would be to motivate consumers to spend and businesses to step up investment in new plants and equipment, crucial ingredients to helping along the economy's comeback from last year's recession, economists said.


"The U.S. economy is like a canoe in very choppy water. It is trying to make headway, but it is still very difficult," said Lynn Reaser, chief economist with Banc of America Capital Management Inc.


On Wall Street, stocks slumped. The Dow Jones industrial average fell 155 points to close at 9,126.82.


Recent economic reports suggest the recovery is slowing. Some economists believe economic growth, as measured by the gross domestic product, will clock in at around 2.5 percent in the current quarter, down from the brisk 5.6 percent pace posted in the first three months of the year.


Consumers, whose spending accounts for two-thirds of all economic activity, have shown less vigor recently. Sales at the nation's retailers were down 0.9 percent in May, the largest drop in six months, though unusually cool weather was a factor chilling shoppers' appetites.


Still, low mortgage rates and solid appreciation in housing values, especially given the weak performance of the stock market, continue to motivate home buyers.


Sales of previously owned homes dipped 0.3 percent in May but still racked up the fourth-highest monthly level on record: a seasonally adjusted annual rate of 5.75 million, the National Association of Realtors said.


Although the unemployment rate dipped to 5.8 percent in May, the jobs market remains sluggish, and economists worry that could damp consumer spending in coming months.


Manufacturing, after being knocked down by the recession, is back on its feet but isn't bursting with vitality.


Capital spending by businesses has yet to turn around, which means a key component to a sustained recovery is lacking, economists said. Deep cuts in spending on new plants and equipment helped push the economy into recession.


Companies who saw their profits take a hit during the slump are worried about the recovery's staying power and are reluctant to make big commitments, in spending or hiring, until they are convinced the turnaround is for real, analysts said.


Economist Clifford Waldman, president of Waldman Associates, worried that violence in the Middle East, tension between India and Pakistan, threats of new terror attacks on the United States and Enron- type accounting scandals will give companies another reason not to make big commitments.


Fed policy-makers, who meet eight times each year to set interest rate policies, have not changed rates since last December, when they capped a yearlong easing drive by cutting their target for the federal funds rates to 1.75 percent, a 40-year low. The funds rate is the interest banks charge each other on overnight loans.


Banks' prime lending rate, which follows changes in the funds rate, is now 4.75 percent, meaning consumers and businesses are enjoying the lowest short-term borrowing costs since 1965.


Given the spotty recovery, economists are predicting the Fed will leave rates unchanged at the end of their two-day meeting Wednesday and through the summer. Policy-makers have leeway to keep rates low because inflation has been well-behaved, analysts said.


"Events of late give the Fed more reasons to remain on hold," said Stuart Hoffman, chief economist at PNC Financial Services Group.


Some economists are now predicting that the first interest-rate increase would come at the Fed's Sept. 24 meeting at the earliest. Some forecast the first rate increase would come later, in November or December. Others believe there's a good chance rates may be left alone for the rest of the year.


Even with the rebound slowing, most economists said they weren't worried that the economy might backslide into a downturn, a "double- dip" recession. And, they believed the chance of a Fed rate cut in the coming months was small – barring a shock to the economy, such as another major terror attack on U.S. soil.


  Federal Reserve:




Leasing Co-op: Six Showing--- Seven on the Line!!!


Just that I completely under-estimated the marketing side of the cooperative. I have been concentrating on the funding side too much. I am now a sales force for 6 member businesses.  We are going to be marketing to other cooperatives and many other businesses full force.  Next week, OneWorld will sign an agreement to become a preferred leasing arrangement for thousands of small businesses in 10 cooperatives.


Richard Selby

OneWorld Leasing

1553 W. Todd Dr., Suite 110

Tempe, Arizona 85283

tel. (480) 831-6118 ext. 40






Nationwide Lease Finance Cooperative Holds


Organizational Meeting: Initial Focus on Marketing


Phoenix AZ  - OneWorld Leasing, a cooperative owned by independent lease finance companies, held its first organizational meeting in Minneapolis, Minnesota.  Eric Bryant, Jay Foster, Chris Raley and David Stearns were elected to the cooperative's Board of Directors.  Richard Selby will serve as President and CEO, and Stearns, from Chicago-based American Leasing Alliance, was named Chairman.


"I became an owner of OneWorld early on because I want help build the co-op to become a market leader in the industry," said Jay Foster from MidPark Capital Corporation in Dallas TX, who was also elected corporate treasurer.  Lance Blount from Quest Financial in Costa Mesa CA, added, "We are confident that OneWorld will help us to become a force for positive change and increase our bottom-line."


OneWorld Leasing currently has six members.  Discussions with several banks and other finance companies about funding partnerships began in May.  The cooperative plans to have 300 members nationwide by the year 2007.  Initially, the members agreed to focus on recruiting other members and on marketing its nationwide leasing services to businesses across America. 


One World Leasing, comprised of member companies committed to honesty and integrity in their dealings with all constituencies, exists to strengthen the competitive positioning of its members by ensuring the effectiveness of Independent Lease Finance Companies as providers of high quality, competitive, and market leading financial products for their clients.


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Here is a copy of their original. Their goal was seven members.





April 3,2002


OneWorld Leasing Launched as Leasing Cooperative


American Leasing Alliance and MainStreet Cooperative Group announced plans

to launch a nationwide cooperative owned by independent equipment lease

financing companies.


The cooperative, OneWorld Leasing, Inc., will serve as a marketing and loan syndication company for small- and medium-sized companies in the industry. The cooperative expects to have 7 founding members and plans to have 77 member businesses with an aggregate lease loan value of $770 million USD by the end of 2004.


David Stearns, CEO of American Leasing, says, "OneWorld Leasing will become

a true leverage play for the smaller leasing company concerned about

industry consolidation, super brokers, better lease-loan rates and a level

playing field.


Unlike lease consolidation plays, the members will own this,

yet continue to be independent." Stearns will initially serve as incoming

Chairman of the OneWorld Leasing board.


MainStreet's Richard Selby will serve as interim CEO during the cooperative

formation period. Six to nine months after launch, a leasing industry

veteran will be identified to lead OneWorld.


 According to Selby, "of all of the cooperatives I have seen being launched in the last decade, OneWorld Leasing is a 'home run' in terms of industry dynamics and syndication

opportunities. We are proud to launch this together with American Leasing

Alliance. They truly are an industry champion. OneWorld Leasing will benefit

its members in many ways, both financially and operationally," Selby added.


American Leasing Alliance, based in the Chicago suburb of Lake in the Hills,

Illinois, is an emerging leader in the equipment lease finance industry.


 The company specializes in structuring lease financing for production,

income-producing and business-essential equipment. MainStreet Cooperative

Group, based in Tempe, Arizona is a leading cooperative service company.

MainStreet focuses on developing member-owned cooperatives in various

industries and also offers consulting and business services to cooperatives

within its network, which is approaching $3 billion in aggregate revenues.


David Stearns may be a candidate for "Meet the Leasing Newsmaker" to explain

how this process would work small and medium sized companies in the

industry.  His Phone # is (847)458-0191


 (Both Richard Selby and David Stearns did appear on “Meet the Leasing News Maker:”

     April 8,2002$100M.htm


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Fitch Expects To Raise CIT's Senior Debt To 'A'


Fitch Ratings expects to raise CIT Group's (CIT) and related entities' senior debt, subordinated debt, and preferred stock upon  successful completion of its IPO and effective separation from Tyco International. CIT Group, Inc.'s (CIT) current senior debt, subordinated debt, and preferred stock at 'BBB', 'BBB-', and 'BBB-', respectively. The commercial paper rating is 'F2'. All of the company's ratings are on Rating Watch Evolving. The indicative long-term rating would be 'A', subordinated debt and preferred stock would be 'A-'. The indicative commercial paper rating would be 'F1'. The Rating Outlook is expected to be Stable and would be removed from Rating Watch Evolving. Should a transaction not be completed as planned CIT's and Tyco's ratings would be equalized at Tyco International's levels (senior currently rated 'BB', Rating Watch Negative by Fitch).


Fitch's indicative ratings reflect increased comfort with the current liquidity plan and contemplated reduction of the CP program going forward (down to $3-5 billion from over $8 billion). Comfort with the liquidity plan stems from the contingent sources of liquidity the company accessed during this period - $3 billion in funding through ABS (Equipment and Home Equity) and new programs it executed - $2 billion in new conduit facilities (both of which have been tested and repaid) as well as CIT's ability to re- enter the term unsecured debt market despite looming concerns for the company under the Tyco umbrella. Importantly, Fitch's expected actions presume complete separation.


While CIT has worked diligently to develop contingent sources of liquidity and takes great comfort in surviving the capital markets stress it has been under thus far, Fitch believes that this will be an enduring process for market funded companies which seek to earn and maintain 'F1' ratings. Issuers such as CIT must regularly demonstrate their ability to monetize assets to ensure that in the event they are unable to access unsecured sources of capital, the company would be in a position to unwind the portfolio or execute contingency funding plans that are sufficient to meet all upcoming maturities. Securitization, one means of demonstrating market accessibility, has accounted for at least 20% of funding for CIT and that will continue to be the case at a minimum.


CIT plans to resume a more normal funding strategy which includes accessing the unsecured capital markets in short order, in meaningful amounts, including the repayment of its bank funding by the end of the year. It is important to note that $3.8 billion of bank borrowings are not actually due until March 2005.


From a capitalization perspective Fitch views CIT as modestly undercapitalized, however, the company is stronger than it was pre- Tyco due to some divestitures and improved capital formation, aided by slowed origination activity resulting from market conditions. Current asset quality trends are a concern with net chargeoffs outpacing peak 1991 and 1992 levels. However, CIT's acquisition of NewCourt and consumer expansion make such historical comparisons less useful. While a concern that bares monitoring, portfolio performance remains manageable.


Based in Livingston, NJ, CIT Group, Inc. is one of the largest commercial finance companies in the world with managed finance receivables and operating leases of $48 billion March 31, 2002. The company has leading market positions in a variety of business segments.



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Yahoo closing streaming radio, video services


By Brian Bergstein, Associated Press


SAN JOSE, Calif. (AP) Internet giant Yahoo! Inc. is scrapping two free broadcasting services: FinanceVision, which provided streaming video clips with business and stock news, and a radio channel that came with its $5 billion acquisition of, the company disclosed Tuesday.


Nearly 30 employees will lose their jobs because of the two shutdowns, which are to be carried out over the next week, said Henry Sohn, Yahoo's vice president and general manager for network services.


Launched during the height of the late 1990s Internet and stock market mania, FinanceVision operated like a mini-newscast, with anchors who gave business news updates and commentators who offered investment wisdom.


But Sunnyvale-based Yahoo now has lost money for six quarters in a row, and FinanceVision didn't mesh with the company's strategy of generating more subscription-based revenue and reducing its reliance on advertising.


Sohn cited similar reasons for Yahoo's decision to end its radio channel, which broadcast hundreds of real-world radio stations over the Internet. The technology came on board when Yahoo bought Dallas-based in 1999 in a stock deal then worth $5 billion.'s technology still lives on in several aspects of Yahoo's site, Sohn said, including its streaming-media service geared to corporations.


Yahoo isn't abandoning free streaming content altogether, however. Its finance pages will still include video clips from outside agencies, and its music channel will still offer songs and videos. That content was made possible by a much less expensive acquisition Yahoo's $12 million purchase of last year.


Shares of Yahoo lost $1.36, or 9 percent, and closed at $13.72 on the Nasdaq Stock Market on Tuesday.


On the Net:



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                 eLNA Breaks All The Rules!


     Conference Expanded To Accommodate Free Attendee Registration

     For 100 Largest Equipment Finance/Leasing Companies In U.S.


     Atlanta, GA - (The Lessors Network Newswire) - -

     The eLessors Networking Association (eLNA) today announced it will expand the

     highly acclaimed  eLNA Annual Networking Conference to accommodate complimentary   Attendee  Registrations for CEOs and Presidents representing the 100

     Largest Equipment  Finance/Leasing Companies in the U.S., listed in the June 2002

     Monitor 100.


     eLNA is the first industry association to provide 100 free

     Attendee Registrations for executives of the largest lessors in the industry. The move is  expected to greatly  enhance the networking benefits for a stagnate equipment leasing



     Click "Registration" From -




End of July---Philadelphia----


UAEL 2002

Funding, Education, Networking Forum

Radisson Warwick Hotel - Philadelphia, PA

Friday, July 26, 2002!


8 am – 12pm : 

One-On-One Appointments with

 Funding Sources and Service Providers                


9 am – 4 pm  :

CLP Review

Anatomy of a Lease 101


12 pm – 1 pm :

Networking Luncheon

with UAEL Board of Directors


1 pm – 4pm :   

Amembal Training

CapitalStream Advantage Training

TimeValue Software Training




$125 - UAEL Member

$175 - Non-Member

* note:  Cost includes luncheon.












Badge Name:


Payment Information


Check Enclosed ____           Visa/MC/Amex ___


Account Number:

Exp. Date:

Name On Card (please print):



Please fax or mail

UAEL * 520 Third, #210 * Oakland, CA * (510) 444-9235 * Fax (510) 44-1336





The List---Tomorrow


( please send Leasing News to a colleague. We build our readership by your referral.



Amtrak Postpones Shutdown-- "Very,Very Close," Mineta says


by Don Phillips


Washington Post Staff Writer


Amtrak said yesterday that it will run its full passenger train service for another week but that it will have to begin an orderly shutdown July 4 or July 5 if it has not received a loan guarantee or a direct appropriation of funds.


Amtrak President David L. Gunn and Transportation Secretary Norman Y. Mineta said separately that they don't think a shutdown will happen. Mineta told union representatives and others that he is "very, very" optimistic a solution will be found.


Gunn said, however, that if Congress leaves town for its July 4 recess by Friday without appropriating emergency funds and a loan guarantee plan also falls apart, he will have to begin preparing for the shutdown. Congress does not return until July 8.


"I think ultimately we'll get a loan guarantee or a supplemental, but I can't be sure," Gunn said.


Gunn has said the railroad, which has lost money throughout its 31-year history, needs $205 million to carry it through the rest of the fiscal year. An Amtrak shutdown also would affect commuter railroads, including Virginia Railway Express and MARC, that operate on Amtrak tracks or use Amtrak crews.


Meetings and conferences on the issue peppered the Washington official landscape yesterday, with meetings at the White House and letters and news conferences on Capitol Hill. Whatever is decided, it is clear that it will come down to the wire as Congress prepares to go home.


Gunn, in a news conference, confirmed reports that the Bush administration in meetings Monday had suggested a loan guarantee of a little more than $100 million, coupled with internal savings by Amtrak or "self-help" measures such as asset sales or mortgaging accounts receivable. However, Gunn said that after a four-hour meeting, it became clear to the administration that no idea was practical other than a $205 million loan guarantee or appropriation.


Gunn stressed that the administration did not try to press any self-help idea on Amtrak but simply brought up ideas. At no time did the administration mention route cutbacks, he said.


Gunn confirmed that the administration asked about mortgaging Chicago's Union Station but that was quickly discarded as "not practical." In the end, no ideas seemed to work, Gunn said.


"I won't say it was a dry hole, but there wasn't a lot of water in it," he said.


On Capitol Hill, Democrats and Republicans kept up the pressure on the White House to do something soon, and there were active negotiations to add $205 million to a pending supplemental appropriations bill for homeland security. But that bill may not be finished by the time Congress goes home.


Mitchell E. Daniels Jr., director of the White House Office of Management and Budget, had harsh words for Amtrak's board of directors yesterday after a meeting with Vice President Cheney and Senate Minority Leader Trent Lott (R-Miss.) but said the administration is determined to keep Amtrak open.


"We're determined to keep Amtrak and also to see the beginnings of change at Amtrak," he said. "Very honestly if this board was serving in a private sector capacity, it probably would have been forced to resign, if not faced some severe sanctions."


Daniels said it is "not out of the question" to include Amtrak in the homeland security bill. He said he can identify "offsets" that have not been used that could accommodate stopgap bailout money.


If a shutdown does occur, Gunn said, long-distance trains would stop running first, with commuter and corridor trains that operate on Amtrak tracks or use Amtrak crews halting perhaps four to five days later. Chief Operating Officer Stan Bagley said he would prefer to halt corridor and commuter runs at midnight on a Saturday to avoid stranding commuters or business travelers, meaning that shutdown could come as early as July 6 or as late as July 13.


Amtrak's latest cash calculation is that, assuming it keeps running trains, it will run out of cash July 22, meaning it could not meet its payroll, and trains and passengers would suddenly be stranded, Gunn said. Cash remaining on about July 4 or 5 would just be enough for an orderly shutdown, he said.


"The problem is here at our doorstep," he said.


Commuter operators expressed relief that they had at least an extra week to prepare.


Pete Sklannik Jr., VRE's chief operating officer, said the delay might allow the commuter railroad to forge the necessary labor contracts and hire enough qualified engineers and crewmen to get the system back up relatively quickly if Amtrak shuts down -- using L'Enfant Plaza station instead of Union Station.


Gunn said that it would not be possible for most commuter authorities in the Northeast Corridor to keep running if they used Amtrak facilities. He indicated that Chicago's Metra system probably has the necessary expertise to operate Chicago Union Station, and West Coast commuter operations probably could hire the necessary people and resume operations within a few weeks.




Wednesday---Odds and End



Seven going to HPSC, no surprise there. More to follow, including myself, I

will be gone on FRIDAY.


 (name with held )




Is Sal Maglietta Still with Citi?

No, he is gone. Rumor around here has it that there was another layer of management put

above him. They were looking for someone to blame for Copelco.   Don't know for sure,

as I always thought he was a great guy, but that is what's being said around the shop.


Name With Held


(If anyone knows where Sal is?  Please have him let us know how we can be of

assistance to him, as we have heard many positive things about him. editor )







Hey, Kit, you talked about the RW Professional portfolio, but what about the

biggest problem American Express had---Rockford---How come no “inside

stories” on the Rockford portfolio?


Name with Held


( It is mentioned in The List, which was to be up-dated today; however since

this is so long we have postponed it until tomorrow. Editor ) --- 




Did you know that Stan Daniels of SDI Capital and Barry Drayer of RW Professional

Leasing are old time good friends?


( actually this was sent by several people, who did not want to be named.Editor)




If a man talks in the forest where no women can hear him, is he still wrong?


Andrew Thorn


(Always----By the way, haven’t you ever noticed that men usually tell

women everything eventually. It is one of their supreme powers-----and don’t you forget it!!! Editor)




History is Too Long!!!


I don't know if it is my place to comment but I thought I would let you know

that it appears that your list of anecdotes at the end of the newsletter is

growing month over month.  I like to print your newsletter out so I can read

it at home and the many pages of musical and historical stuff seems

unnecessary.  My dad is a HUGE jazz buff like yourself and I appreciate

history but all those facts (five pages just this morning) waste a lot of

time and paper.  Just a thought.  Thank you for your consideration.  Your

newsletter is very valuable to us in the field.  Thanks again.


David Earle


(Don’t worry, I really agree with you. It has become too long. Some readers re-format it in Microsoft Word.  I would not recommend printing out Leasing News. It wastes too much paper.  The Day in American History is about five years old and continues to grow from what it started to be.  The problem is the more research I do, the more errors I find in information...mostly from books or other people’s sites. So I have been adding my “footnotes,” the web sites I use to verify the original information, and sometimes they are the original information. That is what eats up so much room. And then I started sports, as some readers liked it. And somehow it has grown. It takes me two and one half hours to three hours each, which is usually done on Saturday, where I work a ten to twelve hour day, so it won’t spill over into Sunday. If I know I am going away for the next week, the following Sunday, and perhaps into the week, so it takes a lot of work. I have a “routine.”

For some reason, I spend the same amount of time when I started this a few years ago. I gauge the size, which was originally 5k, then 20k, and most often today is 30k for the history alone.  My problem is that whatever I eliminate will annoy someone, so I decided to let the reader make their own individual decision. Read what you are only interested

in reading.


 I also think Leasing News is too long.  I actually cut stories.  When

I get over 100k that is too much.  But then, if it is really a newsworthy story, or one

I really like, such as the history of the Pez (which no one else picked up the 50 year US anniversary). Just as in a newspaper or magazine, you don’t read the entire newspaper or magazine.


Do the same for a Day in American History. Read only what you are interested in reading, and skip the rest.  Same with printing, delete what you don’t want to print, and save a forest. Editor.




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


Mahr Federal Selects eMarket Capital

to Manage Equipment Finance Program

Program Gives Customers Expanded Financing Options


(King of Prussia, PA,– Mahr Federal announced today that it

will use eMarket Capital, Inc. ( to manage its

customers sales transactions.  eMarket Capital is a web-based service that

uses a patent-pending bidding process to facilitate the leasing of capital

equipment for manufacturers’ customers nationwide.


Said Mahr Federal’s Chief Financial Officer, Tony Picone: "Mahr Federal, its

customers, dealers and sales team across the country will be able to access

increased financing options and deal information via the web, anytime,



"We expect this partnership to help Mahr Federal close more business and

expand our customer base," continued Picone.


Established over 80 years ago in Providence, Rhode Island, Mahr Federal is

recognized worldwide for its expertise in providing dimensional measurement

solutions and meeting the measurement needs of precision manufacturers. 

Industries served by Mahr Federal include: automotive, defense, aerospace,

job shops, machinery, bearings, pumps, engines, computers, can manufacturing,

plastics and medical devices.


"Mahr Federal’s selecting eMarket Capital to handle its financing program

reinforces our business model," said Dean Stolberg, eMarket Capital's Vice

President of Business Development.  "It’s manufacturers like Mahr Federal

that eMarket Capital is targeting for partnerships." 


By consolidating the entire equipment financing process for both the

manufacturer and the customer, Mahr Federal will be able to provide customers

with a quick and easy way to access financing for their equipment purchases. 

Further simplifying the process, customers will have information to compare

terms and choose what best fits their business needs.  


While eMarket Capital partner customers can easily apply anytime for

financing over the Internet or off-line via fax, eMarket Capital supports

high-tech convenience with outstanding service.  Real people work directly

with manufacturers, sales representatives and their customers to access the

best deals – and ensure that they close smoothly. 


Most high-end equipment sales still involve a significant amount of personal

selling; eMarket Capital and its staff ensure that this critical process is

part of the business transaction.


How eMarket Capital Works


eMarket Capital provides private-label leasing services that help

manufacturers like Mahr Federal close more deals by making financing

available to their customers in every credit category.  eMarket Capital

establishes a customized financing 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



Customers fill out a single on-line or off-line application and, through

eMarket Capital's patent-pending Web-based process, receive offers from

qualified lenders.  Offers are submitted to the customer in a format that

simplifies the process so that an "apples-to-apples" comparison can be made. 

Lenders pay a below-market origination fee only when they complete a deal

through one of the programs.


The service targets capital equipment purchases from $5,000 to $5 million.

Transactions in this range represent over 50 percent of the overall market,

which analysts expect to grow 5 to 8 percent a year.


For more information about eMarket Capital, go to the company's web site at, or call 800-994-4369 or 610-354-8820.




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


Fitch Rates Marlin Leasing Receivables VI LLC, Series 2002-1



CHICAGO----Fitch Ratings has assigned the Marlin Leasing Receivables VI LLC, Series 2002-1 (Marlin 2002-1) $166,280,000 class A notes an 'A' rating. In addition, Fitch rates the $12,720,000 class B notes 'BBB', and the $5,380,000 class C notes 'BB'.


The 'A' rating on the class A notes reflects the 15.75% initial credit enhancement provided by the subordination of the class B (6.50%) and class C (2.75%) notes, overcollateralization (5.75%), the reserve account (0.75%), and residual realization proceeds. The 'BBB' rating on the class B notes reflects initial credit enhancement of 9.25% provided by the class C notes, overcollateralization, the reserve account, and residual realization proceeds. The 'BB' rating on the class C notes is based on initial credit enhancement of 6.50% provided by the reserve account, overcollateralization, and residual realization proceeds. The ratings address the payment of timely interest and ultimate payment of principal in accordance with the terms of the legal documents. The ratings also reflect the quality of the receivables and the legal structure of the transaction.


The underlying pool of contracts backing the Marlin 2002-1 notes consists primarily of small-ticket equipment leases. The issuer is expected to acquire additional contracts, subject to certain eligibility criteria, from Marlin Leasing Corporation (Marlin) during a prefunding period that has a maximum duration of three months and is limited to 20% of the maximum aggregate discounted contract balance (ADCB).


At closing, a nondeclining reserve account was established and funding with a deposit of 0.75% of the maximum ADCB. After closing, the reserve account is structured to increase to 1.00%. The account is a segregated trust account established by the indenture trustee for the benefit of the noteholders and may be used to pay interest and principal on the notes to the extent that amounts on deposit in the collection account are insufficient.


The initial discounted contract balance of Marlin 2002-1 is approximately $156.5 million. At closing, the pool contains 20,131 contracts with a weighted average seasoning of approximately five months. Prior to the prefunding period, major equipment types are copiers (21.00%), telephone systems (7.95%), and computers (7.16%). Geographic concentrations include California (12.40%), Florida (9.15%), and Texas (8.51%). The average contract balance is $7,774.


Credit enhancement levels were based on an analysis of cash flow models that reflected the structural nuances of the transaction. Fitch analyzed static pool data and also took into consideration Marlin's historical performance of three past securitizations and Marlin's total managed portfolio. Ultimately, credit enhancement levels were sized to withstand multiples of static losses at each rating level over the life of the transaction.


Located in Mount Laurel, NJ, Marlin originates and services small-ticket commercial equipment leases to small business companies through a nationwide network of vendors and brokers. Marlin has satellite offices near Denver, Colorado, and Atlanta, Georgia. Marlin was founded in June 1997.




Fitch Ratings


Min Y. Kim, 312/606-2305


Du Trieu, 312/368-2091 


John H. Bella, Jr., 312/368-2058


Matt Burkhard, 212/908-0540 (Media Relations)



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



ePlus Reports Record Fiscal Year-End Net Earnings of $8.9 Million


HERNDON, Va.----ePlus inc.

(Nasdaq:PLUS), a leading provider of Enterprise Cost Management (ECM),

announced today record net earnings of $8.9 million for its fiscal

year ending March 31, 2002, a 7.1% increase as compared to $8.3

million recorded the prior fiscal year.


Fully diluted earnings per share for the twelve-month period

increased 6.4% to $0.85 as compared to $0.80 the prior period.

Revenues decreased 33.1% to $205 million from $307 million the prior



For the quarter ending March 31, 2002, net earnings increased

17.1% to $2.4 million from $2.1 million the prior year, and fully

diluted earnings per share increased 9.5% to $0.23 from $0.21.

Revenues for the quarter decreased 31.9% to $48.7 million from $71.5

million for the fourth quarter of 2001.


As compared to the prior sequential quarter, fully diluted

earnings per share increased 15%, net income increased 14%, and

revenues declined 12.7%


"For the year, ePlus' increased earnings in this poor economy is

attributable to a number of factors" stated Phillip G. Norton,

chairman, president and chief executive officer. "The earnings

generated by our financing business improved due to lower interest

costs and increased lease renewals. We generated a higher level of fee

income from software license transactions, vendor rebates, and federal

government financings. ePlus has always benefited from a diverse

source of revenues and earnings, and it is especially so in this



Mr. Norton continued "It continues to be a very slow market in the

IT sales and commercial IT leasing area. Our strategy is to emphasize

our ePlus Enterprise Cost Management solution (eECM) to new and

existing customers, which should increase cross-selling and improve

sales and leasing volume and margin."


The Company recorded sales of equipment of $29.6 million and lease

origination volume of $34.8 million for a total net procurement volume

of $64.4 million, for the quarter ending March 31, 2002.


Because the sales and use of its proprietary software and services

(the ePlus Enterprise Cost Management platform) have become an

integral part of its customer offerings throughout its multiple

product lines, the Company has discontinued the reporting of

e-commerce revenues and expenses as a separately reported business



More information can be obtained in the Company's Form 10-K, to be

filed on or about June 27, 2002.


Highlights for the Quarter Ending 3/31/02:




--       RTI International (RTI) selected Procure+ as its web-based


         procurement solution. Known since 1958 by clients around the


         world for innovative multidisciplinary research, RTI conducts


         hundreds of active research projects in health and medicine,


         environmental protection, technology commercialization,


         education, and decision support systems.




--       ePlus was awarded or is implementing upgrades with existing


         clients, including the City of San Diego, the Washington Dept


         of Labor and Industries, Maryland Automobile Insurance Fund,


         the United Nations' Procurement Division, United Nations


         Office (Geneva), and United Nations Economic Commission for


         Latin America and the Caribbean, Unilever, and Amica Mutual


         Insurance Company.




--       ePlus released Manage+ v2.9, the latest generation of its


         hosted asset management software that provides critical


         business intelligence for fixed assets. The new version of


         Manage+ software provides enhanced functionality to customers


         and reinforces the value proposition of ePlus' hosted model.




--       On March 29, 2002, ePlus purchased certain fixed assets,


         customer lists, and contracts, and assumed certain limited


         liabilities, relating to Elcom International, Inc.'s, (NASD


         NM: ELCO) IT fulfillment and IT professional services


         business. The transaction closed on March 29, 2002 for cash


         consideration of $2.15 million. Pursuant to the agreement,


         ePlus hired 98 former Elcom personnel and now has established


         sales offices in greater Philadelphia, New York City, Boston,


         and San Diego.


The Company will host a conference call at 11 a.m. on Wednesday,

June 26, 2002. To listen, please call (973) 633-1010 or toll-free

800-683-1535. Ask to be connected to the ePlus conference call or use

passcode 3106031. A live and archived webcast will also be available.

Link information can be found at or in the company press

release dated June 10, 2002.


A telephone replay of the conference call will be available by

calling (877) 519-4471 or (973) 341-3080, and entering the passcode

3330588 beginning at about 2:00 P.M. on June 26th through July 3rd.


About ePlus inc.


A leading provider of Enterprise Cost Management, ePlus provides a

comprehensive solution to reduce the costs of purchasing, owning, and

financing goods and services.


ePlus Enterprise Cost Management (eECM) packages business process

outsourcing, eProcurement, asset management, supplier enablement,

strategic sourcing, and financial services into a single integrated

solution, all based on ePlus' leading business application software.

Profitable since inception in 1990, the company is headquartered in

Herndon, VA and has more than 30 locations in the U.S.


For more information, visit our website at, call

800-827-5711 or email to


ePlus(TM), ePlusSuite(TM), Procure+(TM) , Manage+(TM) ,

Service+(TM), and MarketBuilder(TM) are trademarks of ePlus Inc. ePlus

Enterprise Cost Management, eECM, Pay+ and ePlus Leasing are

trademarks applied for of ePlus Inc. Finance+(SM) is a registered

service mark of ePlus inc. ePlus Content Framework(SM) is a service

mark applied for of ePlus. Other marks referenced herein are property

of their respective owners.




ePlus inc., Herndon


Kley Parkhurst, 703/709-1924


SOURCE:  ePlus inc. 




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