Headlines:

      "Listserve" Reactions----

        New York Times Economic Forecast--Great Reaction

          eMarket Chooses EcomTalk

            Miami-Hearld " Why Unicapital Failed."

United Association of Equipment Leasing  May 3-6, Scottsdale, Arizona Agenda

                        http://www.uael.org/events/spring/

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National Association of Equipment Leasing "Listserve"          

Thanks for the kind words of encouragement, Kit.  I couldn't agree with you

more about the benefits of this message service.

It might interest you and other readers to know that only just over half of

our membership has an e-mail address on file with us; and only just over

half of those are signed up for this service.

That's hard to believe isn't it?  I've got to believe that many more have

access to e-mail but don't provide it to us.  If anyone reading this knows

any member who's not using this service, or who hasn't provided the NAELB

with a current e-mail address, please tell them about it and ask them to

update their profile in our database.

Thanks again,

Gerry Egan

Board Member

NAELB

              +                   +

    For what it's worth, just another humble opinion... I have no problem whatsoever with

sharing the names of funders/lessors we've had   problems with. I think this practice is fine

for any organization such as ours. However, I think our criterion for these posts should include

"at least" the following: 1.)Name/Address/Contact of problem Funder in it's entirety 2.) Your

name, address and company 3.) A synopsis of the specific problem you had.

    As I mentioned, I agree with this practice (generally speaking) but this would allow it to

continue with some accountability , allow the  funder a chance to resolve it if possible (if

they see it), and allow those of us reading them a chance to form our own determination if your 

complaint has merit. Also, a person is far less likely to post a complaint when they have put

their name beside it. And, it gives the rest of us some comfort that whomever is posting a

funder at least feels strongly enough to go to the trouble.

    Jeff T. Holland, CLP

    CapitalPartners, Inc.

    "Equipment Financing Solutions"

    Phone 205-803-2300

    Fax     205-803-2122

   +                          +                           +

The "listserve" posting created a lot of unhappy people, as many were concerned

that the companies were not better identified.  Here is reaction to the

posting in the National Association of Equipment Brokers "listserve:"

The NAELB list of "Less Than Ethical Funding Sources" contained a company called Flex Lease,

Chuck Griffin.  This should read Flex Leasing, Chuck Griffin.  Flex Leasing is a New Mexico

based brokerage owned by Chuck Griffin.  It is in no way, shape, or form

associated with my company, Flex Lease, Inc., Plano, TX.   Chuck changed his

name a few years ago to Flex Leasing (from Griffin & Associates, I believe).

Please put in your newsletter something to this effect so there will be no

confusion whatsoever.  Thanks.

Jeff Wetter

jwetter@flexlease.com

(The "list" from NAELB did have Flex Leasing, Chuck Griffin, but at your

 request, we are including your e-mail to hopefully clear up any misunderstandings.

 We are making no representations on this list, just using it as an example. We

  do not have any complaints at this time here at American Leasing about Flex Leasing

  ( Griffin & Associates, at this time. editor )

             +           +            +

We are in an industry that has several companies with similar names, ours being one of them.  We

have a similar name and are located ********.

Most contacts know of us as Flex Lease.  Something has been brought to our attention that we

already knew but did not think it worth mentioning until now.   

There is a company that goes by Flex Leasing Inc in New Mexico and there might be a similar

named company in Texas. One of them is mentioned on a list as Flex Lease.

When someone is posting on the list serve,(something it seems we all have become addicted to

reading) they should be very careful and double check the information for accuracy.

I would like to keep this low profile, but if you can just post & mention it when you get the

chance as a generalization without names.  Nothing is without flaws and this a priceless service

that I would like to keep upbeat and positive without getting involved. 

Keep up the good work!

Name With Held

                 +              +                  +

      Does a complainant have to list his/her reasoning for "listing"

(slandering) a company or individual?  Is there any opportunity for rebuttal?

 Are the "listed" parties notified? How does one discern the legitimate from

the disgruntled?  Is there any chance to view what, if any resolution is

reached?

      I respect your opinion, your industry experience and aged wisdom, but

I am compelled to express my very serious reservations about the accuracy of

such a tool as the "list". 

      It lends itself to whims of gossip and personal misunderstandings and

potentially vendetta.  To little information under such an ugly banner, what

good can come from that?  I see it stimulating a mob mentality that could

destroy decent, hardworking professionals.

      I'm on a rant.  I'll close by suggesting we should be able to

indemnify the rogues and rip-offs in the industry some other way.

      As always, thanks for the forum Kit.

      Troy Lovick

       Equipment Financing Group

      Troyest1@aol.com

         +                          +                   +

It has come to my attention that Curren Funding has been listed as an

unethical company by the NAELB ( in the "chat room", listserve, not NAELB.editor)

Once I found this out, I decided to contact you to see how this list is formed.

 Mostly I wanted to find out what I allegedly did and who reported me to be put on this list. 

As we spoke, I found out that this "list" is formed in what could be called a "chat room"

for members of the NAELB.  I also found out that a company name can be put on

this list without any foundation or due diligence done to confirm whatever it

is they are reporting.  Though I find this slanderous, I am not going to

waste my time pursuing legal action regarding this matter.  What I hope to

have happen is that you post this e-mail on leasing news as a form of

rebuttal.   All business conducted at Curren Funding is done in a forthright

and honest manner.  I don't even really care about the broker who posted

whatever it is they posted on the web page.  It's not worth the cost of dues

to find out the company who has a concern with the way I do business.  That

would be the equivalent to spending the cost of dues to say "liar liar pants on fire" to

someone.  Truly pointless.  My concern is with the funding sources who

approve and fund my transactions.  I do not want them to read this web page

and take the word of the NAELB chat room as gospel.  I would hope that the

other companies listed on this page would also have concerns about being

branded as "unethical."  Those that don't have a problem with it deserve to

be on the list. 

I DON'T.

Thanks for your time.

Tim Curren

Curren Funding

TDCurren@aol.com

 ( At LeaseNews,we pre-screen and investigate all complaints, settling a lot of them, as often

  they are really misunderstandings.  The purpose of publishing the list was as

  an example of what is being "chatted" on line.  I spoke to Mr.Curren on the

  telephone and thought it would be best if he joined, then he could not only

  see what was being said, but could also communicate and give his opinion, his

  side of the story, and end any "guilt by association" or unwarranted accusation.

  At listserve, it is up to the reader to give credence to what is said to all

  on line.  It is a free forum.  It is very valuable to its members. I personally

  believe the membership to this organization is worth solely the use of listserve.

  If you don't have another reason to join, and there are many, join to get

  on line. Go to www.naelb.org. We are also pro joining any or all the leasing

  associations, if you can afford it.http://www.leasingnews.org/links_section.htm.

  editor )

                 +               +              +

We are a member of NAELB and have been for past 3 years.  We are a lessor

and do not do business with Lease Brokers.  The complaint with NAELB was

referencing a broker not being paid by Alliance Funding.  I think that NAELB

should do a better job of reporting fraudulent companies than just

publishing a list.  Innocent bystanders can get hurt.

Brij Patel

Alliance Funds

Bpatel@AllianceFunds.com

     +              +             +

    "This is the first time I have seen our name listed.  I went back and looked in all of the

NAELB postings and Kits  newsletter and could find no justification for listing Alliance Funding

Inc.  Whats up? We have been in business in  Jacksonville, Florida for 12 years+ (one location

only) , a past board member of NAELB for 3 years  and a charter member of the NAELB.  We are a

very reputable company. Please apologize for listing us.  I have always enjoyed the  information

we gain from both sources but this type of mistake is a major concern.  When derogatory

information is listed

on a company it needs to be very clear about the location of that business and the principles

involved.  Also prior to listing  that company there should be "verification" of the fault

stated. Our reputation is everything in this business.  Thank you. "

    Renee T. Fox, CLP

    Alliance Funding Inc.

    (904) 745-1009 #203

    www.alfund.com

    renee@alfund.com

                          +                +                  +

Please clarify your 3/16 listing: Alliance Funding of Jacksonville, Fla., a BROKER, is a

longstanding NAELB member and is run by Renee and Kenneth Fox, two of the finest people I have

met in the leasing industry.

Barry Marks

Legal Counsel

NAELB

Bsmblik@aol.com

            +                 +                +

As a new reader (1 month) of your daily service, I find the information you

provide educational and informative.  Rarely do you find such a service

provided in any industry on a volunteer basis.

Included in your 03/16/01 Leasing News was a NAELB list of "Less than

Ethical Funding Sources."

I would like to expand on the identify of the first one listed by the name

of Alliance.

As the President of Alliance Capital Corporation I would like to clarify the

NON-association of our company with Alliance Funding in La Habra, CA.  I

realize there are numerous companies in our industry with variations of the

"ALLIANCE" name(only 4 UAEL members), unfortunately, attention is not always

given to location or ownership. We have 4 offices - Los Angeles, Scottsdale,

Charlotte and New York, have been in business for 6 years and members of

UAEL for 5 years.  We do NOT have a La Habra, CA office.

On occasions we have been confused with the Alliance Funding in La Habra,

CA.  These have been negative associations.  On 3 occasions we have had

prospects and/or vendors call our Corporate office, after looking up

"Alliance" with 411 or UAEL, to complain about the La Habra, CA office and

sales reps in that office (names which I cannot pronounce or spell).  The

complaints are about questionable ethics with regards to keeping large

deposit checks and "bait and switch" tactics on interest rates.  We do NOT

have a LA HABRA, CA office.

I am not sure how these individuals are being referred to our Corporate

office, except that we were told the La Habra, CA "Alliance" claims to be a

member of UAEL.  The confusion may be a result of our corporate name being

listed in the current UAEL directory as "Alliance Funding Corporation"

instead of our legal name - "Alliance Capital Corporation" and the fact that

we are the only "Alliance" UAEL member in Southern California.

Thankfully, we are able to verify and reassure the disgruntled parties that

we are not associated with the La Habra, CA company, however, we are not

able to help them resolve their problems.   Once again, we do NOT have a LA

HABRA, CA office and verification with UAEL offices indicate the La Habra,

CA company has never been and is currently NOT a member of UAEL.

I realize this list is from NAELB, however, when your readers and providers

of information offer their opinion about a company a requisite for the

benefit of all parties involved (and not involved) is a mandate to include

the name of the city where the company is located (i.e.. Republic Leasing -

Columbia, SC) as some have done.  This simple piece of information should

help eliminate any confusion.

If anyone ever has any issues regarding our company please do not hesitate

to contact me directly.

Thank you.

cc: membership@uael.org; post@naelb.org;Kit Menkin

Darren A. Gardner, CLP

President

ALLIANCE CAPITAL CORPORATION

"Specializing in Equipment Financing"

Charlotte * Los Angeles * New York * Phoenix

480-443-0002 ext. 211 * www.alliancecap.com

            +                    +                  +

I just really feel that your forum is the correct one.  You review all postings first rather

than just allowing sources to post really anything they want.  I see another posting today on

the NAELB site concerning this very matter I did not think we were the only ones that had a

concern.

Sean Wheeler

brokers@1lease.

1 Lease

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             NY Times Negative Business Report Reaction

"This is a time to work harder and smarter and to be more creative.  I'm a

survivor and I refuse to participate in this recession. I lived through the

Great Depression (born in 1920).  We ate a lot of beans and potatoes and

many times our green vegetable was the dandelion greens my grandmother

picked off of the front lawn. We kept our positive attitude and our sense of

humor and it helped us through the hard times. I started this business in

1970 in the midst of a recession.  When friends asked why would I start a

business in a recession I responded "If I can make it in a recession I sure

as hell can make it when the times get good".  I've been through 8 or 10

recessions (can't remember for sure as I didn't count 'em) in the 30+ years

I've had this business and I've made it through each one.

I intend to make it through this one.  We're looking for another salesperson

for the Bay Area and when we find one we'll hire her/him. This is not the

time to back off, it's the time to get to work.  Every business does not

close their doors and the ones that are open need products to keep running.

While my competitors are at the bar crying in their beer that the sky is

falling I'm out there beating the bushes and still getting orders. Yeah,

it's slow but it ain't dead and neither am I !!!!"

Hal Sharpe

Sharpe/Dryden Company

530.899.0443 x300

530.899.1559 fax

mailto:hal@halsharpe.com

 ( P.S. Hal is 81, works three to four days a week, married to a young wife,

   and they like to travel, among other things. editor )

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Sprint Conference "Gold Rush"  United Association of Equipment Leasing

   May 3-6, Scottsdale, Arizona

 "It's All About Success" 

     Involvement

             Networking

             Education

 Rooms are filling up quickly so make your hotel

 reservations now.

 Call the Doubletree Paradise Valley Resort at(480)

 947-5400.

 Don't forget to ask for the UAEL group rate!

 Visit www.uael.org for the schedule of events!

 Stay tuned for the latest edition of Newsline

 Online, coming next week!

Joan Dalton, Executive Direction

 UAEL <joanie@uael.org

   For picture of front page of brochure

 http://www.leasingnews.org/archives/March01/3-16-01a.htm 

  The Agenda for the Conference can be found here:

http://www.uael.org/events/spring/

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

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

eMarket Capital, Inc. Selects EcomXML to Provide Secure and Integrated Business Relationship

Management Solution

EcomTalk Enables End-to-End Trading Relationships  

Between eMarket Capital and Its Business Partners 

LANGHORNE, Pa., March 19 /PRNewswire/ -- EcomXML, Inc. today announced that eMarket Capital,

Inc., a leading provider of leasing services for major equipment manufacturers, has selected

EcomXML's EcomTalk, to facilitate business relationships between financial lenders and

manufacturing companies within its network.

EcomTalk will allow eMarket Capital to enable secure linkages between these companies resulting

in true end-to-end trading relationships.  These trading relationships include lenders,

equipment manufacturers and their agents, who in turn offer leasing to their customers.

"We are excited about incorporating the capabilities of EcomTalk into our service offerings,"

explained Michael McReady, Chief Information Officer and Chief Technology Officer of eMarket

Capital.  "The flexibility and security provided by EcomTalk strengthens our objective of

bringing companies together as quickly as possible.  This provides real benefits to companies

using our service."

"Accelerating business relationships securely and reliably is, today, an absolute requirement,"

pointed out John A. Vigna, President and CEO of EcomXML.  "EcomXML's solutions enable companies

to confidently develop services that deliver these capabilities.  eMarket Capital wanted strong

communications capability and the ability to integrate with their trading partners.  In

addition, they needed to get to market quickly, and no other company could deliver the ease of

integration that EcomXML can."

eMarket Capital leverages the speed and low cost of the Internet to bring together lenders and

manufacturers.  Exploiting the Internet capabilities was a key factor in selecting EcomTalk,

which uses open standards and technologies.  EcomTalk combines XML technology with a loosely

coupled architecture to transform and transport information via the Internet.

About eMarket Capital, Inc.

eMarket Capital provides private label leasing services that help manufacturers close more deals

by making competitive lease financing available to their customers.  The company uses a

patent-pending Web-based process to enable equipment manufacturers to help their customers

secure the fairest and most competitively priced lease financing plan for their purchases. 

Customers fill out a single application to receive multiple offers from lenders over a two-day

period.  Data is submitted to the customer in a format that simplifies the process of making an

"apples-to-apples" comparison and subsequently selecting the leasing deal with the most

attractive terms.  The service targets capital equipment purchases from $5,000 to $1 million. 

Transactions in this range are most easily adapted to the Internet, and they comprise over 50

percent of the overall market, which is expected to grow 5 to 8 percent a year.  For more

information about leasing services available through eMarket Capital, visit the firm's web site

at http://www.emarketcapital.com or telephone 800-994-4369.

About EcomXML, Inc.

EcomXML Inc. is a leading provider of Internet-architected software products that enable B2B

collaborative solutions.  This allows organizations to implement business processes that enhance

and accelerate relationships in a fast, secure, and reliable manner.  Our solution framework

leverages proven industry standards (i.e., XML) and tools to capitalize on an organization's IT

investments while enabling efficiency and future growth.  Headquartered outside of Philadelphia,

EcomXML was founded in 1998 and continues to experience dramatic growth and acceptance.  For

additional information visit www.ecomxml.com or call 215.750.4350.

EcomXML, EcomTalk and the EcomXML logo are trademarks of EcomXML, Inc. All other trade names,

trademarks, registered trademarks and service marks are the property of their respective owners.

SOURCE  EcomXML, Inc.

CO:  EcomXML, Inc.; eMarket Capital, Inc.

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

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 Miami Herald Story Today on What Went Wrong at Unicapital----

         website for this news story:

                http://www.miami.com/herald/content/business/digdocs/098402.htm

WHAT WENT WRONG?

For North Miami's UniCapital

JAMES McNAIR

jmcnair@herald.com

Frank Sinatra died, Gary Sheffield was traded for Mike Piazza, and a Miami company called

UniCapital Corp. went on a $500 million spending spree.

It was May 15, 1998, and UniCapital was buying its way to greatness. The company raised $532

million in its initial stock offering that day, then paid out all but $15 million to the owners

of 12 companies, to lenders and to the underwriters of its IPO.

By most measures, UniCapital was flush and on its way to achieving its goal of becoming a

leading player in the fast-growing leasing business. The 12 acquired companies brought in $581

million a year in revenue. UniCapital had a $1.2 billion credit line and could replenish its

capital by selling its leases in the secondary market. Its parking lot was full of

Mercedes-Benzes.

``UniCapital is in the equipment leasing business to stay,'' the company vowed on its Web site.

How wrong it was. In just 2 1/2 years, UniCapital was broke, broken up and barely breathing in

U.S. Bankruptcy Court. It landed there after encountering a perfect storm of events: The death

of consolidation or ``rollup'' stocks, a squeeze on fresh capital, a shakeout in the equipment

leasing industry and a glut in the market for used aircraft and engines. All were magnified by

crushing bank debt.

Last year, in a stunning admission that it had become a house of cards, UniCapital wrote off the remaining value of its acquired subsidiaries. Offices were closed, assets sold and all but a few dozen of its 750 employees of a year ago were laid off. Today, the Limoges china and Baccarat

crystal gathering dust in the bayview office of UniCapital's deposed president, Robert New,

symbolize all that's left.

In due course, UniCapital will be liquidated entirely and will then join the legion of

hot-to-trot South Florida companies that turned out to be duds. Except that this one, according

to Forbes magazine, was the biggest fiasco of all initial public offerings in the past decade.

``It was an unmitigated disaster,'' said Michael Vinciquerra, a Raymond James & Associates

analyst who followed the company.

UniCapital was the brainchild of two men. New, 33 at the time, had cut his teeth as an

acquisitions specialist for U.S. Office Products, a retail chain. The other, Jonathan Ledecky of

Washington, D.C., was New's former boss at U.S. Office.

`SERIAL ENTREPRENEUR'

Ledecky, then 40, provided the name recognition that big investors crave in initial stock

offerings. Along with U.S. Office, Ledecky started U.S.A. Floral Products, Building One Services and OneMain.com, all ``rollups'' built by acquisitions. The Harvard grad and self-anointed

``serial entrepreneur'' made enough millions to become a philanthropist, socialite and co-owner

of the Washington Capitals hockey team. Called the ``king of the rollups'' by Thestreet.com,

Ledecky lives in a Georgetown townhouse that was rented by John F. Kennedy during his days as a

senator.

This, though, was to be New's show, and his new partners viewed him not only as young and smart, but as sensible and willing to consult with others who knew the leasing business. Later, they

saw him as a schmoozer who paid lip service to employees. Several former executives said he was

more interested in the trappings of CEOship, such as his generous compensation, a company jet -- a DC-9 -- limousine rides, expensive hotels, a personal trainer and his house in Aspen.

New's lawyer, Rene A. Torrado Jr. of Chicago, declined a Herald request to interview New. He

said New denies responsibility for the company's failure. ``My client vigorously denies he did

anything wrong,'' Torrado said.

RAGE FOR `ROLLUPS'

In the early and mid-1990s, rollups were all the rage on Wall Street. Also called consolidators, these companies ``rolled up'' other companies in the process of building national empires, often in retailing. Wayne Huizenga's Republic Industries -- today's AutoNation -- was a rollup, of

auto dealerships. So was Service Corp. International (funeral homes), Sysco (food service

companies) and Waste Management (garbage).

Ledecky and New cast UniCapital as a classic rollup, banking style. It would finance leases on

all sorts of equipment, including computer systems, telephone systems, printing presses and

coffee vending machines. It would also buy items like Boeing 747s and lease them to end users.

UniCapital would make money on the interest rate ``spread,'' that is, the difference between

what it paid its lenders and what it charged its customers. By combining 12 disparate equipment

leasing companies into one, UniCapital would have greater access to capital and at a lower cost.

Meanwhile, it would use its stock to finance further acquisitions.

BLUE-CHIP BACKERS

The UniCapital IPO looked like a blue-chip deal from the outset. Morgan Stanley underwrote the

$532 million offering, PricewaterhouseCoopers audited the books and Bank of America stood ready

with a $1.2 billion line of credit. And although there was nothing glitzy about the 12

acquisitions awaiting the IPO money, investors paid $19 per share for the ragtag collection of

companies.

Nine of the 12 acquisitions were profitable, and all 12 would be run by their original owners.

Since New and Ledecky had no experience in the leasing business, that arrangement made the IPO

an easier sell. New, with minimal staff in Miami, would consolidate their borrowing power and

scout for more acquisitions.

Roy Burger, whose Boulder Capital Group was one of the original acquisitions, was gung-ho about

the May 1998 rollup. His Colorado company specialized in arranging lease financing for car

washes, gasoline pumps and other equipment for convenience stores.

``I thought it would be good for our company,'' Burger said. ``With lower costs, we would be

able to provide more competitive products for our customers and we could grow faster.''

BIG-TICKET ITEMS

The equipment leasing rollup got off to a good start. UniCapital reported an $11.3 million

profit for the three months that ended June 30, 1998 -- a net return on revenue of 9.5 percent.

Meantime, the company helped itself to the bank loans to splurge on aircraft leasing companies

and used jet airliners, including Boeing 747s. With an aircraft and engine inventory rivaling a

small airline, that division assumed an appropriate name: Big Ticket.

To pay for the continued buying, UniCapital ran up its tab at Bank of America. Issuing stock

became less of an option because rollup stocks tanked and UniCapital's stock price nosedived to

$4.06 in September, barely a fifth of its $19 IPO price four months earlier.

As much as the rollup fallout hurt, what really smarted was the unraveling of UniCapital's

strategy in raising capital.

UniCapital's game plan was to raise money by issuing interest-bearing securities collateralized

by its leases. It would originate leases, bundle them off as securities, and use the cash

proceeds to make more leases.

The Asian financial crisis, the Russian debt default and the failure of the Long-Term Capital

Management hedge fund scotched that plan. Investors became jittery about risky, high-yield debt,

and the market for lease-backed securities dried up. UniCapital would manage two such issues,

one in 1999 and one in 2000, but for the most part leaned on banks to fuel its growth.

Lease-backed securities ``used to be the big, go-go funding vehicle a few years ago, but Wall

Street doesn't look at it like it did in the past,'' said Ralph Petta, a vice president with the

Equipment Leasing Association in Arlington, Va. ``It's fallen out of favor.''

Not only that, the lower borrowing cost that UniCapital promised as a result of its size never

materialized.

LOSSES MOUNT

UniCapital's reliance on bank loans eventually took its toll. Profits fell 60 percent in 1999,

mainly because the company paid $163 million in interest alone, almost 20 percent of revenue.

Its leasing customers were in bad shape, too. UniCapital raised its reserve for credit losses

tenfold from 1998 to 1999. Lease write-offs more than tripled to $5.8 million.

By late 1999, virtually nothing was going right at UniCapital. Breaking his promise of running a decentralized company, New consolidated back-office operations in Portland, Ore., where it owned a lease-servicing company, and in Miami, whose payroll ballooned as it absorbed such functions

as information systems and credit approvals.

The move backfired, said John Masquelier, a former vice president at Boulder Capital. Customers

were improperly billed, payments were misrecorded and delinquency notices were mailed in error,

he said.

``All the customers were p----d off,'' Masquelier said. ``They knew that the company didn't know what it was doing.''

Meantime, the company's Big Ticket Division was hitting nothing but turbulence.

Financial crises in Asia and South America, along with the introduction of new-generation

aircraft, hurt demand for used aircraft and engines. That hit UniCapital hard because the

company had just shelved its policy of short-term buying and selling planes in favor of

longer-term ownership.

Tal Briddell, a turnaround specialist who is supervising UniCapital's liquidation, said the

company took a hit every time one of its leases expired.

``Instead of leasing a plane for, say, $100,000 a month, you were leasing it, because of the

glut, for $75,000,'' he said.

HUSH KITS

UniCapital had another big problem with its engines and 70 aging planes. Federal law required

that jet airline engines meet stricter noise-abatement laws. That would require UniCapital to

spend millions of dollars to comply by a Dec. 31, 1999, deadline.

A class-action lawsuit filed on behalf of UniCapital shareholder Mitchell Wein alleges that

UniCapital knew from the very beginning -- but never told shareholders -- that the installation

of hush-kits would lead to a massive expense. As a result, the suit alleges, UniCapital grossly

overpaid when it bought two aircraft leasing companies -- Cauff Lippman Aviation and Jumbo Jet

-- from Stuart Cauff and Wayne Lippman for $67 million in cash and $29 million in stock.

Cauff joined UniCapital as head of its Big Ticket Division and was promoted to company president in April 1999. But even with the veteran aircraft trader in charge, the Big Ticket Division was

in a death spiral. Planes and engines were sold at a loss, and the bankruptcy of one customer,

Tower Air, led to a $12 million write-off. UniCapital declared Big Ticket a dead business and

wrote off its entire book value of $224 million.

``That just blew a major-league hole in their balance sheet,'' said Brian Gordon, a fixed income analyst with Fitch in Chicago. ``If they had stuck to the small-ticket business, UniCapital

would have survived, but this whole airplane thing killed them.''

Because they are named in the lawsuit and face other possible legal action, UniCapital's former

executives won't talk. Cauff, who lives in Miami, would not comment. Ledecky did not respond to

an e-mail.

New's lawyer, Torrado, said New was also a victim: ``What happened to the company broke his

heart. He put a lot into it. He took a hit like everybody else.'' Torrado said New is now a

business investor in Los Angeles.

EXECS WELL-PAID

In its reports to investors, UniCapital cited its liquidity crisis and its need to reduce costs

by $5 million a year. Yet in March 2000, the company continued to pay fat salaries to its top

executives.

New, for one, received a new two-year contract paying him $650,000 a year, up from $406,250 the

year before. Bruce Kropschot, head of acquisitions, and Martin Kalb, the company lawyer, were

already earning $450,000 a year and had received bonuses of $125,000 and $42,000, respectively.

Kalb wouldn't comment. Kropschot, now in Stuart, Fla., said he earned less at UniCapital than at his previous job.

UniCapital's eighth-floor offices at 10800 Biscayne Blvd. reflected the free-spending ways. New

enjoyed a personal trainer and a sophisticated fitness center adaptable for high-altitude

training. His private bathroom is lined in marble, his office full of touch-screen environmental controls and high-end fixtures. The regular bathroom is outfitted with solid mahogany stalls and a granite counter and backsplash.

Out in the field, employees of acquired companies were amazed -- and irritated -- by New's regal style. While New traveled in the company DC-9 and limousines, employees were denied pay raises,

according to company executives.

PERKS AND LIMOS

``There was a shamefully high level of greed and indulgence,'' Burger said. ``They rewarded

themselves with high salaries and perks. They stayed at the finest hotels and ate at the finest

restaurants. They'd fly the private jet to regional airports and the limo would be waiting for

them.''

Two former UniCapital executives said the spending was criticized -- to no avail. They said New

and his inner circle, mostly from the Big Ticket side of the company, refused to listen to the

more leasing-savvy people whose companies UniCapital acquired.

``There was nobody in there who could look at a deal and say, `This deal sucks. Don't do it,' '' one executive said, asking not to be named. ``There was no leasing person there. The people who

knew the business were ignored.''

By mid-2000, UniCapital was losing money on every aspect of its business. New and his brother

Jonathan, the chief financial officer, were let go in July 2000. Briddell, the turnaround

expert, was named CEO.

Briddell is president of a Chadds Ford, Pa., company called Phoenix Management Services. Over

his long career, he has served as CEO of 24 public companies and handled 450 turnarounds, most

recently that of Central Sprinkler Corp. in Lansdale, Pa. When he began his stint at Central,

its stock price was at $5.50 a share. Eleven months later, he sold the company to Tyco

International for $30 a share.

UniCapital, however, was a different animal. With the help of an outside consultant, Briddell

spent three months looking for ways to salvage the company. In the end, bankruptcy was the only

option.

``Nothing made a compelling case that the rollup model would ultimately succeed,'' Briddell

said, leaning back n his chair, his shoes propped up on the Deco-style maple desk once occupied

by New.

Briddell tried his best to keep his fingers in the dike, but it was pointless. He won reprieves

from Bank of America, which held the bulk of UniCapital's $1 billion in debt. He laid off