Last Updated: May 16, 2012

News — Legal & Fraud

Former GE Execs Found Guilty of Bid-Rigging

The U.S. Department of Justice said a federal jury in NYC convicted three former executives of GE Funding Capital Market Services for their role in a bid-rigging conspiracy the government says deprived municipalities of competitive investment returns.

Sentencing for Five EFI Defendants Postponed

The Lancaster Intelligencer Journal reported that sentencing for five defendants in the Equipment Finance Inc. fraud case has been delayed from next week to September.

Final Defendants Sentenced in Le-Nature’s Fraud

The Pittsburgh Post-Gazette reported that the son and wife of former Le-Nature’s CEO Gregory J. Podlucky were sentenced to nine and four years in prison, respectively, ending the criminal cases associated with the Latrobe beverage maker’s collapse.

AIG Sues Udvar-Hazy, Air Lease Alleging Theft of Trade Secrets

The Wall Street Journal is reporting that AIG is suing Steven Udvar-Hazy, former chief executive of its ILFC aircraft leasing business, Air Lease and former executives who previously worked at ILFC, alleging theft of trade secrets.

NY Attorney General Sues Northern Leasing Systems

Attorney General Eric T. Schneiderman announced a lawsuit against Northern Leasing Systems and its affiliates alleging that they fraudulently siphoned millions of dollars from their former customers.

Attorney to Argue Against Prison for Wife of Le-Nature’s CEO

The Pittsburgh Tribune-Review reported the attorney for Karla Podlucky, wife of Le-Nature’s former CEO, said because of her fundamentalist Christian beliefs, she never doubted that her husband’s purchase of $33 million worth of gems and jewelry was the result of business success rather than fraud.

Feds Seek to Seize $1.4MM from Le-Nature’s Podluckys

The Pittsburgh Post-Gazette reported that federal prosecutors asked for court approval of the seizure of nearly $1.4 million held by Ligonier’s Podlucky family, which once controlled the bankrupt bottler Le-Nature’s.

Reuters: Judge Dismisses Claims Against Banks in GE Lawsuit

Reuters reported that a federal judge dismissed claims against Goldman Sachs, JPMorgan Chase and 40 other defendants that they helped mislead investors in General Electric’s $12.2 billion stock offering in 2008.

Sixth Defendant Pleads Guilty in EFI Loan Fraud

The Lancaster Intelligencer Journal reported that Harold W. Young, president of an Alabama-based insurance company, pleaded guilty to one count of wire fraud affecting a financial institution for his role in the EFI loan fraud.

Accounting Firm Settles Lawsuit Over Le-Nature’s Loan

Bloomberg reported that accounting firm BDO Seidman settled investor claims over a $285 million loan made to Le-Nature’s before the drink maker went bankrupt in 2006, citing a court filing.

Former EFI Officer to Testify in Fraud Case

The Lancaster Intelligencer Journal reported that Joseph M. Braas, Equipment Finance Inc.’s SVP and COO, will testify against two of his former employees at their loan fraud trial in Philadelphia.

Wells Fargo Ordered to Pay $3.1MM Fine in Mortgage Case

The Huffington Post reported that a federal judge has ordered Wells Fargo to pay $3.1 million in punitive damages for “highly reprehensible” behavior over more than five years of litigation with a single homeowner.

Stiffer Sentence Sought for Le-Nature’s Defendant

The Pittsburgh Tribune-Review reported that federal prosecutors want to increase any prison sentence that Le-Nature’s defendant Karla Podlucky receives, arguing she used intricate means in creating fictitious companies and trusts to secretly sell nearly $3 million worth of gems.

EFI Defendant Seeks Funds for Travel to Trial

The Lancaster Intelligencer Journal reported that a former Equipment Finance Inc. employee wants taxpayers to pick up his anticipated $1,500 tab for traveling to his upcoming trial in Philadelphia.

Bank of America Wins Dismissal of $1 Billion RMBS Lawsuit

Bank of America, as successor to Countrywide, won dismissal of a lawsuit filed by investors in mortgage-back bonds claiming the bank should buy back defective loans underlying more than $1 billion in securities.

Ahern Rentals Needs More Time to File Restructuring Plan

Equipment rental company Ahern Rentals announced it will need additional time to continue developing its restructuring plan, a Dow Jones Daily Bankruptcy Review article said. Bloomberg Businessweek reported that billionaire Tom Gores’ Platinum Equity is contemplating a take over of Ahern.

SEC Sues Wells Fargo in $60 Billion RMBS Case

The SEC has applied to a U.S. District Court for an order enforcing subpoenas issued during its investigation into possible fraud in the offer and sale of nearly $60 billion of residential mortgage-backed securities by Wells Fargo.

Reuters: Court OKs CIT Group $75MM Accord in Fraud Case

Reuters reported that CIT Group won preliminary court approval of a $75 million settlement to resolve allegations the commercial lender fraudulently misled shareholders about its exposures to risky mortgages and student loans.

Trailer Bridge Exits Chapter 11 Protection

Ocean shipping company Trailer Bridge has exited Chapter 11 protection, a Transport Topics article announced. With its emergence from bankruptcy, the company will now be majority owned by Seacor Holdings.

Siemens First Capital Sued Over IPO Cancellation

Bloomberg reported that Siemens First Capital Commercial Finance was sued for breach of contract over the cancellation of an initial public offering for a security-alarm service business.

Postal Worker Charged in $4MM Truck Leasing Fraud

A postal worker faces felony charges for submitting fraudulent invoices totaling more than $4 million from his truck leasing company to the U.S. Postal Service, according to documents filed in the U.S. District Court in Oakland, CA.

Central Leasing Ex-CFO Sentenced to Two Years for Wire Fraud

U.S. District Judge R. David Proctor sentenced a former equipment leasing company executive to two years in prison for wire fraud in connection to a $1.2 million embezzlement scheme, announced U.S. Attorney Joyce White Vance.

BCI Aircraft Leasing CEO Convicted of $50MM Fraud

The chief executive of BCI Aircraft Leasing, Brian Hollnagel, was convicted of six counts of wire fraud and one count of obstruction of justice by a federal jury in a $50 million fraudulent financing scheme.

EFI Defendant to Change Plea in Loan Fraud Case

EFI defendant Harold W. Young is scheduled to change his plea on March 29, according to federal court documents. His trial in the loan fraud case had been scheduled for April 5.

Reuters: CIT Offers $75MM to End Fraud Lawsuit

Reuters reported that CIT asked a federal judge to approve a $75 million settlement proposal with former CIT shareholders in a class-action securities fraud lawsuit over actions preceding the large commercial lender’s 2009 bankruptcy.

Donner Gets 18 Months for Role in Leasing Ponzi Scheme

Bruce Donner, owner of Donner Medical Marketing, was sentenced to 18 months in prison for his role in a $135 million medical equipment leasing Ponzi scheme that defrauded lenders out of least $80 million.

Former Olympus Chairman, Others Indicted in Cover Up

The Mainichi Daily News reported that Tokyo prosecutors have indicted former Olympus chairman and president Tsuyoshi Kikukawa, and five other individuals, on charges of falsifying financial statements to cover up massive investment losses.

CIT Raises Cost Estimates For Litigation

CIT notes in its recent 10-K filing it has raised its estimates for a range of potential losses as up to $360 million in excess of established reserves and insurance related to various legal matters including tax litigation with Tyco and lease agreements with defunct bottling company Le-Nature’s.

Color-Web Sues People’s Capital Alleging Fraud

Color-Web, a division of 1800Postcards.com, said it has sued People’s Capital and Leasing, alleging fraud and breach of contract. The amount of the claim is $13.8 million.

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Date Posted February 23, 2012

Bloomberg: Normandy Settles Wachovia Suit Over Le-Nature’s

Bloomberg reported that Wells Fargo’s Wachovia Capital Markets settled investor claims that it failed to disclose signs of fraud at Le-Nature’s as it arranged a $285 million loan before the drink maker’s bankruptcy.

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Date Posted February 22, 2012

Bloomberg: Olympus Ex-Chairman and Six Others Arrested

Bloomberg reported that three former executives at Olympus, including its former chairman, and four others were arrested for suspected violation of the Financial Instruments and Exchange Act.

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Date Posted February 16, 2012

Jones Day: Recent Litigation Affecting Aircraft Financing

In a recent newsletter, law firm Jones Day said aircraft lessors would be well advised in today’s economic climate to remain attuned to litigation outcomes that may affect the traditional rules for aircraft financing.

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Date Posted February 10, 2012

Arrow Trucking Trustee Closes the Book on 25-Month Long Saga

Tulsa World reports Arrow Trucking’s Trustee, Patrick J. Mallory III filed his final report in the U.S. Bankruptcy Court in Tulsa 25 months and one day after the company filed its Chapter 7 liquidation petition.

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Date Posted February 9, 2012

GE Capital Sued by AerCap For Withholding Information

Bloomberg is reporting that GE Capital was sued by units of AerCap Holdings for allegedly failing to tell the aircraft leasing company about a lawsuit in Brazil involving a bankrupt Brazilian airline.

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Date Posted February 7, 2012

Krones Warns of Profit Drop Over Le-Nature’s Fraud

German-based packaging machinery maker Krones AG said it is in mediation talks with a number of U.S.-based finance companies seeking compensation over the firm’s alleged participation in a large-scale fraud by U.S.-based Le-Nature’s.

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Date Posted February 2, 2012

Court Approves Ahern Rentals DIP Financing

Ahern Rentals announced that the U.S. Bankruptcy Court for the District of Nevada approved the final DIP financing with $66 million of availability, led by Bank of America, as administrative agent and decision agent, Wells Fargo, as collateral agent and decision agent and Merrill Lynch as lead arranger.

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Date Posted February 1, 2012

Court Allows AMR to Dump Nine More Aircraft Leases

The Chicago Tribune posted a report that AMR has received court permission to walk away from nine aircraft leases, raising to 33 the total number of planes rejected by the bankrupt parent of American Airlines.

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Date Posted January 30, 2012

Two More Le-Nature’s Defendants Get Jail Time

The Pittsburgh Post-Gazette reported that Jonathan E. Podlucky, former COO of Le-Nature’s, and Donald K. Pollinger, a businessman who aided in the juice company’s financial fraud, were each sentenced to five years in prison.

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Date Posted January 11, 2012

U.S. Files $150MM Suit Against Medical Imaging Company

The complaint alleges that Universal Imaging was required to be organized as a non-profit, but it continued to operate as a for-profit corporation by transferring its equipment to a for-profit entity, MRI Leasing, with the same owners.

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Date Posted January 9, 2012

Le-Nature’s President Gets Fifteen-Year Sentence for Fraud

The Pittsburgh Post-Gazette reported that former Le-Nature’s president Robert B. Lynn was sentenced to 15 years in prison for his role in the company’s financial fraud. Tammy Andreycak, the accounting director whose cooperation with federal agents was key for the prosecution, was sentenced to five years in prison.

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Date Posted January 4, 2012

Former CEO of GDC Acquisitions Found Guilty of Fraud

A federal jury returned guilty verdicts against Courtney Dupree, the former CEO of GDC Acquisitions. Dupree was found guilty of bank fraud against Amalgamated Bank, GDC’s asset-based lender, of $21 million in fraudulent loans.

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Date Posted January 3, 2012

2011 Recap: Healthcare, Medical/Telecom Bankruptcies Dominate

According to BankruptcyData, a total of 82 publicly traded companies filed for bankruptcy protection under Chapter 7 and Chapter 11, listing $104.2 billion in combined pre-petition assets. This figure compares to the year-end 2010 filing total of 106 bankruptcies and $89.1 billion in assets.

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Date Posted December 30, 2011

Olympus Plans to Reinforce Oversight of its Management

According to a report posted by Mainichi Daily News, scandal-mired Olympus is planning to increase the proportion of outside directors to half its board in a bid to reinforce oversight of its management.

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Date Posted December 30, 2011

Law Firms to Investigate Sale of RSC Holdings

The law firms of Levi & Korsinsky and Bull & Lifshitz announced separately that each is launching an investigation of the sale of RSC Holdings to United Rentals.

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Date Posted December 27, 2011

Bankruptcy Judge Rules Against CIT In Tyco Dispute

In an opinion issued on Dec. 22, U.S. Bankruptcy Judge Allan L. Gropper has ruled against CIT in a tax dispute with its former parent company Tyco International.

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Date Posted December 23, 2011

Chicago Area Businessman Pleads Guilty of Defrauding GE Capital

Chicago area businessman and political fundraiser Tony Rezko was spared from serving more time in prison after pleading guilty of defrauding GE Capital out of $10 million in loans to finance the sale of a pizza restaurants in Chicago and Milwaukee.

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Date Posted December 22, 2011

Three EFI Defendants Face Additional Charges

A federal grand jury indicted Equipment Finance Inc. loan fraud defendants Misty L. Kroesen, her husband Curtis A. Kroesen and Harold W. Young on multiple new counts, the Lancaster Intelligencer Journal reported.

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Date Posted December 19, 2011

Alabama Supreme Court Reverses $8.6MM Verdict Against GECAS

According to court documents, the Alabama Supreme Court reversed an $8.6 million verdict against GECAS in a breach of contract suit filed by Pemco World Air Service. The justices sent the case back to trial court.

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Date Posted December 5, 2011

Wife, Son of Le-Nature’s CEO Guilty of Money Laundering

The Pittsburgh Post-Gazette reported that a federal jury found the wife and son of former Le-Nature’s CEO Gregory J. Podlucky guilty of money laundering in connection with the company’s fraudulent scheme using fake books to raise hundreds of millions of dollars from lenders.

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Date Posted November 30, 2011

American Airlines Files For Chapter 11 Bankruptcy Protection

American Airlines parent AMR filed for bankruptcy protection after failing to secure cost-cutting labor agreements. The company said its decision to file was made to reorganize in order to achieve a cost and debt structure that is industry competitive.

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Date Posted November 29, 2011

Allied Health Care’s Schwartz Gets 16 Years in Leasing Fraud

Bloomberg reported that Allied Health Care Services founder Charles K. Schwartz was sentenced to 16 years in prison for defrauding more than 50 financial institutions in a $135 million medical equipment leasing scheme.

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Date Posted November 23, 2011

C&J Leasing Owner Sentenced in Fraud Against Frontier Leasing

Clarence Allen Rice, owner of C&J Leasing, was sentenced to 70 months in prison for wire fraud in connection with a complex $8 million scheme against Frontier Leasing, according to documents from the U.S. District Court in the Southern District of Iowa.

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Date Posted November 17, 2011

Sentencing Delayed Until May for Five EFI Participants

The sentencing of five participants in the Equipment Finance loan fraud has been delayed until May 2012 at the request of a newly assigned assistant U.S. attorney in the case, according to recently filed court documents.

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Date Posted November 9, 2011

Le-Nature’s CEO Appeals Sentence; Attorney Seeks to Withdraw

The Pittsburgh Post-Gazette reported that former Le-Nature’s CEO Gregory J. Podlucky has appealed his 20-year sentence for mail fraud, tax evasion and money laundering, and his attorney petitioned the court to withdraw from the case.

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Date Posted November 7, 2011

TARP Fraud Results in Prison Sentences

A U.S. District Judge sentenced Thomas Hebble, former EVP of Orion Bank; Angel Guerzon, former SVP of Orion Bank; and Francesco Mileto, a former Orion Bank borrower, to federal prison for misleading regulators that the bank was in a better capital position than it actually was.

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Date Posted October 28, 2011

Former Le-Nature’s CEO Owes $661MM in Restitution

The Pittsburgh Post-Gazette, citing an order from the U.S. District Judge, reported that Gregory J. Podlucky, former CEO of Le-Nature’s, owes as much as $661 million in restitution to lenders and investors hurt by the 2006 collapse of the beverage maker.

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Date Posted October 25, 2011

Former Le-Nature’s CEO Sentenced to 20 Years for Fraud

The Pittsburgh Post-Gazette reported that former Le-Nature’s CEO Gregory J. Podlucky was sentenced to 20 years in prison for financial fraud that a judge said bilked investors and lenders out of more than $6.8 million.

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Date Posted October 21, 2011

First Sound Bank Seeks Delay in Puget Sound Leasing Award

The Seattle Times reported that a verdict by a jury, which requires First Sound Bank to pay $2.3 million to the former owners of Puget Sound Leasing, is causing additional stress on the bank, which is currently under scrutiny by the FDIC.

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Date Posted October 14, 2011

Ares Capital Increases Funding Facility to $500 Million

Ares Capital announced its subsidiary, Ares Capital CP Funding, increased its revolving funding facility provided by Wells Fargo Bank from $400 million to $500 million.

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Date Posted October 14, 2011

Wells Fargo, BDO Seidman Settle Le-Nature’s Suits for $130 Million

Bloomberg reported Wells Fargo’s Wachovia Capital Markets unit and BDO Seidman LLP settled lawsuits over their roles in the collapse of Le-Nature’s for $130 million.

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Date Posted October 12, 2011

Co-Conspirator Pleads Guilty in $135MM Equipment Lease Scheme

The owner of a purported medical equipment company, Donner Medical Marketing, pleaded guilty in connection with his role in a $135 million phony medical equipment lease scheme, U.S. Attorney Paul J. Fishman announced.

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Date Posted October 7, 2011

Machine Tool Maker Files Bankruptcy; Owes Utica LeaseCo $1.2MM

New Hampshire-based machine tool maker Kingsbury has filed for Chapter 11 bankruptcy seeking to reorganize after facing the potential repossession and auction of its equipment. Court filings show that Utica LeaseCo is owed $1.26 million in principal, interest and late charges.

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Date Posted October 4, 2011

CitiCapital Lawsuit Creates Issues for City of Burlington

The Burlington Free Press outlines many of the issues facing the city of Burlington, VT that could result from a lawsuit filed by CitiCapital Municipal Finance against the city for non-appropriation and unwillingness to de-install and return leased telecom equipment.

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Date Posted September 30, 2011

Le-Nature’s Former CEO Seeks to Reduce Plea Deal Sentence

The Pittsburgh Post-Gazette reports that former Le-Nature’s CEO Gregory J. Podlucky has asked the court for a prison sentence shorter than that negotiated as part of his June 20 guilty plea.

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Date Posted September 26, 2011

Former Central Leasing CFO Pleads Guilty to Wire Fraud

The Houston Chronicle reports that Barry A. Thomas, former CFO of Central Leasing Corp., has pleaded guilty in federal court to wire fraud in a $1.2 million embezzlement scheme.

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Date Posted September 22, 2011

Delay Granted in EFI Fraud Trial

Federal court judge Paul S. Diamond has granted a delay in the criminal jury trial of three defendants in the EFI fraud case at the request of the new attorney for Harold Young, according to court documents.

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Date Posted September 16, 2011

CitiCapital Files Lawsuit Against City of Burlington VT

CitiCapital Municipal Finance filed a lawsuit against the city of Burlington, VT seeking to repossess equipment leased to city owned Burlington Telecom under a $33.5 lease-purchase agreement entered into in 2007.

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Date Posted September 12, 2011

GE to ‘Vigorously Contest Claims’ in Freddie Mac Lawsuit

GE said it was notified of claims against GE, GE Capital and certain other affiliates in a lawsuit filed by Freddie Mac alleging inaccurate statements were negligently made in connection with the sale of two residential mortgage backed securities. GE said it plans to “vigorously contest these claims.”

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Date Posted September 7, 2011

Trial Set for Wife, Son of Former LeNature’s CEO

The Pittsburgh Tribune-Review reports that the wife and son of convicted former CEO of LeNature’s Inc. are scheduled to stand trial in October on federal charges that they helped him launder money defrauded from the beverage company’s investors.

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Date Posted August 30, 2011

New Attorney for EFI Defendant Young Asks Court to Delay Trial

Chrstiopher S. Linton, a new attorney for EFI defendant Harold Young, asked the court to delay Young’s October trial because he needs more time to prepare the case. Linton replaces Young’s previous attorney who a federal prosecutor in the case accused of conflict of interest, according to court documents.

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Date Posted August 23, 2011

November Sentencing Scheduled for EFI Fraud Defendant Tomberlin

According to court documents, sentencing of John S. Tomberlin, a defendant in the Equipment Finance Inc. loan fraud case, has been scheduled for November 22, 2011. Co-defendants Joseph M. Braas, Michael J. Schlager and Mary C. Stankiewicz will also be sentenced in November.

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Date Posted August 16, 2011

HL Leasing Officers Liable in Fraud; Victims Awarded $46MM

According to an article in The Fresno Bee, a jury found HL Leasing’s president Dan Ramirez and CFO Andy Fernandez liable for their role in a leasing company Ponzi scheme. However, the 1,200 victims will likely only collect a fraction of the $46.5 million award.

QSGI Files Antitrust Suit Against IBM Global Financing

QSGI, a provider of information technology products and services, announced that it filed an antitrust suit against IBM Global Financing and parent IBM claiming that an IBM policy eliminated QSGI’s ability to compete in the used mainframe market with IBM Global Financing.

EFI Fraud Prosecutor Requests Removal of Defense Attorney

According to the Intelligencer Journal/Lancaster New Era, federal prosecutor Nancy E. Potts is asking a federal judge to remove attorney Donald R. Jones Jr., counsel for defendant Harold W. Young in the Equipment Finance Inc. fraud case, due to conflict of interest.

EFI Loan Fraud Defendant Spann Pleads Guilty

John Wiley Spann, a defendant in the EFI fraud case, pleaded guilty in a change of plea hearing on July 25, 2011 to conspiracy, mail fraud affecting a financial institution and money laundering, according to documents filed in Philadelphia federal court. He will be sentenced on December 15.

Jury Selection Begins In Case of Former Le-Nature’s President

Jury selection has begun in the fraud trial of former Le-Nature’s president Robert B. Lynn, the only one of five defendants in the criminal case against the bankrupt beverage maker to maintain a plea of innocence.

Fifth EFI Fraud Defendant Tomberlin To Plead Guilty

John S. Tomberlin, a defendant in the EFI fraud case, will plead guilty on August 15, 2011, according to court documents. He was a partner in South Central Agency, a purported insurer of equipment that secured numerous EFI loans.

C&J Leasing Owner Guilty in $8MM Fraud Against Frontier Leasing

Clarence Allen Rice, owner of C&J Leasing, was found guilty of wire fraud in connection with an $8 million scheme against Frontier Leasing, according to U.S. Attorney Nicholas A. Klinefeldt.

U.S. Attorney Charges Former Central Leasing CFO With Fraud

Federal prosecutors charged a former equipment leasing company CFO with wire fraud in connection to a $1.2 million embezzlement scheme, according to U.S. Attorney Joyce White Vance.

Homeowners Try To Prevent BofA Leasing From Removing Ski Lifts

Tamarack Municipal Association homeowners are fighting to prevent Banc of America Leasing from removing two ski lifts from the Tamarack Resort after receiving the OK from a bankruptcy court judge to repossess the lifts that were leased to the resort.

Elephant & Castle Files Bankruptcy; Owes GE Capital Canada $18MM

British-style restaurant pub operator Elephant & Castle filed for bankruptcy citing falling sales and inability to service debt. The WSJ notes in a related story the company owes $18.8 million to GE Canada Equipment Financing.

CIT Group Sues to Halt Tyco’s Bankruptcy Claim Assertion

CIT Group has asked a bankruptcy judge to block a tax-related claim asserted by Tyco International that relates to an agreement that was entered into when Tyco sold its stake in CIT through an IPO in 2002, Bloomberg reports.

Equipment Finance Loan Fraud Defendant Guilty Plea Scheduled

The Intelligencer Journal-Lancaster New Era reports that John Wiley Spann, a defendant in the Equipment Finance loan fraud case, is scheduled to plead guilty on July 25 in Philadelphia federal court.

Oil Field Equipment Lessor Files $1MM Breach of Contract Suit

According to documents filed recently in Harris County District Court in Houston, TX, Compass Directional Guidance is suing Oncourse for more than $1 million owed to Compass for leased oil field equipment.

Sentencing of Three Defendants in EFI Loan Fraud Case Postponed

According to recently filed documents in the U.S. District Court for the Eastern District of Pennsylvania, district judge Paul S. Diamond, Jr. again has granted a postponement of sentencing for three defendants in the Equipment Finance Inc. loan fraud case.

Le-Nature’s Podlucky Pleads Guilty to Fraud

The Pittsburgh Post-Gazette reported that former chief operating officer, Jonathan E. Podlucky of failed bottler Le-Nature’s, has pleaded guilty to fraud and has agreed to serve a five-year sentence.

Class Members Win $4.9MM in Suit Against GE Capital IT Solutions

According to court documents, a judge has ruled in favor of a class action lawsuit brought against GE Capital IT Solutions (d/b/a IKON Financial Services) and approved a final settlement of $4.9 million between the parties.

FDIC Settles Case Alleging Reckless Lending to Leasing Companies

The FDIC’s $10.4 million lawsuit against former directors and officers of Corn Belt, alleging the defendants “acted recklessly” in approving loans to three leasing companies, has been settled

Principal in Banc of America Leasing Case Skips Hearing

The Idaho Statesman reports an Idaho judge issued a warrant for ski resort Tamarack’s owner Jean-Pierre Boespflug after he missed a hearing to determine the value of his assets. In January Banc of America leasing won a judgment to repossess Tamarack’s ski lifts.

Second Circuit Decision ‘Clear Win’ for Equity Owners

Lexology notes in a recent article that despite conflicting interpretations for owner participants’ right to recover claims based on tax indemnification agreements, a recent Second Circuit ruling stands as a “clear win” for equity owners.

Allied Health’s Schwartz Pleads Guilty In Lease Fraud

The owner and president of Allied Health Care Services, Charles Schwartz, admitted to organizing and executing a $135 million phony medical equipment lease scheme, U.S. Attorney Paul J. Fishman announced.

Federal Charges Filed in Office Equipment Leasing Scam

The U.S. Attorney for the Southern District of Illinois announced a federal grand jury returned an indictment against an office equipment supplier for allegedly defrauding equipment lessees through a multifaceted scheme.

Investors Sue Leasing Company Participants in Ponzi Scheme

According to documents filed in Federal Court, investors involved in a ponzi scheme perpetrated by leasing companies controlled by John W. Otto, have filed a suit against a group of leasing companies involved in the fraud for misfeasance.

SEC Blocks Diversion of Petters Ponzi Victim Funds

The SEC has obtained an emergency court order to halt an agreement by Marlon Quan allegedly designed to divert $14 million of settlement funds from victims of an inventory financing Ponzi scheme run by Thomas Petters. The SEC has charged Quan with facilitating the Ponzi scheme.

FDIC Sues Bank Officers/Directors on Loans to Leasing Companies

The FDIC has filed a civil action against former executives and directors of a failed bank in Illinois. The FDIC is seeking to recover at least $10.4 million in losses suffered on loans made to three leasing companies.

Huntington to Aggressively Contest Claims in Teleservices Ruling

In a statement, Huntington Bancshares acknowledged it may be required to pay up to $73 million as a result of recent ruling by a Michigan bankruptcy court, but noted that no judgment fixing damages has been issued and that it plans to aggressively contest the claims.

News — Legal & Fraud

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