Legal / Fraud

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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. read more

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