The following list was begun as a response to a NAELB Listserve posting
about spotting possible scams on equipment lease applications. I shall
add to it periodically. Fellow lessors and others are encouraged to
e-mail
suggestions for inclusions.
>> Vendor and lessee are from different geographic areas: FLAG
>> Vendor in Nevada, lessee anywhere else: SERIOUS FLAG
>> Rush need for approval: FLAG
>> Rush need for approval without asking rate: SERIOUS FLAG
>> Multiple trade references too good to be true: FLAG
>> Multiple trade references too good to be true and all similar (watch for figures of speech and wording of comments): SERIOUS FLAG>> Excellent financials or tax returns provided on a small deal without being requested: FLAG
>> Appearance of financial strength, but needs smallest possible advance: SERIOUS FLAG
>> PG in different geographic area than lessee company: SERIOUS FLAG
>> Two "front names" (John Roberts, Tony Williams, etc.) for PG: FLAG *
>> Two "front names" for PG and
vendor rep: SERIOUS FLAG (no kidding) *
* With all due respect to
the many honorable folks in that boat. Actually, the assumption is that they haven't seen a boat
since the Mayflower -- but that's another story. The late Ed Ingram, the
wonderful old time leasing guy from Tilden, used to tell a story about being a
guest at a hunting club dinner. (Having attended one myself, I concurred
that Jews are rather uncommon at such events.) From across the room,
came a booming voice, "Hey, Ingram, my name is Ingram, too. Maybe
we're related." Ed instantly responded, "I don't know.
What was your family's name in the old country?"
>> Equipment Incongruities: FLAG
Ask for an explanation. The
print shop that wants a CNC Router may also have an established sign
department.
>> PG information volunteered when it
should not be expected: SERIOUS FLAG
We received the actual SSN's of the
CEO and CFO of Mattel Toy Company on an application for a $74,000 computer
deal. We notified Mattel's internal security department and the FBI.
>> Referrals from people or businesses you don't
know. FLAG
Sometimes these are just
misunderstandings. But, often it is a ploy so that you will let your
guard down. ("He said you're the best")
>> General Incongruities: FLAG
One of the first attempted scams
that I fielded was a $50,000 copier-duplicator for a business in a Hasidic
community. I was comfortable with the deal, even throwing in some
Yiddish phrases in phone conversations with the friendly applicant. Then I
called his first listed trade reference, Tony's Trucking. "Hullo,
Tony's Truckink, vat cud I do for you?" Within a day we had
documented that the bank reference was another phone in the applicant's
office. We notified the New York State Banking commission and the local
prosecutor.
>> Last minute change in :ship
to:" SERIOUS FLAG
Many scams use actual credit
information on substantial companies, including the true address. Then,
at the last minute, ask the vendor to ship to a "satellite
office." This is particularly problematic, because it can be
attempted with a strong, real applicant and a legitimate vendor.
>> Application for $49,500, $74,840,
or $99,345: FLAG
Many bad guys believe that being
just under the "app only" limit (or other perceived limitation)
makes you stupid.
>>
The vendor is related to the customer: SERIOUS
FLAG
("We always buy from our
affiliate/subsidiary/division/brother-in-law"):
>>
The vendor has no fixed address:
FLAG
(very common, but many people overlook this one. It's also common with used
equipment).
>>
The deal comes from Southern California, Texas,
Louisiana or Florida: FLAG
Obviously most deals are straight, but I watch deals from these areas more
closely. Some of the biggest scams, like Consolidated Allied and Freda
Trading, came out of California.
>>
Selected industries, like the rag trade: FLAG
10/04/01: These two were sent in by one the good guys in the industry. I have competed with him often. He's a straight-shooter.
>> When the lessee calls
repeatedly and asks, "That you pay the vendor as soon as
possible".....for sure a cash washback.
>>>When you get an unsolicited deal from someone you don't know.