Attorney General Eliot Spitzer today announced settlements with four
additional financial institutions in connection with widespread
telecommunications fraud involving NorVergence, Inc., a bankrupt New
Jersey-based telecommunications company.
Under the terms of the newly announced agreements, BB&T Leasing
Company, Interchange Bank, R-G Crown Bank (d/b/a Crown Bank Leasing),
and National Penn Leasing Company, will forgive $2.8 million (90% of
the balances on outstanding leases) in payments due from 111 New York
customers, who signed long-term contracts with NorVergence ....
... rest of press release gives the sordid Norvergence
history we all know so well and lists various
other leasing companies who've joined in the write-offs,
as well as a few who still haven't ...
Knowledge may be power, but communications is the key
[to foil spammers, my address has been double rot-13 encoded]
[TELECOM Digest Editor's Note: I'll tell you, it really feels good to
see all those stupid, sleazy financial houses having to get their
noses rubbed in their own messes, doesn't it? They all thought they
were _so_ smart, that they could rely on that 'holder in due course'
argument and force everyday business people to have to pay for _their_
mistakes in not evaluating the paper they were agreeing to take on.
I wonder how many salesmen (in that business, a 'salesman' is the
person who brings in new business to the company) who were originally
rewarded with fancy dinners and bonuses for the 'great new account'
they brought the company (in this case Norvergence was their client)
have since been fired and sent packing for in effect causing the house
to have to write off millions of dollars at the government's 'request'
to avoid getting sued -- same as the house would have sued the poor
debtor who stood up for his rights had not the government gone to bat
for them. I hope they learned from this lesson, and I hope at least
a few will go under from the write offs they had to take. PAT]