Genesis Commercial Capital RIPOFF, fraudulent automatic lease extension, fraudulent fair market value extortion, harrassing phone calls. Irvine California

Our manufacturing company (WA State) has a big issue with the end of term of the Equipment Lease with Genesis Commercial Capital/Genesis Capital Leasing. Please contact to us ASAP if you have or had the same situation with them. Please contact us at protect business2018@gmail.com

"Please be advised Genesis Commercial and I have subsequently resolved any and all outstanding issues to the mutual acceptance of everyone involved.  My accusations of Genesis Commercial Capital and my statements regarding its principals and their prior employment were incorrect.  I hereby retract my prior statements concerning Genesis Commercial Capital and/or its principals.  I would also like to request that my original posting/complaint be completely removed in its entirety.”

We have experience the exact (and worse) circumstances with this leasing company. See below.  If anyone has a information to provide, pelase contact me.  My counsel is seeking similar evidence of leasing fraud in order to counter sue and submit to the California District Attorneys office for criminal acitons.

I own Almighty Rentals in Georgetown Texas and can be easily contacted there.

Urethane International brought with them a company called Genesis Capital, who was their financial resource to lease the equipment.  Genesis vocalized a lease with a minimal buy option at the end of the lease.  The cost of ownership was higher through the lease, but as a newly formed business with limited capital and no credit, it seemed a viable though slightly more expensive option.

We dutifully paid on the lease to the end of the terms as we understood them, at which point we were contacted by Genesis.  Contrary to what was explicitly expressed to me in phone conversations with the company principle, Eric Sidenbotham, Genesis informed me that, because we had not expressly and  formally indicated our intent to culminate the lease, that it had ‘auto-renewed’ for an additional 2 years.  Furthermore, any default in the payments would accelerate the amount due and they would pursue legal recourse.

Several things happened at this point.  We sought the advice of our in house legal counsel, Josh Schroeder of Sneed, Vine & Perry.  It became apparent that this was modus operandi for this company to prey on business / persons by misrepresenting the terms of the lease, that had very specific language in the lease contract.  Our offers to settle were futile, and the Genesis resolved itself to continue sending monthly “invoices” and past due notices, as well as daily calls to my cell phone and the business phone.

A cursory search of revealed several significant details about the company:

1) At least two of the principals , Eric Sidebotham and Greg Rieke, were previously involved with Balboa Capital, a company which had eventually been sued by the California Attorney General’s  Office- Kamala Harris, for the similar issue, where they were “leasing” equipment to churches and then extorting extraneous leasing charges.
a. http://leasingnews.org/archives/Mar2011/3_02.htm
2) Later, those two same principals, created / formed Genesis Capital.
3) There are a multitude of small business owners that have experienced the exact same issue with the company.
a. At one time the BBB of California had an “F” rating for the company, based on multiple consumer accounts.  This rating has been ‘massaged’ out, not surprisingly.
b. There are still many accounts from business owners and individuals that explicitly state the same circumstances: a misrepresented lease, followed by an incredibly aggressive collections structured posture.
4) The Clerk of Courts for Orange County list Genesis Capital as the plantiff for hundreds of civil cases citing breach of contract.

This case has been settled. I would like to take the report off but apparently cannot.

Genesis Commercial Capital originated 2 equipment leases for this client/lessee in April 2000. Both leases were structured with end of term options allowing the lessee to purchase the equipment for the current Fair Market Value when the leases matured. At the time of lease commencements the lessee was concerned that we would not use local dealers/suppliers in our determination of the actual value of the equipment. The lessee wanted to be able to be involved in choosing the Fair Market Value by using their own dealer/supplier network so we allowed them to the opportunity to do so. The lease contract required that the lessee give advanced notification to Genesis of their intent to purchase the equipment. Per the lease contract we did not receive the advanced notification from the lessee. When we contacted the lessee to determine if they intended on purchasing the equipment or returning it they were non responsive and avoided our calls. When we finally reached the lessee they then offered diminimus/nominal purchase price of $10.00 to buy all of the equipment. They claimed that was the Fair Market Value of the equipment? We then shared with them some of the quotes we had received for the Fair Market Value and it was clear they were just offering a ridiculous price since they had possession of the equipment. The lessee also refused to return the equipment to us as well since we are the rightful owners of the equipment.

We felt like we needed to set the record straight with this client. It is unfortunate that they reported something like this to your agency when we are in reality the victim of very bad business!