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          Business	
  Plan	
   	
  
                   	
  
                   	
  
                  For	
   	
  
                   	
  
                   	
  
                   	
  
       JWA	
  Capital	
  Holdings 	
  
                      	
  
                                             Executive	
  Summary 	
  
      	
  
             	
  
             	
  
JWA	
   Capital	
   Holdings	
   is	
   in	
   the	
   business	
   of	
   acquiring	
   charged	
   off	
   credit	
   card	
   debt	
   at	
   an	
   extreme	
  
discount	
   and	
   then	
   collecting	
   those	
   assets	
   by	
   placing	
   the	
   portfolios	
   with	
   extraordinarily	
   qualified	
  
third	
   party	
   collection	
   agencies.	
   	
   Not	
   just	
   any	
   agencies,	
   but	
   ones	
   that	
   are	
   committed	
   to	
   helping	
  
people	
  by	
  treating	
  debtors	
  with	
  respect	
  and	
  giving	
  them	
  new	
  hope.	
  
	
  
JWA	
   Capital	
   Holdings	
   is	
   a	
   new	
   start	
   up	
   business	
   and	
   is	
   seeking	
   initial	
   financing	
   in	
   the	
   amount	
   of	
  
$20,000.	
   	
   JWA	
   Capital	
   Holdings	
   will	
   only	
   seek	
   additional	
   financing	
   after	
   repayment	
   of	
   the	
   initial	
  
financing	
   and	
   performance	
   satisfactory	
   to	
   the	
   lender.	
   	
   The	
   loan	
   proceeds	
   will	
   be	
   used	
   solely	
   to	
  
acquire	
  asset	
  pools	
  and	
  for	
  third	
  party	
  professional	
  fees.	
  	
  No	
  loan	
  proceeds	
  will	
  be	
  used	
  for	
  salaries.	
  
	
  
The	
  purchase	
  and	
  collection	
  of	
  charged	
  off	
  debt	
  is	
  not	
  a	
  new	
  industry	
  –	
  nor	
  is	
  it	
  a	
  small	
  one.	
  	
  The	
  
industry	
  is	
  comprised	
  of	
  large	
  public	
  and	
  private	
  companies	
  and	
  many	
  smaller	
  companies.	
  	
  Today,	
  
and	
   for	
   the	
   next	
   three	
   to	
   five	
   years,	
   there	
   is	
   a	
   vast	
   oversupply	
   of	
   charged	
   off	
   debt	
   available	
   for	
  
purchase	
   due	
   to	
   the	
   recession	
   and	
   very	
   high	
   rates	
   of	
   charge	
   offs	
   at	
   the	
   credit	
   card	
   banks.	
   	
   This	
  
excess	
   supply	
   allows	
   a	
   tremendous	
   opportunity	
   for	
   a	
   new	
   firm,	
   like	
   JWA	
   Capital	
   Holdings,	
   to	
  
purchase	
  these	
  assets	
  efficiently	
  and	
  at	
  a	
  steeply	
  discounted	
  price.	
  
	
  
JWA	
  Capital	
  Holdings	
  is	
  positioned	
  to	
  capitalize	
  on	
  this	
  opportunity	
  through	
  the	
  buying	
  power	
  that	
  is	
  
a	
  benefit	
  of	
  its	
  membership	
  in	
  Success	
  Support	
  System.	
  
	
  
JWA	
   Capital	
   Holdings	
   expects	
   to	
   achieve	
   above	
   average	
   collection	
   results	
   by	
   the	
   selection	
   of	
  
collection	
   agencies	
   who	
   utilize	
   a	
   unique	
   strategy	
   for	
   working	
   with	
   consumers.	
   	
   The	
   Applied	
  
Psychology	
  strategy	
  is	
  unlike	
  the	
  typical	
  “confrontation”	
  strategy	
  used	
  by	
  most	
  collection	
  agencies,	
  it	
  
is	
   one	
   that	
   treats	
   consumers	
   with	
   respect.	
   	
   JWA	
   Capital	
   Holdings	
   has	
   learned	
   the	
   strategy	
   under	
   the	
  
guidance	
   of	
   William	
   R.	
   Bartmann,	
   the	
   person	
   who	
   developed	
   it	
   and,	
   at	
   the	
   same	
   time,	
   built	
   the	
  
largest	
  and	
  most	
  successful	
  collection	
  agency	
  in	
  the	
  nation.	
  	
  	
  
	
  	
  	
  
The	
   principal	
   of	
   JWA	
   Capital	
   Holdings	
   is	
   Rev.	
   Jim	
   Anderson.	
   	
   He	
   is	
   an	
   experienced	
   small	
   business	
  
owner	
  and	
  will	
  be	
  “hands-­‐on”	
  in	
  the	
  business	
  working	
  closely	
  with	
  Bill	
  Bartmann’s	
  collection	
  agency.	
  	
  
Jim	
  is	
  highly	
  committed	
  to	
  helping	
  people	
  in	
  financial	
  distress.	
  
	
  
JWA	
  Capital	
  Holdings	
  intends	
  that,	
  after	
  payment	
  of	
  collection	
  costs,	
  all	
  cash	
  flow	
  from	
  collections	
  
will	
  be	
  used	
  to	
  retire	
  the	
  debt	
  from	
  the	
  initial	
  financing.	
  	
  Consequently,	
  the	
  loan	
  will	
  be	
  repaid	
  very	
  
quickly.	
   	
   The	
   goal	
   of	
   this	
   financing	
   strategy	
   is	
   to	
   demonstrate	
   to	
   the	
   lender	
   that	
   JWA	
   Capital	
  
Holdings’	
   business	
   model	
   produces	
   both	
   large	
   profit	
   margins	
   and	
   a	
   cash	
   flow	
   that	
   is	
   front-­‐loaded,	
  
illustrating	
  that	
  the	
  lender’s	
  risk	
  is	
  minimized.	
  	
  Only	
  after	
  the	
  loan	
  is	
  repaid	
  will	
  JWA	
  Capital	
  Holdings	
  
seek	
  additional	
  financing	
  based	
  on	
  the	
  established	
  track	
  record.	
  




                                                                                     2	
  
                                                    	
  
                                     Table	
  of	
  Contents	
  
	
  
	
  
	
  
       Executive	
  Summary	
   	
        	
     	
             	
  	
     	
     2	
  
       	
  
       Company	
  Background	
            	
     	
             	
         	
     4	
  
       	
  
       Service	
  Description	
   	
      	
     	
             	
         	
     6	
  
       	
  
       Market	
  Analysis	
       	
      	
     	
             	
         	
     8	
  
       	
  
       Operating	
  Strategy	
   	
       	
     	
             	
         	
     11	
  
       	
  
       Management	
   	
          	
      	
     	
             	
         	
     13	
  
       	
  
       Operations	
  	
   	
      	
      	
     	
             	
         	
     22	
  
       	
  
       Funding	
   	
     	
      	
      	
     	
             	
         	
     23	
  
       	
  
       References	
       	
      	
      	
     	
             	
         	
     24	
  
	
  
	
  
	
  
	
  
                                                         	
  
                                                         	
  




                                                        3	
  
                                                          Company	
  Background	
  
	
  
Name	
  
	
  
The	
  name	
  of	
  the	
  Company	
  is	
  JWA	
  Capital	
  Holdings	
  LLC.	
  
	
  
Nature	
  of	
  Business	
  
	
  
JWA	
   Capital	
   Holdings	
   is	
   in	
   the	
   business	
   of	
   acquiring	
   charged	
   off	
   credit	
   card	
   debt	
   at	
   a	
   significantly	
  
discounted	
  price	
  and	
  collecting	
  those	
  assets	
  by	
  means	
  of	
  third	
  party	
  collection	
  agencies.	
  	
  	
  
	
  
History	
  of	
  Business	
  
	
  
JWA	
  Capital	
  Holdings	
  is	
  a	
  start-­‐up	
  company.	
  	
  The	
  principal,	
  Rev.	
  Jim	
  Anderson,	
  is	
  the	
  primary	
  force	
  
behind	
   this	
   company	
   and	
   have	
   identified	
   a	
   unique	
   opportunity	
   to	
   capitalize	
   on	
   an	
   avalanche	
   of	
  
charged	
  off	
  credit	
  card	
  loans	
  coming	
  out	
  of	
  the	
  major	
  banks	
  over	
  the	
  next	
  three	
  to	
  five	
  years	
  and	
  
help	
   people	
   at	
   the	
   same	
   time.	
   	
   The	
   existing	
   debt	
   buying	
   industry	
   is	
   not	
   big	
   enough	
   to	
   accommodate	
  
this	
   expected	
   volume	
   nor	
   can	
   the	
   existing	
   industry	
   expand	
   rapidly	
   enough	
   to	
   accommodate	
   the	
  
volume;	
  thereby	
  offering	
  a	
  unique	
  opportunity	
  to	
  profit	
  on	
  this	
  excess	
  supply	
  over	
  industry	
  capacity.	
  
	
  
Stage	
  of	
  Development	
  
	
  
JWA	
  Capital	
  Holdings	
  is	
  a	
  start-­‐up	
  company.	
  
	
  
All	
  collections	
  of	
  the	
  purchased	
  assets	
  will	
  be	
  contracted	
  to	
  existing	
  reputable	
  and	
  successful	
  debt	
  
collection	
   agencies	
   on	
   a	
   contingency	
   fee	
   basis.	
   	
   The	
   selected	
   agencies	
   are	
   staffed	
   by	
   efficient	
   and	
  
experienced	
  personnel.	
  	
  Consequently,	
  JWA	
  Capital	
  Holdings	
  will	
  not	
  need	
  to	
  incur	
  the	
  start	
  up	
  costs	
  
of	
  building	
  a	
  collection	
  platform	
  and	
  the	
  corresponding	
  ongoing	
  operational	
  expenses.                                                                	
  
	
  
Unique	
  Features	
  of	
  the	
  Business	
  
	
  
There	
   is	
   a	
   tremendous	
   mismatch	
   between	
   the	
   growing	
   availability	
   of	
   charged	
   off	
   loans	
   and	
   the	
  
diminished	
   capacity	
   of	
   the	
   industry	
   that	
   will	
   allow	
   extraordinary	
   opportunities	
   to	
   carve	
   out	
   a	
   very	
  
profitable	
  niche.	
  	
  The	
  over-­‐supply	
  of	
  charged	
  off	
  loans	
  has	
  driven	
  down	
  the	
  acquisition	
  cost	
  and	
  thus	
  
has	
  created	
  an	
  unusual	
  and	
  highly	
  profitable	
  economic	
  opportunity1.	
  	
  	
  
	
  
Even	
  though	
  market	
  factors	
  have	
  driven	
  down	
  the	
  purchase	
  price	
  of	
  these	
  assets	
  the	
  profit	
  margin	
  
between	
  cost	
  and	
  recovery	
  has	
  remained	
  the	
  same	
  at	
  as	
  much	
  as	
  three	
  to	
  one.	
  

1
 	
   In	
   December	
   2006	
   the	
   average	
   price	
   of	
   fresh	
   charged	
   off	
   credit	
   card	
   loans	
   peaked	
   at	
   13.5	
   cents	
   on	
   the	
   dollar	
   of	
   face	
  
amount.	
  	
  In	
  December	
  2009	
  the	
  average	
  price	
  of	
  fresh	
  credit	
  card	
  debt	
  –	
  accounts	
  that	
  are	
  180	
  days	
  past	
  due—was	
  4	
  cents	
  
on	
  the	
  dollar	
  of	
  face	
  amount.	
  	
  (Source:	
  	
  The	
  Nilson	
  Report	
   –	
  April	
  2010).	
   	
   In	
  September	
  2010	
  the	
  average	
  price	
  of	
  fresh	
  
charged	
  off	
  credit	
  card	
  loans	
  was	
  5	
  to	
  7	
  cents	
  on	
  the	
  dollar	
  of	
  face	
  amount	
  (Source:	
  	
  Success	
  Support	
  System).	
  

                                                                                                       4	
  
	
  
Unique	
  Opportunity	
  
	
  
Strategically,	
  an	
  outsourcing	
  approach	
  with	
  the	
  third	
  party	
  collection	
  agency	
  will	
  allow	
  JWA	
  Capital	
  
Holdings	
  to	
  begin	
  operations	
  much	
  faster	
  and	
  at	
  minimum	
  risk	
  when	
  compared	
  to	
  the	
  challenge	
  of	
  
quickly	
  building	
  a	
  collection	
  function.	
  	
  It	
  is	
  important	
  to	
  note	
  that	
  JWA	
  Capital	
  Holdings	
  always	
  has	
  
the	
  option	
  to	
  build	
  an	
  internal	
  collection	
  capability.	
  
	
  




                                                                           5	
  
                                                               Service	
  Description	
  
	
  
JWA	
  Capital	
  Holdings	
  purchases	
  charged	
  off	
  credit	
  card	
  loans	
  and	
  collects	
  on	
  those	
  loans	
  from	
  the	
  
original	
  debtors	
  through	
  a	
  third	
  party	
  collection	
  agency.	
  	
  Through	
  mail	
  and	
  telephony,	
  the	
  selected	
  
collection	
  agency,	
  or	
  agencies,	
  contacts	
  the	
  debtor	
  and	
  negotiates	
  a	
  discounted	
  cash	
  settlement	
  or	
  a	
  
cash	
  payment	
  plan	
  that	
  is	
  affordable	
  to	
  the	
  consumer.	
  	
  	
  
	
  
Since	
   these	
   charged	
   off	
   loans	
   are	
   purchased	
   at	
   an	
   extreme	
   discount,	
   the	
   profits	
   JWA	
   Capital	
  
Holdings	
  makes	
  is	
  the	
  difference	
  between	
  the	
  purchase	
  price	
  and	
  the	
  amount	
  paid	
  by	
  the	
  debtor,	
  
less	
  operating	
  and	
  financing	
  costs.	
  
	
  
The	
  acquisition	
  and	
  collection	
  of	
  charged	
  off	
  credit	
  card	
  debt	
  is	
  a	
  big	
  business2.	
  	
  During	
  2009,	
  the	
  ten	
  
largest	
   debt	
   alone	
   buyers	
   purchased	
   almost	
   $50	
   billion	
   face	
   value	
   of	
   charged	
   off	
   credit	
   card	
   debt	
  
directly	
  from	
  banks.	
  Further,	
  there	
  are	
  a	
  large	
  number	
  of	
  companies	
  devoted	
  solely	
  to	
  the	
  collection	
  
of	
   distressed	
   debts	
   but	
   do	
   not	
   purchase	
   the	
   assets	
   for	
   their	
   own	
   portfolio3.	
   	
   The	
   debt	
   buying	
  
industry	
  has	
  a	
  high	
  rate	
  of	
  revenue	
  growth,	
  is	
  highly	
  profitable,	
  has	
  low	
  barriers	
  to	
  entry	
  and	
  is	
  one	
  
of	
  the	
  most	
  attractive	
  segments	
  of	
  the	
  Asset	
  Recovery	
  Management	
  industry4.	
  
	
  
The	
   industry	
   has	
   achieved	
   significant	
   recognition	
   as	
   a	
   good	
   investment	
   vehicle.	
   	
   The	
   major	
  
companies	
   not	
   only	
   purchase	
   very	
   large	
   quantities	
   of	
   charged	
   off	
   credit	
   card	
   debt	
   directly	
   from	
  
major	
  banks,	
  but	
  they	
  are	
  financed	
  by	
  lending	
  syndicates	
  headed	
  by	
  these	
  major	
  banks5.	
  	
  
	
  
The	
   unique	
   market	
   opportunity	
   for	
   JWA	
   Capital	
   Holdings	
   is	
   to	
   be	
   able	
   to	
   readily	
   purchase	
   these	
  
assets	
  because	
  the	
  supply	
  exceeds	
  the	
  capacity	
  of	
  the	
  industry6	
  and	
  to	
  acquire	
  the	
  assets	
  at	
  prices	
  
that	
  allow	
  large	
  profit	
  margins	
  and	
  rapid	
  return	
  of	
  the	
  capital	
  invested.	
  
	
  
Each	
   loan	
   pool	
   is	
   reviewed	
   and	
   evaluated	
   for	
   its	
   estimated	
   collectability.	
   	
   The	
   bid	
   submitted	
   will	
   not	
  
be	
  greater	
  than	
  one-­‐third	
  of	
  the	
  total	
  estimated	
  cash	
  recovery.	
  	
  This	
  allows	
  a	
  margin	
  large	
  enough	
  to	
  
cover	
   the	
   asset	
   acquisition	
   cost,	
   collection	
   cost,	
   financing	
   cost,	
   reserve	
   contingency	
   and	
   a	
   large	
  
profit.	
  	
  Allocation	
  of	
  the	
  gross	
  cash	
  recovered	
  is	
  projected	
  to	
  be	
  one-­‐third	
  for	
  recovery	
  of	
  acquisition	
  
cost,	
  one-­‐third	
  for	
  collection	
  cost	
  and	
  financing	
  cost,	
  and	
  one-­‐third	
  for	
  profit.	
  

2
 	
  Major	
  debt	
  buyer	
  companies	
  are	
  Sherman	
  Financial	
  (a	
  private	
  company),	
  Encore	
  Capital	
  Group	
  (publically	
  traded),	
  Zenith	
  
Acquisitions	
  (owned	
  by	
  an	
  insurance	
  company),	
  Portfolio	
  Recovery	
  Associates	
  (publically	
  traded),	
  Unifund	
  CCR	
  Partners	
  
(private)	
  and	
  Asset	
  Acceptance	
  Corp.	
  (a	
  NASDAQ	
  listed	
  public	
  company).	
  	
  Source:	
  	
  The	
  Nilson	
  Report	
  –	
  April	
  2010.	
  
3
 	
  ACA	
  International	
  (the	
  collection	
  agency	
  trade	
  organization)	
  lists	
  more	
  than	
  5,500	
  collection	
  agency	
  members	
  in	
  the	
  US.	
  	
  	
  
4
 	
  The	
  7th	
  edition	
  of	
  The	
  Kaulkin	
  Report	
  reported	
  that	
  debt	
  buyer	
  revenues	
  were	
  growing	
  at	
  an	
  annual	
  rate	
  of	
  11%	
  and	
  
projected	
  industry	
  revenues	
  would	
  be	
  $6.2	
  billion	
  in	
  2011.	
  	
  The	
  report	
  further	
  stated	
  that	
  the	
  barriers	
  to	
  entry	
  and	
  profit	
  
potential	
  in	
  the	
  debt	
  buyer	
  market	
  make	
  it	
  one	
  of	
  the	
  most	
  attractive	
  parts	
  of	
  the	
  ARM	
  industry.	
  Source:	
  	
  Kaulkin	
  Ginsberg	
  
Company.	
  
5
 	
  JP	
  Morgan	
  Chase	
  administers	
  a	
  $100	
  million	
  revolving	
  credit	
  facility	
  and	
  a	
  $150	
  million	
  term	
  loan	
  for	
  Asset	
  Acceptance	
  
Capital	
  Corp.	
  	
  JP	
  Morgan	
  Chase	
  administers	
  a	
  $327.5	
  million	
  revolving	
  credit	
  facility	
  for	
  Encore	
  Capital	
  Group.	
  	
  Portfolio	
  
Recovery	
  Associates	
  has	
  a	
  $365	
  million	
  revolving	
  credit	
  facility	
  from	
  a	
  group	
  of	
  banks	
  including	
  Bank	
  of	
  America,	
  Wachovia	
  
Bank,	
  RBC	
  Centura,	
  SunTrust	
  and	
  JP	
  Morgan	
  Chase.	
  	
  NCO	
  Group	
  has	
  a	
  $569	
  million	
  term	
  loan	
  and	
  $100	
  million	
  revolving	
  
loan	
  administered	
  by	
  Morgan	
  Stanley.	
  	
  Source:	
  	
  National	
  Consumer	
  Law	
  Center.	
  
6
 	
   In	
   2006,	
   the	
   volume	
   of	
   charged	
   off	
   credit	
   card	
   was	
   $31	
   billion	
   and	
   the	
   charge	
   off	
   volume	
   for	
   2009	
   was	
   $97	
   billion,	
  
representing	
  a	
  213%	
  increase	
  in	
  four	
  years.	
  	
  For	
  2010	
  the	
  charge	
  off	
  rate	
  projected	
  by	
  Moody’s	
  is	
  13%	
  and	
  would	
  represent	
  
$117	
   billion	
   of	
   credit	
   card	
   charge	
   offs.	
   	
   The	
   debt	
   purchaser	
   industry	
   is	
   not	
   capable	
   of	
   expanding	
   to	
   a	
   size	
   that	
   will	
  
accommodate	
  all	
  the	
  available	
  supply.	
  	
  Source:	
  	
  The	
  Nilson	
  Report,	
  Federal	
  Reserve	
  Bank	
  and	
  Moody’s	
  Investor	
  Services.	
  

                                                                                                      6	
  
	
  
JWA	
  Capital	
  Holdings	
  will	
  acquire	
  these	
  charged	
  off	
  credit	
  card	
  assets	
  by	
  submitting	
  bids	
  to	
  sellers,	
  
and	
   brokers	
   representing	
   sellers,	
   for	
   the	
   purchase	
   of	
   portfolios	
   of	
   loans.	
   	
   Once	
   a	
   pool	
   of	
   loans	
   is	
  
acquired	
  it	
  will	
  be	
  placed	
  for	
  collection	
  with	
  a	
  third	
  party	
  collection	
  agency	
  which	
  then	
  collects	
  the	
  
accounts	
  for	
  a	
  contingency	
  fee.	
  
                  	
  




                                                                                    7	
  
                                                                  Market	
  Analysis	
  
	
  
The	
   market	
   for	
   the	
   service	
   offered	
   by	
   JWA	
   Capital	
   Holdings	
   is	
   highly	
   unusual	
   because	
   of	
   the	
  
structure	
  of	
  the	
  industry	
  and	
  the	
  business.	
  	
  	
  
	
  
There	
   are	
   no	
   “customers”	
   to	
   be	
   marketed	
   to	
   in	
   any	
   traditional	
   sense.	
   	
   Consumer-­‐debtors	
   are	
  
“acquired”	
   when	
   the	
   charged	
   off	
   accounts	
   are	
   purchased.	
   	
   The	
   success	
   of	
   the	
   Company	
   is	
  
dependent	
  on	
  the	
  ability	
  to	
  acquire	
  assets	
  at	
  a	
  fraction	
  of	
  the	
  estimated	
  cash	
  recovery	
  value	
  of	
  the	
  
asset	
  portfolios.	
  	
  	
  
	
  
Over	
  the	
  past	
  three	
  years	
  there	
  has	
  been	
  a	
  tremendous	
  increase	
  in	
  the	
  amount	
  of	
  charged	
  off	
  credit	
  
cards.	
  	
  This	
  trend	
  will	
  continue	
  for	
  the	
  at	
  least	
  the	
  next	
  three	
  to	
  five	
  years.	
  	
  	
  
               	
  
The	
  average	
  American	
  household	
  is	
  drowning	
  in	
  credit	
  card	
  debt7.	
  	
  Only	
  one	
  in	
  six	
  households	
  can	
  
pay	
  only	
  the	
  minimum	
  balance	
  due	
  on	
  their	
  credit	
  cards	
  each	
  month.8	
  	
  A	
  $10,000	
  credit	
  card	
  balance	
  
at	
  18%	
  interest	
  paying	
  only	
  the	
  1.5%	
  minimum	
  balance	
  due	
  each	
  month	
  will	
  take	
  32	
  years	
  to	
  pay	
  off.	
  
       	
  
More	
  American	
  families	
  are	
  in	
  trouble	
  with	
  their	
  credit	
  cards.9	
  	
  More	
  than	
  58	
  million	
  adults,	
  26%	
  of	
  
Americans,	
  admit	
  to	
  not	
  paying	
  all	
  of	
  their	
  bills	
  by	
  the	
  due	
  date.10	
  	
  When	
  finances	
  are	
  tight,	
  59%	
  of	
  
people	
  will	
  pay	
  their	
  credit	
  card	
  bill	
  last.11	
  	
  Two	
  out	
  of	
  ten	
  American	
  adults	
  have	
  or	
  have	
  had	
  a	
  credit	
  
card	
  that	
  was	
  90	
  days	
  or	
  more	
  past	
  due.12	
  
	
  
Banks	
  are	
  continuing	
  to	
  struggle	
  with	
  credit	
  quality.13	
  	
  The	
  projected	
  credit	
  card	
  charge	
  off	
  rate	
  for	
  
2010	
  is	
  13%	
  and	
  would	
  represent	
  $117	
  billion	
  of	
  charge	
  offs14.	
  	
  The	
  previous	
  “high-­‐water”	
  mark	
  for	
  
credit	
  card	
  charge-­‐offs	
  was	
  7.1%	
  -­‐-­‐	
  20	
  years	
  ago.15	
  
	
  
There	
   is	
   a	
   direct	
   correlation	
   between	
   unemployment	
   and	
   the	
   credit	
   card	
   charge	
   off	
   rate16.	
   	
   Credit	
  
card	
  charge	
  offs	
  track	
  almost	
  exactly	
  the	
  unemployment	
  rate17	
  (as	
  noted	
  in	
  the	
  graph	
  following).	
  	
  	
  
	
  
                                                                                       	
  



7
 	
  The	
  average	
  household	
  is	
  carrying	
  credit	
  card	
  debt	
  in	
  the	
  amount	
  of	
  $10,679.	
  	
  Source:	
  	
  The	
  Nilson	
  Report.	
  
8
 	
  Source:	
  	
  Experian	
  National	
  Score	
  Index	
  Study	
  
9
 	
  In	
  2006,	
  the	
  volume	
  of	
  charged	
  off	
  credit	
  cards	
  was	
  $31	
  billion	
  (typical	
  of	
  the	
  preceding	
  10	
  year	
  period).	
  	
  In	
  2007,	
  the	
  
volume	
  increased	
  26%	
  to	
  $39	
  billion.	
  	
  In	
  2008,	
  the	
  volume	
  was	
  $59	
  billion	
  (a	
  51%	
  increase	
  over	
  the	
  previous	
  year	
  and	
  26%	
  
larger	
  than	
  the	
  previous	
  worst	
  year	
  ever).	
  	
  Charge	
  off	
  volumes	
  in	
  2009	
  increased	
  64%	
  to	
  $97	
  billion	
  and	
  represented	
  a	
  
212%	
  increase	
  in	
  only	
  four	
  years.	
  	
  Source:	
  	
  Nilson	
  Report	
  and	
  R.	
  K.	
  Hammer	
  &	
  Associates.	
  
10
     	
  Source:	
  	
  National	
  Foundation	
  for	
  Credit	
  Counseling	
  
11
     	
  Source:	
  	
  Creditcards.com	
  survey	
  
12
     	
  Source:	
  	
  Fair	
  Isaac	
  Company	
  
13
     	
  For	
  August	
  2010,	
  Citibank	
  reported	
  charge	
  offs	
  at	
  the	
  rate	
  of	
  11.18%;	
  Bank	
  of	
  America	
  reported	
  11.72%;	
  JPMorgan	
  
Chase	
  reported	
  8.18%;	
  and	
  Capital	
  One	
  reported	
  9.19%.	
  	
  Source:	
  	
  Associated	
  Press	
  and	
  Reuters	
  
14
     	
  Source:	
  	
  Moody’s	
  Investors	
  Services	
  
15
     	
  Source:	
  	
  Moody’s	
  Investors	
  Services	
  
16
     	
  Between	
  January	
  2009	
  and	
  June	
  2010,	
  only	
  twice	
  has	
  the	
  variance	
  between	
  the	
  unemployment	
  rate	
  and	
  the	
  credit	
  card	
  
charge	
  off	
  rate	
  been	
  significant.	
  	
  The	
  first	
  was	
  in	
  2001	
  following	
  the	
  9/11	
  attacks	
  and	
  in	
  2005	
  when	
  tens	
  of	
  thousands	
  of	
  
consumers	
  raced	
  to	
  file	
  bankruptcy	
  before	
  the	
  change	
  in	
  the	
  bankruptcy	
  code.
17
         Source:	
  	
  Comparison	
  of	
  Statistics	
  from	
  The	
  Federal	
  Reserve	
  Bank	
  and	
  the	
  US	
  Bureau	
  of	
  Labor	
  Statistics

                                                                                                 8	
  
                                                                                                                                                                	
  
                                                                                                 	
  
With	
  8	
  million	
  jobs	
  lost	
  since	
  December	
  2007	
  and	
  the	
  unemployment	
  rate	
  at	
  its	
  highest	
  level	
  in	
  26	
  
years18;	
   in	
   terms	
   of	
   job	
   losses	
   this	
   has	
   been	
   the	
   worst	
   recession	
   since	
   the	
   end	
   of	
   World	
   War	
   II	
   more	
  
than	
   60	
   years	
   ago.19	
   	
   Not	
   unexpectedly,	
   consumers	
   are	
   reeling	
   and	
   struggling	
   to	
   pay	
   the	
   full	
   balance	
  
on	
  their	
  credit	
  card	
  debt.	
  	
  	
  	
  	
  
	
  
The	
   number	
   of	
   people	
   unemployed	
   is	
   15	
   million.	
   	
   Almost	
   half	
   are	
   considered	
   “long-­‐term	
  
unemployed”	
   and	
   have	
   been	
   unemployed	
   more	
   than	
   27	
   weeks.	
   	
   The	
   number	
   of	
   persons	
   working	
  
part-­‐time	
   for	
   economic	
   reasons	
   (sometimes	
   referred	
   to	
   as	
   involuntary	
   part-­‐time	
   workers)	
   is	
   8.9	
  
million.	
  	
  About	
  2.4	
  million	
  people	
  are	
  “marginally	
  attached	
  to	
  the	
  labor	
  force”	
  and	
  had	
  not	
  looked	
  
for	
  work	
  in	
  the	
  past	
  30	
  days.	
  	
   Another	
  1.1	
  million	
  people	
  are	
  “discouraged	
  workers”	
  who	
  have	
  given	
  
up	
  looking	
  for	
  work	
  as	
  they	
  believe	
  no	
  jobs	
  are	
  available.20	
  	
  	
  
	
  
Official	
  forecasts	
  call	
  for	
  unemployment	
  to	
  remain	
  in	
  the	
  9-­‐10%	
  range	
  throughout	
  2010,	
  decline	
  to	
  
8.2%	
   in	
   2012	
   and	
   continue	
   gradually	
   declining	
   to	
   5.5%	
   in	
   2016.21	
   	
   Others,	
   less	
   optimistic,	
   predict	
  
unemployment	
   to	
   continue	
   rising	
   to	
   a	
   peak	
   of	
   10.75%	
   in	
   mid-­‐2011	
   before	
   beginning	
   a	
   slow	
   and	
  
gradual	
  decline.22	
  
	
  
Regardless	
   of	
   pessimism	
   or	
   optimism,	
   the	
   nation	
   is	
   clearly	
   facing	
   a	
   sustained	
   period	
   of	
   high	
  
unemployment.	
  	
  Because	
  there	
  is	
  such	
  a	
  remarkably	
  close	
  correlation	
  between	
  unemployment	
  and	
  
the	
  credit	
  card	
  charge	
  off	
  rate,	
  it	
  can	
  only	
  be	
  expected	
  that	
  the	
  credit	
  card	
  banks	
  will	
  continue	
  to	
  
suffer	
  large	
  losses.	
  
	
  



18
  	
  Source:	
  	
  Economic	
  Policy	
  Institute	
  
19
  	
  Source:	
  	
  Wall	
  Street	
  Journal	
  
20
  	
  Source:	
  	
  US	
  Department	
  of	
  Labor,	
  Bureau	
  of	
  Labor	
  Statistics	
  
21
  	
  Source:	
  	
  Council	
  of	
  Economic	
  Advisers	
  to	
  the	
  President	
  
22
  	
  Source:	
  	
  Goldman	
  Sachs	
  Economic	
  Forecast	
  

                                                                                             9	
  
Credit	
   card	
   lenders	
   are	
   trying	
   to	
   protect	
   themselves	
   by	
   tightening	
   credit	
   limits,	
   raising	
   standards,	
  
and	
   closing	
   accounts.	
   They	
   have	
   also	
   been	
   slashing	
   rewards,	
   raising	
   interest	
   rates	
   and	
   increasing	
  
fees	
  to	
  cushion	
  further	
  losses.	
  
	
  
All	
  of	
  these	
  factors	
  demonstrate	
  a	
  steady	
  supply	
  of	
  freshly	
  charged	
  off	
  credit	
  cards	
  to	
  be	
  purchased	
  
in	
   the	
   market.	
   	
   There	
   has	
   never	
   been	
   a	
   better	
   opportunity	
   for	
   entrepreneurial	
   start-­‐ups	
   to	
   launch	
  
and	
  prosper.	
  
	
  
Big	
   opportunities	
   do	
   not	
   come	
   around	
   often.	
   	
   When	
   it’s	
   raining	
   gold,	
   reach	
   for	
   a	
   bucket,	
   not	
   a	
  
thimble23.	
  
	
  
It	
  is	
  JWA	
  Capital	
  Holdings’	
  plan	
  to	
  capitalize	
  on	
  this	
  opportunity.	
  
                                                                                     	
  
	
  




23
       	
  Warren	
  Buffett,	
  Chairman,	
  Berkshire	
  Hathaway,	
  message	
  to	
  shareholders,	
  2010	
  shareholder’s	
  meeting.	
  

                                                                                   10	
  
                                                             Operating	
  Strategy	
  
	
  
The	
   primary	
   operating	
   strategy	
   is	
   to	
   recover	
   value	
   from	
   the	
   purchased	
   assets.	
   	
  JWA	
  Capital	
  Holdings	
  
limits	
   itself,	
   by	
   choice,	
   to	
   the	
   purchase	
   of	
   fresh	
   credit	
   card	
   charge	
   offs.	
   	
   This	
   niche	
   offers	
   the	
  
optimum	
  combination	
  of	
  risk	
  and	
  reward.	
  
	
  
In	
  today’s	
  market	
  it	
  is	
  common	
  that	
  fresh	
  credit	
  card	
  charge	
  offs	
  sell	
  for	
  five	
  to	
  seven	
  cents	
  on	
  the	
  
dollar.24	
   	
   Typically,	
   the	
   debt	
   buyer	
   targets	
   as	
   much	
   as	
   a	
   3-­‐to-­‐1	
   return;	
   which	
   means	
   that	
   the	
   debt	
  
buyer	
   expects	
   to	
   recover	
   three	
   times	
   the	
   purchase	
   price.	
   	
   The	
   ability	
   to	
   achieve	
   this	
   targeted	
  
recovery	
  is	
  not	
  uncommon.	
  
	
  
Achieving	
   this	
   targeted	
   return	
   requires	
   the	
   utilization	
   of	
   an	
   efficient	
   collection	
   platform	
   staffed	
   with	
  
knowledgeable	
  employees	
  and	
  managers.	
  	
  	
  Debt	
  collection	
  is	
  to	
  a	
  certain	
  degree	
  complex	
  but	
  it	
  is	
  
not	
   complicated.	
   	
   The	
   complexity	
   results	
   from	
   the	
   necessity	
   of	
   complying	
   with	
   certain	
   laws	
   that	
  
govern	
  all	
  collection	
  activities.	
  	
  Compliance	
  with	
  these	
  statutes	
  is	
  actually	
  uncomplicated	
  and	
  readily	
  
understood.	
  
	
  
There	
  are	
  many	
  highly	
  qualified	
  collection	
  agencies	
  from	
  which	
  JWA	
  Capital	
  Holdings	
  will	
  choose25.	
  	
  
Third	
  party	
  collection	
  agencies	
  work	
  purely	
  on	
  a	
  contingency	
  fee	
  that	
  is	
  a	
  percentage	
  of	
  the	
  money	
  
collected	
  from	
  debtors.	
  	
  	
  
                     	
  
JWA	
   Capital	
   Holdings	
   has	
   chosen	
   to	
   utilize	
   third	
   party	
   collection	
   agencies	
   to	
   manage	
   and	
   collect	
  
purchased	
   assets	
   in	
   order	
   to	
   avoid	
   the	
   start-­‐up	
   and	
   infrastructure	
   cost	
   of	
   creating	
   its	
   own	
   collection	
  
company26.	
   	
   As	
   a	
   subscriber	
   to	
   Success	
   Support	
   System,	
   JWA	
   Capital	
   Holdings	
   is	
   afforded	
   the	
  
opportunity	
   to	
   use	
   the	
   collection	
   vehicle	
   created	
   by	
   Bill	
   Bartmann.	
   	
   Additionally,	
   JWA	
   Capital	
  
Holdings	
   has	
   the	
   opportunity	
   to	
   acquire	
   asset	
   portfolios	
   alongside	
   Mr.	
   Bartmann	
   at	
   anticipated	
  
volumes	
  and	
  prices	
  that	
  are	
  not	
  readily	
  available	
  in	
  today’s	
  market.27	
  
	
  
A	
   key	
   element	
   of	
   success	
   for	
   JWA	
   Capital	
   Holdings	
   is	
   the	
   selection	
   of	
   an	
   agency	
   that	
   employs	
   an	
  
Applied	
   Psychology	
   strategy	
   when	
   dealing	
   with	
   customer-­‐debtors.	
   	
   This	
   strategy	
   is	
   opposite	
   from	
  
the	
  “confrontation”	
  strategy	
  used	
  by	
  most	
  collection	
  agencies.	
  	
  The	
  Applied	
  Psychology	
  Model	
  was	
  
first	
   pioneered	
   for	
   debt	
   collection	
   by	
   Bill	
   Bartmann	
   and	
   has	
   proven	
   to	
   be	
   the	
   most	
   effective	
  
collection	
  technique	
  used	
  to	
  date.	
  	
  Because	
  this	
  strategy	
  has	
  proven	
  results,	
  over	
  time,	
  it	
  will	
  result	
  
in	
  the	
  highest	
  level	
  of	
  cash	
  collections	
  possible.	
  	
  	
  
	
  


24
       	
  Source:	
  	
  Credit	
  and	
  Collections	
  Risk	
  (an	
  affiliate	
  of	
  The	
  American	
  Banker)	
  and	
  Success	
  Support	
  System.
25
         	
  Tandem	
  will	
  use	
  only	
  agencies	
  that	
  have	
  been	
  evaluated	
  and	
  recommended	
  by	
  the	
  Success	
  Support	
  System.	
  	
  
26
     	
  The	
  industry	
  term	
  to	
  describe	
  this	
  business	
  model	
  is	
  “Passive	
  Debt	
  Buyer”	
  and	
  is	
  a	
  very	
  common	
  strategy	
  for	
  the	
  
purchase	
  and	
  recovery	
  of	
  charged-­‐off	
  credit	
  card	
  loans.	
  
27
     	
   Bartmann	
   has	
   launched	
   a	
   new	
   collection	
   vehicle,	
   CFS	
   II,	
   Inc.	
   	
   Bartmann’s	
   company	
   will	
   use	
   the	
   same	
   collection	
  
philosophies	
   and	
   strategies	
   that	
   made	
   his	
   earlier	
   collection	
   agency,	
   Commercial	
   Financial	
   Services,	
   the	
   nation’s	
   most	
  
successful	
   debt	
   buyer.	
   	
   Commercial	
   Financial	
   Services	
   was	
   acknowledged	
   by	
   the	
   Nilson	
   Report,	
   the	
   most	
   authoritative	
  
source	
   of	
   information	
   on	
   credit	
   cards,	
   as	
   the	
   “largest,	
   best	
   trained	
   and	
   most	
   profitable	
   collection	
   agency	
   in	
   the	
   world”.	
  	
  
With	
   3900	
   employees,	
   Bartmann	
   acquired	
   and	
   collected	
   4.5	
   million	
   charged	
   off	
  credit	
   card	
   accounts	
   representing	
   more	
  
than	
  $15	
  billion	
  of	
  face	
  value.	
  	
  	
  	
  
	
  

                                                                                                 11	
  
The	
   Applied	
   Psychology	
   strategy	
   is	
   somewhat	
   different	
   than	
   the	
   more	
   traditional	
   confrontational	
  
approach.	
   	
   A	
   typical	
   collection	
   activity,	
   as	
   practiced	
   by	
   most	
   collection	
   agencies,	
   is	
   to	
   pursue	
   a	
  
contentious	
   dialogue	
   with	
   consumers.	
   	
   The	
   mindset	
   is	
   to	
   pound	
   on	
   the	
   debtor	
   repeatedly	
   until	
  
eventually	
   the	
   customer	
   caves	
   in	
   and	
   offers	
   money	
   just	
   to	
   cause	
   the	
   collection	
   agent	
   to	
   go	
   away.	
  	
  
While	
  this	
  is	
  an	
  oversimplification	
  of	
  the	
  strategy,	
  it	
  is	
  a	
  fair	
  representation	
  of	
  the	
  common	
  behavior	
  
of	
  collection	
  agencies.	
  	
  	
  
	
  
The	
  Applied	
  Psychology	
  strategy	
  takes	
  a	
  different	
  approach	
  with	
   the	
   customer.	
   	
   The	
  mantra	
  is	
  Polite	
  
–	
  Professional	
  –	
  Persistent.	
  	
  While	
  the	
  confrontational	
  strategy	
  is	
  more	
  like	
  war,	
  where	
  there	
  is	
  one	
  
winner	
   and	
   one	
   loser,	
   the	
   Applied	
   Psychology	
   strategy	
   looks	
   for	
   a	
   win-­‐win	
   solution	
   where	
   both	
  
parties	
  feel	
  good	
  about	
  the	
  resolution.	
  
	
  
Consumers	
   with	
   financial	
   problems	
   always	
   owe	
   many	
   creditors	
   at	
   once	
   and	
   they	
   are	
   faced	
   each	
  
month	
   with	
   who	
   gets	
   paid	
   and	
   who	
   does	
   not.	
   	
   With	
   the	
   Applied	
   Psychology	
   collection	
   strategy,	
  
customers	
  react	
  differently	
  to	
  a	
  collector	
  who	
  is	
  not	
  abusing	
  them	
  and	
  who	
  is	
  sincerely	
  interested	
  in	
  
the	
   problems	
   of	
   the	
   customer.	
   	
   Knowing	
   that	
   customers	
   have	
   limited	
   resources	
   to	
   deal	
   with	
   their	
  
problems,	
  the	
  Applied	
  Psychology	
  approach	
  is	
  more	
  likely	
  to	
  cause	
  the	
  customer	
  to	
  part	
  with	
  some	
  
of	
  those	
  limited	
  resources	
  more	
  quickly.	
  	
  This	
  becomes	
  the	
  value	
  proposition	
  of	
  the	
  strategy.	
  
	
  
JWA	
   Capital	
   Holdings	
   is	
   strongly	
   committed	
   to	
   the	
   Applied	
   Psychology	
   strategy	
   for	
   dealing	
   with	
  
customer-­‐debtors	
  and	
  will	
  insist	
  that	
  each	
  employee	
  applies	
  that	
  standard	
  of	
  conduct.	
  	
  	
  
	
  
Agencies	
   that	
   use	
   the	
   Applied	
   Psychology	
   strategy	
   are	
   not	
   as	
   adversely	
   impacted	
   by	
   economic	
  
downturns.	
   	
   For	
   example,	
   consumers	
   are	
   under	
   tremendous	
   stress	
   resulting	
   from	
   high	
  
unemployment	
  and	
  high	
  delinquency	
  rates.	
  	
  Conventional	
  wisdom	
  would	
  say	
  that	
  collecting	
  during	
  
this	
  part	
  of	
  the	
  business	
  cycle	
  is	
  inordinately	
  more	
  difficult.	
  	
  The	
  demonstrated	
  fact	
  is	
  that	
  regardless	
  
of	
   the	
   business	
   cycle,	
   consumers	
   still	
   face	
   the	
   same	
   old	
   problem	
   –	
   they	
   owe	
   more	
   creditors	
   than	
  
they	
   can	
   pay	
   but	
   they	
   can	
   pay	
   some	
   of	
   their	
   debts	
   if	
   the	
   debt	
   collector	
   is	
   patient	
   and	
   empathetic.	
  	
  	
  
The	
  Applied	
  Psychology	
  strategy	
  focuses	
  on	
  how	
  to	
  become	
  one	
  of	
  the	
  few	
  creditors	
  that	
  are	
  paid	
  
each	
  month.	
  
	
  
Furthermore,	
  there	
  is	
  a	
  very	
  practical	
  benefit	
  of	
  the	
  Applied	
  Psychology’s	
  kinder,	
  gentler	
  approach:	
  	
  
Agencies	
  are	
  named	
  in	
  very	
  few	
  lawsuits	
  or	
  complaints	
  to	
  attorneys	
  general	
  or	
  the	
  Better	
  Business	
  
Bureau	
  because	
  the	
  strategy	
  is	
  proactive	
  in	
  getting	
  debts	
  resolved28.	
  
	
  
	
  




28
  	
  Collections	
  and	
  Credit	
  Risk	
  (an	
  American	
  Banker	
  publication),	
  The	
  Carrot	
  Versus	
  the	
  Stick	
  

                                                                                         12	
  
                                                             Management	
  
	
  
Key	
  Management	
  	
  
	
  
As	
   a	
   passive	
   debt	
   buyer,	
   JWA	
   Capital	
   Holdings	
   has	
   built	
   a	
   management	
   team	
   well	
   qualified	
   to	
  
recognize	
  opportunities	
  in	
  the	
  business	
  model	
  and	
  to	
  supervise	
  the	
  day-­‐to-­‐day	
  operations,	
  as	
  well	
  as	
  
supervise	
  the	
  activities	
  of	
  the	
  third	
  party	
  collection	
  agencies.	
  
	
  
JWA	
  Capital	
  Holdings	
  is	
  a	
  new	
  start-­‐up	
  company.	
  	
  The	
  principal,	
  Rev.	
  Jim	
  Anderson,	
  is	
  the	
  primary	
  
force	
   behind	
   this	
   new	
   company	
   and	
   have	
   identified	
   this	
   unique	
   opportunity	
   to	
   capitalize	
   on	
   an	
  
avalanche	
  of	
  charged	
  off	
  credit	
  card	
  loans	
  coming	
  out	
  of	
  the	
  major	
  banks	
  over	
  the	
  next	
  three	
  to	
  five	
  
years.	
  	
  	
  
	
  
Rev.	
  Jim	
  Anderson,	
  President	
  
	
  
                   Jim,	
  as	
  President	
  and	
  Treasurer,	
  is	
  primarily	
  responsible	
  for	
  the	
  development	
  and	
  execution	
  
                   of	
  the	
  business	
  development	
  strategy.	
  	
  He	
  provides	
  the	
  entrepreneurial	
  skills	
  and	
  insights	
  to	
  
                   identify	
   the	
   key	
   business	
   opportunities,	
   develop	
   the	
   plans	
   for	
   implementation	
   of	
   the	
  
                   strategies,	
  and	
  negotiate	
  capital	
  and	
  debt	
  financing.	
  	
  He	
  is	
  also	
  responsible	
  for	
  the	
  day-­‐to-­‐
                   day	
  operations.	
  	
  He	
  is	
  responsible	
  for	
  the	
  supervision	
  and	
  coordination	
  with	
  the	
  third	
  party	
  
                   collection	
  agency.	
  
                   	
  
                   Jim	
  has	
  a	
  strong	
  entrepreneurial	
  background,	
  having	
  owned	
  and	
  operated	
  his	
  own	
  national	
  
                   software	
  trainer	
  staffing	
  company	
  (Anderson	
  Network,	
  Inc.)	
  acting	
  as	
  CEO/COO/CFO,	
  brings	
  
                   close	
  to	
  10	
  years	
  of	
  entrepreneurial	
  experience	
  from	
  that	
  company.	
  	
  Jim	
  founded	
  Anderson	
  
                   Network,	
  Inc.	
  in	
  1994	
  after	
  operating	
  it	
  as	
  a	
  sole	
  proprietorship	
  for	
  a	
  year.	
  	
  His	
  people	
  skills	
  
                   and	
  motivational	
  public	
  speaking	
  ability	
  brought	
  in	
  consistent	
  engagements	
  throughout	
  the	
  
                   U.S.	
  as	
  a	
  certified	
  NetWare	
  and	
  Microsoft	
  trainer	
  himself.	
  	
  He	
  quickly	
  identified	
  the	
  depth	
  of	
  
                   the	
  market	
  and	
  grew	
  his	
  service	
  business	
  to	
  fill	
  the	
  specialized	
  market	
  niche.	
  
                   	
  
                   Some	
  of	
  his	
  significant	
  accomplishments	
  in	
  building	
  Anderson	
  Network,	
  Inc.	
  are:	
  
                          • Recruiting	
   on-­‐staff	
  sales	
  and	
  contract	
  training	
  professionals	
  to	
  grow	
  the	
  company	
  to	
  
                                  a	
  $6	
  million	
  national	
  effort	
  deploying	
  over	
  200	
  independent	
  contractors.	
  
                          • Creating	
   a	
   thorough	
   and	
   consistent	
   business	
   methodology	
   based	
   on	
   systemizing	
  
                                  training	
  to	
  provide	
  a	
  high-­‐level	
  quality	
  service.	
  
                          • Developing	
  a	
  performance	
  driven	
  team	
  of	
  21	
  on-­‐site,	
  permanent	
  employees	
  with	
  a	
  
                                  highly	
  focused	
  vision	
  for	
  serving	
  the	
  technical	
  training	
  market.	
  
                          • Responding	
   to	
   market	
   trends,	
   identified	
   from	
   extensive	
   primary	
   and	
   secondary	
  
                                  research	
  studies	
  and	
  continuously	
  refined	
  marketing	
  plans	
  and	
  the	
  business	
  model.	
  
                          • Implementing	
  business	
  systems	
  to	
  track	
  and	
  account	
  for	
  incremental	
  job	
  and	
  travel	
  
                                  costs,	
  working	
  within	
  the	
  complex	
  and	
  ever	
  changing	
  IRS	
  regulations	
  to	
  resolve	
  and	
  
                                  manage	
  independent	
  contractor	
  relationships.	
  	
  A	
  subsequent	
  IRS	
  audit	
  produced	
  a	
  
                                  clean,	
  exception	
  free,	
  report	
  as	
  a	
  result	
  of	
  his	
  careful	
  due	
  diligence.	
  
                          • Identifying	
   growing	
   software	
   training	
   needs	
   that	
   led	
   to	
   an	
   expanded	
   product	
  
                                  training	
  portfolio	
  and	
  a	
  fast	
  growing	
  business.	
  


                                                                                  13	
  
      •      Building	
   a	
   reputation	
   as	
   one	
   of	
   the	
   top	
   two	
   providers	
   in	
   the	
   certified	
   software	
  
             trainer	
  niche,	
  nationwide.	
  
	
  
Jim	
   has	
   also	
   served	
   as	
   an	
   independent	
   Certified	
   E-­‐Myth	
   Consultant,	
   consulting	
   with	
   small	
  
business	
  owners	
  like	
  him	
  to	
  take	
  them	
  through	
  Michael	
  Gerber’s	
  E-­‐Myth	
  Mastery	
  program.	
  	
  
The	
  program	
  helps	
  small	
  business	
  owners	
  think	
  about	
  their	
  business	
  as	
  an	
  owner	
  and	
  build	
  a	
  
franchise	
  prototype	
  of	
  the	
  business	
  so	
  it	
  can	
  operate	
  without	
  them.	
  
	
  
Jim	
   has	
   also	
   been	
   committed	
   to	
   serving	
   in	
   Christian	
   ministry	
   for	
   many	
   years,	
   serving	
   on	
  
worship	
  music	
  teams	
  and	
  as	
  the	
  worship	
  leader	
  for	
  various	
  churches.	
  	
  As	
  early	
  as	
  1978,	
  he	
  
served	
   as	
   a	
   worship	
   leader	
   for	
   the	
   U.S.	
   Army	
   Chapel	
   at	
   three	
   different	
   locations	
   on	
   Oahu,	
  
Hawaii.	
   	
   Since	
   then	
   has	
   led	
   worship	
   music	
   at	
   Belmont	
   Church	
   in	
   Nashville	
   Tennessee,	
   U.S.	
  
Army	
  Chapel	
  at	
  Ft.	
  Devens	
  Massachusetts,	
  Beth	
  Ariel	
  Fellowship	
  in	
  Sherman	
  Oaks	
  California,	
  
at	
   Mariners	
   Church	
   Passover	
   ministries	
   in	
   Newport	
   Beach	
   California,	
   Shuvah	
   Yisrael	
  
Messianic	
   Fellowship	
   in	
   Irvine	
   California,	
   and	
   participated	
   in	
   music	
   ministries	
   at	
   various	
  
venues	
   at	
   Saddleback	
   Church	
   in	
   Lake	
   Forest	
   California.	
   	
   His	
   latest	
   engagement	
   was	
   the	
  
primary	
  worship	
  leader	
  for	
  Living	
  Water	
  Community	
  Church	
  in	
  Rancho	
  Santa	
  Margarita,	
  CA.	
  	
  
In	
  recent	
  years	
  Jim	
  started	
  a	
  financial	
  ministry	
  at	
  Saddleback	
  Church	
  called	
  Financial	
  Peace	
  
University,	
   a	
   video	
   driven	
   13-­‐week	
   course	
   by	
   Dave	
   Ramsey	
   on	
   personal	
   financial	
  
management,	
   which	
   has	
   produced	
   impressive	
   results	
   for	
   the	
   students	
   of	
   the	
   program	
   in	
  
getting	
  out	
  of	
  debt	
  and	
  accumulating	
  savings.	
  	
  It	
  has	
  also	
  grown	
  in	
  numbers	
  of	
  attendance	
  
significantly.	
   	
   Jim	
   has	
   become	
   increasingly	
   committed	
   to	
   ministering	
   to	
   those	
   in	
   financial	
  
distress,	
  resulting	
  in	
  an	
  increasing	
  focus	
  in	
  his	
  ministry	
  efforts.	
  
	
  
Jim	
   has	
   served	
   further	
   in	
   the	
   community	
   of	
   South	
   Orange	
   County	
   as	
   a	
   board	
   member	
   of	
   the	
  
Entrepreneur	
   Organization	
   chapter	
   in	
   Orange	
   County	
   while	
   operating	
   Anderson	
   Network,	
  
Inc.	
  
	
  
Jim	
   holds	
   a	
   Masters	
   in	
   Religious	
   Studies	
   from	
   Southern	
   California	
   Seminary,	
   graduating	
   with	
  
a	
  perfect	
  4.0	
  grade	
  average,	
  and	
  has	
  been	
  ordained	
  as	
  a	
  minister	
  by	
  the	
  Evangelical	
  Church	
  
Alliance.	
   	
   He	
   also	
   holds	
   a	
   Bachelors	
   of	
   Business	
   Administration	
   with	
   a	
   concentration	
   in	
  
Finance	
  from	
  Belmont	
  University	
  in	
  Nashville,	
  Tennessee,	
  where	
  he	
  graduated	
  with	
  honors.	
  
	
  




                                                                    14	
  
Organizational	
  Chart	
  	
  
	
  
The	
  initial	
  organizational	
  chart	
  reflects	
  the	
  start-­‐up	
  nature	
  of	
  the	
  company:	
  




                                                                                                                                        	
  
	
  
	
  
Training,	
  Consulting	
  and	
  Support	
  Services	
  
	
  
Rev.	
   Jim	
   Anderson	
   has	
   completed	
   Bill	
   Bartmann’s	
   Basic	
   Buying	
   Bad	
   Loans	
   Workshop	
   and	
   Bill	
  
Bartmann’s	
   Advanced	
   Buying	
   Bad	
   Loans	
   Workshop.	
   	
   Both	
   intensive	
   programs	
   offer	
   intricate	
   hands	
  
on	
   training	
   activities	
   and	
   provide	
   knowledge	
   necessary	
   to	
   develop	
   the	
   business	
   planning,	
   secure	
  
financing	
  and	
  begin	
  operations	
  as	
  a	
  debt	
  buyer.	
  	
  	
  
	
  
Both	
  Bartmann	
  programs	
  emphasize	
  the	
  processes	
  and	
  importance	
  of	
  acquiring	
  the	
  proper	
  type	
  of	
  
assets	
  at	
  a	
  price	
  that	
  allows	
  the	
  targeted	
  return.	
  
	
  
JWA	
   Capital	
   Holdings	
   also	
   subscribes	
   to	
   Bill	
   Bartmann’s	
   Success	
   Support	
   System.	
   	
   The	
   Success	
  
Support	
   System	
   provides	
   comprehensive	
   support	
   in	
   a	
   broad	
   range	
   of	
   business	
   activities	
   but	
   most	
  
especially	
   in	
   the	
   identification	
   and	
   pricing	
   of	
   potential	
   asset	
   portfolios	
   and	
   in	
   the	
   oversight	
   and	
  
guidance	
   of	
   collection	
   activities.	
   The	
   Success	
   Support	
   System	
   has	
   helped	
   its	
   subscribers	
   acquire	
  
more	
  than	
  521	
  portfolios	
  representing	
  $368	
  million	
  of	
  face	
  value29.	
  	
  Success	
  Support	
  System	
  gives	
  

29
       	
  Source:	
  	
  Success	
  Support	
  System	
  

                                                                             15	
  
JWA	
   Capital	
   Holdings	
   access	
   to	
   portfolio	
   purchase	
   opportunities	
   that	
   would	
   otherwise	
   not	
   be	
  
available.	
  
	
  
Additionally,	
  Success	
  Support	
  System	
  provides	
  JWA	
  Capital	
  Holdings	
  direct	
  access	
  to	
  CFS	
  II,	
  one	
  of	
  
the	
  most	
  capable	
  collection	
  agencies	
  in	
  the	
  country.	
  
	
  
The	
   Success	
   Support	
   System	
   will	
   be	
   especially	
   valuable	
   to	
   JWA	
   Capital	
   Holdings	
   for	
   expert	
   advice	
  
and	
  guidance.	
  	
  	
  In	
  addition	
  to	
  guidance	
  for	
  portfolio	
  acquisition	
  and	
  the	
  selection	
  and	
  management	
  
of	
  collection	
  agencies,	
  the	
  Success	
  Support	
  System	
  will	
  assist	
  with	
  regulatory	
  compliance,	
  licensing,	
  
reporting	
  and	
  other	
  back	
  office	
  functions.	
  
	
  
The	
   resources	
   available	
   through	
   the	
   Success	
   Support	
   System	
   are	
   individuals	
   with	
   extraordinarily	
  
strong	
  backgrounds	
  in	
  banking,	
  debt	
  buying	
  and	
  collections.	
  	
  Biographies	
  of	
  the	
  key	
  resources	
  follow	
  
in	
  this	
  section.	
  
	
  
W.	
  Wayne	
  Learned	
  
	
  
Wayne	
  is	
  the	
  Chief	
  Learning	
  Officer	
  for	
  Success	
  Support	
  Systems.	
  His	
  title	
  describes	
  the	
  nature	
  of	
  his	
  
responsibilities	
  –	
  development	
  of	
  curriculum	
  materials,	
  communications	
  materials	
  and	
  other	
  
activities	
  focused	
  on	
  the	
  advancement	
  of	
  the	
  knowledge	
  and	
  skills	
  of	
  clients	
  to	
  be	
  successful	
  
entrepreneurs	
  and	
  Debt	
  Buyers.	
  His	
  duties	
  include	
  the	
  Success	
  Support	
  System	
  mentoring	
  and	
  
coaching	
  program.	
  
	
  
He	
  provides	
  the	
  entrepreneurial	
  skills	
  and	
  insight	
  to	
  identify	
  key	
  business	
  opportunities,	
  develop	
  the	
  
plans	
  for	
  implementation	
  of	
  the	
  strategies,	
  and	
  ensure	
  the	
  right	
  staff	
  skills	
  are	
  in	
  place	
  to	
  execute	
  
the	
  business	
  plans.	
  He	
  is	
  a	
  member	
  of	
  the	
  Executive	
  Committee	
  and	
  Leader	
  of	
  the	
  Strategic	
  Planning	
  
Committee.	
  
	
  
Wayne	
  has	
  a	
  strong	
  entrepreneurial	
  background,	
  having	
  been	
  co-­‐founder	
  of	
  two	
  start-­‐up	
  financial	
  
services	
  companies.	
  He	
  has	
  also	
  large	
  company	
  experience,	
  having	
  been	
  a	
  Senior	
  Executive	
  of	
  both	
  a	
  
major	
  collection	
  agency	
  and	
  a	
  major	
  statewide	
  banking	
  organization.	
  
	
  
During	
  his	
  tenure	
  at	
  the	
  collection	
  agency,	
  the	
  company	
  grew	
  from	
  20	
  employees	
  to	
  almost	
  4,000.	
  
Wayne	
  was	
  responsible	
  for	
  the	
  development	
  and	
  implementation	
  of	
  the	
  infrastructure	
  and	
  strategic	
  
planning	
  process.	
  His	
  extensive	
  banking	
  experience	
  includes	
  loan	
  origination	
  and	
  servicing,	
  and	
  
responsibility	
  for	
  major	
  loans	
  and	
  project	
  developments.	
  
	
  
He	
  has	
  close	
  ties	
  to	
  the	
  Federal	
  Deposit	
  Insurance	
  Corporation	
  and	
  the	
  Resolution	
  Trust	
  
Corporation,	
  having	
  been	
  contracting	
  officer	
  for	
  various	
  service	
  contracts	
  for	
  the	
  FDIC	
  and	
  RTC.	
  Also,	
  
he	
  worked	
  closely	
  with	
  the	
  RTC	
  through	
  receivership	
  and	
  conservatorship	
  of	
  a	
  major	
  financial	
  
institution	
  and	
  was	
  selected	
  by	
  RTC	
  to	
  be	
  President	
  of	
  the	
  firm	
  during	
  the	
  asset	
  sale	
  process.	
  
Wayne	
  is	
  politically	
  active	
  and	
  is	
  closely	
  involved	
  in	
  The	
  10,000	
  Helping	
  Hands	
  Organization,	
  a	
  non-­‐
profit	
  organization	
  focused	
  on	
  legislative	
  action	
  to	
  reform	
  the	
  debt	
  collection	
  industry	
  and	
  to	
  
toughen	
  enforcement	
  action	
  for	
  violations	
  of	
  the	
  Fair	
  Debt	
  Collection	
  Practices	
  Act.	
                   Wayne	
  has	
  
also	
  been	
  a	
  passionate	
  advocate	
  for	
  low-­‐income	
  consumers	
  –	
  especially	
  the	
  unbanked.	
  He	
  has	
  
worked	
  closely	
  with	
  community	
  organizations	
  and	
  government	
  officials	
  to	
  advance	
  consumer	
  


                                                                           16	
  
protection.	
  
	
  
Wayne	
  is	
  active	
  in	
  the	
  community.	
  He	
  is	
  a	
  past	
  Director	
  and	
  Officer	
  of	
  the	
  Oklahoma	
  Investment	
  
Forum,	
  a	
  non-­‐profit	
  economic	
  development	
  organization.	
  He	
  was	
  a	
  guest	
  lecturer	
  at	
  the	
  University	
  
of	
  Tulsa	
  and	
  an	
  instructor	
  at	
  Tulsa	
  Community	
  College	
  where	
  he	
  taught	
  banking.	
  He	
  is	
  past	
  president	
  
of	
  the	
  Credit	
  Counseling	
  Centers	
  of	
  Tulsa,	
  and	
  past	
  board	
  member	
  of	
  the	
  American	
  Red	
  Cross,	
  
Metropolitan	
  Tulsa	
  Chamber	
  of	
  Commerce	
  and	
  the	
  Oklahoma	
  State	
  Chamber	
  of	
  Commerce.	
  He	
  is	
  an	
  
Advisory	
  Board	
  Member	
  of	
  The	
  Oklahoma	
  Eagle,	
  an	
  African-­‐American	
  newspaper.	
  
	
  
Wayne	
   holds	
   a	
   BS	
   degree	
   from	
   Northeastern	
   State	
   University	
   and	
   has	
   completed	
   the	
   Financial	
  
Institutions	
  Marketing	
  School	
  at	
  the	
  University	
  of	
  Virginia	
  and	
  the	
  Executive	
  Development	
  School	
  at	
  
the	
  University	
  of	
  Oklahoma.	
  
	
  
Bill	
  Bartmann	
  
	
  
Bartmann	
   was	
   the	
   founder	
   and	
   CEO	
   of	
   Commercial	
   Financial	
   Services	
   (CFS),	
   a	
   highly	
   successful	
   debt	
  
buyer.	
  
	
  
Bartmann’s	
   company,	
   Commercial	
   Financial	
   Services	
   (CFS),	
   was	
   the	
   nation’s	
   largest	
   and	
   most	
  
successful	
  debt	
  buyer.	
  	
  CFS	
  was	
  acknowledged	
  by	
  the	
  Nilson	
  Report,	
  the	
  most	
  authoritative	
  source	
  
for	
  information	
  on	
  credit	
  cards,	
  as	
  the	
  ‘largest,	
  best	
  trained	
  and	
  most	
  profitable	
  collection	
  agency	
  in	
  
the	
   world”.	
   	
   CFS,	
   with	
   3900	
   employees,	
   acquired	
   and	
   collected	
   4.5	
   million	
   charged	
   off	
   credit	
   card	
  
accounts	
  representing	
  more	
  than	
  $15	
  billion	
  of	
  face	
  value.	
  	
  
	
  
Bartmann	
   recently	
   launched	
   a	
   new	
   debt	
   collection	
   agency	
   in	
   anticipation	
   of	
   creating	
   a	
   collection	
  
platform	
   that	
   will	
   significantly	
   outperform	
   others	
   in	
   the	
   industry.	
   	
   JWA	
   Capital	
   Holdings	
   will	
   have	
  
access	
  to	
  that	
  service	
  as	
  it	
  is	
  made	
  available	
  in	
  the	
  future.	
  
	
  
Bartmann	
  is	
  an	
  author	
  and	
  has	
  written	
  two	
  national	
  and	
  international	
  best	
  sellers	
  on	
  the	
  topics	
  of	
  
business,	
  finance	
  and	
  investing.	
  
	
  
He	
  is	
  also	
  a	
  successful	
  speaker	
  on	
  motivational	
  and	
  business	
  topics	
  and	
  has	
  appeared	
  on	
  programs	
  
with	
  New	
  York	
  City	
  Mayor	
  and	
  Presidential	
  Candidate	
  Rudy	
  Giuliani,	
  Secretary	
  of	
  State	
  and	
  military	
  
leader	
   General	
   Colin	
   Powell,	
   and	
   Presidential	
   Candidate	
   and	
   Publisher	
   Steve	
   Forbes.	
   	
   He	
   has	
  
presented	
  his	
  program	
  to	
  more	
  than	
  400,000	
  people	
  and	
  is	
  a	
  frequent	
  media	
  spokesman	
  on	
  CNN,	
  
ABC,	
  NBC,	
  CBS,	
  FOX,	
  CNBC,	
  Bloomberg,	
  Fortune,	
  Forbes	
  and	
  The	
  Wall	
  Street	
  Journal.	
  
	
  
Bartmann	
  has	
  created	
  seven	
  successful	
  businesses	
  in	
  seven	
  different	
  industries;	
  including	
  CFS,	
  which	
  
he	
  launched	
  from	
  his	
  kitchen	
  table	
  with	
  a	
  $13,000	
  loan.	
  	
  	
  

He	
   has	
   been	
   named	
   National	
   Entrepreneur	
   of	
   the	
   Year	
   by	
   NASDAQ,	
   USA	
   Today,	
   Merrill	
   Lynch	
   and	
  
the	
   Kauffman	
   Foundation.	
   His	
   companies	
   have	
   been	
   named	
   by	
   Inc.	
   Magazine	
   as	
   one	
   of	
   the	
   500	
  
Fastest	
   Growing	
   Companies	
   in	
   America	
   -­‐	
   four	
   years	
   in	
   a	
   row.	
   	
   He	
   has	
   been	
   awarded	
   a	
   permanent	
  
place	
   in	
   the	
   Smithsonian	
   Institute’s	
   Museum	
   of	
   American	
   History	
   and	
   awarded	
   the	
   American	
  
Academy	
   of	
   Achievement's	
   Golden	
   Plate	
   Award	
   as	
   one	
   of	
   the	
   Outstanding	
   Achievers	
   of	
   the	
   20th	
  
Century.	
  	
  



                                                                                17	
  
Stan	
  Beard	
  
	
  
Stan,	
  also	
  at	
  Success	
  Support	
  Systems,	
  is	
  an	
  experienced	
  bi-­‐lingual	
  business	
  executive	
  and	
  
consultant,	
  with	
  a	
  record	
  of	
  success	
  in	
  diverse	
  and	
  progressively	
  responsible	
  positions	
  throughout	
  
his	
  career,	
  including	
  management	
  consulting,	
  international	
  general	
  management,	
  strategic	
  business	
  
development	
  and	
  sales	
  and	
  marketing.	
  	
  He	
  is	
  a	
  certified	
  Business	
  Coach	
  and	
  recently	
  worked	
  with	
  a	
  
leading	
  management-­‐consulting	
  firm,	
  providing	
  business-­‐consulting	
  services	
  to	
  small	
  and	
  medium	
  
size	
  companies	
  that	
  resulted	
  in	
  improvement	
  of	
  profits,	
  enhancement	
  of	
  productivity,	
  maximization	
  
of	
  efficiencies,	
  behavior	
  modification	
  and	
  organizational	
  development.	
  	
  Stan	
  is	
  fluent	
  in	
  Spanish,	
  
having	
  worked	
  and	
  lived	
  in	
  Latin	
  America	
  and	
  the	
  Caribbean.	
  
	
  
David	
  Ayres	
  
	
  
David	
  comes	
  to	
  Success	
  Support	
  Systems	
  with	
  15	
  years	
  of	
  credit	
  and	
  collections	
  experience.	
  	
  David	
  
was	
   a	
   very	
   successful	
   Senior	
   Account	
   Officer	
   for	
   CFS.	
   	
   After	
   leaving	
   CFS,	
   he	
   worked	
   with	
   The	
   Money	
  
Store	
   as	
   a	
   Loss	
   Mitigation	
   Supervisor	
   where	
   he	
   was	
   responsible	
   for	
   renegotiating	
   mortgage	
   loans	
  
with	
   the	
   goal	
   of	
   helping	
   homeowners	
   keep	
   their	
   homes.	
   	
   David’s	
   last	
   position	
   before	
   joining	
   our	
  
team	
   was	
   with	
   HSBC	
   Bank	
   where	
   he	
   traveled	
   to	
   India	
   and	
   assisted	
   with	
   the	
   compliance	
   and	
  
curriculum	
  development	
  for	
  the	
  bank’s	
  overseas	
  Call	
  Centers.	
  	
  He	
  also	
  managed	
  several	
  collection	
  
units	
  and	
  was	
  responsible	
  for	
  achieving	
  a	
  corporate	
  delinquency	
  rate	
  of	
  less	
  than	
  2%	
  on	
  an	
  average	
  
monthly	
  basis.	
  	
  David	
  has	
  a	
  Bachelors	
  of	
  Administration	
  degree	
  in	
  Business	
  Management.	
  

Jason	
  Barry	
  
	
  
Jason	
   has	
   an	
   extensive	
   finance	
   and	
   lending	
   background.	
   He	
   began	
   his	
   career	
   with	
   HSBC	
   Bank	
   as	
   a	
  
loan	
  officer	
  and	
  then	
  as	
  manager	
  where	
  he	
  created	
  the	
  largest	
  western	
  branch	
  within	
  the	
  company	
  
and	
   controlled	
   $65	
   million	
   of	
   assets.	
   Jason	
   later	
   moved	
   to	
   Countrywide	
   and	
   helped	
   build	
   their	
  
business-­‐to-­‐business	
   division.	
   Later,	
   Jason	
   took	
   over	
   Phoenix	
   Division	
   at	
   GMAC	
   in	
   their	
   Ditech	
  
division	
  when	
  he	
  created	
  the	
  most	
  profitable	
  team	
  at	
  Ditech	
  before	
  moving	
  into	
  an	
  Executive	
  role.	
  
Jason	
   then	
   ventured	
   out	
   on	
   his	
   own	
   creating	
   three	
   companies	
   at	
   once.	
   He	
   created	
   a	
   Mortgage	
  
company,	
   Real	
   Estate	
   Company	
   and	
   a	
   Finance	
   company.	
   Jason	
   later	
   sold	
   his	
   interest	
   in	
   those	
  
companies	
  and	
  joined	
  Bartmann	
  Business	
  Institute	
  as	
  Director	
  of	
  Marketing.	
  
	
  
Jason	
  Emmert	
  
	
  
Jason	
   comes	
   to	
   Success	
   Support	
   Systems	
   with	
   over	
   10	
   years	
   experience	
   in	
   collections	
   and	
   credit	
  
analysis.	
  He	
  joined	
  CFS	
  in	
  1998	
  as	
  a	
  Senior	
  Account	
  Officer	
  where	
  he	
  was	
  an	
  outstanding	
  performer	
  
and	
  achieved	
  high	
  collection	
  goals.	
  	
  After	
  CFS,	
  Jason	
  continued	
  his	
  career	
  in	
  credit	
  and	
  collection	
  by	
  
working	
   at	
   First	
   Credit	
   Solutions	
   for	
   five	
   years.	
   His	
   most	
   recent	
   responsibility	
   was	
   with	
   Conoco-­‐
Phillips	
   as	
   a	
   Lead	
   Credit	
   Analyst	
   where	
   he	
   spent	
   five	
   years	
   defining	
   and	
   developing	
   reporting	
   for	
  
credit	
  decisions.	
  Jason	
  brings	
  an	
  invaluable	
  asset	
  to	
  the	
  Success	
  Support	
  System	
  as	
  a	
  Client	
  Service	
  
Representative	
   analyzing	
   credit	
   and	
   pricing	
   scoring	
   models.	
   Jason	
   graduated	
   from	
   Northeastern	
  
State	
  University	
  Magna	
  Cum	
  Laude,	
  with	
  a	
  major	
  in	
  finance	
  and	
  a	
  minor	
  in	
  marketing.	
  
	
  

                                                                                  18	
  
Jerry	
  Duke	
  
	
  
Jerry	
  comes	
  to	
  Success	
  Support	
  System	
  with	
  many	
  years	
  of	
  small	
  business	
  and	
  finance	
  experience.	
  
Jerry	
   began	
   his	
   career	
   in	
   the	
   Aerospace	
   and	
   Defense	
   industries.	
   As	
   President	
   and	
   CEO	
   of	
   his	
   own	
  
company	
  for	
  many	
  years,	
  Jerry	
  successfully	
  built	
  his	
  manufacturing	
  business	
  and	
  employed	
  over	
  100	
  
people.	
  Over	
  the	
  past	
  15	
  years	
  he	
  has	
  worked	
  within	
  the	
  lending	
  and	
  mortgage	
  business	
  as	
  a	
  finance	
  
manager.	
   Experienced	
   in	
   loan	
   underwriting	
   and	
   his	
   expertise	
   as	
   a	
   mortgage	
   banker,	
   Jerry	
   brings	
  
great	
  financial	
  knowledge	
  to	
  the	
  Success	
  Support	
  System.	
  
	
  
Jessica	
  Allsop	
  
	
  
Jessica	
  is	
  the	
  Chief	
  Operating	
  Officer	
  of	
  Bill	
  Bartmann	
  Enterprises	
  and	
  BBI.	
  Following	
  graduation	
  
from	
  Baker	
  University,	
  Jessica	
  began	
  her	
  career	
  in	
  financial	
  management	
  as	
  Assistant	
  Manager	
  for	
  
Neighborhood	
  Financial	
  Center,	
  a	
  multi-­‐enterprise	
  organization	
  specializing	
  in	
  financial	
  services	
  for	
  
low-­‐income	
  individuals.	
  She	
  later	
  was	
  promoted	
  to	
  Manager	
  for	
  Neighborhood	
  Financial	
  and	
  
continued	
  her	
  career	
  as	
  a	
  Senior	
  Negotiations	
  Officer	
  with	
  an	
  affiliated	
  company,	
  Debt	
  Discounters	
  
of	
  America,	
  an	
  organization	
  that	
  provided	
  credit	
  counseling	
  services	
  and	
  representation	
  with	
  
creditors.	
  After	
  leaving	
  Debt	
  Discounters,	
  Jessica	
  was	
  a	
  Loan	
  Origination	
  Officer	
  for	
  Ameriquest	
  
Mortgage	
  Co.,	
  First	
  Omni	
  Mortgage	
  Co.,	
  and	
  later	
  a	
  Collection	
  Officer	
  for	
  Franklin	
  Collection	
  
Company.	
  Jessica	
  then	
  joined	
  BBI	
  and	
  played	
  a	
  critical	
  role	
  in	
  the	
  development	
  and	
  growth	
  of	
  the	
  
company	
  and	
  the	
  Buying	
  Bad	
  Loans	
  Workshop	
  series	
  to	
  become	
  the	
  national	
  leader	
  for	
  
development	
  of	
  new	
  entrepreneurial	
  companies	
  capable	
  of	
  capitalizing	
  on	
  opportunities	
  presented	
  
by	
  the	
  financial	
  crisis.	
  
	
  
Kelly	
  Allen	
  
	
  
Kelly	
  was	
  one	
  of	
  the	
  very	
  earliest	
  of	
  CFS	
  employees	
  and	
  had	
  the	
  opportunity	
  to	
  see	
  Bill’s	
  dream	
  
become	
  a	
  reality.	
  She	
  has	
  over	
  20	
  years	
  of	
  credit	
  card	
  loan	
  collection	
  and	
  loss	
  mitigation	
  experience	
  
with	
  different	
  types	
  of	
  loans.	
  Kelly	
  was	
  one	
  of	
  the	
  highest	
  performing	
  results	
  driven	
  Department	
  
Managers	
  at	
  CFS	
  and	
  continued	
  her	
  career	
  in	
  the	
  mortgage	
  industry	
  with	
  Wachovia	
  Bank	
  and	
  EDG	
  
International	
  as	
  an	
  Engineering	
  Project	
  Administrator.	
  Her	
  strong	
  interpersonal	
  skills	
  along	
  with	
  her	
  
keen	
  analytical	
  and	
  problem	
  solving	
  ability	
  make	
  her	
  a	
  valuable	
  asset	
  to	
  the	
  BBI	
  team	
  where	
  she	
  is	
  a	
  
Client	
  Sales	
  Supervisor.	
  
	
  
Tony	
  Allen	
  
	
  
Tony	
  comes	
  to	
  Success	
  Support	
  System	
  with	
  ten	
  years	
  of	
  financial	
  services	
  and	
  collections	
  
experience.	
  Tony	
  began	
  his	
  career	
  with	
  CitiFinancial	
  Services	
  managing	
  loan	
  portfolios	
  as	
  large	
  as	
  
$10	
  million.	
  Tony	
  transitioned	
  to	
  the	
  position	
  of	
  Vice	
  President	
  within	
  the	
  Chase	
  Retail	
  bank	
  network	
  
where	
  he	
  also	
  received	
  his	
  licensing	
  as	
  an	
  investment	
  representative.	
  Tony	
  then	
  left	
  financial	
  
services	
  to	
  become	
  a	
  partner	
  in	
  a	
  small	
  business	
  venture;	
  franchisee	
  for	
  two	
  different	
  restaurant	
  
concepts	
  that	
  employed	
  as	
  many	
  as	
  250	
  people	
  in	
  three	
  states.	
  Experienced	
  in	
  sub-­‐prime	
  loan	
  
underwriting	
  and	
  as	
  a	
  small	
  business	
  owner,	
  Tony	
  brings	
  great	
  knowledge	
  to	
  our	
  Success	
  Support	
  
System	
  clients.	
  

                                                                               19	
  
	
  
Jay	
  Donovan	
  
	
  
Jay	
  is	
  a	
  partner	
  at	
  Allen	
  Haight	
  &	
  Monaghan	
  LLP,	
  our	
  accounting	
  firm.	
  	
  Jay	
  began	
  his	
  career	
  with	
  the	
  
national	
  accounting	
  firm	
  of	
  KMG	
  Main	
  Hurdman	
  (now	
  part	
  of	
  KPMG	
  Peat	
  Marwick)	
  where	
  he	
  
became	
  a	
  tax	
  manager	
  in	
  their	
  Orange	
  County	
  office.	
  He	
  later	
  joined	
  American	
  Express	
  Tax	
  &	
  
Business	
  Services	
  in	
  Glendora,	
  California	
  as	
  a	
  Senior	
  Tax	
  Manager,	
  where	
  he	
  was	
  responsible	
  for	
  
overseeing	
  all	
  aspects	
  of	
  client	
  service	
  and	
  business	
  related	
  matters	
  for	
  the	
  office.	
  He	
  subsequently	
  
joined	
  a	
  local	
  CPA	
  firm	
  as	
  Senior	
  Tax	
  Manager,	
  in	
  charge	
  of	
  tax	
  department	
  oversight,	
  prior	
  to	
  joining	
  
the	
  firm	
  of	
  Allen,	
  Haight	
  &	
  Monaghan,	
  LLP	
  in	
  2000.	
  

Jay’s	
  experience	
  includes	
  tax	
  compliance	
  and	
  consulting	
  for	
  closely	
  held	
  entrepreneurial	
  businesses,	
  
business	
  owners	
  and	
  high	
  net	
  worth	
  individual	
  clients.	
  He	
  is	
  involved	
  in	
  providing	
  comprehensive	
  tax	
  
planning	
  to	
  increase	
  corporate	
  profits	
  and	
  individual	
  net	
  worth,	
  as	
  well	
  as	
  transactional	
  planning	
  to	
  
minimize	
  taxes.	
  This	
  includes	
  optimization	
  of	
  tax	
  benefits	
  and	
  cash	
  flow,	
  tax	
  reduction	
  through	
  
professional	
  representation	
  at	
  taxing	
  authority	
  negotiations	
  and	
  evaluation	
  of	
  tax-­‐deferred	
  
transactions	
  and	
  tax-­‐free	
  corporate	
  restructurings.	
  
	
  
Mike	
  Petersen	
  
	
  
Mike	
  is	
  a	
  partner	
  in	
  our	
  law	
  firm,	
  Shulman	
  Hodges	
  &	
  Bastian	
  LLP.	
  	
  Mike	
  heads	
  the	
  firm’s	
  
transactional	
  department	
  and	
  is	
  officed	
  in	
  Foothill	
  Ranch,	
  California.	
  	
  Mike	
  practices	
  transactional	
  
and	
  corporate	
  matters	
  including	
  business	
  formation,	
  business	
  acquisition	
  and	
  disposition,	
  and	
  real	
  
estate	
  and	
  personal	
  property	
  transactions.	
  	
  Representative	
  transactions	
  include	
  restructuring	
  of	
  an	
  
automobile	
  dealership	
  including	
  debt,	
  secured	
  by	
  personal	
  property,	
  sale	
  of	
  all	
  technology	
  and	
  
personal	
  property	
  related	
  to	
  an	
  editable	
  printing,	
  disposition	
  of	
  a	
  chain	
  of	
  restaurants	
  and	
  the	
  asset	
  
purchase	
  of	
  a	
  commercial	
  aircraft	
  and	
  security	
  company.	
  
	
  
Mike	
  graduated	
  with	
  high	
  honors	
  from	
  the	
  University	
  of	
  Wisconsin	
  in	
  1974.	
  	
  While	
  an	
  
undergraduate	
  Mike	
  was	
  active	
  in	
  student	
  politics,	
  the	
  debate	
  team	
  and	
  was	
  a	
  founding	
  member	
  of	
  
the	
  Historical	
  Discourse	
  Society.	
  	
  Upon	
  graduation	
  Mike	
  entered	
  the	
  University	
  of	
  Minnesota	
  Law	
  
School	
  where	
  he	
  graduated	
  cum	
  laude.	
  	
  Mike	
  began	
  his	
  legal	
  career	
  in	
  Wisconsin	
  with	
  the	
  law	
  
offices	
  of	
  Tommy	
  Thompson	
  who	
  served	
  as	
  Wisconsin’s	
  governor	
  for	
  many	
  years	
  and	
  served	
  as	
  
Health	
  and	
  Human	
  Services	
  Secretary	
  for	
  President	
  Bush.	
  	
  Mike	
  moved	
  to	
  corporate	
  practice	
  at	
  the	
  
Prudential	
  Insurance	
  Company	
  of	
  America.	
  	
  While	
  in	
  Chicago	
  Mike	
  was	
  the	
  attorney	
  responsible	
  for	
  
all	
  legal	
  matters	
  associated	
  with	
  the	
  Prudential	
  Plaza	
  redevelopment,	
  including	
  a	
  new	
  64-­‐story	
  office	
  
tower	
  and	
  major	
  renovation	
  of	
  the	
  42-­‐story	
  building.	
  	
  He	
  also	
  completed	
  a	
  400	
  million	
  dollar	
  
renovation	
  of	
  the	
  Chicago	
  Hilton	
  and	
  Towers	
  including	
  the	
  financing	
  of	
  both	
  the	
  real	
  property	
  and	
  
the	
  hotel’s	
  extensive	
  personal	
  property.	
  	
  Mike	
  moved	
  to	
  Prudential’s	
  corporate	
  office	
  in	
  New	
  Jersey	
  
where	
  he	
  focused	
  on	
  east	
  coast	
  development	
  and	
  international	
  real	
  estate	
  acquisitions.	
  	
  Mike	
  then	
  
moved	
  to	
  California	
  to	
  serve	
  as	
  the	
  General	
  Counsel	
  for	
  Prudential	
  Real	
  Estate	
  Affiliates,	
  a	
  franchisor	
  
of	
  real	
  estate	
  brokerage	
  operation.	
  	
  Mike	
  left	
  Prudential	
  and	
  joined	
  the	
  dot.com	
  boom,	
  completing	
  
the	
  C	
  round	
  for	
  NowDocs.com	
  Mike	
  was	
  General	
  Counsel	
  for	
  Newport	
  Federal,	
  where	
  he	
  was	
  
responsible	
  for	
  in	
  excess	
  of	
  $130	
  million	
  in	
  California	
  real	
  estate	
  property	
  transactions	
  and	
  
completed	
  over	
  $10	
  million	
  in	
  personal	
  property	
  loan	
  transactions	
  both	
  as	
  a	
  lender	
  and	
  as	
  a	
  
borrower	
  including	
  jet	
  aircraft	
  financings.	
  

                                                                              20	
  
	
  
Mike	
  is	
  active	
  in	
  the	
  Orange	
  County	
  Bar	
  Association	
  as	
  a	
  member	
  of	
  the	
  real	
  estate	
  and	
  corporate	
  
sections.	
  	
  Mike	
  has	
  spoken	
  at	
  the	
  America	
  Corporate	
  Counsel	
  Association	
  on	
  leasing	
  and	
  managing	
  
outside	
  counsel.	
  	
  	
  
	
  
	
  
	
  
	
  




                                                                           21	
  
                                                   Operations	
  Plan	
  
	
  
Plant	
  and	
  Equipment	
  
	
  
Initially,	
  JWA	
  Capital	
  Holdings	
  will	
  need	
  no	
  plant	
  and	
  equipment	
  and	
  Jim	
  will	
  work	
  out	
  of	
  his	
  home	
  
office,	
  keeping	
  his	
  overhead	
  to	
  an	
  absolute	
  minimum.	
  
	
  
Operations	
  Action	
  Plan	
  
	
  
       •    JWA	
  Capital	
  Holdings	
  registers	
  with	
  Debt	
  Brokers	
  
       •    Debt	
  Broker	
  advises	
  JWA	
  Capital	
  Holdings	
  when	
  a	
  portfolio	
  is	
  offered	
  for	
  sale	
  
       •    JWA	
  Capital	
  Holdings	
  reviews	
  and	
  analyzes	
  the	
  portfolio	
  with	
  the	
  assistance	
  of	
  Success	
  
            Support	
  System	
  
       •    JWA	
  Capital	
  Holdings	
  tenders	
  bid	
  to	
  the	
  Debt	
  Broker	
  via	
  email	
  or	
  fax	
  
       •    Debt	
  Broker	
  notifies	
  JWA	
  Capital	
  Holdings	
  of	
  winning	
  bid	
  
       •    JWA	
  Capital	
  Holdings	
  executes	
  closing	
  documents	
  and	
  wires	
  funds	
  to	
  Debt	
  Broker	
  
       •    Debt	
  Broker	
  transfers	
  an	
  encrypted	
  electronic	
  version	
  of	
  the	
  debt	
  file	
  to	
  JWA	
  Capital	
  
            Holdings	
  
       •    JWA	
  Capital	
  Holdings	
  forwards	
  the	
  encrypted	
  debt	
  file	
  to	
  the	
  collection	
  agency	
  reviewed	
  
            and	
  recommended	
  by	
  Success	
  Support	
  System	
  
       •    Collection	
  agency	
  loads	
  the	
  new	
  accounts	
  into	
  their	
  system	
  and	
  begins	
  contacting	
  
            consumers	
  
       •    JWA	
  Capital	
  Holdings	
  (with	
  assistance	
  from	
  Success	
  Support	
  System)	
  monitors	
  collection	
  
            agency	
  activity	
  to	
  ensure	
  that	
  collection	
  results	
  are	
  acceptable	
  




                                                                          22	
  
                                                                   Funding
	
  
Amount	
  Required	
  
	
  
JWA	
  Capital	
  Holdings	
  is	
  seeking	
  initial	
  funding	
  in	
  the	
  amount	
  of	
  $20,000.	
  
	
  
JWA	
  Capital	
  Holdings	
  is	
  not	
  asking	
  for	
  a	
  commitment	
  beyond	
  the	
  initial	
  $20,000	
  and	
  will	
  only	
  seek	
  
additional	
  funding	
  after	
  satisfactory	
  performance.	
  
	
  
Type	
  of	
  Financing	
  Sought	
  
	
  
JWA	
   Capital	
   Holdings	
   is	
   seeking	
   a	
   structured	
   note	
   to	
   be	
   retired	
   at	
   an	
   accelerated	
   pace	
   from	
   the	
  
proceeds	
  of	
  collections.	
  	
  	
  
	
  
The	
   goal	
   of	
   this	
   financing	
   strategy	
   is	
   to	
   demonstrate	
   to	
   the	
   lender	
   that	
   JWA	
   Capital	
   Holdings’	
  
business	
   model	
   produces	
   both	
   large	
   profit	
   margins	
   and	
   cash	
   flow	
   that	
   is	
   front-­‐loaded	
   and	
   thus	
  
illustrates	
  that	
  the	
  lender	
  risk	
  is	
  minimized.	
  	
  	
  
	
  
Collection	
  proceeds	
  will	
  be	
  distributed	
  in	
  the	
  following	
  manner:	
  
	
  
                   1. Payment	
  of	
  contracted	
  contingency	
  fee	
  to	
  the	
  third	
  party	
  collection	
  agency	
  
                   2. Payment	
  of	
  third	
  party	
  professional	
  services	
  fees	
  
                   3. 100%	
  of	
  the	
  remainder	
  to	
  the	
  lender	
  to	
  pay	
  interest	
  and	
  retire	
  principal	
  
                   	
  
JWA	
  Capital	
  Holdings	
  intentionally	
  plans	
  that	
  debt	
  payments	
  will	
  be	
  accelerated	
  as	
  described	
  above.	
  	
  
JWA	
  Capital	
  Holdings	
  intends	
  that	
  the	
  outstanding	
  debt	
  be	
  reduced	
  as	
  quickly	
  as	
  possible.	
  	
  	
  
	
  
Use	
  of	
  Proceeds	
  
	
  
Loan	
  proceeds	
  will	
  be	
  used	
  solely	
  for	
  the	
  acquisition	
  of	
  asset	
  pools	
  and	
  third	
  party	
  professional	
  fees.	
  	
  
No	
  loan	
  proceeds	
  will	
  be	
  used	
  for	
  salaries.	
  
	
  




                                                                              23	
  
                                                       References	
  
	
  

	
  
Len	
  Shulman	
  
Shulman	
  Hodges	
  &	
  Bastian	
  LLP	
  
26632	
  Towne	
  Center	
  Dr.,	
  Suite	
  300	
  
Foothill	
  Ranch,	
  CA	
  	
  92610	
  
949	
  340	
  3400	
  
	
  
Chris	
  Goulard	
  
Saddleback	
  Church	
  
1	
  Saddleback	
  Way	
  
Lake	
  Forest,	
  CA	
  	
  92630	
  
949	
  609	
  8000	
  
	
  
Bill	
  Bartmann	
  
Bill	
  Bartmann	
  Enterprises	
  
8315	
  E.	
  111th	
  St.,	
  Suite	
  F	
  
Bixby,	
  OK	
  74008	
  
918	
  388	
  3328	
  




                                                             24	
  

				
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