Tea Party Congressman Defaults On $2.2 Mil Loan; Says Bank Should Have Known He Couldn’t Pay
Tea Party Congressman Tom Graves of Georgia, a self-proclaimed prophet of fiscal responsibility, had to settle out of court when he was unable to pay back a $2.2 million business loan. And he says it’s the bank’s fault.
In June, Simon Bloom, the attorney for Graves and [partner Chip] Rogers, argued in a court filing that the default was the bank’s fault because it lent the pair the money knowing full well they couldn’t pay. Bloom cited a deposition in which bank officials saw Graves and Rogers’ financial records, and then had them sign personal guarantees so they’d “‘have some skin in the game’ presumably meaning a sense of personal obligation for the debts … even though they clearly could not fulfill the obligation.” Graves and Rogers said they were unaware of that particular filing.Click here for reuse options!
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