Bank: An ‘insolvent’ Tom Graves & Co. owes $2.25 million
You’ll read more of this later in the AJC, but the Bartow County Bank has filed notice in Gordon County Superior Court that former state lawmaker Tom Graves, Senate Majority Leader Chip Rogers and their company owe $2.25 million for cash loaned to purchase a motel in Calhoun.
See some of the paperwork here.
Graves is the leading candidate in the 9th District congressional race, headed toward a June 8 runoff with former state senator Lee Hawkins of Gainesville. Both are Republican.
The complaint was filed May 17 against Graves, Rogers and Tich Hospitality.
In the court papers, the bank says Graves guaranteed repayment, even though he was “insolvent in that his liabilities exceeded his assets and he was unable to pay his obligations as they matured.”
The bank also claims Graves initiated a “fraudulent transfer” of property in order to frustrate the bank’s efforts to pursue the debt.
Lori Geary at WSB-TV reported talking to Rogers by phone. (Here’s a link to the video.) The Senate majority leader said he had already severed ties with the company
Said the Graves campaign:
“The litigation involves complicated issues of fact and law. I have filed my own claims against the plaintiff in this lawsuit because I suffered damages as a result of its broken promises to me.
“This country has a judicial system in place where business disputes like this lawsuit can be successfully and fairly resolved, and I am fully confident that a satisfactory resolution will be reached once all the facts have come to light.”
Graves accused the Hawkins campaign of spreading word of the lawsuit: “It is unfortunate that my opponent resorts to trying to tear good men down in order to advance his political career.”
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115 comments Add your comment
Ted Teders
May 28th, 2010
7:15 am
What is more important than the financial details about the financing of the hotel are the unethical things that occur at that hotel. Someone should look into the goings on their with illegals and even prostitutes. Check the records on how many times police have been called there. The owners of this hotel are not what they seem and Graves certainly does not need to go to congress. The most ethical candidate in this election unfortunately came in 3rd.
Bill Orvis White
May 28th, 2010
7:31 am
Keep yer spirits up about the Honorable Mr. Graves, folks. He’s a true fiscal/social who will fight for low/no taxe$, the unborn and the right to carry a pistol at all times.
Why would anyone vote against this agenda that yer district so wants? The answer: only far-left liberals who wish to bring progressivism to yer neck of the woods. DON’T LET THAT HAPPEN!
Tom is a businessman who understands risk. It’s no big deal if a venture went belly-up or that he’s in a little bit of debt. That’s the American Way, you Secular Progressives.
Morrus
May 28th, 2010
7:35 am
Curiously, in a supposed anti-incumbent year, most of the departing are not retiring but seeking higher office. We may recycle more than we replace. The bad news is that a frustrating 114 seats still have but one contestant. Two of them aren’t even incumbents, meaning they will affect state policy without being vetted by voters. And I have to think that we’d be better off if many had run instead for the Legislature — and cut down on the number running unopposed. Georgia’s problems are numerous. They aren’t going away. There’s too much stale thinking at the Capitol, on both sides of the aisle. New voices would be welcome.
tc
May 28th, 2010
7:43 am
bosw you are a dum arse; only way he plans to pay back is to get a govt job! and then take lobbyist contributions, live freee off taxpayers, and then use revolving door
Steve Tarvin
May 28th, 2010
7:44 am
I will not address the financial problems of Tom Graves, but to bash the Tea Parties of North Georgia is not appropriate. The 9th District Tea Parties have made it clear that “Tom Graves” is not their candidate and that they do not endorse candidates. Tom was endorsed by the “Atlanta Tea Party LLC” and Freedom Works of Washington D.C.? ( not sure of Freedom Works location but it is not ‘North Georgia’) the Tea Parties of North Georgia have tried to be an educational arm of politics and a movement to get more people involved in the process. In closing there is an alternative to “Politics as Usual” Steve Tarvin July 20th.
jconservative
May 28th, 2010
7:54 am
If Graves does not have the intellectual ability to run a small business he certainly does not need to represent the people of that district in Congress.
Now we will see if they elect him, which will tell us a lot about the people of the 9th District.
dagny
May 28th, 2010
8:14 am
Hawkins may not be a sleaze but he surrounds himself with a sleazy campaign team which tells me he is not trustworthy.
Jimmy Johnson
May 28th, 2010
8:21 am
All I care about is family values and who supports the right to life.
Are both candidates pro-LIFE?
Have either of them been divorced, unfaithful to their spouse, etc…?
Keep doing this GOP
May 28th, 2010
8:23 am
I am not suprised with all of this. Also, i am not suprised with Mr. Rogers involvment with him being on the Senate Banking Committee. I keep waitng for the other shoe to drop with concerns to Mr. Cagle.
Average Joe
May 28th, 2010
8:33 am
I’m not impressed with either candidate. Both are state reps that want to “go to the next level” and play politics in Washington. We do not need more professional politicians. Cates, Tarvin or Bert Loftman would have been a better choice for the 9th. Instead, we get the two most experienced politicians, who are able to run a better campaign.
I do question the fact that if Tom Graves can’t run his personal business, why would I want to allow him to manage my tax money?
The guy seems to run a slick campaign, but appears to be Nathan Deal lite in his business dealings, which is not good.
Teresa Tatum - Catoosa County Tea Party
May 28th, 2010
8:56 am
I live in the 9th district and I am a Tarvin supporter. Graves is not the Tea Party sweetheart. No TP in the 9th endorsed him. The Altanta TP endorsed him without counsulting any of the Tea Parties in the 9th. The media picked it up and somehow it became fact????
Teresa Tatum - Catoosa County Tea Party
May 28th, 2010
8:58 am
oops…consulting
SAHM03
May 28th, 2010
9:00 am
As far as family values, I do know this is Hawkins second marriage. I have been told he met his current wife while he was lobbying at the state capitol with the ADA, I don’t know if he was still married at that time, also don’t know if his current wife was a lobbyist or a staffer? Maybe this is something Graves could look into if he wants to get into the gutter politics Lee partakes in.
SAHM03
May 28th, 2010
9:05 am
Teresa,
If it makes you feel any better, when I met Tom Graves at a lunch spot in Forsyth a few weeks ago, someone at my table asked him about his tea party ties, and he made it a point to say that his endorsement was from the Atlanta Tea Party, and that while he was an early and adament supporter of the Tea Party Movement, no tea parties in the 9th district had yet to make any endorsements. He said he wanted to make that clear, because he respected the Tea parties and their leadership.
Martin
May 28th, 2010
9:05 am
In case you aren’t familiar with divorce, over half of America has experienced it. The attacks on Graves aren’t PERSONAL, this is a BANK that is doing this. Last time I checked, Hawkins didn’t own the bank. The point is the Graves campaign and supporters seem to be the one orchestrating the gutter politics, but they keep pointing the finger the other way. Your comment is a perfect example of this.
SAHM03
May 28th, 2010
9:15 am
Martin,
I was answering a question that was asked above.
And I am not a Graves supporter, I voted for Tarvin in the election, but after meeting Tom and learning about the other two, there is NO WAY i can give my vote to Hawkins. He has told me NOTHING about him, I called his office to ask about rumors I had heard about him supporting the stimulus, and not signing the Repeal it pledge, and his staffer would not answer the questions just wanted to tell me how bad Tom Graves was, when I again tried to ask about their difference in issues, and the staffer hung up the phone on me. If that is a sign of what his constituent service would be like, the 9th district is in serious trouble.
Average Joe
May 28th, 2010
9:18 am
If there are Graves/Hawkins supporters that are following this blog, did the two men ever have a public debate on the issues? If they did, I missed it. All I’ve seen are mailings and radio ads.
Martin
May 28th, 2010
9:20 am
Hey man, You aren’t answering questions. You’re providing information to encourage supporters to attack Hawkins family, people that have nothing to with this.
I find it hard to believe any candidates office would handle a call in that way, it just wouldn’t happen. Try to find a new way to attack your opposition.
SAHM03
May 28th, 2010
9:29 am
First, I am a woman. Second it did happen, you can believe me or not I will still sleep fine tonight. Third, I did answer the question and I think family values matter, one of the things that has drawn me to Tarvin and Graves. I have heard far worse abut Hawkins famliy values and the real situation there that I choose not to put on a blog, the way you treat your spouse is a indicator to me of what type of person you are.
Tom Graves Had A Bad Day Yesterday — Peach Pundit
May 28th, 2010
9:42 am
[...] News broke of the Bartow County Bank suing Tom Graves and his business partner, Senate Majority Leader Chip [...]
Martin
May 28th, 2010
9:51 am
Of course, family values matter to everyone. If that’s all you’ve got to grab onto, God help you. You can’t pretend to understand or know what went on in someone’s marriage. Focus on the facts and the issues like an educated, intelligent person. Maybe even research them yourself, rather than focusing on what you “have heard” from other ignorant people. Keep mudslinging – hahaha!
SAHM03
May 28th, 2010
10:20 am
I did try to educate myself, I called the office and they hung up on me because I ask them to answer FACTS about their candidate, and all they wanted to do was talk about how bad there opponents was. And when I asked for facts again I was hung up on. Maybe you should get off the blogs and maybe answer the phones and you can help people like me out.
Frank
May 28th, 2010
10:28 am
wrie in Cynthia mcKinney !!
Frank
May 28th, 2010
10:28 am
opps write in …C M
Woodstock Woody
May 28th, 2010
10:38 am
The “founder” of the Tea Party, Mrs. Martin of Cherokee Co., filed for bankruptcy protection last year, so Tom Graves is just following the party line. How big of a self-serving hypocrite do you have to be rail against federal government spending and then ask the federal government for protection from your own creditors?
deegee
May 28th, 2010
10:46 am
HAHAHAHAHA! Couldn’t have happened to a nicer guy. Maybe Chip Rogers will be looking for some extra work in the parking lot of the Home Depot in Woodstock, shoulder to shoulder with the illegal immigrant workers that he so detests. HAHAHAHAHAHAHA!
Let them go to hades with all the rest of the folks that should have known better before overextending themselves during the bubble. HAHAHAHAHAHAHA!
Been Around-Done That
May 28th, 2010
10:46 am
I am a Republican voter who lives in Fannin County and votes in the Ninth District. The choice of candidates looked so bad to my wife and I that we were not even going to bother to vote in the Congressional runoff. But the postings by some of you on this site changed my mind. All you so-called defenders of Tom Graves on this site who are trying to con us and cover up his serious financial problems to get our vote can go fish! A Congressional candidate who cannot manage his own finances sure as hell can’t manage the government’s finances given the national debt! I sure do not want a guy like that voting on how to get more taxes out of my back pocket. I guess I will just hold my nose and vote for the dentist. Hope he turns out to be a painless one!
myfathersdaughter
May 28th, 2010
10:49 am
My father always said, “The only honest politician hasn’t been born yet and his mother is dead.” Amen.
d2
May 28th, 2010
10:58 am
@Bill Orvis White–if it is the American way to have debt to increase venture-then I guess The United States has a big adventure with its debt. Maybe that is what is wrong–we elect people who have debt, bail them out, then elect them again. It is so hyopcrital to expect one to ruin his finance and at the same time that person expects the gov’t to have a balanced budget. I am So tired of bailing out failed ventures–if it was me that failed I would be ruined–NOT in the state of Georgia–you can have shady land deals, run around on your wife with your mother-in-law, “inadvertenly forget” to disclose your campaign funds, rip off the State with a car salvaging business, and be a teacher and go out with a minor and have the certificate suspended AND still run and win office with the state of Georgia.
Discriminating Lender
May 28th, 2010
11:06 am
I was a banker for 10 years and there were 4 people I never lent to: painters, police, plasterers,and politicians. These people seemed to all default on their debt…so I just never made loans to them.
deegee
May 28th, 2010
11:19 am
This whole Tea Party movement sounds a lot like what goes on with the tribal warlords in Afghanistan. Are the Atlanta Tea Party, the 9th district Tea Party and the North Georgia Tea Party so different, or are they simply jockeying for position?
tc
May 28th, 2010
12:26 pm
d2, read some other bow posts and you will see someone on the fringe
Gary Cooper
May 28th, 2010
1:00 pm
Teresa Tatum and Steve Tarvin are correct about the 9th district Tea Parties not endorsing any candidates. And SAHM03 is correct as well as Tom Graves has stated time and again that it is the Atlanta Tea Party that has endorsed him.
I still find it funny that the AJC has not reported what the Gainesville Times has in regards to Graves filing a counter claim of fraud stating that the bank has went back on a promised refinancing. This doesn’t look good for him, but I err to the side of caution on this one until it is resolved in civil court.
Average Joe – Graves and Hawkins have had debates. They were in Lumpkin County earlier this week and are debating in other areas of the district.
Average Joe
May 28th, 2010
1:05 pm
To bow @7:31: your statement: “Tom is a business man that understands risk” ?? really, he may understand risk, but he doesn’t manage it very well. His business flopped on a $2.25 million loan.
d2 @ 10:58, yep, that pretty much sums up GA politics
DublDawg
May 28th, 2010
4:54 pm
It is ironic that Bartow County Bank is front and center on an issue of insolvency and erroneous judgment on real estate loan transactions. Has anyone been reading up on it or know its recent history? Its stock traded at $300 per share 3-4 years ago before the real estate collapse and few would sell it. It’s hard to give it away now. The bank failed to meet its capital raising goals in 2009, and it has a new push in 2010.
The Cartersville Tribune just ran an article about BCB signing a consent order with regulators to improve capital.
http://www.daily-tribune.com/index.cfm?event=news.view&id=D77DB83A-19B9-E2E2-672EBF6509EB66A6
BCB sold REO portfolio properties to people that could not really pay, financed it for them in an effort to shore up the quality of its books, and is now suing those debtors over retread assets.
In light of all of BCB’s problems, it is obvious that Graves is not the only one in that case that was wrong on issues of judgment and the prospects of the deal. The most likely way that BCB is going to escape this real estate depression is to be acquired.
Kool-Aid Anyone?
May 28th, 2010
5:41 pm
Cooper…it’s interesting to me that nobody has shown us the counter claim Graves has filed. Surely he has copies he can post to prove his point or one of the Graves Diggers could trot over to the Bartow clerks office and get a copy.
You deserve a congressman like Graves with your zombie-like attitude. It’;s exactly what’s wrong in DC now and I can’t believe you’d actually vote for this guy.
Jane
May 28th, 2010
6:26 pm
I bet there is more coming. The reporters are smart enough not to release everything at once.
SAHM03
May 28th, 2010
6:57 pm
I actually got a response from the Graves campaign in an e-mail that has set my mind at ease. It list FACTS, not accusations in a lawsuit which aren’t FACTS, they are accusations. Maybe I will be wrong when all is said and done, who knows. But Graves provided a link to an article in the GainesvilleTimes, that was very fair and balanced and gave both sides of the issue, and several people who know Hawkins and his campaign had commented on the article that Hawkins had been talking days befor the story broke that he had planted the story with WSB to “destroy” Graves. If it was “breaking News” like WSB said, why would he have known about it days before? something is not right here.
LOL REALLY!
May 28th, 2010
7:04 pm
Jane,
You mean the reporters or the hawkins campaign who appears to be feedign the story. I live in Gainesville, do you? do you remember what hawkins did in his senate race, exactly what he is doing now, unbelievable. he skips forums and debates before the special, telling everyone here it was in the bag for him, and when it wasn’t he pulls this card, almost exactly like before. Come on people. wake up. he is not honest, and he doesn’t care about anyone in the 9th District but Hall County. i got something in the mail that said i needed to vote for him to make sure hall county had a congressmen and that this election was critical to hall county. I guess i am not from here orignially so i do not drink the kool aid, but that is the best reason he can give me to vote for him. sorry if you live outside hall, he don’t care about you.
chefdavid
May 29th, 2010
7:37 am
Really?
chefdavid
May 29th, 2010
7:38 am
Mr. Hawkins from your own twitter mouth…
http://twitter.com/leeforcongress/statuses/14925044660
simmerdown
May 29th, 2010
10:05 am
STAY TUNED CHEF. I HEAR THE STORY OF WHO IS BEHIND THIS LEAK, AND HOW INVOLVED HAWKINS HAS BEEN WILL BE COMING OUT. JUST BECAUSE HE GOT HIS GIRL AT WSB TO DO HIS DIRTY WORK, THERE ARE THOSE WHO DIDN’T BITE BUT ARE READY TO COME FORWARD, AND THEY HAVE SOME INFO ON HAWKINS THAT WILL MAKE THIS UNRESOLVED COURT ACCUSATION LOOK LIKE THE DESPERATE LAST MINUTE CAMPAIGN GIMMICK THAT IT IS. JUST STAY TUNED.
whatsthatyousay
May 29th, 2010
12:59 pm
Simmer,
Would it have anything to do with an affair with a lobbyist?
Kool-Aid Anyone?
May 29th, 2010
1:21 pm
You nitwits are an embarrassment to the conservative movement.
The truth of the matter is Graves got sued and is accused of fraudulently transferring assets to avoid having them seized by the bank.
You can try and spin it all you want, worry about it’s source, try and talk about affairs and anything else you can do in a feeble attempt to take the spotlight of the facts. The fact is he has gotten sued many times.
Graves is a crooked businessman that cannot even uphold his own five way test where he claims to Promote personal responsibility. I guess it’s somebody else’s responsibility as he is trying to get out of his debts and is sneaking around hiding assets.
He then goes and calls Linder a liar because Linder would not accept his lies. Called him on the carpet and then Graves changes his story. About 4 times now.
The problem in Washington is that people will not see these red flags as a problem and blindly send a person up there that has no business being there. Then they complain when they can’t get then job done or get in trouble.
They complain when the country gets sick of us Republicans not doing anything and the Democrats take over. “We are going to take America back!”, they say as they cannot accept the fact that they made a mistake and chose the wrong guy. To save face they keep supporting the wrong candidate and we keep going in the vicious circle until our country swirls right down the toilet.
And then they say, “What happened to the USA?” YOU are what happened to the USA and I suggest you give it some serious thought before you go vote.
Kool-Aid Anyone?
May 29th, 2010
1:28 pm
SAHM03 – I have a nice oceanfront lot in Oklahoma I’d like to sell you. It’s a real beauty and you can see out over the ocean for miles. The sea breeze is constant…fresh breezes that keep it nice and cool so you can enjoy the sugar white sandy beach. The water is an amazing aqua blue with gentle waves lapping at the shoreline. This, my dear friend, is heaven on earth. It can be yours for only $452!
Come on…you got an email explaining everything from the Graves campaign??? Of course, it’s everyone else’s fault he is a crooked businessman right? And that bad old Hawkins campaign, how dare they mention it!
You are even more of an embarrassment to conservatives and anyone else that uses their brain for something other than keeping their skull form collapsing.
whatsthatyousay
May 29th, 2010
1:36 pm
An affair with a lobbyist would be a troubling thing, it shows a character flaw and is one of the reasons politicians in Washington get in trouble and let us down. If Lee has already fallen prey to this temptation before, I think that voters might be a little less than thrilled to send him to Washington where there is much more temptation. I think this would be a bigger deal in the mind of a voter, than a unresolved court case, in which no one has yet been proven guilty of anything. But what do I know, guess they will decide.
Linda Clary Umberger
May 29th, 2010
1:41 pm
Tom Graves and his campaign staff must have attended Bill Clinton’s class on “How to Deal with Scandal 101.” Graves is arguing the equivalent of what the word ‘is’ means. If you rob a bank, you rob bank period the end. Graves has effectively robbed the bank and is fussing that it is only because of his opponent in the congressional race that this misdeed came out. Nice try Mr Graves.
Linda Clary Umberger
May 29th, 2010
1:51 pm
TO SAHM03: Lee and his wife Sharon knew each other from their college days at Emory at Oxford. Sharon was not and is not a lobbyist. Lee’s first wife left him for greener grasses and more money leaving him with their four children. I suggest you check out the facts first.
whatsthatyousay
May 29th, 2010
1:53 pm
You have to be found guilty of robbing a bank before they put you in jail, right, we do still have a justice system in America? Frivilous lawsuits happen all the time, just becasue someone is sued doesn’t make them guilty. Would you agree with that?
On the other hand, if shown to be true an affair with a lobbyist while at the state capitol had already happened so would be fact, and might be more interesting to voters than Hawkins and his supporters being judge and juror, over an undecided case.
whatsthatyousay
May 29th, 2010
2:04 pm
Hey LCU,
I don’t mean to butt into your post to SAHM03, and don’t know what you are addressing they said, but just want to tell you to be careful and follow your own advise and “check out the facts first” before you say things. You wouldn’t want to be VERY embarassed on the facts later on.