While U.S. Rep. Tom Graves was calling for fiscal responsibility in Washington his attorney was arguing in a lawsuit that a North Georgia bank is at fault for issuing Graves a $2.2 million loan the bank knew he could not repay.
Graves was fighting a lawsuit along with business partner Chip Rogers, the state Senate majority leader. The two Republicans, through a limited-liability company, used the loan to purchase and renovate a Calhoun motel that quickly went under.
The bank sued, alleging the two defaulted on the loan. The politicians filed counterclaims against the bank, accusing it of improperly declaring the loan in default after reneging on a promise to refinance it at more favorable terms. Both parties dismissed their claims Wednesday, a day before they were scheduled to attend a hearing on the case in Calhoun. Graves said through a spokesman that the case has been “fully resolved in an equitable and fair manner.” An attorney for the bank declined to comment.
This is the well known Burkean small-government principle of “It’s your fault- you knew I couldn’t pay you back!”
(Via the Benenator 2000)