Thursday, February 11, 2010
Thursday, January 14, 2010
Wanting to know a little bit more about the new candidate for Congress in CD-5 Chris Salvino, I typed in “Chris Salvino and Congress” into Google hoping to find his website. I didn’t make it that far. The third link on Google was a Federal Bankruptcy Court (http://www.ilnb.uscourts.gov/opinions/JudgeWedoff/Salvino.pdf ) decision involving Salvino. Having nothing better to do, I decided to read it.
My first reaction was “Wow! This guy is running for Congress?” If you are interested in the CD-5 race I would suggest reading it, but I’ll summarize for those who don’t.
A thumbnail timeline on Salvino’s bankruptcy case:
- Prior to decamping to Arizona circa 2005-06, Salvino and his Dr. partners were running a chain of bariatric surgical clinics (I.E. weight reduction surgery).
- They take out a series of loans to finance expansion. One way Salvino (who was president and CEO of the company) secured the loans was through a personal guarantee.
- Company defaults on loans and bank is not happy. Bank threatens to go to FBI alleging fraud unless they pay loan or refinance.
- Salvino and partners find investors who ultimately bought company who prior to buying company want Salvino to sign contract promising to work for company. Salvino does.
- Salvino then signs contract with a competitor.
- Salvino then changes mind and decides to stay with company signing another contract promising to stay 5 years and promising to pay liquidated damages if he bolts.
- Investors buy company. Very shortly thereafter Salvino breaches contract and bolts again going to AZ.
- Investors are not happy and company goes down.
- Salvino and wife file Chapter 7 ostensibly to escape paying liquidated damages for breaching contract.
- Investors sue to try and get money from Salvino for breach of contract.
- Judges decision says that Salvino intentionally misrepresented his own investors but discharges debt because actual damages weren’t proved.
So in sum, we have a candidate for Congress who was found by a federal bankruptcy court judge to have intentionally mislead his investors and breached his contract and now he wants to run for Congress. And it’s all out there for the Democrats and anyone else to see before his actual website. Not smart.