Skip to comments.Congressman Hinojosa files for bankruptcy (Texas RAT serves on House Financial Services Committee)
Posted on 02/04/2011 5:25:25 AM PST by Libloather
Congressman Hinojosa files for bankruptcy
by Action 4 News Staff
Posted: 02.03.2011 at 6:46 PM
WASHINGTON (AP) -- An eight-term Texas congressman who serves on the House Financial Services Committee has filed for personal bankruptcy and is blaming his family meat company for his problems.
According to federal bankruptcy court documents, Democratic Rep. Ruben Hinojosa has $2.9 million in liabilities, though he also has nearly $1.5 million in assets.
The Financial Services panel has jurisdiction over legislation affecting banks. House aides and outside experts say the House has no rules forbidding a lawmaker who owes large sums to a bank from serving on that committee.
(Excerpt) Read more at valleycentral.com ...
Put him on the budget committee. At least he’ll have some personal experience with what we as a nation are about to go through.
I’m surprised the frothing PETA wing of the party hasn’t driven him out yet. Maybe he claims “elite immunity” from the rules they apply to “the masses”.
The company and family, meanwhile, have not been without controversy.
In May 1999 Marcos Hinojosa, son of Liborio Hinojosa, was killed at La Casita, a McAllen motel. Three people were charged with his death.
In an unrelated case, Carlos Hinojosa, Liborios brother, was accused in 1999 of an investment scheme to cheat Texas investors. That case was later settled for more than $4.4 million.
Eyebrows also were raised after Rubén Hinojosa introduced his son, Rubén Hinojosa Jr., to promote H&H to a group of Chinese business leaders in July 2000 during a videoconference from the University of Texas-Pan American. The dialogue had ostensibly been organized as a way to try to get Chinese companies to buy products from South Texas firms.
The congressman denied at the time that there was any conflict of interest and said he had nothing to do with selecting H&H as one of the participants in the videoconference.
Dem Cong Reuben Hinojosa's voters---anchor babies on the US gravy train.
EXCERPT---POLITICO: Cong Reuben Hinojosas annual financial-disclosure forms, on file with the House clerk, demonstrate that Hinojosa would be able to clear a personal loan to a company called Hinojosa Development valued at $250,000 to $500,000. Hinojosa has declared this liability since he first was elected to Congress in 1996. But the arbitration award against Hinojosa was for a different company, H&H Foods, also known as H&H Meat Products. That company makes Mexican foods and has been one of the largest employers in Texass 15th District, which Hinojosa represents.
H&H filed for bankruptcy in 2008, according to a local newspaper. Hinojosa said he has no managerial control or oversight over H&H, but he was paid $85,671 in consulting fees by the company between 2002 and 2007. U> It is unclear why there was a discrepancy in Hinojosas official financial disclosure reports regarding his financial liabilities, but ethics experts called the discrepancies troubling. Its a huge gap, said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington. The disclosure reports are supposed to provide a clear financial picture of a members finances. That hasnt happened here. In a statement given to POLITICO, Hinojosa indicated he would attempt to pay off his debts as soon as possible under federal bankruptcy rules. It will take several months for Hinojosa, his wife, Martha, and the couples creditors to reach an agreement on those payments.
I have filed for bankruptcy protection under Title 11, Chapter 11 of the United States Code, Hinojosa said in a carefully worded statement. My filing for bankruptcy was the result of the business loan I personally guaranteed for my family business, H&H Meat Products Co., Inc. (herein H&H), when it was doing well financially. Although over the last 14 years, I had no managerial responsibility or oversight of H&H, I remained financially obligated on a bank line of credit of H&H when it was forced into bankruptcy due to the recent economic downturn and financial market meltdown. Hinojosa added: I have done everything humanly possible to avoid filing for bankruptcy protection to no avail. The bank debt of H&H was more than I could handle financially. It is my sincere desire to exit bankruptcy protection as soon as possible.
Hinojosas bankruptcy filing states that the $2.6 million award to Wells Fargo was handed down in March 2010. In May 2010, Wells Fargo filed charges against Hinojosa in Hidalgo County, Texas, to confirm the award, documents from the Lone Star State show. While that case was ongoing, Hinojosa filed for bankruptcy protection on Dec. 18. According to his bankruptcy filings, the 70-year-old Hinojosa has a 401(k) valued at more than $610,000 and owns two homes one of which is a rental property valued at $263,000.
He also owns stakes in two companies Hinojosa Development and Hinojosa Enterprises worth roughly $395,000. Hinojosa is a partner in both companies, according to his disclosure reports. The Texas Democrat reported a $200,000 debt to Hinojosa Development. Hinojosa Development and Hinojosa Enterprises owe more than $53,000 in state and local taxes, mainly stemming from 2010.
As part of the Chapter 11 process, Hinojosa and his wife were required to estimate the value of their assets, including furniture, cars and personal items in detail, such as three watches valued at $1,000. The Hinojosas, who made a combined $210,000 in 2010 through mid-December, are seeking to exempt their own home, one of two cars and other household items, plus the 401(k), from creditor claims. That could potentially leave $622,000 in assets unprotected for creditors, including Wells Fargo, to divvy up.
Welcome back to Main Street Congressman! Enjoy what you’ve helped create.
Somebody oughta check Hinojosas earmarks.
Wow! I wonder if we can do to Hinojosa in 2012 what we did to Ortiz in 2010?
Read the article. He's on the House Financial Services Committee. As I recall you can't be on that committee and the House Budget Committee simultaneously.
If you want on, or off this S. Texas/Mexico ping list, please FReepMail me.
Thanks for the ping SwinneySwitch.
How many illegal aliens do you suppose Congressman Hinojosa’s family had working for them?????
Would these "Chinese business leaders" be mutual friends of Ex-congressman Solomon Ortiz?