Skip to comments.Bank demanding $1.5 million payment on Cleavers’ car wash loan (Congressional Black Caucus Chairman)
Posted on 04/06/2012 9:55:05 AM PDT by Second Amendment First
U.S. Rep. Emanuel Cleaver's car wash headache is raging once again.
The bank that loaned the Kansas City congressman and his wife $1.3 million in 2002 to buy the Grandview Auto Wash at 12204 Blue Ridge Extension is now demanding payment of more than $1.5 million, after the Cleavers repeatedly fell behind on repaying the loan.
The suit, filed last week in Jackson County Circuit Court, said the demand for repayment came after three attempts to delay foreclosure. Bank of America also is seeking attorney's fees and a receiver to protect collateral.
"The Cleaver Company failed and refused, and continues to fail and refuse, to pay the outstanding obligations due and owing ... under the note and other loan documents," the lawsuit said.
In an email statement, Cleaver said, "This is a business dispute. The business has been run by an outside manager for years." He said because it was a legal matter, he would have no further comment.
According to court documents, the outstanding principal totals $1.2 million with interest totaling $240,545 as of March 6. Late fees have reached $54,587. Both Cleavers had personally guaranteed the debts, according to the suit.
The loan was originally part of a Small Business Administration program. It was not clear Thursday how much money, if any, taxpayers will have to provide if the loan defaults.
The car wash became a hot topic when Cleaver, a Democrat and former Kansas City mayor, ran for the U.S. House for the first time in 2004.
His opponent, Republican Jeanne Patterson, paid for a TV ad that pointed out that Cleaver owed $36,000 in property taxes on the car wash for 2002 and 2003. At the time, Cleaver said that many business owners become fall behind on taxes, and he paid up shortly after learning of the delinquency.
During the campaign, he said that the business had been a losing proposition for him and his family and that he was looking for a new owner.
In November 2004, Cleaver turned daily management of the car wash over to two couples. But by April 2005, Cleaver had again fallen behind on his car wash property taxes after failing to pay the $13,679 he owed at the end of 2004.
He paid the amount, with interest and a 2 percent penalty, just a few days after a story noting the non-payment appeared in The Star.
Fiscal responsibility is racist.
The Thugocracy has special privileges, ya know.
Call it reparations, imaginary rights, or resistance to "racism," doesn't matter.
The rules don't apply to them.
A car wash? That must be where he, Charlie Rangle, Sharpton, and convict Representative William Jefferson launder their money, just like Walter and Skyler White on “Breaking Bad.”
The shenanigans are deeper than this discussion suggests, and it would be good if this loser is investigated exactly as an ordinary citizen would be. Federal Small Business Loan?
Stinks to high heaven. Are the taxpayers on the hook for a default? Did he grosly overvalue it when buying the business from his "brother-in-law's cousin?" What?
Better Call Saul!
It is RACIST to expect Eric Holder’s people to pay money that they owe.
Car Wash. Wasn’t that a movie. Why would Cleaver stereotype himself like that?
Come summer the work gets kind a hard
This ain’t no place to be if ya planned on being a star.
Let me tell you it’s always cool
And the boss don’t mind sometimes if ya act a fool.
Workin at da car wash, yeah
“The shenanigans are deeper than this discussion suggests, and it would be good if this loser is investigated exactly as an ordinary citizen would be.”
The truth is that the Cleaver’s could be found guilty, sent to jail, and win the first available election after they got out. Reverend Manning is right, there is something fundamentally wrong with “Holder’s People.”
It is Reconstruction II.
Cu Clux Caucus
Low volume ping list
FReepmail me to be on, or off, this list.
And small business owners always fall behind on their taxes.
Yeh, that's the ticket. Try that small business owners.
See how fast the county and state revenuers come after you if your name isn't Cleaver.
Cleaver ? He’s all wet....
Isn’t it racist to demand that a black member of congress pay for anything?
As a Congressional Black Caucus member he has full immunity from any laws. This will go nowhere and the bank will be lucky if the CBC doesn’t close it down.