Another business owned by Joe Manchin and Mylan lobbyist Larry Puccio is being sued for defaulting on a $19.6 million loan.
WV Metro News reports that Mountain West Hospitality, owner of hotels in Clarksburg and Elkins, was sued by Deutsche bank for defaulting on a multi-million dollar loan. The lawsuit also contends that Mountain West has failed to pay its employees or its state and local taxes. Mountain West’s ownership scheme is similar to that of Mountain Blue Hospitality, Manchin’s other tax-evading business currently being sued for defaulting on a $14.6 million loan. In both businesses, AA Property, owned by Manchin and Puccio, is the second largest investor.
Manchin has refused to offer an explanation for his shady business dealings, going so far as to repeatedly lie to the press about his ties to these deadbeat businesses. See below for a full timeline of this strange saga.
“Joe Manchin thinks rules don’t apply to him,” said NRSC Spokesman Bob Salera, “Manchin’s shady business dealings reveal a pattern of defaulting on loans, failing to pay hardworking employees, and dodging taxes. West Virginians deserve straight answers from Joe Manchin, but all he has offered are lies and excuses.”
Timeline:
May 10:
Mountain West Hospitality is sued by Deutche Bank for defaulting on a $19,630,000 loan on hotels in Clarksburg and Elkins. Loan documents list AA Property as the second largest member of the ownership group, with Manchin and Puccio as 50-50 owners of AA. The lawsuit notes that Mountain West has failed to pay both employees’ salaries and taxes.
August 8:
Mountain Blue Hospitality is sued by U.S. National Bank Association for defaulting on a $14,559,226 loan on a hotel in Morgantown. Loan documents list AA Property as the second largest member of the ownership group, with Manchin and Puccio as 50-50 owners of AA. The lawsuit notes that Mountain West has failed to pay nearly $600,000 state and local taxes.
August 16:
Manchin and Puccio tell reporters they have no interest in AA Property. When reporters point out that this is blatantly false according to Manchin’s financial disclosure forms and AA Property’s annual report, Manchin and Puccio admit they own AA Property, but claim they have no interest in Mountain Blue.
August 23:
WV Metro News reports that loan documents show that, contrary to Manchin and Puccio’s statements, AA Property is the second largest investor in Mountain Blue. When asked about this conflict, Manchin’s office refused to respond and Puccio refused to elaborate on AA’s relationship with Mountain Blue.
August 28:
When asked directly about his involvement in Mountain Blue, Manchin tells WV Metro News reporter Brad McElhinny that he knows nothing about it because “I’m in a blind trust,” and directs questions to his attorney.
August 30:
WV Metro News reports that despite Manchin’s claims, AA Property is not part of his blind trust, and is listed on his financial disclosure form as a separate investment of $50,001 – $100,000, with Manchin personally listed as a member of the firm.
Manchin’s attorney claims that AA Property was mistakenly listed as an investor in Mountain Blue. When asked about loan documents that show AA Property as holding the second largest ownership stake, the lawyer declined to elaborate.
September 3:
WV Metro News reports on the second lawsuit involving Mountain West. Neither Manchin, nor Puccio offer comment.