Houston G.O.P. Chief Faces Lawsuit Over Hedge Fund Loan

Jun 26 2012 | 11:14am ET

A Houston political heavyweight is fighting a collection lawsuit stemming from a six-year-old loan from a hedge fund.

Jared Woodfill, a plaintiffs' lawyer and chairman of the Harris County Republican Party, and his law firm, Woodfill & Pressler, borrowed $5 million from hedge fund Gerova Asset Backed Holdings in 2006. Gerova went under in 2010, the year that Woodfill allegedly defaulted on the loan.

But Woodfill is still not out of the woods. He and his firm have been sued by a collections agency, LFR Collections, which is seeking nearly $30 million.

Woodfill, who took the loan to fund his class-action litigation against BNSF Railway, has denied any wrongdoing, saying the size of the loan never grew as large as LFR alleges and that his firm never defaulted on the loan.

But Woodfill, a practitioner of a legal art reviled in right-wing circles, seemed more concerned with his G.O.P. position than with his legal headache.

"This is a business dispute," he told the Houston Chronicle. "This type of loan is consistent with free-market principles."

Woodfill added that a settlement is possible within just days.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.