Teague hit with $2.7M lawsuit

From the P0litico.com - Rep. Harry Teague and four companies he owns have been slapped with a $2.7 million civil lawsuit for failing to repay loans on equipment purchases, according to court documents. The legal action against Teague is just the latest in what has turned into a tough year, financially, for the freshman Democrat, and what may become a tough political year as the midterm elections approach. In just one year, Teague has gone from being one of the richest members of the House to a more run-of-the-mill congressional millionaire, thanks to massive losses in the value of his holdings. According to his most recent financial disclosure statement, released in mid-June, Teague saw at least an 87 percent loss in his most valuable asset, a stake in Teaco Energy Services. On his 2009 financial disclosure form, Teague listed his holdings in Teaco Energy Services at $39.6 million, making him one of the richest members of the House. Teague earned $3.3 million in dividends from those holdings. But on this year’s disclosure form, Teague reported the same holdings to be worth a maximum of $5 million, a decline in value of more than $34 million. A source familiar with the situation, however, said Teaco was “never worth as much” as the stated value of nearly $40 million in the 2009 report. This source said there was still a “significant decline” in Teaco’s worth yet not nearly as disastrous a decline as it appears. This is just the latest problem for Teague’s businesses. Earlier this year, Teague took heat after the companies he controls cut off health care benefits for 250 employees while he voted against the Democrats’ sweeping health care reform bill. On top of that, Teague is considered one of the more vulnerable Democrats in 2010, facing a stiff challenge this fall in a tough district. Read more:

Teague hit with $2.7M lawsuit