Oct 23 2014
TO: Interested Parties
FROM: Corry Bliss, Roberts for Senate Campaign Manager
DATE: October 23, 2014
RE: Greg Orman's Reckless Business Career
Greg Orman has spent months attempting to sell himself to Kansas voters as a hardworking businessman who holds Kansas values. The business section on his campaign website is three paragraphs and 152 words. Orman wishes the story ended there.
Unfortunately for Orman, his business background goes much deeper than a few paragraphs. His business dealings have involved a litany of ugly lawsuits, dealing with fraud, loan defaults, breached contracts, and contractors who were not paid for their work.
The Roberts for Senate campaign released a new TV ad yesterday that highlights Orman's history as a businessman. Watch below:
We call on Mr. Orman to answer the following questions today:
QUESTIONS FOR GREG ORMAN
- $250 million loan default lawsuit: Orman was a director and the third largest shareholder of an $800 million telecom when it collapsed under $350 million in debt. Soon thereafter, a bank filed suit against Orman and other leaders of the failed telecom for defaulting on $250 million in loans. The bank charged Orman and the others with gross mismanagement, fraud, unlawful acts and personal enrichment. He has refused to comment on the suit. (Washington Examiner, October 7, 2014; Hennepin County District Court, Case 02-13555, Filed August 15, 2002)
- $30 million breach of contract lawsuit: Orman was sued by a boxing equipment business that charged him and other defendants with a $30 million breach of contract and trademark infringement. The suit is pending. (The Associated Press, September 8, 2014)
- $15 million breach of contract lawsuit: A business executive filed a $15 million breach of contract lawsuit that stemmed from an Orman-led takeover of his business. The case, which reached the Missouri Supreme Court, was settled in 2008. (Lloyd’s Corporate Litigation Reporter, October 21, 2008)
- $9.8 million breach of contract and loan default lawsuit: Two lenders filed a breach of contract lawsuit against Orman and his business partner for defaulting on $9.8 million in loans. The case was later settled, and it appears Orman’s business relinquished property to the lenders via a deed in lieu of foreclosure. (Clark County District Court, Case A09-603043, Filed November 5, 2009; Clark County Recorder’s Office, Instrument 201008030004802, Filed August 3, 2010)
- $1.3 million in mechanic’s liens: Five contractors filed $1.3 million in mechanic’s liens against Orman’s most lucrative business for failing to pay them for work. Most of the liens were later satisfied, but only after the contractors were forced to go to court to get paid. (Hennepin County Court, Filing Number 7567075, Filed October 25, 2001; Filing Number 7559095, Filed October 12, 2001; Filing Number 7551163, Filed October 1, 2001; Filing Number 7551164, Filed October 1, 2001; Filing Number 7534262, Filed August 30, 2001)
- $250,000 breach of contract lawsuit: A lender filed a breach of contract and unjust enrichment lawsuit against Orman and his business partner that stemmed from their alleged refusal to turn over a $250,000 check to the lender. The case was later settled. (Hennepin County District Court, Case 09-29506, Filed December 8, 2009)
- $160,000-plus in liens: Three contractors filed over $160,000 in liens against the government-subsidized shrimp farm in the desert to which Orman served as a director. The liens were later satisfied, but only after the contractors were forced to go public with their grievances. (Clark County Recorder’s Office, Instrument 201107190002073, Filed July 19, 2011; Instrument 20110719000339, Filed July 19, 2011; Instrument 201107060001222, Filed July 6, 2011)
- War on a businesswoman: Orman was sued by a businesswoman for wanton conduct, fraud and malice. During the proceedings, she accused Orman of garnishing money from her children’s college funds and harassing her colleague. The case was later settled. (Politico, October 6, 2014; Johnson County Civil Court, Case 13CV02070, Filed March 20, 2013)
4) Why does Mr. Orman refuse to answer questions about Combat Brands, his company that is being sued for $30 million in unpaid bills?
5) With connections to a billion dollar Cayman Islands private equity fund tax haven, investments in a company that made lotto tickets for the Chinese government, and his close personal and business relationship with a jailed Wall Street criminal, does Mr. Orman really think that he represents Kansas values?
6) Does Mr. Orman really think that using $2.5 million in federal loan guarantees and $128,000 in state tax breaks to start a shrimp farm in the Nevada desert is a good use of government money?
7) Why does Mr. Orman do business in tax havens from Nevada to the Cayman Islands, instead of investing in the Kansas economy?
Orman has more business experience in tax havens than Kansas. Just 21% of the businesses [9 of 42] Orman reported in personal financial disclosure are actually incorporated in Kansas. Instead, over 40% are incorporated in states that are considered tax havens, 17 in Nevada, 2 in Delaware, and one is incorporated in an offshore tax haven, Cayman Islands. (U.S. Senate, Personal Financial Disclosure - Greg Orman, Filed September 22, 2014; Multi-State Business Databases, Accessed September 22-23, 2014)