West Virginia governor with heavy debts wins Republican nomination to US Senate
Jim Justice, often compared by others and by himself to Trump, businessman-turned-politician, wins the Republican nomination to the US Senate, being also favored to win the election in a deep-red state. Yet, a bank in Virginia started collecting more than $300 million in defaulted Justice loans.
Two-term West Virginia governor Jim Justice has just won the Republican primary for Senate. Due to his popularity in the state, he is also predicted to win the Senate election in November.
His candidate was Alex Mooney, elected to Congress in 2014, supported by the ultra-conservative Club for Growth PAC and Texas Senator Ted Cruz. A part of Mooney's campaign was based on attacking Justice's former Democratic registration. Mooney claimed Justice is "Republican in name only" - RINO and highlighted the growing financial problems of Justice's enterprise.
Despite the financial problems of Justice's family business, the primary outcome has been favorable for him. His family owns a 5-star famous West Virginia Greenbrier Hotel, although he expanded his enterprise on timber and agriculture holdings. Yet, his primary source of income was inherited from his father's coal company.
Justice's financial problems
Justice became well-known in the state as a "business guy" who can "buzz the numbers," resulting in his association with former President Donald Trump. Both Republicans have shown each other support on social media during various elections. Governor Justice has also gained a reputation as a person who does not pay debts taken on by his companies. However, Carter Bank has already started collecting around $300 million in debt, to the extent of seizing the properties belonging to Governor Justice's son - James Justice - currently the family company's president.
The tax authorities have already placed liens on Greenbrier properties for millions of unpaid taxes. However, debt collection has resulted in conflict among debt collectors. As a result, Justice has benefited from the conflict between them.
The most severe financial problem concern mentioned previously was Carter Bank from Virginia. The bank has been providing Justice's family with loans, extending the loans roughly at one point to $775 million. The justice company had been paying them previously. Still, the enterprise stopped doing it in April, leaving the bank with $302 million in debt despite its notice to immediately pay off the remaining debt.
Governor Justice has yet to clarify his financial situation officially. He briefly said in a news briefing, "Our family’s built an empire of stuff that employs lots and lots of people... At the end of the day, it all seems to work out."
Source: New York Times, CBS News, Washington Post
