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4/16/2014

Dewhurst Mother of All Debt Fact Check


The Dewhurst campaign has released a new ad which attacks Dan Patrick regarding his bankruptcy and tax liens, as well as his name change. The ad claims Dan Patrick has not repaid his bankruptcy debts, did not pay his taxes, pocketed payroll taxes and changed his name to hide from his debts. Woman: Its a struggle, but I pay my bills, so why cant millionaire Dan Patrick. KERA Debate Clip: You walked away from more than $800,000 in debts when you declared personal bankruptcy. Youve been able to loan your campaign hundreds of thousands of dollars but you havent repaid the bankruptcy debts. Narrator: Dan Patrick also got caught not paying his taxes, pocketing his employees payroll taxes, and changed his name from Dannie Goeb to hide from the debts. Woman: If he cant run his own business honestly, how can we trust him to run the state honestly. Dewhurst claim: Dan Patrick has not repaid his bankruptcy debts According to bankruptcy court documents, Patrick filed for Chapter 7 bankruptcy in October 1986 for over $800,000 in debts and those debts were discharged in May 1987. David Dewhurst has also used the bankruptcy process to walk away from debts. According to the Dallas Morning News and Texas Monthly, Dewhurst never repaid the unsecured creditors to whom he owed money. (Terrence Stutz, Lieutenant governor candidate Dan Patrick knows struggles of going broke, Dallas Morning News, 09/19/2013; S.C. Gwynne, Lonesome Cowboy, Texas Monthly, 06/01/2002). In 1983, Dewhurst, as well as Trans-Gulf Supply and Trans-Gulf Resources, were sued by River Oaks Bank and Trust over an unpaid debt. River Oaks Bank and Trust loaned Trans-Gulf Supply $1.5 million that was guaranteed by David Dewhurst and Trans-Gulf Resources. The court found in favor of River Oaks Bank and Trust, and Dewhurst was ordered to pay $832,805.29. Trans-Gulf Resources_Abstract of Judgment.pdf In addition to these debts, David Dewhurst currently owes more than $1 million to vendors for services provided to his 2012 U.S. Senate campaign. Consultant Jeff Roe told the Texas Tribune: Its clear hes able to raise resources and pay these debts. The steps we took were on Davids word that we would be paid. According to a Dallas Morning Report, vendors have been waiting over 18 months to receive payment for their work (Jay Root, Dewhurst Campaign Owes Vendors Nearly $1 Million, Texas Tribune, 08/13/2013; Christy Hoppe, David Dewhursts 2012 campaign still owes vendors more than $1 million, Dallas Morning News, 02/07/2014).

Dewhurst claim: Dan Patrick got caught not paying his taxes Tax liens were filed against Dan Patrick and his businesses for failure to pay taxes; however, these liens were released in 2006 when Dan Patrick paid the taxes that were owed. During his 1998 campaign for Land Commissioner, it was revealed that Dewhurst owed $1,542 in back taxes and fines to the Comptroller for unpaid franchise taxes relating to his company Trans-Gulf Supply. The company did not file a franchise tax return in 1984 and did not pay the state-required minimum tax (Staff, Land agency candidate criticizes foe over tax payment, Dallas Morning News, 02/14/1998). The company was subject to tax forfeiture in 1990. Trans-Gulf Supply_State Tax Lien.pdf In 2000, the Comptrollers Office informed Dewhurst that he owed use taxes on art and furniture he purchased in foreign countries. After discovering he owed the taxes, Dewhurst asked the Legislature to review the use taxes, calling the tax a twisted tool that has loitered in the dark corners of state government for too long. Dewhursts complaint against the tax was not based in helping Texas consumers, but preserving his own selfish interests (Staff, Dewhurst should pay, and support, use tax, San Antonio Express-News, 01/18/2000). Dewhurst claim: Dan Patrick pocketed his employees payroll taxes Bankruptcy and lien documents show Dan Patrick owed the federal government for unpaid payroll taxes. These documents do not prove that Patrick collected and pocketed the taxes. This is not a defense; however, it is a technical distinction. According to Patrick, these taxes were ultimately paid and the debt to the federal government was settled. Dewhurst claim: Dan Patrick changed his name to hide from his debts Although Patrick legally changed his name in 2004, he had been using the name Dan Patrick for 36 years as a broadcaster on television and radio (http://www.danpatrick.org/truth/). The debts and the name change are matters of public record and are not hidden from the public. Patrick even wrote about his bankruptcy, which occurred almost 20 years prior to his name change, in his book The Second Most Important Book You Will Ever Read: A Personal Challenge to Read the Bible (Terrence Stutz, Lieutenant governor candidate Dan Patrick knows struggles of going broke, Dallas Morning News, 09/19/2013).

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