Last week Sen. Elizabeth Warren, D-Mass, sent a letter to federal ethics officials Tuesday calling for an investigation into Mick Mulvaney for his reported discussions with the University of South Carolina about possibly becoming the school’s next president.
This past weekend, published reports surfaced that say a civil case is raising questions about whether a company tied to Mulvaney, used a legal maneuver to put his interests ahead of a lender.
The focus of the complex case is a 15-acre tract along U.S. 521 in Indian Land, a fast-growing community just below the state line. Plans to develop a shopping center at the site began in 2007, when Mulvaney, a lawyer and real estate developer, served in the South Carolina legislature before his 2010 election to Congress.
The case involves two limited-liability companies in which Mulvaney was a part owner. One of those companies is foreclosing on a mortgage held by the other company for the shopping center site.
As Mulvaney explained during his 2017 confirmation hearings as OMB director, he’s a minority owner of both the debtor and the creditor. Mulvaney said steps leading to the foreclosure were taken to avoid his being associated with a company in default to a bank.
Fonville & Co., a Charlotte firm that invests in real estate and also loaned money for the site’s purchase, claims in a legal filing there was another reason for the foreclosure: to cut Fonville out of collecting its debt.
A South Carolina judge has put the foreclosure on hold in order to study the “novel legal questions” Fonville raised.