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A Virginia banking company has sworn it will get the money it owes it according to Governor Jim Justice.
In a case filed with federal securities regulators on Monday, Carter Bankshares, Inc., a longtime banking partner of Governor Jim Justice and his companies, defended their federal lawsuit alleging it had prompted them to default on payments.
Carter Bankshares, Inc. called the allegations in the lawsuit filed in U.S. District Court for the Southern District of West Virginia last week as false and misleading, saying it had cooperated with companies controlled by the judiciary to restructure and grant loans after telling companies he aimed to reduce his credit exposure about five years ago.
Banks have an obligation to their shareholders and the financial system to fully collect all amounts owed to them and owed to them, the company said in the Securities and Exchange Commission filing. Carter Bank is no different from other banks in this regard.
Justice, his wife Cathy and their son, James Jay Justice III, and 11 family businesses, including The Greenbrier Hotel Corp. and sports and recreation entities linked to Greenbrier, seek at least $ 421 million in damages from Carter Bank & Trust and a declaratory judgment that would prevent the bank from forcing judges to immediately pay the full amount of the loans without provide them with a good faith opportunity to repay these loans.
The judges said in their lawsuit they had $ 368 million in outstanding loans with Carter Bank and had paid off $ 407 million in debt and $ 238.5 million in interest and fees since 2001.
The lawsuit alleges that Carter Bank was the near-exclusive funding provider to the justice companies who demanded that their 20-year loan balance be converted into short-term notes after the bank’s founder died in 2017 and took them away. prompted to default.
The lawsuit was filed on May 31, the same day the Wall Street Journal reported that Justice was in talks with Switzerland-based Credit Suisse for the company to recover nearly $ 700 million after the fall of UK-based Greensill Capital, which loaned family companies Justice $ 850 million in May 2018.
Credit Suisse had provided money to Greensill before Greensill filed for bankruptcy in March after losing key insurance coverage that provided backup for its loans.
Carter Bankshares, the banking holding company of Carter Bank, claimed in its file with the Securities and Exchange Commission that the timing of the lawsuits was not a coincidence, saying that the loans from two justice companies must be repaid in full to the bank the next day.
Carter Bank will vigorously defend all claims raised in the lawsuit and expects to collect all amounts owed in full, the company said in the filing.
Neither the lawyer for the justice companies nor the board of governors could be reached for comment.
The Justice Company lawsuit against Carter Bank followed a lawsuit brought by a Justice Coal Company in the US District Court for the Southern District of New York in March, accusing Greensill of continued and profitable fraud under the guise of establishing a long-term financing agreement. .
Justice said he would put his children in charge of his family’s business operations when he became governor in 2017.
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