Capitol Fax.com - Your Illinois News Radar » *** UPDATED x2 - DGA responds *** Report: Rauner allegedly keeping lawsuit under wraps
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x2 - DGA responds *** Report: Rauner allegedly keeping lawsuit under wraps

Wednesday, Oct 11, 2017

* Dan Mihalopoulos and Tina Sfondeles

A former business partner of Gov. Bruce Rauner is suing Rauner, but all court records in the case are being kept secret — allegedly at the governor’s request.

The lawsuit against Rauner was filed last week by Harreld “Kip” Kirkpatrick III and the Kirkpatrick Capital Partners Fund, according to Cook County Circuit Court records. […]

He said the lawsuit was filed as a “result of a dispute with a former partner” — namely Rauner, according to a memo that Kirkpatrick sent to Vistria employees. […]

“In consultation with our legal counsel, we do not believe the lawsuit should be sealed and we are hopeful that a judge will deny Gov. Rauner’s attempt to keep it from public view,” Kirkpatrick added.

Kirkpatrick filed paperwork in 2009 to run for state treasurer, and raised $20,000 from Mrs. Rauner that summer.

*** UPDATE ***  The Tribune has more

While the exact allegations remain unclear, the lawsuit against Rauner is tied to how settlement proceeds from a Michigan lawsuit were divvied up.

Kirkpatrick Capital Partners paid $10 million in 2011 for a 20 percent stake in what’s now Troy, Mich.-based United Shore Financial Services, according to the Michigan lawsuit.

Kirkpatrick served as the firm’s CEO from 2011 to 2013, but relations between him and the company’s founding family soured.

In 2015, Kirkpatrick Capital sued United Shore and Jeffrey and Mathew Ishbia, members of the founding family that remains the majority owner. The Ishbias, the lawsuit claimed, pulled the plug on Kirkpatrick’s efforts to sell the company — which by then was valued by Raymond James Financial Services at $400 million to $525 million. At least four firms expressed interest in buying the company in early 2013, but the Ishbia family suspended the sales process because it “did not want to give away so much of this newly created value to” Kirkpatrick Capital, the lawsuit says.

Go read the rest. Interesting stuff.

*** UPDATE 2 *** DGA…

This morning the Chicago Tribune and Chicago Sun-Times both wrote stories about Governor Bruce Rauner’s involvement in a lawsuit that he’s requesting to stay secret. Rauner is being sued by Kirkpatrick Capital, a firm he was still invested in 2016. From what little is known, the story feels familiar – Rauner and the other Kirkpatrick Capital investors intended to invest in an existing company quickly sell if off at profit while undercutting the owners.

    “In 2015, Kirkpatrick Capital sued United Shore and Jeffrey and Mathew Ishbia, members of the founding family that remains the majority owner. The Ishbias, the lawsuit claimed, pulled the plug on Kirkpatrick’s efforts to sell the company — which by then was valued by Raymond James Financial Services at $400 million to $525 million. At least four firms expressed interest in buying the company in early 2013, but the Ishbia family suspended the sales process because it ‘did not want to give away so much of this newly created value to’ Kirkpatrick Capital, the lawsuit says.

    ‘The parties understood that Kirkpatrick Capital was not making a long-term investment in Shore,’ Kirkpatrick’s lawsuit against United Shore said. ‘Kirkpatrick was investing in Shore with the understanding that Shore would be marketed for sale in the near term.’”

Bruce Rauner leaned on his business acumen during the 2014 campaign, but investigative reports found that companies Rauner invested in were pushed into bankruptcy or stripped down for profits. Flash forward three years to when Governor Rauner called on the legislature to sustain his budget veto even though it would push the state into junk bond status, and a pattern emerges.

“Bruce Rauner sold voters a bill of goods when he said as a businessman he would turn the state around,” said DGA Illinois Communications Director Sam Salustro. “Just like he did in business, Rauner racked up Illinois’ debt and was pushed the state towards a fiscal cliff all for political profit. Now he wants to hide his true record from the public but it’s too late. Voters know they are worse off under three years of Rauner’s failed leadership in action.”

- Posted by Rich Miller        

29 Comments
  1. - Generic Drone - Wednesday, Oct 11, 17 @ 5:51 pm:

    The amounts of Quid Pro Quo from deals like this make us realize just how corrupt Rauner is.


  2. - Truthteller - Wednesday, Oct 11, 17 @ 5:53 pm:

    Obviously this is all Madigan’s fault.
    Rauner can’t get along with anyone but his fawning spouse


  3. - Wildcat Wayne - Wednesday, Oct 11, 17 @ 5:55 pm:

    I remember when Kirkpatrick played basketball for Northwestern.


  4. - Lt Guv - Wednesday, Oct 11, 17 @ 6:05 pm:

    As Honeybear might say, “Perfidy.”


  5. - We'll See - Wednesday, Oct 11, 17 @ 6:22 pm:

    Lawsuit? He told us he’s been a success at everything he’s done.

    Oh… and schadenfreude.


  6. - VanillaMan - Wednesday, Oct 11, 17 @ 6:27 pm:

    Bruce?
    After seeing his work since 2015, I couldn’t imagine anyone having a need to sue him.


  7. - Henry Francis - Wednesday, Oct 11, 17 @ 6:49 pm:

    I sure hope this Kirkpatrick fellow doesn’t have a family.


  8. - wordslinger - Wednesday, Oct 11, 17 @ 6:57 pm:

    If you’re paying for Dan Webb, there’s a lot of money at stake. A lot.

    What are the possible reasons for putting a seal on a civil lawsuit between private equity types?


  9. - Cheswick - Wednesday, Oct 11, 17 @ 7:10 pm:

    Q: why was Rauner entering into a business partnership in 2016 when he was already governor?


  10. - Yellow Dog Democrat - Wednesday, Oct 11, 17 @ 7:21 pm:

    Hey, judges, remember this?:

    A day after Governor Bruce Rauner said the Illinois Supreme Court is “part of a corrupt system,” a judges’ association fired back, calling his comments “disturbing” and saying it “endangers the rule of law.”

    The governor has shown contempt for every judge in this state By his attack on the Supreme Court and shows he misunderstands the role of the entire court system,” Appelate Justice Michael B. Hyman said.

    Good luck in court, Bruce!


  11. - Anonymous - Wednesday, Oct 11, 17 @ 7:32 pm:

    This is an abuse of the sealing process, courts are open.


  12. - PJ - Wednesday, Oct 11, 17 @ 7:34 pm:

    Zero reason in the public interest that this should be sealed. The rich get ridiculous advantages in every phase of life.


  13. - David - Wednesday, Oct 11, 17 @ 7:38 pm:

    Gtcr just raised over 5 billion mostly from existing investors. Who are these investors. Some have been our pension funds but there has been a massive increase in these her opaque funds in the last decade. There are now over 20 trillion in assets in them and they make up the biggest source of income for the top 1 percent. Considering public money is involved I think we need to know a lot more about these outfits .


  14. - Ducky LaMoore - Wednesday, Oct 11, 17 @ 7:56 pm:

    This would be pretty big news if I thought this was going to go somewhere. Now that the existence of the lawsuit is public knowledge, it will be settled before you can say “mail fraud.”


  15. - Mr. K. - Wednesday, Oct 11, 17 @ 8:41 pm:

    “Meow,” says Diana.

    But she’s the only one.

    Everybody else knows the score.


  16. - Arthur Andersen - Wednesday, Oct 11, 17 @ 8:45 pm:

    Spitballing a bit here, but if the fund closed in 2011, it should be done investing. Sources of partner/partner disputes at this point could likely involve the limited partner (Rauner) not kicking in his full share, a dispute over one or more of the fund investments, or limited partner discontent with the actions of the general partner.

    Worth noting that Kirkpatrick went to or started a new firm while still the general partner of the old firm’s fund-kinda unusual.

    A second guess here, and I could be wrong, but Rauner may have had the lawsuit sealed to avoid violating any of the confidentiality provisions in the Kirkpatrick limited partnership agreement which in turn could create legal liability for him.

    I don’t find from the information presented and my Googling any reason to allege quid pro quos, perfidy, or mail fraud. Some of you guys need to get a grip, turn in early, or something.


  17. - DuPage Saint - Wednesday, Oct 11, 17 @ 9:57 pm:

    Don’t know why a civil lawsuit and not a divorce would be sealed. I would hope this could be challenged by a “private citizen” BGA? I do not know why Ryans divorce when he ran for senate became unsealed but sooner or later it should come out. Of course if we had a press that did some kind of investigation it might but I dream


  18. - Generic Drone - Wednesday, Oct 11, 17 @ 10:03 pm:

    Sorry Arthur, cant turn in early. Gotta work a double shift. However, everything Rauner does is quid pro quo. You need to see thru the trees blocking true insight.


  19. - Anon221 - Wednesday, Oct 11, 17 @ 10:07 pm:

    Trib has some more background- http://www.chicagotribune.com/business/ct-biz-kirkpatrick-sues-rauner-20171010-story.html


  20. - Arthur Andersen - Wednesday, Oct 11, 17 @ 10:28 pm:

    Generic, I’m all ears. With the benefit of the Trib article, which validates my second guess re: confidentiality provisions, please spell out the quid pro quo here.

    I’m also sure it’s just a co-inky-dink (which has nothing to do with Rauner) that Kirkpatrick’s former campaign treasurer has the same, uncommon surname as the fellows that canned Kippy from a fat gig running their family business. Oh, and Diana (and most contributors) got their money back from the ill-fated campaign.

    I’m guessing (original guess 1-b) that someone missed a big payday and has decided to reach for the deepest pocket to get well. Good luck with that.


  21. - Louis G. Atsaves - Thursday, Oct 12, 17 @ 7:46 am:

    From the Tribune article this morning: “In his motion, Kirkpatrick says he filed a fully redacted complaint “in an abundance of caution and so as to avoid any liability for breaching the confidentiality provision in the limited partnership agreement.”

    ??????????

    The confidentiality agreement he signed predates the lawsuit, and then he files a “redacted” complaint to try not to violate the confidentiality agreement, and then he writes a “memo” to all his employees explaining the lawsuit, all designed to avoid liability of breaching the confidentiality agreement?

    ????????????


  22. - Oswego Willy - Thursday, Oct 12, 17 @ 8:41 am:

    - Louis G. Atsaves -

    Counselor,

    Are you saying if you have a confidentiality agreement, and you feel legally wronged, you can’t sue in open court?

    I just want you to be as clear as possible.


  23. - Louis G Atsaves - Thursday, Oct 12, 17 @ 9:13 am:

    ===Are you saying if you have a confidentiality agreement, and you feel legally wronged, you can’t sue in open court?===

    No. He did sue in court. If he is confident of his position, then why the redacted complaint?

    I guess we will know in a few months or so after all the motions and legal wrangling what this is all about.


  24. - Oswego Willy - Thursday, Oct 12, 17 @ 9:18 am:

    ===If he is confident of his position, then why the redacted complaint?===

    Counselor,

    Isn’t he asking the court to allow the redacted parts be made public? Is he trying to ensure the agreement is usurped by the judge allowing the complaint to be seen in plain view, as opposed to just not only file a complaint in court, but also allow the content to be known, by court order, not the decision of the plaintiff?


  25. - Demoralized - Thursday, Oct 12, 17 @ 9:18 am:

    AA:

    You know as well as anyone else that the reasons for the Governor’s actions are irrelevant. All anyone cares about is the perception and the perception is he’s trying to hide something. The issues you have laid out, true or not, aren’t relevant in the political arena.


  26. - Anon E. Moose - Thursday, Oct 12, 17 @ 9:42 am:

    Here’s the docket: https://courtlink.lexisnexis.com/cookcounty/FindDock.aspx?DocketKey=CABH0CH0BDDIB0CH


  27. - Arthur Andersen - Thursday, Oct 12, 17 @ 10:08 am:

    Demo,

    Whatever.


  28. - wordslinger - Thursday, Oct 12, 17 @ 11:07 am:

    $10M investment for 20%. Four years later, that stake is valued between $80M and $105M.

    I’d want to cash out, too. But I can’t imagine what the cause of action is if the majority shareholders don’t want to.

    But it appears Dan Webb has some ideas.


  29. - Arthur Andersen - Thursday, Oct 12, 17 @ 5:36 pm:

    Weak sauce from the DGA. We don’t know enough yet, with or without this complaint unsealed, if there was a breach of fiduciary duty by anyone.


Sorry, comments for this post are now closed.


* Rauner vetoes anti-Crosscheck bill
* *** UPDATED x1 *** SUBSCRIBERS ONLY - Campaign stuff
* Rauner says he's "extremely troubled" by Trump's "defense of the Russians"
* *** UPDATED x1 *** Our sorry state
* Question of the day
* Grade inflation
* C'mon, November...
* Because... Madigan!
* Rauner: "I will never sign a bill that violates the Second Amendment"
* Rate Rauner's new ad: "Just Call Madigan"
* Pritzker reports spending almost three times as much as Rauner
* Your feel-good Illinois story of the day: Nichols Paint and Fab
* *** LIVE COVERAGE ***
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............
<


Loading


* Treasurer touts rural loan programs in Galesbur.....
* EDITORIAL: Governor, please don't veto Illi.....
* Rauner declines to remove Illinois from multist.....
* Rauner signs bills addressing Quincy veterans&#.....
* Rauner touts gun laws during Effingham stop..
* JB Pritzker, Bruce Rauner spending $300K.....
* JB Pritzker, Bruce Rauner spending $300K.....
* Illinois governor candidates spending $300K a day..
* Rauner 'deeply troubled' by Trump's.....
* Rauner signs Quincy Veterans' Home bills..


* Rauner signs laws to speed up Quincy vets’ home construction
* Fire damages northern Illinois’ Gold Pyramid House
* Bill taking Illinois out of voter registration system vetoed
* Rauner: President should blame Russians for hacking
* States: Workaround succeeding after cut in health subsidies
* UI settles lawsuit against alumnus for $7.5K
* State lawmakers accused of harassment are running for office
* Benedictine hopes to sell Springfield campus for $3M
* 4-year-old boy found dead after central Illinois house fire
* Excerpts from recent editorials in newspapers in Illinois

* Rauner 'deeply troubled' by Trump's Helsinki comments
* Rauner signs bill to ease physician assistant hiring
* Bill taking Illinois out of voter registration system vetoed
* Rauner signs laws to improve Quincy veterans' home
* Rauner: President Trump should blame Russians for hacking
* Rauner signs laws to speed up Quincy veterans' home construction
* U of I paying alum $7,500 to halt sales of Chief Illiniwek T-shirt
* Rauner's campaign spent nearly $8 million last quarter. Pritzker's spent more than double that.
* Gov. Rauner signs two gun control bills, says he'll veto another
* Londrigan outraises Davis in 2nd quarter; Davis has more in fund

* Can a 3-D printer solve Chicago's affordable housing problem?
* Dems push GOP reps on Trump and Putin
* Boeing sees budget-airline surge driving $15 trillion market
* Abbott's next-generation device to treat leaky heart valves gets FDA OK
* CIBC shutters third-largest Illinois branch following buyout of PrivateBancorp


* Boy, 16, shot in head in West Pullman
* Boy, 14, shot to death in West Englewood: police
* Police: Man, 41, shot dead while standing on sidewalk in Altgeld Gardens
* Brewers reliever Josh Hader apologizes for racist tweets discovered during ASG
* Employment in downtown Chicago drops for residents from majority-black communities
* Denzel Washington unstoppable in slick, well-acted ‘Equalizer 2’
* Dear Abby: Boy wants dating advice from ‘out of touch’ grandma
* Man chased girl getting off school bus after offering her candy in Park Manor
* Horoscope for July 18, 2018
* Apps every professional needs to maintain health and wellness


* Trump backs off siding with Russia over U.S. intelligence
* Brewers All-Star reliever Josh Hader apologizes for past racist, homophobic tweets
* A boom in downtown jobs did not benefit some South and West Side communities, study shows
* Cubs' Willson Contreras on top of game in National League's 8-6 loss to American League
* Cubs' Yu Darvish wanted a 6-foot fence around his new lakefront mansion. Evanston has turned him down.
* Indiana man charged with Lincoln Park home invasion, sexual abuse
* White Sox's Jose Abreu enjoys first All-Star start
* Man dead, 2 others wounded in city shootings
* Hawaii lava boat tours continue after explosion, injuries
* Arizona Cardinals suspend GM 5 weeks after extreme DUI plea


» July 17, 2018 - Full Show
» Rauner Vetos 'Crosscheck' Ban — Illinois' Participation Already On Hold
» Rauner: Trump Should Be Holding Russians Accountable
» Suit: Chicago Should Refund Drivers Hit With Expensive Tickets
» Vallas Returns Campaign Cash From Controversial Donor Tied To CPS Scandal
» Biometric Data Lawsuit Reaches IL Supreme Court; Electronic Monitoring Devices; HPV Vaccines
» Illinois Governor Bruce Rauner Signs Two Bills Aimed at Reducing Gun Violence
» July 16, 2018 - Full Show
» CHA Seniors File Complaint Over Missing Grab Bars
» Cook County Commissioners Confounded By Hiring Of Health System Consultant


* Rauner 'deeply troubled' by Trump's Helsinki comments
* Guest View: As politicians duke it out, we must remember that most children just want to go home
* Byron York: Trump's approach doesn't work for the Trump-Russia probe
* Marc Thiessen: Trump isn't the first president to embarrass America by cozying up to Putin
* Catherine Rampell: Why do Republicans hate consumers?
* Rauner signs bill to ease physician assistant hiring
* Bill taking Illinois out of voter registration system vetoed
* Rauner signs laws to improve Quincy veterans' home
* Rauner: President Trump should blame Russians for hacking
* Rauner signs laws to speed up Quincy veterans' home construction


* Gwendolyn Risch
* James Peterson
* Georgia Ann Roach
* Fire departments get $2.2 million in equipment grants
* RI County Board votes to tear down courthouse
* Jackson County Board approves officers in schools program
* New regional leader of the Greek Orthodox Church to visit Decatur
* New Q-C Chamber, airport directors eye more funding for regional airport
* Building balance: Iowa, Illinois agencies offer fall prevention programs for seniors
* Fowler wins district judicial appointment


* Record 10 homers as AL wins All-Star Game 8-6 in 10 innings
* So-so All-Star Game at home for Nationals' Scherzer, Harper
* Delle Donne, Parker to captain WNBA All-Star Game
* Manny Machado trade rumors grab attention at All-Star Game
* Lessons for next US financial crisis from 3 key ex-officials

* Illinois Dems Blast Trump On Twitter After...
* Congressman reveals GOP members refused to...
* Durbin: Trump claim a “damage control event”
* Pope County pastor unpaid for FBI, police ...
* Republicans, including Davis, raise big bu...
* Metro East Republicans in Congress raise b...
* United Front
* Second 'minibus' pulls in
* US REPRESENTATIVE JOHN SHIMKUMS (IL-15): S...
* 2018 Pinnacle Bank Championship tee times

* Durbin calls for probe of abuse claims at ......
* Bernie Sanders' Video On Trump's R......
* Dems Demand Answers on Trump's Private......
* Nine fire departments get state, federal g......
* Normal Fire Department receives almost $70......

* Talk Of Segregating People With Disabiliti......
* Nine fire departments get state, federal g......
* Normal Fire Department receives almost $70......
* Freeport Fire Department receives nearly $......
* Democratic socialism can succeed in the Mi......

* Now we can see why the Dems wanted Pritzker so badly to run for governor
* Rahm makes a joke out of Quinn's term-limit push, but voters could have last laugh
* Movie In The Park On Thursday At Chase Park
* Business Insider: 21 simple ways to earn passive income
* Graceland West Garden Walk Coming Up On August 5th
* One small college moves online — carefully
* When we run out of room for data, scientists want to store it in DNA
* The tech industry leads the way in revolutionizing student loan debt
* How to start a virtual coding boot camp in five easy steps
* 5 things every college must know about cloud computing


* Illinois Department of Human Rights Releases Important New Guidebook for Housing Providers
* Illinois State Fire Marshal announces $2.2 million in grants for fire safety
* Gov. Rauner vetoes SB 2368
* Governor takes bill action
* Gov. Rauner signs Quincy Veterans' Home bills

  
* Prepare to be sick — there’s now a VR water slide
* An online retailer takes pre-orders for the Sony Xperia XZ3, price and specs revealed
* DeepMind, Skype, and Tesla founders pledge never to build killer robots
* Bad news Wear OS fans: Samsung Gear Watch said to land with Tizen OS on Aug. 24
* Xiaomi says Mi A2 is coming July 24 (Update: Mi A2 Lite now confirmed too)
* Victoria teams up with Optus and Telstra for 28 new mobile towers
* Deal: Essential Phone 360 camera mod now $19 (was $199)

* On record-setting night, AL outslugs NL
* Willson Contreras contributes to a homer-happy All-Star Game won by...
* Abreu ends White Sox drought with ASG start
* Abreu inspiring for White Sox with All-Star start
* Skoug has big game for Kannapolis
* On record-setting night, AL outslugs NL
* Chris Sale gets a little tuneup in All-Star appearance


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller