Capitol Fax.com - Your Illinois News Radar » Casten hit again on business deal
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Casten hit again on business deal

Wednesday, Sep 26, 2018

* Greg Hinz

Democratic congressional candidate Sean Casten has been less than fully candid about a soured business deal that apparently left dozens of investors suffering millions of dollars in losses, financial records made available to Crain’s suggest.

Letters to shareholders sent by the Casten-headed Recycled Energy Development in late 2016 indicate that while preferred interest holders in the LLC would get their principal back with 15 percent annual interest when the sale of the company closed, common interest holders would get little if any return on their investment.

In fact, the roughly three dozen common interest holders in the company lost their entire stake, according to individuals close to the privately held firm. That differs from what Casten strongly implied in an earlier blog post and statement in response to inquiries about the company.

* Roskam campaign…

While “successful entrepreneur” Sean Casten has denied his investors’ lawsuit against him citing business mismanagement and breach of fiduciary duty, Crain’s Political Reporter Greg Hinz dug deeper to find that shareholders of his failed company, Recycled Energy Development, reported the meltdown cost them millions of dollars—but while they lost it all, Casten still made millions.

Crain’s obtained financial documents and letters that show Casten wasn’t being truthful when he said the lawsuits against him were nothing more than “an attempt at a hostile takeover,” “it ended amicably,” and his investors “still made money.” […]

“Casten has been sued for mismanagement, misconduct and a breach of fiduciary duty, which he has tried to cover up repeatedly as an amicable disagreement,” said Roskam for Congress Spokesman Veronica Vera. “Amidst his energy business meltdown, Casten chose to protect himself and his money over his investors.”

- Posted by Rich Miller        

14 Comments
  1. - Lt Guv - Wednesday, Sep 26, 18 @ 11:23 am:

    That’s gonna leave a mark.


  2. - Precinct Captain - Wednesday, Sep 26, 18 @ 11:34 am:

    You invest and sometimes you lose. That’s how business works. Of course, career politician Peter Roskam wouldn’t know that. He’s been too busy spending a lifetime on the government dole, rigging the rules in favor of the already ultra wealthy, and stifling the ability of small businesses to grow.


  3. - Slugger O'Toole - Wednesday, Sep 26, 18 @ 11:58 am:

    What PC said, adding Roskam needs to be careful here. His buddy Trump skipped on billions of dollars declaring bankruptcy six times over the years (according to a 2016 WaPo report).


  4. - Chicagonk - Wednesday, Sep 26, 18 @ 12:00 pm:

    It would be interesting to see the original prospectus sent to the common interest holders.


  5. - Lt Guv - Wednesday, Sep 26, 18 @ 12:35 pm:

    While I concur that financial investment involves various levels of risk, the way this is framed raises doubts about Casten’s veracity. However, we’ve elected Rauner & Trump. We keep getting beaten over the head with reminders that veracity doesn’t matter anymore.


  6. - TominChicago - Wednesday, Sep 26, 18 @ 12:44 pm:

    Slugger I just don’t see Casten suggesting that he and Trump have anything in common.


  7. - SSL - Wednesday, Sep 26, 18 @ 12:48 pm:

    Casten has plenty of noise around him. Does he truly believe the things he says, or is he just choosing his words poorly? Comparing an abortion to gall bladder surgery is flippant at best, and just plain ignorant otherwise. Comparing Trump to Bin Laden was another attempt to pander to a base that was misguided.

    Being a bad businessman is one thing, being an unscrupulous businessman should be a concern to the voters.

    We won’t know the full story before the election, but being less than candid on this large of a character issue is problematic.


  8. - Last Bull Moose - Wednesday, Sep 26, 18 @ 2:08 pm:

    Hiding facts that are in public records is never smart.

    I suspect Roskam has had the details for months. His ads lacked specifics, now he can quote Crains.


  9. - cannon649 - Wednesday, Sep 26, 18 @ 2:50 pm:

    Timing is everything.

    How did Casten get picked to even run?

    Hiding this type of stuff should be deal breaker and party officials should know it.


  10. - VanillaMan - Wednesday, Sep 26, 18 @ 3:14 pm:

    He’s a fake.
    I knew it.
    He was too smooth to be believed.
    Every new trend that catches on become attractive to grifters like Cassens. It takes a while for realkty to shake them out.

    If this was 1850, Cassens would be peddling a miracle elixer composed of coal oil, tobacco juice, and creek water.


  11. - HawkeyeForEver - Wednesday, Sep 26, 18 @ 4:12 pm:

    I don’t know the details, but it seems like Greg Hinz is sensationalizing information that a writer for a business publication should have a better handle on.

    Recycled Energy Development was a private company. People buying common shares in it should have been “accredited investors” aware of the risks. Among those risks: You are in line behind preferred shareholders and debt holders in getting paid if a company is sold. Hinz does at least acknowledge that common shareholders having “to wait at the end of a long line to try to recover their investment” is “often the case in startups.”

    Hinz cites “individuals close to the privately held firm” and “sources,” but doesn’t name names. If there are disgruntled investors, why wouldn’t they go on the record?

    I think Roskam and the Congressional Leadership Fund have already played out the “shady businessman” angle. This election is going to be a referendum on Trump and Roskam’s role as a House Republican leader in pushing forward the Trump agenda. I think the people of the 6th District favor Casten’s policy positions and that will be what carries the day.


  12. - #1 anon - Wednesday, Sep 26, 18 @ 4:52 pm:

    The issue is entirely Casten telling the public that the people who sued him “still made money” when, allegedly, they lost their entire investment. Maybe his puffing up his successes and downplaying his failures matters, maybe it won’t but that’s the issue. It is not that sometimes you invest and sometimes you lose.


  13. - Barrington - Wednesday, Sep 26, 18 @ 5:35 pm:

    There are just a few signs out in Barrington. They are 50/50 Casten/Roskam. That is surprising.


  14. - HawkeyeForEver - Wednesday, Sep 26, 18 @ 9:35 pm:

    #1 anon writes, “The issue is entirely Casten telling the public that the people who sued him ’still made money’ when, allegedly, they lost their entire investment.”

    The court proceedings on the lawsuit indicate that the person who sued Recycled Energy Development was a preferred investor, so I would assume he did make money.


TrackBack URI

Sorry, comments for this post are now closed.


* Former Dem Senator arrested on meth possession charges
* It's Time To Put Our Progressive Values Into Action
* Unclear on the concepts
* Question of the day
* The other ones
* Pritzker issues new EO to study economic, workforce development
* Caption contest!
* *** UPDATED x2 *** SUBSCRIBERS ONLY - New House GOP leaders and Senate Dem chairs
* "The Original Soda Taxer"
* More on the step increases
* It's time to end this free ride
* Barickman's path forward
* Why didn't Pritzker specifically mention pensions Monday?
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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

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


Loading


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

Archives
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
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