* 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.”