Texas congressman Hinojosa files for bankruptcy

[Psephos]

Source: Miami Herald

WASHINGTON -- An eight-term congressman who serves on the House Financial Services Committee has quietly declared personal bankruptcy, blaming his family meat company for his problems.

Rep. Ruben Hinojosa, D-Texas, has $2.9 million in liabilities, according to his filing last Dec. 18 in federal bankruptcy court. Almost all of the owed money, $2.6 million, is a claim by Wells Fargo Bank, the nation's fourth-largest bank.

The Financial Services panel has jurisdiction over legislation affecting banks. House aides and outside experts said the House has no rules forbidding a lawmaker who owes large sums to a bank from serving on that committee.

In a written statement, Hinojosa, 70, blamed his bankruptcy on a loan he personally guaranteed for H&H Meat Products Co. of Mercedes, Texas, which he says was forced into its own bankruptcy because of the recent economic crisis. He said he has not managed the company for the past 14 years but remained obligated by a bank line of credit.

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Read more: http://www.miamiherald.com/2011/02/03/2049363/texas-congressman-hinojosa-files.html

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If any good can come of this unfortunate situation, perhaps it will be increased Congressional awareness of just how brutal the economy is outside of Washington's insulated sphere.

[Gman]

1. It's likely that no Congressperson is more accutely aware of how brutal the economy is

than a congressman like Hinojosa from the Texas Rio Grande Valley, one of the poorest areas in the country.

[Psephos]

2. I meant awareness among others in Congress, as they hear about his trouble.

I'm sure Hinojosa himself needs no further elucidation.

[southmost]

3. that's my representative

this will probably be used as a liability toward his reelection in 2012

[trud]

4. from those assets

It sounds like he's honest.

[The Northerner]

5. This is saddening

Hopefully it won't affect his 2012 re-election campaign. :-(

[timo]

6. whoa hold up a second

H and H meats at one time was the Hispanic owned business of the year and got all kinds of contracts to cook mre's, this company went into a downward spiral WAAAAAYYYYY before the economy took a dive, H and H filed for bankruptcy itself 4 years ago


heres an article http://www.themonitor.com/news/mercedes-7832--.html?orderby=TimeStampAscending&oncommentsPage=1&showRecommendedOnly=0




In an unrelated case, Carlos Hinojosa, Liborio’s brother, was accused in 1999 of an investment scheme to cheat Texas investors. That case was later settled for more than $4.4 million.

Eyebrows also were raised after Rubén Hinojosa introduced his son, Rubén Hinojosa Jr., to promote H&H to a group of Chinese business leaders in July 2000 during a videoconference from the University of Texas-Pan American. The dialogue had ostensibly been organized as a way to try to get Chinese companies to buy products from South Texas firms.


Federal contracts that brought millions in yearly revenue in 2000 and from 2003 to 2006 dried up. The Department of Agriculture awarded the company some $19 million during those years while Rubén Hinojosa was in Congress. Hinojosa stepped away from the operations of the business when he was first elected to office in 1996, but retained shareholder status.

Other shareholders - U.S. Rep. Rubén Hinojosa, Rene Hinojosa and Jaime Hinojosa - will each make cash infusions of $170,000 to retain their shareholder status.


The trouble began with the mad cow disease scare about 10 years ago, crippling sales and forcing the company to venture into processed instead of fresh foods, the court records state. The company's financial problems only grew worse as it took on more short-term debt to try to offset the losses and help with the transition, Campero said.