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Congressman's questionable real-estate deal now in foreclosure
By: Chris Stirewalt
Political Editor
10/15/09 10:22 PM PDT
Rep. Alan Mollohan, D-W.Va., once got into hot water for the huge gains he and his wife racked up on investment properties with allegations of hidden income.
Back then, Mollohan said that the reason for his multi-million jump in assets from 2000 to 2004 was because of his wife's real estate acumen.
The National Legal and Policy Center found that the value of one the 27 condos in DC which the congressman and his wife were part owners increased from between $2,002 and $30,000 to between $2 million and $10 million in just 10 years.
Of particular note in the Mollohans' holdings was a beach home worth millions on North Carolina's Bald Head Island, owned in conjunction with a former staffer who now runs a foundation that has received millions in Mollohan earmarks.
Now, we see that the house is in foreclosure and slated for a courthouse auction next week. You can read the legal notice here.
One theory as to why the Mollohans find themselves in such a strait -- the down real estate market took a bite out of all real estate speculators, but with the ongoing federal scrutiny of the congressman's finances and those of his associates and earmark beneficiaries may have had an effect on the couple's cash flow.
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