ATLANTA - A Georgia bank's suit against a Republican running for Congress and a prominent leader in the state's Senate continues to generate comment on a number of fronts as does the issue of the contents of a campaign call on behalf of the other congressional candidate.
THE SUIT
The suit claims hey failed to repay a $2.3 million loan used to buy a budget motel.
A revised lawsuit filed last week by Bartow County Bank alleges that former state Rep. Tom Graves, state Senate Majority Leader Chip Rogers and two of their businesses are responsible for a loan taken out by Tich Hospitality LLC. The lawsuit lists Graves as a member of the company.
Graves is running against former state Sen. Lee Hawkins in a June 8 special election to fill the north Georgia congressional seat once held by Nathan Deal, who stepped down to run for governor.
Bank officials said in court filings that the loan is in default and that they want the defendants to pay the original balance, interest and its legal fees. It claims that Graves is insolvent and fraudulently transferred property, including his home in Ranger, in an attempt to make it more difficult for the bank to collect.
No hearings have been set in the case, although attorneys for the bank are seeking to question Graves and Rogers during a June 30 deposition.
Graves' campaign manager, Tim Baker, declined to answer questions Friday about the disputed property transfer or why the loan fell into default in the first place.
``I have filed my own claims against the plaintiff in this lawsuit because I suffered damages as a result of its broken promises to me,'' Graves said in a written statement. ``This country has a judicial system in place where business disputes like this lawsuit can be successfully and fairly resolved, and I am fully confident that a satisfactory resolution will be reached once all the facts have come to light.''
ROGERS REACTS
Rogers told reporters that the loan was taken to buy and renovate the Oglethorpe Inn in Calhoun and that he no longer has any ownership in the venture.
In court filings, Graves and Rogers said that Tich Hospitality first got the loan to buy real estate in Calhoun, then received several extensions before the loan was scheduled to become due. The firm said it was allowed to defer monthly interest payments it owed the bank.
Both men said the bank promised to refinance the loan at a better interest rate if they repaid the deferred interest. But when those payments were made, talks about refinancing the loan broke down, they said.
HAWKINS, GRAVES EXCHANGE BARBS
Graves has accused his political opponent Hawkins of spreading word of the lawsuit in an effort to weaken his candidacy and described it as gutter politics.
Hawkins denied publicizing the lawsuit, which he used to criticize Graves.
``It is inexcusable that Tom Graves is running to get elected to Congress and asking to manage the business of the people of the 9th District when he hasn't proven he can manage his own business,'' Hawkins said in a written statement.
JOHN LINDER'S ROBO CALL
Controversy also popped up Friday over a so-called "robo call" being made by Georgia Congressman John Linder to people in the 9th District on behalf of Hawkins.
In the phone message, Linder is heard disputing Graves' claim that he attended a Fair Tax Rally with Linder in Columbia, Mo. The message also states that the call has been approved by the Hawkins campaign.
Graves says Linder was misrepresenting the facts.
Posted on Graves' website is a video of Graves speaking at a Fair Tax Rally in Columbia on June 13, 2009. The website also includes the agenda for the rally which includes Graves on the line-up.
Friday, the Hawkins campaign posted the audio of the Linder call on its Web site.
Linder says in the robo call he does not dispute that Graves went to Missouri with him to attend a Fair Tax rally, but he does take issue with Graves saying in his campaign material and in speeches that Graves traveled the country with him.
Meanwhile, the Graves camp has posted a video taken at the Fair Tax rally on its website and some people in the 9th District report receiving a phone call from the Graves campaign with a response to the Linder message.
HAWKINS' STATEMENT
Late Saturday, Hawkins issued a statement saying "Congressman Linder does not dispute the fact that Mr. Graves was on the plane to Missouri, but rather that he did not know him or why he was on the plane. Congressman Linder was disturbed by the fact that Mr. Graves has been saying, through out the campaign, that he had traveled the nation with him. This is not true and Congressman Linder confronted Mr. Graves with this. Mr. Graves is not willing to change his story and tell the truth. Congressman Linder is a man of honor and integrity."
(AccessNorthGa.com's Ken Stanford contributed to this story.)