GOP candidate Lynch facing foreclosure suitby George Bennett | April 9th, 2010
Republican congressional hopeful Ed Lynch is facing a foreclosure lawsuit but says he’s attempting to work out a loan modification to stay in his house.
Lynch, who’s running in Tuesday’s special election to replace Robert Wexler, has missed mortgage payments since last June and owes $647,974 in principal, interest and other advances, according to a suit filed March 30.
“We’re just like anyone else. We’re not on a pedestal. We’re not holier-than-thou. We’re not different from anybody else except that we trusted the federal government,” said Lynch, who says his contracting business is owed at least $2.8 million for work on a veterans hospital in Miami.
“Money gets tight when our biggest customer doesn’t pay us,” Lynch said.
Lynch’s finances drew criticism from his two rivals in the Feb. 2 GOP special primary race and were the subject of a negative mailer from Democratic general election foe Ted Deutch. No-party candidate Jim McCormick is also running in Tuesday’s election.
The federal government has filed liens claiming Lynch owes $1.365 million in taxes from 1999 and 2000. Lynch says auditors overestimated the value of a business he sold and he has fought the IRS on the matter. Lynch says the dispute has been settled and he will not owe any back taxes and is merely waiting on paperwork to confirm his victory. The IRS won’t comment.
Lynch’s DeLeon Industries has been hit with $143,617 in court judgments ordering it to pay subcontractors. Lynch says he hasn’t been able to pay the subcontractors because of his dispute with the government over the veterans hospital.
Lynch’s attorney, Christopher Sharp, said earlier this year that DeLeon Industries had contracts for $3.7 million and was paid about $2.9 million before encountering delays that Lynch blames on the Department of Veterans Affairs. Sharp said DeLeon Industries is now seeking about $2.8 million from the government.
Lynch said he is also seeking $2.2 million for lost profits from two other contracts that he said the VA promised to DeLeon Industries but then awarded to another firm.
Lynch has accused the government of dragging its feet in paying him because he criticized conditions at the hospital. A hospital spokesman declined comment earlier this year and wasn’t immediately reachable today.
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