Tuesday, September 1, 2009
Rodriguez sued for defaulting on real-estate deal
By ESPN.com staff
Posted by ESPN.com's Adam Rittenberg
As if this week couldn't get worse for Michigan head coach Rich Rodriguez, there's this.
Annarbor.com reports that Rodriguez is being sued for defaulting on a loan he and four partners used to build a gated community of luxury condominiums near Virginia Tech's Lane Stadium in Blacksburg, Va. According to court records, Nexity Bank wants to collect $3,930,103.59 from Rodriguez and his partners, a sum that includes funds from a promissory note as well interest and late fees totaling approximately $300,000. The amount doesn't include attorney fees or court costs.
Records show The Legends of Blacksburg LLC signed a promissory note for $26,100,000 in September 2007.
Rodriguez's financial adviser, Mike Wilcox, issued a statement through Michigan on Monday night saying Rodriguez is the victim of a real-estate Ponzi scheme.
"Several other coaches and prominent individuals are involved in this transaction that was initiated in 2004," Wilcox's statement reads. "This is a personal issue, and as Coach Rodriguez’s financial advisor, I and his legal counsel will be handling this matter moving forward. We are evaluating legal actions and solutions since the promoter of the scheme is currently awaiting trial on criminal charges."The gated community contains 80 luxury condos that have balconies featuring views of Lane Stadium. The community's Web site, which has since been taken down, invites prospective buyers to "Live Among Legends" and contains a letter from Virginia Tech football coach Frank Beamer, who isn't named in the suit
Rodriguez and four others are named in a lawsuit filed Aug. 13 at U.S. District Court in Spartanburg, S.C.