More on the Westlake lawsuit

In a followup to a story I posted yesterday, Dave Umhoefer of the Milwaukee Journal Sentinel has obtained the complaint filed in the lawsuit against Republican U.S. Senate candidate Dave Westlake by Fawaad Kahn, Westlake’s partner in High IQ, LLC, the small business Westlake co-owns and manages. Along with the complaint, additional exhibits have been posted, including emails between Westlake and Kahn relating to High IQ.

Most interesting to me is a passage on page 40 of the exhibits, which happens to be an email sent from Fawaad Kahn to Dave Westlake on November 24, 2008, in which Kahn alleged Westlake had been utilizing High IQ’s business line of credit for Westlake’s own personal expenses, in violation of an SBA loan agreement. In a subsequent email Westlake denies Kahn’s allegation, noting the business’s line of credit was utilized by Westlake to “make guaranteed payments (owner’s compensation)” to Westlake. Later in the exhibits (page 54) Kahn goes on to criticize Westlake’s “bungled and slipshod book-keeping–or lack thereof.” Harsh words indeed, especially given Westlake’s pledge to go to Washington, D.C. to end fraud, waste, and abuse. After all, how would Westlake be able to root out fraud, waste, and abuse in the federal government’s books if he can’t manage his own?


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2 thoughts on “More on the Westlake lawsuit

  1. Things get even thicker. From today’s Watertown Daily Times, David B. Westlake IV responds to pending litigation thusly:

    “My business partner, Fawaad Khan, and I have had an ongoing disagreement spanning several years regarding the company that we share ownership of,” Westlake said. “Arguments between business partners are not unique. Lawsuits between business partners are not unique. This appears to be nothing more than another such instance and timed specifically to try to hurt our campaign efforts.”

    So we’re to take it that Khan, a resident of Illinois, is suing Westlake for political reasons? Interesting.


    “Unfortunately, many of my clients have completely gone out of business, which gives me a unique, if not macabre, insight into just how tough things are on ‘Main Street’ right now,” he added. “This is intensely motivating for me to do whatever is necessary to get our economy back on track immediately. Too many people have gone too long without employment and they see their American dream suffering. Fixing unemployment and this economy is my No. 1 priority as a candidate.”

    Still on message though. And the free publicity doesn’t hurt either, considering you have just $2000 campaign cash on hand.

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