University of Michigan coach Rich Rodriguez sued for defaulting on real-estate deal
University of Michigan football coach Rich Rodriguez is being sued for defaulting on a real-estate loan to build high-end condominiums in the shadows of Virginia Tech’s Lane Stadium.
One of five guarantors for a proposed 80-condominium gated community called The Legends of Blacksburg, Rodriguez and his partners allegedly owe Nexity Bank $3.9 million, including interest and penalties.
Rodriguez was served a summons and complaint in his football office at 5:27 p.m. on Aug. 24, court papers show. Michigan practiced earlier in the day.
According to court filings, The Legends of Blacksburg, LLC, signed a loan promissory note for $26.1 million in September 2007, when Rodriguez was coach at West Virginia.
In an addendum a year later, the loan obligation was reduced to $3.6 million. It matured in May and is collecting interest at $933 a day, according to complaint.
According to the Web site vatechcondos.com
The units start at $350,000 and range from 800- to 1,600-square feet, according to the Web site, which indicated that 52 of the 80 condos are reserved.
Rodriguez’s financial advisor, Mike Wilcox, released a statement through Michigan spokesperson Dave Ablauf late Monday, 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 said. “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 deal took place in December 2004, prior to Wilcox's becoming Rodriguez's advisor and legal counsel, according to Ablauf.
Along with Rodriguez, Ronald West, Floyd Elliott, Lamar Greene and Jeffery Greene are named defendants in the suit filed Aug. 13 in a U.S. District Court in Spartanburg, S.C.
Virginia Tech coach Frank Beamer, who is not named in the suit, appears on the Web site encouraging “fans, alumni and supporters” to “join me and live among the legends of Virginia Tech athletics.”
Dave Birkett covers the University of Michigan football team for AnnArbor.com. He can be reached at email@example.com
For more information, click on the PDFs of the court documents in this case attached below: