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Mollohan Made $1M-Plus in Real Estate in 2005

Ken Boehm, chairman of NLPC, said that Mollohan’s latest document release did not satisfy his group’s concerns. “It begins to show we were correct all along,” said Boehm of the fact that Mollohan had to file amended disclosure reports. “And the unanswered questions are the same as they have been all along — what is the relationship between his earmarks and his personal finances.”

Overall, Mollohan’s reported personal assets for 2005 were worth at least $8 million, and he reported liabilities in excess $3.43 million, according to his latest financial disclosure statement.

In 2000, Mollohan’s assets were worth a minimum of $179,000 and his liabilities totaled at least $170,000.

Roll Call calculates a lawmaker’s worth by using the minimum estimate for both assets and liabilities as provided by the annual financial disclosure forms, which allow lawmakers and staffers to use broad estimates for these items.

Mollohan also released a “Chronology of Real Estate Transactions” from 1999 to 2005 that provides far more detail than was previously available.

In that document, Mollohan said he and his wife, Barbara, as well as his third cousin Joseph Jarvis and Jarvis’ wife, formed a company called Remington Group LLC in 1996. The four co-owners contributed a combined $50,000 to start the company.

Jarvis had previously worked in real estate, but he ended up filing for bankruptcy in 1994, according to the Knight/Ridder Tribune News Service. A company owned by Jarvis received a $1 million earmark in 1995 thanks to Mollohan to develop software to help decommission Energy Department nuclear sites, and subcontracted most of that work out since it lacked the technical expertise to execute the contract.

Remington Group was formed to buy 17 renal units in The Remington, an apartment building in downtown Washington, D.C. Instead, the Remington Group bought the stock of Remington Inc., the company that actually owned the units. The Remington Group secured a $1.5 million mortgage to cover the purchase.

Over the next several years, the Remington Group and Remington Inc. purchased seven more units in the same building, including three owned by the Mollohans. In 1999, Remington Group and Remington Inc., were merged into one company, named Remington, Inc. The company secured a $2.3 million bank loan, and then bought an additional unit.

In 2001, Mollohan inherited interest in a West Virginia company that owned hotel property and a farm from his father, the late Rep. Robert Mollohan (D-W.Va.). Alan Mollohan has stated the he received a “sizable inheritance” from his father’s estate.

Late in 2002, the Mollohans began investing in the North Carolina beachfront property with Laura and Donald Kuhns. Altogether, the Mollohans and Kuhns have jointly purchased five lots in Bald Head Island, N.C.

The Mollohan’s vacation home fetches nearly $9,000 per week in rental fees during peak summer season. The couple is now selling the home and asking for $3.7 million, according to recent media reports.

The Mollohans claim a minimum value on all five Bald Head Island properties of more than $3.1 million. They also have mortgages on the properties of at least $2.2 million.

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