Thursday, August 12, 2010
Mayor Steps Down
WEST VIRGINIA....
Bridgeport Mayor Jim Christie, who had served as secretary with the West Virginia Municipal League, has stepped down from the position after being under scrutiny since one of his companies, Comvest Limited Inc., filed for bankruptcy earlier this year. Christie says he doesn't want issues with Comvest to distract from the municipal league's work and agenda. After Comvest's bankruptcy filing, it was learned that the Municipal League had sponsored a marketing agreement with the company under which the League steered its member cities to do business with Comvest and received a fee in exchange. Comvest facilitated lease purchase agreements for public agencies and served as a middleman between lenders and city or county government agencies looking to buy equipment. Comvest set up the tax-free leases and then sold the paperwork to lenders at a markup. The public agency then appropriated money each year to the lender to pay for its equipment.
Bridgeport Mayor Jim Christie, who had served as secretary with the West Virginia Municipal League, has stepped down from the position after being under scrutiny since one of his companies, Comvest Limited Inc., filed for bankruptcy earlier this year. Christie says he doesn't want issues with Comvest to distract from the municipal league's work and agenda. After Comvest's bankruptcy filing, it was learned that the Municipal League had sponsored a marketing agreement with the company under which the League steered its member cities to do business with Comvest and received a fee in exchange. Comvest facilitated lease purchase agreements for public agencies and served as a middleman between lenders and city or county government agencies looking to buy equipment. Comvest set up the tax-free leases and then sold the paperwork to lenders at a markup. The public agency then appropriated money each year to the lender to pay for its equipment.
# posted by Homer Owens @ 7:25 AM 
