A Dubuque businessman who just won a seat in congress earlier this month is listed in a professional hockey player’s bankruptcy filing.
The Columbus Dispatch reports hockey star Jack Johnson, who plays for the Columbus Blue Jackets, has filed for bankruptcy after his parents — who managed his finances — apparently ran up huge debts in his name. The bankruptcy filing documents mention a $2 million loan that Rodney L. Blum made the family in March of 2011. Blum, who won Iowa’s first district congressional race this month, is a successful software developer.
The newspaper reports Blum’s office “did not respond to interview requests” and “it’s unclear” how Johnson’s family knew Blum or why Blum made a personal loan to the family, at a 12 percent interest rate. The newspaper reports that about a month after extending the loan, Blum sued. About $42,000 from the hockey star’s salary was garnished every two weeks during most of the past two seasons to repay the debt to Blum.
Blum’s spokesman, Keegan Conway, issued a written statement to Radio Iowa.
“Obviously this is a difficult time for the Johnson family,” Conway said, “and out of respect for their privacy Mr. Blum will not be discussing their private financial situation as the legal process takes its course.”
Hockey star Jack Johnson is 27 years old. The Columbus Dispatch reports his mother took out at least $15 million worth of high-interest loans in his name, using her son’s future earnings as collateral. The newspaper reports by this spring, the professional hockey player had little, if any, of his paycheck left after debt payments were made. He lists assets of just $50,000 and debts of at least $10 million in his bankruptcy filing.
(This story was updated at 11:57 a.m. with additional information.)