77°
66º | 77°
53° | 63°
Former Texas Lieutenant Governor, David Dewhurst, is facing legal challenges, including civil bankruptcy fraud and embezzlement charges, after a series of financial setbacks.
In February, Dewhurst, his brother Gene Dewhurst, and his longtime accountant/CFO Curt Beck were deposed by COTEMAR S.A. de C.V. Following the depositions, COTEMAR S.A. de C.V. filed an action within the bankruptcy against David Dewhurst, alleging bankruptcy fraud, embezzlement, and related fraud counts.
Dewhurst, who co-founded the diversified energy and investments company, Falcon Seaboard, with Ted Law in 1981, has seen his fortune decline drastically due to business failures and debt obligations.
In 1982, Dewhurst's oil drilling company, Trans-Gulf Supply Co., filed for bankruptcy, leaving him with $7 million in debt to creditors. Despite this setback, Dewhurst was elected Texas Land Commissioner from 1998 to 2003, and later served as the state's Lieutenant Governor from 2003 to 2015. During this time, Dewhurst amassed a self-reported fortune of $200 million and married Patricia Bivins, the widow of former Senator Teel Bivins.
In 2012, Patricia Dewhurst loaned her then-husband funds from her personal trust to support his Senate campaign, which he ultimately lost in the primary to Ted Cruz. A year later, Dewhurst found himself embroiled in a controversy when he contacted a police sergeant and identified himself as the lieutenant governor, asking for the release of his stepsister's daughter-in-law, who he claimed had been incarcerated on a "mistaken charge.” David and Patricia Dewhurst, now Tricia Bivins, divorced in 2016.
Despite the controversies, Dewhurst continued to pursue his business ventures, personally guaranteeing a $5 million loan for an oil drilling venture in April 2018. However, no payments were made, and in August 2019, Dewhurst was in default on more than $13 million in debt to Patricia and COTEMAR S.A. de C.V. During the same time, Dewhurst was appointed as Chairman Designate of MBP Titan LLC, a newly formed company that aimed to capitalize on the Methane Bioconversion Platform of Intrexon.
Tricia Bivins filed a lawsuit in Harris County in 2019 alleging that Dewhurst failed to pay $6.7 million that he agreed to as part of their divorce settlement. The amount included repayment of a $2.9 million business loan she made to him and $555,000 in back alimony, according to reporting by the Texas Monitor. Bivins also claimed that Dewhurst failed to pay two other personal loans, two separate lump sum alimony payments, and monthly alimony payments.
According to MBP Titan CEO Randal J. Kirk, Dewhurst's subscription agreement alone would have taken the company’s capital balance to "something in the 60s” million dollars before any additional investments. However, Dewhurst's investment and role in the company was later reduced.
In June 2022, COTEMAR S.A. de C.V. filed an involuntary bankruptcy petition against Dewhurst in the Southern District of Houston Bankruptcy Court. The court ordered the repossession of Dewhurst's Mercedes cars, the sale of his estimated $300,000 wine collection, and the sale of his personal belongings by Rosen Auctions.