Valadao Settled Farmworker Wage-Theft Lawsuit But Never Paid Up, Declaring Bankruptcy on His Farm Instead
Earlier today, it was reported that former Rep. David Valadao and his family farm settled a lawsuit with their farmworkers for denying them a minimum wage and overtime pay to the tune of $325,000. BUT also that Valadao failed to pay the agreed settlement of $325k to his former workers, instead deciding to list the $325k settlement as a debt on his $13 million bankruptcy filing.
In response to why he didn’t pay his workers their owed settlement funds but then claimed it as a liability for his bankruptcy, Valadao and his campaign characterized the workers’ claims as simply “frivolous”.
While Valadao dismissed the claims of his farmworkers, he is now stating, in his 2019 candidate filing, that he has earned $30,000 from dairy farm operation so far this year.
But this isn’t the first time that Valadao and his failed farming operation stiffed Central Valley workers and businesses. In 2018, it was revealed that Valadao and his farm were sued for ripping off a local farm-supply business – allegedly receiving more than $1 million in products without paying the bill, where Valadao was accused in the lawsuit of “unjust enrichment”, “fraud”, and “intentional misrepresentation”. Then in another separate lawsuit, Valadao and his farm allegedly didn’t pay another bill worth $9 million.
“Throughout his political career, David Valadao repeatedly used his position to enrich himself, including taking out millions in loans while in public office and then stiffing Central Valley workers and small businesses and leaving them with the bag,” said DCCC Spokesperson, Andy Orellana. “When Valadao isn’t pushing the Trump Agenda on Central Valley voters, he’s taking a page from the Trump Playbook of abusing workers, shortchanging business partners and filing for bankruptcy instead of owning up to his debts and financial mistakes. It’s no wonder he supported Trump to the tune of 98% while in Congress.”
Read more about Valadao’s financial treachery BELOW or HERE.
Fresno Bee: California congressional candidate’s family farm walked out on $325,000 owed to workers
By Kate Irby // 09.26.19
Former Rep. David Valadao’s family farm has not paid a $325,000 settlement it agreed to with workers who accused the farm of denying them minimum wage and overtime pay. The case closed without payment to the workers in in April after the dairy declared bankruptcy, according to Santos Gomez, an attorney for the workers, and confirmed by Valadao’s campaign.
The Hanford Republican has said he was not involved with the day-to-day operations of the dairy while he served in the House of Representatives, but documents show Valadao signed for about $6 million in loans to the dairy while he held office.
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Valadao’s campaign characterized the workers’ lawsuit as “frivolous” in a written statement to McClatchy.
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His family’s Triple V Dairy and Two Star Dairy were sued along with David Valadao by Rabobank in November 2017 over unpaid loans, which eventually led to Triple V going bankrupt. Documents show Valadao personally signed off on at least five loans totaling $6 million from Rabobank since he was sworn in as a congressman in 2013.
When Valadao’s congressional office was previously asked about those debts, a spokeswoman for him repeatedly said he could not be involved in the day-to-day operations of the farm due to congressional ethics. His last financial disclosure form as a candidate, filed in 2018, listed no value to the farm but income of more than $5 million. Before that, Valadao said his stake in the farm was worth between $1 million and $5 million.
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Daniel Padilla, who is identified as a non-exempt dairy worker for the dairies Triple V Dairy and Two Star Dairy, filed the lawsuit in March 2017. Padilla accused Valadao of withholding accurate wage statements and wages owed to him and other dairy workers, in violation of labor laws.
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Jose Valadao, on behalf of the dairies, agreed to settle the issue in March 2018, denying wrongdoing but agreeing to pay $325,000 to the workers. But the attorney for Padilla, Santos Gomez, says none of it was ever paid due to the dairy filing for bankruptcy that spring.
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Rabobank seized the Triple V Dairy last year and Valadao filed for bankruptcy protection this year, citing $13 million in business debts. On the bankruptcy filing, Valadao listed the $325,000 settlement on a section detailing lawsuits, court actions or administrative proceedings of which he was involved.
Valadao in the past listed two dairies on his financial disclosure forms, the Triple V Dairy and Valadao Dairy. He now only declares the Valadao Dairy on his assets.
He said on his 2019 candidate filing that he has earned $30,000 from the Valadao Dairy so far this year. He does not claim a stake in the Two Star Dairy, the other farm involved in the wage lawsuit.
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