A Maryland woman is suing Prince George's County Council Chairwoman Ingrid Turner for $2.2 million over two unpaid loans taken out by her brother's development company.
Turner, who represents the 4th District on the council, is one of three people who signed papers guaranteeing to pay for the two loans taken out in 2003 if they defaulted, according to court documents obtained by The Washington Examiner.
Turner & Associates, a now-bankrupt limited-liability company that was owned by Turner's brother Henry Turner, filed for Chapter 11 bankruptcy protection in 2007. Payments have not been made on the two loans, totaling about $1.9 million, since then.
Ingrid Turner, Henry Turner and his wife, Winifred, all guaranteed the two loans and are being sued over them, according to a complaint filed in the Prince George's County Circuit Court. The plaintiff, Shelly Muffley, of Crownsville, Md., is seeking a judgment to recover the unpaid principal plus interest, late fees, real estate taxes and attorney's fees.
Muffley became the owner of the loans in October 2008 after K Bank and K Capital Corp. in Owings Mills sold them to her father, court documents said. K Capital Corp., the parent company of K Bank, filed for bankruptcy last year, according to news reports.
Muffley did not return a call seeking comment.
It's typical for creditors, following a business's bankruptcy, to seek a judgment from those who guaranteed loans the debtor is unable to pay.
Ingrid Turner, who was not a member of the County Council when she guaranteed the loans, said she played no role in running her brother's development business. She plans to fight the judgment.
"I just helped him get financing," she said. "As his sister, I was supporting his vision."
The council chairwoman said she only recently learned of the court filings against her. "It's a family matter that my attorneys are looking into."
Henry Turner, who recently retired from the military and also made an unsuccessful run for Prince George's County executive last year, declined to comment.
Now that a judgment has been filed with the court, the Turners have several options, including paying Muffley or filing for personal bankruptcy, according to one bankruptcy attorney.