HOUSTON – Dozens of Texas law firms grabbed millions in forgivable loans from the Paycheck Protection Program, some of which donated large chunks of cash to Democratic PACs shorty afterward.
Houston trial lawyers have long dumped money into First Tuesday – a PAC supporting the Democratic ticket.
Last week, Mark McCaig, an attorney and Republican Precinct Chairman in Harris County, uncovered numerous donations made to First Tuesday by area law firms, firms that received forgivable PPP loans from the Small Business Administration.
The firms, loan amounts and donations are as follows:
- On April 8, the Ammons Law Firm received between $350,000 and $1 million. On May 22, the firm contributed $100,000 to First Tuesday;
- On April 14, Raizner Slania, LLP received between $150,000 and $350,000. On June 19, the firm contributed $25,000 to First Tuesday;
- On April 7, Perdue & Kidd received between $150,000 and $350,000. On June 23, the firm contributed $50,000 to First Tuesday; and
- On April 29, Laminack, Pirtle & Martines received between $150,000 and $350,000. On June 26, the firm contributed $50,000 to First Tuesday.
Here’s a snippet of what McCaig had to say about the matter in his July 14 post: “The fact that these law firms had ample financial resources on hand to make generous political contributions just weeks after receiving ‘Paycheck Protection’ loans warrants investigation by the Small Business Administration into whether these law firms made truthful certifications about the necessity of the loans to support their operations.”
The Record reached out to the SBA, but the agency opted not to comment. And the SBA isn’t the only one keeping quiet.
In fact, three out of the four aforementioned law firms declined to even respond to requests for comment. Buffy Martines, a partner at Laminack, Pirtle & Martines, did, however.
Martines says her firm made a commitment to First Tuesday a year ago – a commitment they had to scale back because of COVID-19. She also says the money given to First Tuesday did come from the Paycheck Protection Program.
“That loan has gone to support our staff,” Martines said. “We have kept with the strictest requirements.”
First Tuesday aside, there was at least one other PAC that got a boost from Texas law firms who were also apparently in need of a coronavirus bailout.
Texans for Insurance Reform is a PAC that supports state legislature candidates who “aren’t afraid to stand up to the insurance industry and their corporate allies who have stripped away the laws that hold them accountable for their actions.”
Some of the PAC’s biggest financial supporters are attorneys who sue insurance companies for a living.
On April 15, Watts Guerra, a San Antonio law firm headed up by the often outspoken Mikal Watts, was approved for a $1-2 million PPP loan.
Nine days later, Watts Guerra made a $50,000 contribution to Texans for Insurance Reform, campaign finance records show.
On April 5, Baron & Budd was approved for $2-5 million in PPP funds. On June 30, the Dallas law firm donated $25,000 to Texans for Insurance Reform.
Neither firm responded to requests for comment.