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Capitol View®
Tom Scheck

U.S. Attorney wants state senator to immediately pay $748,000 to federal government

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The U.S. Attorney is asking a federal district court judge in Minneapolis to force state Sen. Sean Nienow, R-Cambridge,  and his wife, Cynthia, to immediately pay the government $747,937.62 because they stopped paying back a government small business loan.

In court records filed this morning, Assistant U.S. Attorney Ana Voss, wrote that Nienow, his wife and representatives from his business, the National Camp Association, did not respond to a civil complaint filed on Jan. 17.

“More than 21 days have elapsed since that service, and no answer or other pleading or notice of appearance has been served upon me or on the United States; accordingly, the defendant is in default in the premises, and the United States is entitled to judgment sought in the complaint.”

The complaint says  Nienow, his wife and The National Camp Association  took out a loan in 2009 from the Small Business Administration  for $613,000 to help with their business. The complaint says they stopped making the $7,589 monthly payments in July, 2010. The U.S. Attorney is seeking the $558,076 in principal and an additional $189,861 in fees.

The summons issued in January said Nienow was required to file a response to the complaint by March 25. By failing to do so, Voss wrote in the complaint that Nienow and his wife owe the government for the loan, additional fees and court costs.

Nienow said that he hasn't seen the latest filing.

“I have not seen anything yet,” Nienow said.

Nienow said little about the complaint when it was filed in January. He is now acknowledging that his business, National Camp Association, was not profitable.

“Well the reality is, there was a business loan, and the business did not succeed,” Nienow said.

When asked how he intends to pay back the loan and handle the complaint, Nienow said “that will be worked out as we go forward."

Nienow first served in the state Senate from 2003-2006 but lost his re-election bid. He won back the seat in 2010 and was re-elected in 2012. His campaign website says the state “must create an employer-friendly environment to expand the Minnesota economy. We need to restructure our tax, regulation, permitting & licensing, and work to make get state bureaucracies in a supporting role for job creation rather than a barrier to job creation.”

Nienow’s Statement of Economic Interest lists him as Director of the National Camp Association. The company was created to help parents find camps for children.

Here's the filing from the U.S. Attorney: