State Sen. Tom Wiens is being sued in federal court by a former business contact who contends fraud and breach of contract by Wiens caused him and others $12 million in damages, according to court records.
The suit, filed in Boston, is the latest in a list of legal problems and allegations of business mismanagement that have plagued Wiens over the years.
The first-term senator from Castle Rock said Thursday that the federal suit was “frivolous” and that all previous charges and lawsuits levied against him have turned out to be baseless.
“I would hope that you mention that all of those allegations, and things that people have charged me with, have been found not true,” he said.
The current lawsuit, filed by Massachusetts resident John Silvia Jr., alleges Wiens agreed to protect him from lawsuits and costs arising from their business transactions. He also claims Wiens “fraudulently transferred real estate and other assets” to hide them from creditors, resulting in “substantial damages” to Silvia.
Calls to Silvia’s lawyer were not returned.
“The suit has no merit, and I expect it be thrown out,” Wiens said.
A 2002 look into Wiens’ businesses and finances by The Denver Post found bankruptcies, liens and charges of business mismanagement by former employees.
InteleCom Corp., a telecommunications company headed by Wiens, filed for bankruptcy protection in 1985. As a result, Wiens filed for personal bankruptcy as well. Ten years later, a $208,000 federal tax lien was filed against him for unpaid employee withholding taxes but was released a week later.
In 1997, Wiens became chairman and chief executive of Recycling Industries, which bought scrap yards to recycle metals. Along with his $288,000 yearly salary, Wiens and the company floated more than $200 million in debt and acquired about 12 businesses.
The success was short-lived. Metal prices fell months later, forcing Recycling into Chapter 11 bankruptcy protection in 1999. About 450 people lost their jobs.
Before the case was settled, Wiens set up a technology company, Intelliready. He also started Reliable Power Systems, a maker of energy backup products that soon closed its Colorado operations.
Scott Campbell, Intelliready’s chief executive, filed suit against Wiens in 2001, contending Wiens was moving its money into other businesses. Wiens said Thursday that the suit was “not true” and that it was closed after he paid $50,000. Campbell could not be reached for comment.
A lawsuit for back pay initiated by former employee Mathew V. Elledge was later dropped, Wiens said. Elledge did not return a call from The Post.
Liens against Wiens popped up again in the late 1990s. In 1996, he built a 9,000-square- foot house on his 1,000-acre ranch that was assessed at $1.3 million. Wiens then spent $1.3 million on construction, including a horse arena, five years later. Contractors filed liens for $50,000 against Wiens’ ranch. They were released days or weeks after they were filed.
Staff writer Joey Bunch contributed to this report.
