Charles Hurwitz

Last updated
Charles Edwin Hurwitz
Born1940 (age 83–84)
Kilgore, Texas, U.S.
Alma mater Oklahoma University
Employer(s) United Savings Association of Texas,
Federated Development,
Maxxam, Inc.,
Pacific Lumber Company,
Kaiser Aluminum Corporation
SpouseBarbara Raye Gollub
Children2
Website https://www.charleshurwitz.com/

Charles Edwin Hurwitz (born 1940) is an American businessman and financier known for his role in the 1980s savings and loan crisis, and his takeover of Pacific Lumber Company, a logging company active in Humboldt County, California.

Contents

His other holdings have included Kaiser Aluminum Corporation, a pari-mutual racing facilities in Texas, real estate developments throughout the Southwest and the Ozark Mountains in Arkansas; retail store complexes in western New York; a golf resort in Florida and a hotel-condominium resort and 1,300 acres developed in Puerto Rico. In 1988, his company Federated Development built a $75-million resort hotel in Rancho Mirage, California, overcoming opposition from residents, including Frank Sinatra. [1]

Early life and education

Charles Edwin Hurwitz was born in 1940, and raised in Kilgore, Texas. [2] His parents were Eva (née Engler) and Hyman Hurwitz, and his father was Jewish and owned a local clothing store, "Hurwitz Man’s Shop" and he built the town's first shopping center. [3] [4] [5] Hurwitz attended Oklahoma University, graduating in 1962 with a degree in marketing. [1] [5] From 1962 until 1964, he served in the United States Army. [6]

Starting in 1965, he worked at Bache and Company, as a stockbroker, and by age 27 he was the manager of a $54 million dollar hedge fund. [6] [7]

Career

Hurwitz has had a reputation as a "corporate raider" with excessive corporate takeovers and mergers, as well as a lot of litigation. [1] He added Kaiser Aluminum to his holdings by 1988. [1] [8] Other companies associated with Hurwitz include McCulloch Oil which became MCO Holdings, and Sam Houston Race Park. [1] [9] [6] Hurwitz has real estate developments throughout the Southwestern United States, Arkansas' Ozark Mountains, retail in Western New York, golf resort in Florida, a resort and undeveloped land in Puerto Rico. [1]

United Savings Association of Texas

Hurwitz gained control of the United Savings Association of Texas, the largest savings and loan in the state, in 1982. [2]

In July 1995, Hurwitz was sued by the FDIC in connection with the failure of the United Savings Association of Texas and the risky dealings. [10] Hurwitz alleged he was not in a position to have operating power at the United Savings Association of Texas, and he was not personally responsible for the 1988 collapse of the company which cost taxpayers $1.6 billion dollars. [11] Hurwitz also alleged this FDIC suit was motivated by the government's desire to gain control of the Headwaters Forest Reserve. [10] Ultimately in 2005, United States District Judge Lynn Hughes ruled in Hurwitz's favor, and ordered the agency to pay, "for its betrayal of the public trust, its vindictive political assault on a private citizen" - $72.3 million dollars in attorneys fees. [12] [13] This case had been closely watched by the steel workers union, who were suspect of Hurwitz on the collapse of the Kaiser Aluminum Corporation, a Maxxam, Inc. subsidiary company. [14]

In January 2006, Hurwitz was investigated by John Doolittle, and Richard W. Pombo, two members of the U.S. House of Representatives' House Resources Committee, alongside the former member Tom DeLay. [15] They subpoena the FDIC confidential records on the case, which was later eventually dropped. [15] It was not typical for politicians to hold similar investigations or subpoena the confidential records. [15] By 2007, John Doolittle and his wife Julie were being investigated for their inappropriate role in the Jack Abramoff Indian lobbying scandal. [16]

Federated Development

Hurwitz's company Federated Development built the 238-room Ritz-Carlton Rancho Mirage on 105 acres in Rancho Mirage, California. [1] In 1982, local residents including Frank Sinatra opposed the building and as a result, Federated Development donated 350 acres to the city as a wildlife corridor. [1] One of the limited partners of the hotel deal included President Gerald Ford. [1] By October 1984, opponents lost the court fight. [1]

Pacific Lumber Company

Hurwitz took over Pacific Lumber Company in 1985. [17] Pacific Lumber Company, a subsidiary of Maxxam, Inc. owned the largest grove of old-growth redwood trees in California, the Headwaters Grove (now known as the Headwaters Forest Reserve). [18] Prior to their takeover by Hurwitz Pacific Lumber had logged sustainably with an eye towards long term profitability. After their acquisition the company’s corporate strategy changed entirely with an emphasis placed on maximizing annual profits. [19] Clearcutting of redwood groves angered conservationists, activists, and the public; and led to a California bond issue to release funds to purchase the redwood forest for preservation. [20] The environmental organization Earth First! offered a $50,000 reward for "information leading to the arrest, conviction, and jailing of corporate raider Charles Hurwitz." [21]

Personal life

Hurwitz married Barbara Raye Gollub in 1963 in Tulsa, her hometown. [4] [22] [23] Together they had two sons. [24] His oldest son, Shawn Hurwitz (1965–2015) died at the age of 50, during a 2015 boating accident on Lake Austin. [24] [25] The family lived in Houston for more than 25 years, but also spending significant time in New York and Los Angeles for business. [1]

Hurwitz shies away from publicity and rarely gives interviews. [7] [1]

See also

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References

  1. 1 2 3 4 5 6 7 8 9 10 11 12 Delugach, Al (1988-05-30). "Charles Hurwitz--Publicity-Shy Empire Builder : Kaiser Aluminum's Bidder Is a Private Person but Controversy Follows Him". Los Angeles Times. Archived from the original on 2020-04-02. Retrieved 2021-04-17.
  2. 1 2 Harrris, David (1996). The Last Stand: The War Between Wall Street and Main Street over California's Ancient Redwoods. Sierra Club Books. pp. 23, 27. ISBN   9780871569448.
  3. ↑ "Kilgore/Longview: Historical Overview". Goldring/Woldenberg Institute of Southern Jewish Life, Texas Longview Encyclopedia. Archived from the original on 2014-07-20. Retrieved 2021-04-19.
  4. 1 2 Beach, Patrick (2004-04-06). A Good Forest for Dying: The Tragic Death of a Young Man on the Front Lines of the Environmental Wars. Knopf Doubleday Publishing Group. p. 35. ISBN   978-0-385-50618-2.
  5. 1 2 Meyers, Bill. "Money: the Charles Hurwitz story". Coast Magazine. Archived from the original on 1999-11-05. Retrieved 2021-04-17.
  6. 1 2 3 Abate, Tom (2005-06-12). "The financial wizard behind Pacific Lumber controversy". SFGATE. Retrieved 2021-04-17.
  7. 1 2 Draper, Robert (September 1994). "Charles Hurwitz, Whether it's harvesting ancient redwoods or bringing gambling to Texas, the low-profile CEO won't shy away from controversial deals". Texas Monthly.
  8. ↑ Greenhouse, Steven. A 15-Month Labor Dispute Turns Into a War of Attrition, New York Times, December 26, 1999.
  9. ↑ Jones, Kathryn (1999-06-01). "Charles Hurwitz Is a Greedy Clear-cutter. Charles Hurwitz Is a Caring Environmentalist". Texas Monthly. Archived from the original on 2015-10-03. Retrieved 2021-04-19.
  10. 1 2 "FDIC Sues Hurwitz for $250 Million" . Newspapers.com. Ukiah Daily Journal, Associated Press. 3 August 1995. p. 15. Archived from the original on 2021-04-17. Retrieved 2021-04-17.
  11. ↑ "Federal Judge Complains About FDIC Handling of Lawsuit Against Hurwitz" . Newspapers.com. Tyler Courier-Times, Associated Press. 9 November 1997. p. 31. Archived from the original on 2021-04-17. Retrieved 2021-04-17.
  12. ↑ "Maxxamum Justice". Wall Street Journal. 2005-09-02. ISSN   0099-9660 . Retrieved 2021-04-17.
  13. ↑ Gwynne, S. C. Tree Ring Circus, Texas Monthly, April 2006.
  14. ↑ Stucke, John (25 August 2005). "Judge Orders FDIC To Pay Hurwitz" . Newspapers.com. The Spokesman-Review. p. 8. Archived from the original on 2021-04-17. Retrieved 2021-04-17.
  15. 1 2 3 Serrano, Richard A.; Braun, Stephen (2006-08-14). "A Donor Who Had Big Allies, DeLay and two others helped put the brakes on a federal probe of a businessman. Evidence was published in the Congressional Record". Los Angeles Times . Archived from the original on August 14, 2006. Retrieved 2021-04-17.
  16. ↑ Whitney, David (10 May 2007). "Doolittles: Raid Aimed To Intimidate" . Newspapers.com. The Sacramento Bee. p. A1, A21. Archived from the original on 2021-04-17. Retrieved 2021-04-17.
  17. ↑ "Maxxam Buys 60% Of Pacific Lumber". New York Times Archives. December 6, 1985. ISSN   0362-4331.
  18. ↑ Geluardi, John (2009-04-30). "The Trial of Charles Hurwitz". North Coast Journal. Archived from the original on 2015-09-07. Retrieved 2021-04-17.
  19. ↑ Golden, Tim (6 February 1997). "Setback in Deal to Preserve California Redwoods". New York Times. Retrieved 24 January 2016.
  20. ↑ Pollack, Andrew (2 November 1990). "Save redwoods and aid a logger?". New York Times. Retrieved 24 January 2016.
  21. ↑ "Home". jailhurwitz.com.
  22. ↑ "Charles Edwin Hurwitz in the Oklahoma, U.S., County Marriage Records, 1890-1995". Ancestry.com. Marriage Records, Oklahoma Marriages, State of Oklahoma. 24 February 1963. Archived from the original on 2020-08-06.
  23. ↑ "Barbara Raye Gollub Bride of Charles Edwin Hurwitz" . Newspapers.com. Longview News-Journal. 10 March 1963. p. 31. Archived from the original on 2021-04-17. Retrieved 2021-04-17.
  24. 1 2 "Shawn Hurwitz Obituary (1965 - 2015)". www.legacy.com. Houston Chronicle. Archived from the original on 2021-04-17. Retrieved 2021-04-17.
  25. ↑ Baddour, Dylan (2015-10-11). "Shawn Hurwitz, prominent Houstonian, dead in Austin boat crash". Chron. Retrieved 2021-04-17.
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