Eric Hovde, the Republican banking executive challenging Sen. Tammy Baldwin in Wisconsin, may be developing a problem with older voters.
The bank he leads, Utah-based Sunwest, last month was named as a co-defendant in a California lawsuit that accuses a senior living facility partly owned by the bank of elder abuse, negligence and wrongful death.
Hovde’s campaign called the suit meritless and said it was farcical to hold the chair and CEO of a bank responsible for the actions of a business that it seized in a foreclosure in 2021. Whatever its merits, the suit might have been largely irrelevant to Hovde’s political campaign had he himself not boasted recently of having gained expertise in the nursing home industry as a lender to such residences.
In comments this month in which he suggested there had been irregularities in the 2020 election, Hovde drew on that experience to say that residents of nursing homes “have a five-, six-month life expectancy” and that “almost nobody in a nursing home is at a point to vote.” Those remarks were quickly condemned by Democrats in Wisconsin and by former Milwaukee Bucks star Kareem Abdul-Jabbar.
The recent pileup of problems is an inauspicious start to a campaign that Republicans hope will help wrest control of the Senate from Democrats. Hovde is one of four affluent Republicans who are running to unseat Democratic incumbents, in Ohio, Montana, Pennsylvania and Wisconsin.
Each of those states either leans heavily Republican in the upcoming presidential contest or is rated a tossup, and the loss of any one of those seats could cost Democrats control of the Senate. The deep pockets of candidates like Hovde will ease the GOP’s heavy fundraising burden as the party confronts Democrats’ early financial advantage.
But Hovde’s stumbles point to a difficulty with that self-funding strategy: With business wealth and business experience come business problems.
The wrongful death lawsuit is a case in point.
In 2021, Sunwest Bank seized the property of a 68-bed assisted living facility in Claremont, California, after its owners failed to repay a $6 million loan. The next year, Betty Nottoli, a 94-year-old woman with dementia, moved into the renamed Claremont Hacienda, then owned in part by a newly created subsidiary of Sunwest.
According to a lawsuit filed by her daughter, Patricia Chiuppi, Nottoli had a series of falls that Chiuppi says were caused by neglect. Court documents assert that the staff of the facility failed to install pull cords, pendants, bedrails or a bed alarm even after a fall in March. Then, on the night of April 4, 2022, another fall broke Nottoli’s hip, “which ultimately led to her death on June 19, 2022,” court documents say.
Ben Voelkel, a spokesperson for the Hovde campaign, said in a statement that there was “no basis for this claim.” He added: “The lawsuit fails to identify the circumstances surrounding the incident. It admits that they are unknown.”
Lisa Flint, the lawyer representing Chiuppi, declined to comment at length, saying discovery in the suit was just beginning, with a trial date set for March 25, 2025.
“The documentation from the facility showed bruising, injuries to arms, head, but no real investigation into her falls,” Flint said.
Initially, only Claremont Hacienda and its parent companies were named in the suit, but on March 25, Flint amended the complaint to name one of the place-holder defendants: Hovde’s Sunwest Bank, identified legally as one of the “owners, officers, administrators, managers and/or members” of the elder care facility.
A lawyer for Sunwest, Robert S. McWhorter, said the bank had yet to answer the lawsuit because Flint had yet to serve it the papers. He said the lawsuit was frivolous, that Sunwest should not have been named, and that the complaint does not allege direct involvement by Sunwest.
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