by Rachel Kytonen
Sen. Sean Nienow, R-Cambridge, his wife Cynthia Nienow, and their company, National Camp Association Inc., have been named in a lawsuit filed Jan. 17 in U.S. District Court in Minneapolis.
The civil complaint, signed by Acting United States Attorney John R. Marti, explains that around Jan. 16, 2009, the Small Business Administration, through U.S. Bank, provided a loan in the amount of $613,000 to National Camp Association.
Nienow signed the note as president and secretary of the association. The loan was personally guaranteed by Sean and Cynthia Nienow, and the business address was listed along the 100 block of Sixth Avenue Southwest, Cambridge.
The suit states that the Nienows ceased making payments around July 28, 2010, and have defaulted under the terms and the conditions of the note.
Although demand for payment was made, the Nienows have not complied and owe the U.S. an unpaid principal balance of $558,076 and administrative costs of $189,681.
In a statement released late Monday, Nienow said: “I have not yet received a copy of the legal filing in question, but it is clearly not related at all to any of my Minnesota legislative duties. As with all pending actions of this sort, discussion of any details cannot take place until it is fully resolved.”
National Camp Association has been described as a business aimed at helping parents find camps for their children. The association was dissolved in 2012, according to records filed with the Minnesota Secretary of State’s Office.
According to records filed in Isanti County District Court, a business named National Camp Association Inc., a New York corporation, named Nienow and National Camp Association Inc. of Cambridge in a civil complaint filed Dec. 6, 2011.
On June 5, 2013, a summary judgement was granted by Judge Edward Bearse in the amount of $30,000 and a judgement in the amount of $7,755 was awarded by Bearse on Dec. 24, 2013.
Nienow, who resides in Cambridge and represents Senate District 32, served in the state Senate from 2003-2006. He was elected again in 2010 and in 2012. He will be up for re-election in November 2016.