Patrick says he will resign post tied to Ameriquest
Democratic gubernatorial candidate Deval Patrick said yesterday that he will resign from the board of the firm that runs Ameriquest Mortgage Co., one of the nation's largest lenders, which has been accused of predatory lending practices.
Patrick, who joined the board in 2004 and has said that he ''never left my conscience at the door," announced he has completed what he set out to do in helping the California-based sub-prime-lending firm implement major reforms. He will leave by July 1.
''Ameriquest is on a path to be a better, more responsible company now," Patrick said in a statement. ''If they keep at it, they will be a model for the industry. I am proud of my role in keeping to set a better course."
Patrick not only defended his service on the ACC Capital Holdings board yesterday, but he also struck back at critics who have questioned why he was receiving lucrative director's fees from a company that has over the years faced allegations of defrauding members of minority groups, the elderly, and low-income people. Patrick has not detailed his compensation as a director, saying only that he collects more than $100,000 annually and attends four or five board meetings a year.
His announcement of his resignation was made less than three weeks before the state Democratic convention, where Patrick, who has drawn strong interest from activists, is expected to win the party's endorsement. The announcement also came just days before he is to participate in a second debate with other gubernatorial hopefuls, including Attorney General Thomas F. Reilly, who has sharply criticized him for his role at ACC Capital Holdings.
Reilly and other attorneys general reached a $325 million settlement with the mortgage company, resulting in the distribution of $12 million to Massachusetts homeowners who said they had been victims of predatory lending.
''One of the major differences between Deval Patrick and me comes down to one word, Ameriquest. While I fought them and helped get millions of dollars back for Massachusetts residents who were scammed by this predatory company, he was on their payroll," Reilly said in a statement.
''I find his mission accomplished declaration very troubling, because there is no evidence that this predatory company has changed," Reilly said. ''Today's announcement by Mr. Patrick doesn't end the need for him to disclose fully the specifics of his financial relationship with Ameriquest."
Patrick said he had understood that his joining the ACC Holding board ''would make some people uncomfortable" and that political opponents would use it against him. He also noted that his role at two Fortune 100 firms, Texaco and
''Progressives are sometimes uncomfortable in principle with people who work for companies," he said. ''Political rivals try to make it an issue. But I still believe that lasting reform requires the effort of good people both outside and inside. Whether at Texaco, Coca-Cola or Ameriquest, I have never left my conscience at the door."
''Many of our political leaders prefer to concentrate on getting and keeping office, rather than performing the hard work of devising real solutions to our most difficult challenges," Patrick said.
Patrick said he was asked by the firm's owner, Roland Arnall, to join the board to help Ameriquestclean house, first in reaching the settlement and then to implement systems to ensure that it does not engage in any unfair practices.
