Charles Edwin Hurwitz | |
|---|---|
| Born | 1940 (age 85–86) 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 |
| Spouse | Barbara Raye Gollub |
| Children | 2 |
| Website | https://www.charleshurwitz.com/ |
Charles Edwin Hurwitz (born 1940) is an American businessman and financier known for his role in the 1980ssavings and loan crisis, and his takeover ofPacific Lumber Company, a logging company active inHumboldt County, California. He single-handedly destroyed the logging industry in Humboldt County which led to incalculable housing and drug crises.
His other holdings have includedKaiser Aluminum Corporation, apari-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 inRancho Mirage, California, overcoming opposition from residents, includingFrank Sinatra.[1]
Charles Edwin Hurwitz was born in 1940, and raised inKilgore, Texas.[2] His parents were Eva (née Engler) and Hyman Hurwitz, and his father wasJewish and owned a local clothing store, "Hurwitz Man's Shop" and he built the town's first shopping center.[3][4][5] Hurwitz attendedOklahoma University, graduating in 1962 with a degree inmarketing.[1][5] From 1962 until 1964, he served in the United States Army.[6]
Starting in 1965, he worked atBache and Company, as a stockbroker, and by age 27 he was the manager of a $54 million dollarhedge fund.[6][7]
Hurwitz has had a reputation as a "corporate raider" with excessive corporate takeovers and mergers, as well as a lot oflitigation.[1] He added Kaiser Aluminum to his holdings by 1988.[1][8] Other companies associated with Hurwitz includeMcCulloch Oil which became MCO Holdings, andSam Houston Race Park.[1][9][6] Hurwitz has real estate developments throughout theSouthwestern United States, Arkansas'Ozark Mountains, retail inWestern New York, golf resort in Florida, a resort and undeveloped land in Puerto Rico.[1]
Hurwitz gained control of theUnited Savings Association of Texas, the largest savings and loan in the state, in 1982.[2]
In July 1995, Hurwitz was sued by theFDIC 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 theHeadwaters Forest Reserve.[10] Ultimately in 2005, United States District JudgeLynn 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 byJohn Doolittle, andRichard W. Pombo, two members of theU.S. House of Representatives'House Resources Committee, alongside the former memberTom 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 theJack Abramoff Indian lobbying scandal.[16]
Hurwitz's company Federated Development built the 238-roomRitz-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 PresidentGerald Ford.[1] By October 1984, opponents lost the court fight.[1]
Hurwitz took overPacific 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 theHeadwaters 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 organizationEarth First! offered a $50,000 reward for "information leading to the arrest, conviction, and jailing of corporate raider Charles Hurwitz."[21]
Hurwitz married Barbara Raye Gollub in 1963 inTulsa, 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 onLake 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]