Davis said he declined the appointment because he believed it would take him away from his lucrative medical practice.
But the loan offers a new example of how McDonnell’s personal finances became entangled with his public role as the governor struggled to keep up with payments on property investments he and his family made during the height of the real estate boom.
Davis’s loan also appears to have been handled differently than a subsequent $70,000 payment made to the same real estate company by Jonnie R. Williams Sr., the chief executive of a dietary supplement company.
Williams’s payment, as well as other money and gifts the executive provided to the governor’s family, are at the center of ongoing state and federal investigations.
While Davis said he was sent regular monthly repayment checks by MoBo Real Estate Partners, three people familiar with the Williams transaction have said he was not repaid any money before last month, when McDonnell apologized to Virginians for the gifts scandal and announced he had repaid $124,000 to Williams.
That payment was intended to return with interest Williams’s payment to MoBo, as well as $50,000 given by Williams to McDonnell’s wife Maureen in 2011.
McDonnell said neither Williams nor his company, Star Scientific, received special treatment and that he had broken no laws.
It also appears that McDonnell might have reported the loan from Davis on his financial disclosure form for 2010, whereas he did not disclose the loan from Williams in the same way.
McDonnell (R) has said the $70,000 Williams payment did not need to be disclosed because Virginia law does not require elected officials to disclose their corporate liabilities.
By that reasoning, it is unclear why he would have disclosed a corporate loan from Davis in 2010.
On his financial disclosure form, McDonnell indicated that he received a loan from an individual creditor employed in the “medical services” field in 2010. He checked a box indicating that the loan ranged between $10,001 and $50,000. Both would match Davis’s loan.
Virginia’s disclosure laws, considered some of the most lax in the country, make it impossible to confirm that the 2010 disclosure referred to Davis’s loan to MoBo.
While the law requires that elected officials disclose loans made to them and their families from individuals, it requires only that they disclose a creditor’s profession and not that creditors be named.
Rich Galen, a spokesman for McDonnell’s legal team, would not address whether the 2010 disclosure was referring to Davis or a different creditor.
He declined to comment on Davis’s loan beyond the governor’s July statement indicating that the loans from Williams to MoBo have been repaid with interest.