WASHINGTON — A retired two-star general is seeking to depose North Texas Congressman Pat Fallon over a business dispute involving one of the freshman Republican’s apparel companies.
Two star General Timothy Haake filed the petition last month in an effort to investigate potential claims of fraud, breach of fiduciary duties and interference with contractual relationships, the document said. Haake is also seeking to depose Fallon’s wife, according to the petition filed in Denton County.
Fallon, R-Frisco, denied any wrongdoing. His attorney, Jason Freeman, called the petition a “political shakedown” that arose only after Fallon was elected to Congress in November 2020.
According to Haake’s petition, the dispute stems from an apparel company Fallon and Haake formed together in 2008, Recon Sportswear and Jackets LLC, and a business agreement the two entered into later that year with Recon and an additional company, American Airborne Store.
Haake claims he was granted a “10% ‘profits interest’ in Recon and American Airborne” in the 2008 agreement, as well as 10% “capital interest” in any other entity Fallon might later form that does business at the Fort Benning U.S. Army Base in Georgia. Haake claims he’s also entitled to receive certain consulting fees tied to the gross revenues of all the Fort Benning companies.
The case is not a lawsuit; the allegations were brought forth in a petition for oral deposition that said the Fallons’ testimony is necessary to understand the financials.
Fallon said he filed for arbitration, in which a third party would hear the dispute and render a binding decision, and is confident the outcome will be in his favor.
“Mr. Haake’s allegations are not supported by actual facts—only politically-motivated allegations,” Freeman said in a statement to The Dallas Morning News. “Mr. Haake didn’t make this claim for 13 years, then began asserting that he was owed consulting fees going back a decade-plus. He was not. And Congressman Fallon refused to pay him because the claims were untrue.”
Wade McClure, Haake’s attorney, said this is a simple matter that should’ve been resolved long ago. He said in a statement to The Dallas Morning News that Haake requested information about Fallon’s Fort Benning businesses after Fallon called Haake last year to say he’d been elected to Congress, and that he wanted Haake to sell his interest in the companies.
“Rule 202 is a vehicle under Texas law that enables a party to conduct some initial discovery to determine whether, and to what extent, any dispute exists,” McClure said. “We would have preferred Mr. Fallon to have simply provided the information requested and avoid the Rule 202 petition, but Fallon refused to do so.”
Haake retired from the Army in 2006 and currently heads his own consulting firm, which specializes in public law, policy advocacy and government procurement, Forbes reported. McClure said Haake is a retired and disabled two star General who served for 35 years.
Fallon, who served as an officer in the Air Force, sits on the armed services committee. He’s up for re-election next year in a red district, which encompasses parts of Frisco, Plano, Sherman, Paris and Sulphur Springs, and is already set to face several challengers.