Colorado Springs

Idaho Springs Mighty Argo gondola investors sue lender, escrow agent – Colorado Springs, Colorado

Colorado Springs, Colorado 2021-05-06 06:20:00 –

An investment group planning a gondola-fixed resort village in Idaho Springs’ long dormant Argomil is suing loan brokers and escrow companies, claiming they are victims of a comprehensive fraud plan. I will.

In August 2020, 55 investors, the Mighty Argo Cable Car Group, deposited $ 4.5 million in a Virginia-based First Title Inc escrow account. This was a $ 32.37 million construction loan equity deposit mediated by the Dallas-based Trivecata Capital Group and its owners. Jay Matthisen.

Construction loans have never followed deposits. And the Mighty Argo Group was unable to recoup $ 4.5 million from the first title owned by a woman named Sandra Bacon. The proceedings allege that Bacon has sent $ 4.5 million to another account and will not refund it.

“The actions of these defendants were fraudulent, malicious, deliberate, and frustrated,” read a complaint against Bacon, First Title, Trivector, and Matthisen filed in the US District Court in Denver last week.

The Mightiago project requires a 1.2-mile scenic gondola climb from Argomil’s EPA Superfund site on the banks of Clear Creek to Idaho Springs’ 450-acre Virginia Canyon Mountain Park. The long-term plan includes hotels, residential and commercial villages around the historic Argomil. (The factory rises above Idaho Springs, where brave miners 125 years ago drilled nearly five miles in the mountains to access what was once considered the continent’s largest gold storehouse. It is a red structure.)

This plan is a major problem for Clear Creek County, which has long struggled to lure tourists away from Interstate 70 to ski resorts deep in the mountains and alpine outposts. The plan required as many as 400,000 visitors a year to ride open wagons by bicycle to mountaintop squares and maze-like paths. Construction began in October, but stopped in February when the construction loan wasn’t available and developers couldn’t get their escrow deposits back.

Mary Jane Reebry, an Idaho Springs entrepreneur and leader in the development of the Argo Cable Car project and the village, said the project was undoubtedly moving forward.

“Remember when you bought a super fund site in 2016, no one thought the super fund would work,” she said. “We have turned this into a viable project, which will be a major economic driver for Idaho Springs and the region.”

Developer and businessman Mary Jane Loevlie will listen to the announcement of the Mighty Argo Cable Car gondola project in November 2019. The project is led by her and other developers at the historic Argo Gold Mill and Tunnel. (Special to Andy Colwell and Colorado Sun)

Support for projects from local leaders and investors remains “overwhelming,” said Loevlie, a plan that combines heritage tourism and recreation with housing and accommodation.

“We intend Argo to regain the economic engine at the turn of the century,” she said. “We see this as a road bump. We get over it and the project is complete. This will be another great chapter in our book.”

The $ 32.8 million construction loan includes $ 800,000 for land acquisition, $ 8.3 million for the Leitner Poma gondola, $ 12.1 million for the Argo Landing loading facility on the banks of Clear Creek, $ 2.3 million for the Top Plaza, and a three-story building. The parking lot includes $ 4.7 million. ..

Bacon and her first-title escrow company were charged with fraud in a similar proceeding in Texas last year. Aspen-based investor Deborah Tomlinson puts his first title escrow account in late 2019 as a stake in a $ 8 million plan to set up a company to clean industrial equipment at refineries along the Gulf. Deposited $ 1.25 million.

Read more about Colorado Sun’s outdoor stories.

Immediately after Tom Linson deposited $ 1.25 million in bacon and the first title, the escrow company released the money “illegal and without permission” to its partners. Complaint filed in Texas District Court in July..

“The escrow contract with the first title, and the supposed escrow account, were just fake aimed at giving the defendant a sense of legitimacy in his fraudulent plans,” said Tomlinson’s complaint.

“My client has denied all allegations filed in the proceedings and will soon defend the proceedings,” said Bacon and first-title attorney Derek Daeyoung in response to Mighty Argo’s complaint. Said in an email statement. According to court documents, the resolution of the Tomlinson case against Bacon and the first title is pending.

Matthiesen and Trivecata face similar accusations in Texas. In January, a California developer filed a lawsuit in the 192nd Civil District Court in Dallas County for illegally acquiring funds deposited in an escrow account as part of an apartment project loan agreement.

Anthony Lefter, a lawyer representing the Mighty Argo Group, said the complaint was more than a failure in a complex financial transaction.

“This is not your typical escrow case,” said Refert. “We claim that the fraud took place here.”

Colorado Sun does not have paywalls. This means readers don’t have to pay to access articles. We believe that affected people need to identify important information, such as public health crises, investigative journalism, and parliamentary accountability.

This report Depends For support from readers like you. Invest in an informed community for just $ 5 a month.

Idaho Springs Mighty Argo gondola investors sue lender, escrow agent Source link Idaho Springs Mighty Argo gondola investors sue lender, escrow agent

Back to top button