total-news-1024x279-1__1_-removebg-preview.png

LANGUAGE

Bank knew I spent cash on yacht, homes

Billionaire investor sued for defaulting on $56 million business loan, claims bank knew he was using the cash to pay for divorce, buy yacht and splurge on luxury home and insisted that they should withdraw.

Dan Burrell, 45, of Aspen, Colorado, was arrested by First Western Bank in November 2023 for failing to repay an eight-figure loan given to him in four installments between 2019 and 2022. A lawsuit was filed by. According to the Denver Post.

Mr. Burrell countersued earlier this month, arguing that he did not have to repay the bank because the bank knew he was using business credit for personal expenses.

The bank asked an Aspen judge to allow a foreclosure on six of Burrell's properties as collateral.

Public records show the businessman owns two homes in Basalt, Colorado, and a 190-acre ranch in New Mexico worth $21.1 million, which is currently up for auction.

However, according to one report, Luxury real estate property information site Mansion Globalwith only one of Burrell's five children still living at home, Burrell and his wife Nicola decided to downsize.

Billionaire investor Dan Burrell, 45, is being sued by First Western Bank for defaulting on a $56 million loan. Jason Shawn Weiss/BFA.com/Shutterstock

The Denver Post reported that First Western wants to seize Burrell's home in Aspen, his ranch near a wealthy ski resort, his Nantucket property and his land in Vero Beach, Florida. There is.

According to a report in the Denver Post, Mr. Burrell claims in his counterclaim that if First Western seizes his property, “Mr. Burrell, Mr. Burrell's wife, Mr. Burrell's minor children… “They are at risk of losing their primary residence and are suffering psychological distress.”

In a strange development, Mr. Burrell also admitted that banks gave him business loans despite knowing full well that most of the funds would be spent on his personal life, such as paying for a divorce, buying a yacht and constructing a building. He argued that it was “inappropriate”. Home in Basalt, Colorado.

First Western wants to seize a small number of Burrell's properties as collateral for his default. Pictured is one of his Burrell properties in Basalt, Colorado. Aspen Glenwood/MLS

“Furthermore, First Western failed to make a reasonable and good faith determination at or before closing whether Mr. Burrell had a reasonable ability to repay,” he said, according to the Denver Post. says the counterclaim.

Burrell also claimed that the bank did not allow him to refinance, consistently failed to provide documentation for the loan and unfairly accepted his personal home as collateral, the newspaper reported.

Mr. Burrell's attorneys, Sarah Ouchterlony and Courtney Berkus of the Denver office of Brownstein Hyatt Farber Schreck, did not immediately respond to The Post's request for comment.

The newspaper also contacted First Western Bank for comment.

In an October earnings call, First Western CEO Scott Wiley noted that “our customers since 2018” have “faced illiquidity and delayed payments.”

He noted that the bank would have had to declare the loan in default in order to seek collateral, but asserted: “We believe we can fully recover.”

The real estate collateral we hold is in several highly desirable markets. There’s one in Aspen, there’s one on Nantucket, there’s one in (Florida),” he said.

Mr. Wiley did not name the borrower, but Mr. Burrell claimed that an analyst listening in on the call was able to figure it out, according to the Denver Post.

Burrell said a listener called him to ask about his personal finances.

He claimed this had caused “reputational damage and public disgrace” to Mr. Burrell and his investment company.

Burrell and his second wife bought an 8,400-square-foot compound in Aspen's Red Mountain last month (the Burrell family's “home base,” according to Mansion Global) and a 4,200-acre ranch in nearby Carbondale as part of the deal. was put up for auction. $86.5 million package.

Burrell countersued First Western earlier this month, claiming that the foreclosure would result in him, his wife Nicola, and their children losing their primary home.

Two of his children from his first marriage to Australian jewelery magnate Katherine Jeter are university students, and his third child with Jeter is due to go to university next year.

According to Mansion Global, Burrell has two children with Nicola, one of whom is attending boarding school in Boston, leaving only one at home.

Sotheby's Concierge Auctions led the bidding, marking the ranch as “pending sale” on its website and extending the bid deadline for the Red Mountain home to February 15.

According to public records, Mr. Burrell owns properties throughout Colorado (including this home at 969 Willitis Lane), as well as in Nantucket, Florida and New Mexico. Aspen Glenwood/MLS

Mr. Burrell, founder of the investment firm Burrell Group, argued that First Western's lawsuit interfered with the auction of the Red Mountain property, valued at $38.5 million, in violation of federal lending laws.

He is also seeking damages, alleging First Western's invasion of his privacy and public disclosure of his financial situation, The Denver Post reported.

Facebook
Twitter
LinkedIn
Reddit
Telegram
WhatsApp

SUBSCRIBE TO

Sign up to stay informed to breaking news