A wealthy Colorado businessman who is being sued by First Western Bank for failing to repay his loans is arguing he should not have to pay them back because the bank knew he was using the money for personal expenses.
Daniel Burrell, 45, was sued by First Western Bank in November for defaulting on $56million in loans, reported The Denver Post.
The bank said they gave four loans to the investment fund founder between 2019 and 2022, and they are suing to foreclose on Burrell’s properties as collateral.
Burrell is the founder of the Burrell Group, a holding company for businesses in a variety of sectors including aviation, medical, financial services, real estate, hospitality and natural resources.
The businessman has countersued First Western Bank arguing they violated federal lending laws, are interfering with the sale of his property and invading his privacy.
Daniel Burrell (pictured), founder of the Burrell Group, is being sued by First Western Bank for defaulting on $56 million in loans
Burrell countersued the bank arguing they knew he was using the money on personal expenses. Burrell pictured with his wife Nikola
He claims the bank is interfering with the sale of his 8,420 square feet Aspen mansion (pictured)
Burrell and his wife Nikola recently put their renovated Aspen mansion and 4,200-acre ranch (pictured) for sale for $86.5 million
‘First Western did not make a reasonable and good faith determination at or before consummation that Burrell had a reasonable ability to repay,’ said the countersuit.
‘As a result, Burrell, Burrell’s wife, and Burrell’s minor children are at risk of losing their primary residence and have incurred emotional distress.’
Public records show Burrell owns property in Nantucket, Massachusetts, two homes in Basalt, Colorado and the mansion and ranch in Aspen.
Burrell and his wife Nikola recently put their renovated Aspen mansion and 4,200-acre ranch for sale for $86.5 million.
The Aspen mansion, known as the Red Mountain estate, is set on three-quarters of an acre, spanning about 8,420 square feet with six bedrooms, a spa, a home theater, and a library and game room with a bar, according to The Wall Street Journal.
Outside, the property backs up to National Forest land and has an infinity pool with scenic mountain views.
The Aspen mansion, known as the Red Mountain estate (pictured), is set on three-quarters of an acre, spanning about 8,420 square feet
The Red Mountain estate has six bedrooms, a spa, a home theater, and a library and game room with a bar
Outside, the property backs up to National Forest land and has an infinity pool with scenic mountain views
The ranch, called Three Meadows Ranch, has 10 bedrooms across several buildings, including multiple cabins, a bunkhouse and caretaker’s quarters. It also has a barn with a theater, a game room and a loft.
Public records show Burrell purchased two watercrafts in 2020 registered in Massachusetts.
Two of Burrell’s properties on Willits Lane in Basalt are listed for sale at $9,999,000 and $8,999,000 on Zillow.
Burrell alleged it was ‘improper’ for the bank to give him the loans in the first place because they knew he would use it for personal expenses such as his home in Basalt, divorce payments towards his first wife and buying a yacht.
The countersuit said that the bank has ‘wrongly interfered’ with ‘pending contracts to sell’ Burnell’s properties.
Public records show Burrell owns two properties on Willits Lane in Basalt, Colorado. 969 Willits Lane (pictured) is listed on Zillow for $8,999,000
The other property, 1043 Willits Lane, is listed on Zillow for $9,999,000
‘This has put Burrell’s ability to sell the collateral at full market value at risk,’ said the countersuit.
His lawsuit is seeking to rescind the loans, order the bank to stop interfering with sale of his Aspen properties and damages for what he claims was a public outing of his financial situation.
Allegedly, during an earnings call in October, First Western CEO Scott Wylie mentioned a client the bank has had since 2018 who was becoming delinquent on their payments, but said the bank would recover from the clients real estate collateral.
‘A reasonable person of ordinary sensibilities would find the disclosure of those private facts about themselves highly offensive,’ said the countersuit.