Bank says local IT exec stole millions through phony loans
A Denver executive is being accused by BMO Bank of taking out dozens of sham loans totaling more than million as part of a lucrative scheme to defraud it Brad McDonnell a principal at Littleton-based Horizon Capital was sued by Chicago-based BMO Bank in Arapahoe District Court at the end of June Horizon Capital which operates under the name Tool Leasing sells information apparatus equipment and services McDonnell is accused of exploiting BMO s dealer trading agreements a undertaking that allows sellers such as Horizon to refer customers in need of financing to BMO The bank then sends the money directly to the seller in this development Horizon to cover the purchase McDonnell reached out to BMO on behalf of Horizon in and represented that Horizon had annual revenue of million BMO says After conducting standard due diligence BMO approved Horizon s application for a dealer trading agreement in early Using an online submission tool McDonnell and Horizon then referred supposed borrowers to BMO which sent Horizon million between January and March of this year Shortly after proceeds were disbursed several of the customers McDonnell and Horizon referred to BMO defaulted on their payments according to its June lawsuit BMO began attempting to collect payments BMO discovered that a multitude of of the defendants customers did not know about the loans from BMO and had not authorized the defendants to submit a loan application Others complained that the defendants never provided them with the equipment paid for by BMO s funds BMO has been unable to locate others Only of the loans are current BMO states that at least loans worth million were wholly fraudulent and it subjects an additional totaling million were too It has been unable to find supposed borrowers whose contact information appears to be falsified Related Articles For a low payment consultant offered to get Colorado counties off Trump s list of sanctuary jurisdictions Consultant claiming White House backing called Colorado clerks to gain access to voting machines Denver judge orders CBZ Management to turn over records from its rental properties to Colorado attorney general Colorado Medicaid transfer company reaches settlement with state The One Big Beautiful Bill will have ballot box repercussions Letters BMO alleges that its analysis into McDonnell has revealed that on occasion he straightaway transferred loan disbursements to a man named Craig D Davis Last August Davis pleaded guilty to a felony wire fraud charge in Virginia after admitting that he used a phony IT company to fraudulently obtain millions of dollars in loans from banks according to BMO McDonnell and Horizon did not respond to requests for comment on BMO s statements Across loans issued in just months they received directly from BMO that bank says of Horizon and McDonnell who is listed as its vice president all while knowing that if BMO knew the truth it never would have entered into the relationship with Horizon BMO s lawyers are Adam Massaro and Nick Erickson in the Denver office of Reed Smith Sign up to get crime news sent straight to your inbox each day
