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vice president, and petitioner’s brother, who served as
secretary-treasurer.
Colorado Structures is a commercial general contractor which
contracts to build commercial buildings such as large retail
stores, office buildings, and schools. During 1998, Colorado
Structures did not contract to build residential buildings. In
1998, the company employed approximately 50 people and earned
revenues of approximately $117 million.
During 1996, Centre purchased general obligation bonds which
Triview had issued in 1987 and subsequently defaulted on. In
exchange for $2.9 million, Centre received the bonds with a face
value of $4.8 million and accumulated unpaid interest of
approximately $3 million. Centre purchased the bonds from
Massachusetts Financial and Kemper Financial. Centre financed
the purchase through a stock brokerage margin account and a loan
in the amount of $1.5 million from a consortium of Mountain
States Telephone and Telegraph Co. and Mountain View Electric
Association (utility companies).
In order to refinance the $1.5 million in loans from the
utility companies, Centre and JCLC borrowed the same amount from
Colorado National Bank (CNB) on September 22, 1997. Under the
terms of the loan agreement, the borrowers were Centre and JCLC,
and the guarantors were petitioner and his brother in their
personal capacities, as well as Colorado Structures. As
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