The largest creditor in Tom Martino’s bankruptcy is defending the self-styled consumer advocate as another creditor accuses him of potentially making fraudulent asset transfers.
Michael Sanchez, a portfolio manager with Colony Capital, an investment fund that owns more than $30 million in Martino’s debt, said in an email to a Clear Channel Communications executive last week that the fund doesn’t believe Martino committed fraud.
Clear Channel owns KHOW-630 AM, where Martino hosts a weekday morning talk show.
“We have never nor currently believe that Mr. Martino or his partners have engaged in any action that would (be) deemed as fraudulent in any way or fashion,” Sanchez wrote to Pat Connor, president of Clear Channel’s Denver operation. “In fact, we continue to work with Mr. Martino in an amicable environment and are looking forward to a positive resolution of the matter.”
Martino sent a copy of the email to The Denver Post late Friday. On Monday, Sanchez confirmed he wrote the email but declined to comment. Connor also declined to comment.
Martino filed for bankruptcy protection on Sept. 2, claiming liabilities of $78.6 million and assets of $1.37 million. He has said the case involves roughly $40 million in unpaid loans made to him for real estate investments throughout Colorado, and that his Troubleshooter Network business is still healthy.
Last week, International Bank, which holds $2.8 million in Martino’s debt, made filings suggesting he transferred at least $22.7 million in assets to his wife, Holly Martino, before filing for bankruptcy. The assets included a house, three aircraft, horses, a Bentley car, cash, real estate and 50 percent ownership of the Troubleshooter Network, according to the bank.
Martino denied the claims and said the bank and its lawyers are trying to discredit him.
Colony Capital acquired its share of Martino’s debt when it bought a discounted loan portfolio from the failed New Frontier Bank of Greeley. In his email, Sanchez blamed International Bank for forcing Martino into bankruptcy even as Colony was working with the radio and TV personality toward a resolution to his financial troubles.
“Since our acquisition of these loans back in July 2010, we have been working with Mr. Martino personally and with his partners to a resolution for all of these loans,” Sanchez wrote. “We were about 60 days away from this before Mr. Martino was forced to file for personal bankruptcy due to actions taken by a much smaller and aggressive creditor.”
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
