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, which owns more than $30 million in Martino’s debt, said in an e-mail Friday to Clear Channel Communications that the fund doesn’t think Martino committed fraud. Clear Channel owns radio station 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.
Martino sent a copy of the e-mail to The Denver Post. Sanchez confirmed he wrote it but declined to comment. Connor also did not comment.
Martino filed for bankruptcy protection Sept. 2, claiming liabilities of $78.6 million and assets of $1.37 million. He said the case involves roughly $40 million in unpaid loans made to him for real-estate investments throughout Colorado.
Last week, International Bank, which holds $2.8 million in Martino’s debt, suggested in court filings that he might have transferred $22.7 million in assets to his wife, Holly Martino, before filing for bankruptcy. Martino denied the claims.
Colony Capital acquired its share of Martino’s debt when it bought a loan portfolio from the failed New Frontier Bank of Greeley.
“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 in his e-mail. “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
