Centerra developer McWhinney has sued its former partners in the Promenade Shops at Centerra, seeking $92 million for alleged fraudulent transactions.
The Denver Post reports that McWhinney won a $42 million judgment against Poag & McEwen Lifestyle Centers-Centerra LLC of Memphis, Tenn., in Larimer District Court, Aug. 15. That was the culmination of a lawsuit filed in 2011.
On Nov. 8, however, Loveland-based McWhinney filed a second claim in Larimer District Court, saying that it uncovered additional fraud during the discovery process on the first lawsuit. Poag & McEwen is seeking to have the case moved for U.S. District Court in Denver and intends to appeal the Larimer District Court ruling.
McWhinney partnered with Poag & McEwen in 2004 to build the Promenade Shops at Centerra, with Poag & McEwen as managing partner. The construction loan on the property went into default in 2009, and the property went into foreclosure.
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McWhinney says that assets of the property were fraudulently transferred and that bogus loans were taken out on the property.