A former fourth-string quarterback for the Denver Broncos has filed for bankruptcy on an 18,000-square-foot home in Cherry Hills Village that has 10 bathrooms.
But the bank he owes $5.4 million to wants the Chapter 11 case dismissed. It claims that he only filed for bankruptcy Aug. 16 to stop a foreclosure sale of the mansion Aug. 17.
Preston Parsons, 43, owns 5 Mockingbird Lane in the posh Arapahoe County suburb. Real estate listings describe it as one of the “finest luxury estates in Cherry Hills Village,” with a six-bedroom, 10-bathroom main home and a 1,900-square-foot guest house. Its “2.15 lushly landscaped private acres” include an infinity pool and hot tub, listings state.
Parsons’ bankruptcy filing claims the house is worth $9.5 million. Redfin and Zillow estimate its value at $8.4 million and $8.1 million, respectively.
Parsons filed for bankruptcy on the house through a new LLC, Press on Holdings. He lists only one creditor: InBank, which loaned him $4.3 million in 2019 and hasn’t been repaid. Parsons used the house, which he bought for $5.1 million in 2017, as collateral for the loan.
In April, InBank sued Parsons and his wife as a result. It claims they also haven’t paid insurance premiums or property taxes for several years and asked an Arapahoe County judge to permit a sale of the mansion. On June 8, Judge Peter Michaelson did so.
A foreclosure sale was scheduled for Aug. 17. Two days before, Parsons created Press on Holdings and moved the mansion’s deed from a trust to the LLC, InBank claims. On Aug. 16, Press on Holdings filed for bankruptcy and the foreclosure sale was canceled.
Chapter 11 bankruptcy allows a company to restructure and pay creditors over time. InBank says Press on Holdings shouldn’t be allowed to file for Chapter 11 since it “has little or no cash flow” and can’t restructure because it is a single-asset real estate LLC.
A U.S. Bankruptcy Court judge has not yet ruled on InBank’s motion to dismiss the bankruptcy.
Parsons played college football at Northern Arizona University but didn’t graduate and wasn’t drafted by a National Football League team, according to “A Few Seconds of Panic,” a 2008 book that follows him and other Broncos players during the 2006 season. He was a backup quarterback for the Arizona Cardinals in 2002 and 2003, then bounced between teams.
The book describes Parsons as a fourth-string quarterback for the Broncos and a “camp arm” who practiced with the team “but who has little chance of making the team.” The book tracks his unsuccessful attempts to make the team and then his retirement in 2008.
“I’ve never felt like this. It’s hurting my heart. It’s giving me ulcers,” he says at one point.
Parsons went on to work in the medical device industry as a sales representative and distributor, according to his LinkedIn page, before founding Assure Neuromonitoring in 2015. The company observed surgeries to ensure patients’ brains and spines were uninjured.
In 2018, Parsons resigned as CEO of the publicly traded company, according to a company news release. That same release claimed a forensic audit of Assure found Parsons spent $850,000 from a company credit card on personal expenses and was improperly paid another $600,000. Parsons agreed to repay the money, the news release stated.
In April, Assure announced it was “ending its employment relationship” with Parsons, who is still a board member.
Email and voicemail messages left with Parsons’ attorney, Aaron Garber with the Littleton firm Wadsworth Garber Warner Conrardy, were not answered this week.
This story was reported by our partner BusinessDen.
Source: Read Full Article