Brody, who also worked as general contractor on the mansion's construction, has a promissory note that his investment would be repaid with 6 percent interest by March 29, 2007, according to the lawsuit. He said Mewbourn has ignored his demands for repayment.

Instead, Brody said Mewbourn kept him in the dark when he sold the mansion to Haslam in March 2007 for $6.2 million.

"Mewbourn has made numerous payments to himself . . . from M&B's funds without proper authorization," Brody says in the lawsuit.

Brody accuses Mewbourn, Haslam and Commercial Capital, a Greenwood Village real estate lender, of "engaging in a sham sale of the property" to Haslam, whom the lawsuit portrays as a front man in the deal.

"Haslam provided no money for the purchase," Brody says in the lawsuit.

"Rather, Commercial Capital provided the funds to allow the closing of the sale of the M&B property to Haslam, with the proceeds of the sale (after payment of the construction loan) being repaid to Commercial Capital," the lawsuit contends.

"Although legal title was transferred to Mr. Haslam, control over the property remains with M&B and (Commercial Capital)," the lawsuit says.

The goal of the "sham transaction," Brody asserts in the lawsuit, was to deprive him of his loan repayment and his 50 percent share of profits from the mansion sale.

Commercial Capital denies any misconduct and, in turn, is suing Mewbourn, Haslam and Brody.

Suits and countersuits

The lender accused Haslam of defaulting on the construction loan and says Mewbourn breached his agreement to guarantee that Haslam would repay the loan. Commercial Capital says the two men owe more than $3.2 million, according to court records.

The lender accused Brody of fraudulent misrepresentation when M&B Development Group applied for the original loan to buy the property and redevelop it in 2005.

As M&B vice president, Brody touted himself as an "experienced construction worker" who would help manage completion of a profitable project, according to the lender's lawsuit. But, Commercial Capital says, "Brody walked off the project," which has been "both untimely and unprofitable."

Haslam has filed lawsuits accusing Mewbourn and Commercial Capital of misrepresentation, while denying he's done anything wrong.

A masonry contractor who said he was stiffed for $60,587 in work installing stone columns, entrance walls, patios and a driveway and stucco, won an April default judgment against Mewbourn and his company after they failed to respond to the lawsuit.

This isn't the first time the 38-year-old Mewbourn has faced accusations of wrongdoing.

At age 20, he served 15 months in a state prison "boot camp" after being convicted of larceny in Grand County, according to the state Department of Corrections.

In an odd twist, Mewbourn is being sued by a woman who admits in court papers she was recently released from state prison. Mary Beth Stenzel, 49, served nearly three years after pleading guilty to theft of more than $15,000 and securities fraud in Denver.

Stenzel says she and Mewbourn were partners in a "joint venture" to buy the University Boulevard property in 2005, and she put up the earnest money for the deal. Stenzel accuses Mewbourn of breaking their partnership and her purchase deal by buying the place himself, according to her lawsuit.

Haslam, the young owner of the ill-fated mansion, lives in a modest brick home in Denver's Park Hill neighborhood.

"He's a nice guy and a good neighbor," said neighbor Larry Murdock, adding that Haslam works as a financial consultant.

"But I was shocked to see he had a home worth that kind of money," said Murdock, who read about the mansion fire in the newspaper.

"Do you have that kind of coin hanging around?"

Originally published by Alan Gathright, Rocky Mountain News.

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