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Dallas

Dallas lender seeks contempt charges against Tim Barton

HNGH Turtle Creek says Barton barred its rep from a property awarded to it by the court

JMJ Development’s Tim Barton with 2999 Turtle Creek Boulevard (LinkedIn, LoopNet, Getty)
JMJ Development’s Tim Barton with 2999 Turtle Creek Boulevard (LinkedIn, LoopNet, Getty)

Indicted developer Tim Barton could be in even more trouble after the Dallas investment firm HNGH Turtle Creek filed contempt of court allegations against him.

Last month, after a long court battle, Barton was forced to give up to HNGH a two-acre property he had planned to redevelop into a hotel and condo tower. Located at 2999 Turtle Creek, the property has been in dispute for over a year after Barton, through his entity 2999TC Acquisitions, defaulted eight times on a $32.5 million loan from HNGH. Barton eventually filed for bankruptcy in an attempt to delay foreclosure and extend the deadline to repay the loan.

An affidavit states that after acquiring the property via court order, the investment firm sent real estate agent Michael C. Turner to visit the property, but he was met by Barton and a security guard who refused him entry and forced him to leave the premises, according to the Dallas Business Journal.

“Barton’s actions can only be described as yet another effort to frustrate HNGH’s attempts to take possession of the Property,” the HNGH motion for contempt and sanctions against Barton states.

Barton was also found in contempt of court in a separate case on Oct. 6 by the U.S. Bankruptcy Court for the Northern District of Texas for attempting to block the sale of a property in Plano that his company defaulted on over four years ago.

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Barton is also accused by the FBI of defrauding Chinese investors of $26 million supposedly to purchase properties for housing communities in North Texas, but which were never acquired. He is charged with seven counts of wire fraud, one count of conspiracy to commit wire fraud and one count of securities fraud. If convicted, he faces up to 60 years in prison, according to a release from the U.S. Attorney’s Office for the Northern District of Texas.

In September, the U.S. Securities and Exchange commission also filed a civil suit against the Dallas developer.

HNGH Turtle Creek has not yet announced what it plans to do with the 2999 Turtle Creek property. In 2019, Barton’s JMJ Development announced plans to open a Mandarin Oriental hotel on the site. It would be a 25-floor mixed-use development with 176 guest rooms and suites as well as 100 luxury Mandarin Oriental-branded residences.

The Turtle Creek neighborhood has some of the most sought after development sites in Dallas due to its small-neighborhood feel and its location near amenities like the Katy Trail and a number of popular Dallas restaurants.

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— Erick Pirayesh

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