On the corner of Turtle Creek Boulevard and Dickinson Avenue sits an undeveloped green field. The 2-acre lot is padlocked, chained and wrapped in bright yellow signs warning that the premises and all contents therein are under control of the U.S. District Court of the Northern District of Texas.
“Unauthorized entry, removal, destruction or interference with this property is prohibited by court order,” the signs state, with the word “prohibited” underlined and bolded. “Violators will be prosecuted.”
The prime Uptown Dallas property was once the site of Tim Barton’s planned $395 million Mandarin Oriental hotel. However, its future is murkier than ever, the Dallas Business Journal reports.
Just days after his indictment on felony fraud charges in September, Barton’s lender, HNGH Turtle Creek wrestled control of the site from the JMJ Development CEO following a hard-fought legal battle. Though he is currently facing several criminal and civil charges related to his alleged $26 million Ponzi scheme, Barton immediately filed an appeal to get his property back.
HNGH’s rightful ownership of the property became shakier when the SEC secured a receiver for all entities and properties controlled directly or indirectly by Barton, including 2999 Turtle Creek and Barton’s personal home. Not only is Barton appealing that decision, but so is HNGH.
“HNGH remains the rightful owner of the 2999 Turtle Creek Property,” the motion states. “Yet the receiver continues to use this unrelated SEC action, which involves entirely distinct allegations against defendant Timothy Barton, to collaterally undermine that determination and intrude on HNGH’s well-settled rights.”
Read more
The court has asked HNGH to buy insurance coverage and pay property taxes to assert its ownership. Attorney Cort Thomas, the receiver appointed by the U.S. District Court for the Northern District of Texas, suggested in court filings that the receivership could be a tool for “unwinding the determination that HNGH is the owner of the property.”
Meanwhile, Barton claims in court filings that he can’t prepare for his trial on the criminal charges because he can’t get to the necessary files and documents.
“The receiver has kicked the defendant out of his personal home and is poised to sell it and all its contents,” Barton’s motion says. “The receiver has also removed the defendant from his office and is threatening to destroy documents without regard to whether they are essential to the preparation of his defense in a parallel criminal matter.”
Barton further alleges that Thomas is on a “liquidation spree” and trying to sell his personal residence on Rock Creek Drive in Dallas for more than $500,000 less than it is worth.
“The receiver seems especially fixated on selling items that are particularly dear to Mr. Barton, but will raise no more than trivial amounts of money,” the motion filed by his attorney states. “That includes an effort to sell Mr. Barton’s personal home.”
In a responding motion, Thomas said the home was on the market for “several weeks” and $1.4
million was the highest offer received.
— Maddy Sperling