Curtis Carlson Nelson Sued Over Unpaid Loans
Edina-based Crown Bank has sued Curtis Carlson Nelson-grandson of Carlson Companies founder Curtis Carlson-for allegedly misrepresenting his finances and failing to pay back more than $4 million in loans.
According to court documents, which were filed in October in Hennepin County District Court, Nelson has failed to pay back three loans totaling more than $3.13 million in principal.
In addition, Crown Bank claims that Nelson agreed to pay back $1 million of a $2 million loan for Visible Customer-a company that Nelson ran which went bankrupt last year.
Crown Bank claims that Nelson is in default for all four loans-which total $4.26 million with interest and late charges and fees.
The lawsuit also alleges that Nelson misrepresented his net worth to Crown Bank when obtaining the loans. For example, Nelson claimed in his original loan documents that his two homes were valued at about $6.9 million when they were actually only valued at $3.7 million, according to appraisals.
Crown Bank also said that Nelson failed to disclose debts owed to his parents, including an $8.6 million loan to his father Glen Nelson.
Nelson filed a response to the suit in December denying all of Crown Bank's allegations and asking that the bank pay for his attorneys' fees.
Later that month, Hennepin County Judge John Sommerville issued an order that required Nelson to disclose all of his interests in partnerships, limited liability companies, and corporations.
A jury trial is scheduled to begin later this year and the case has been reassigned to Judge Joseph Klein. A Tuesday morning phone call to Nelson's attorney Thomas Gregory Wallwich was not immediately returned.
Before Nelson started running Visible Customer, he held various senior-level positions at Carlson Companies and I was expected by many that he would succeed his mother-Marilyn Carlson Nelson-as CEO.
However, Nelson resigned in 2006 and is now in a legal battle with his mother and Carlson Companies over claims that he was wrongfully denied the CEO spot. In March 2008, Carlson Companies named Hubert Joly president and CEO. Joly is the first executive outside the Carlson family to hold the position.