Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance, claiming a bank conspired to defraud him and even posted his personal tax returns on the Internet.Kolokotronis is already dealing with complaints about cost overruns at his celebrated L Street Lofts project in midtown Sacramento. This new dispute involves a 175-home subdivision he was trying to develop at Sheldon Road and Highway 99 in Elk Grove. The project stalled as the housing market collapsed. In August 2006, Kolokotronis borrowed $17.7 million from Central Pacific Bank to build the infrastructure and model homes for the development, called Sheldon Terrace. The project is owned by Sheldon Terrace LLC, of which Kolokotronis is the principal member.The bank stopped releasing the construction funds for Sheldon Terrace in April and claimed the loan was in default — not because of missed payments but because the land was suddenly worth less than the loan balance.In a highly detailed countersuit filed last week by his lawyer Joseph Genshlea, Kolokotronis describes the bank as a subprime lender that used inflated appraisals and exercised control over his project to the point that it was more like a joint venture.

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance

Sotiris Kolokotronis is fighting allegations he defaulted on a $13.9 million loan balance, claiming a bank conspired to defraud him and even...

Read more »