Holly Martino, wife of bankrupt radio personality Tom Martino, lost a key court battle when a federal judge denied her to remove a large downtown parking lot from the Troubleshooter’s ongoing personal bankruptcy case.
Holly Martino owns Sherman Properties, which along with American Guaranty Equities, which is owned by insurance broker Matthew Klaess, petitioned U.S. Bankruptcy Court to remove a parking lot they own at 18th Avenue and Grant Street. The property carries about $19.4 million in loans, according to records filed in the case.
Judge Michael Romero denied the request on Tuesday. The petitioners said their request was based on a number of transactions a few years ago that transferred ownership of the property from Tom Martino to Holly Martino. As such, Tom Martino’s bankruptcy estate no longer owned the asset.
Court-appointed Trustee Simon Rodriguez, however, successfully argued that the transfer — a complicated mix of moves that happened in 2009 — occurred within the four-year window before a bankruptcy case is filed that can later be examined and included in the estate.
Early in the bankruptcy case, some creditors accused Tom Martino of wrongly transferring assets to his wife’s name in order to avoid their liquidation, charges he has denied strongly. But business registration documents filed in March 2011 with the Colorado Secretary of State show Tom Martino is the registered agent for Sherman Properties and lists the Martino home in Cherry Hills Village as its principal place of business.