What is Karen Winnick fighting CIM Group over?

Karen Winnick is fighting to keep her historic $190 million Los Angeles mansion from being auctioned by CIM Group due to a disputed $100 million loan.

Who is Richard Ressler in the Winnick mansion dispute?

Richard Ressler is the co-founder of CIM Group and a longtime friend of the late Gary Winnick, accused by Karen Winnick of exploiting her husband in a predatory loan scheme.

Why is the Winnick family's mansion facing auction?

The family's mansion is facing auction because they allegedly fell behind on repayments for a $100 million loan, which the widow claims was part of a fraudulent scheme.

Home / Business and Economy / Billionaire Widow Fights Lender Over $190M Mansion

Billionaire Widow Fights Lender Over $190M Mansion

4 Dec

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Summary

Widow accuses lender of a loan-to-own scheme after husband's death.
Historic $190M Los Angeles home used as collateral for a $100M loan.
Family claims elderly husband was preyed upon by a longtime friend.

Billionaire Widow Fights Lender Over $190M Mansion

Karen Winnick, the 79-year-old widow of telecommunications billionaire Gary Winnick, is embroiled in a legal fight to save her $190 million Los Angeles mansion, Casa Encantada. She accuses CIM Group, her late husband's lender, of orchestrating a 'loan-to-own' scheme, alleging that CIM's co-founder and Gary's friend, Richard Ressler, preyed on him.

The dispute centers on a $100 million loan secured in 2020, reportedly without Karen's knowledge. The loan, which used the mansion and other assets as collateral, has ballooned to $155 million due to high variable interest rates. Winnick claims the loan was designed for her husband to default, allowing CIM to seize their assets.

CIM Group has filed legal opposition, calling the allegations 'fantastical' and noting they initiated foreclosure proceedings in September due to missed payments. The properties are slated for auction in mid-December. Karen and her children are seeking a jury trial, accusing CIM of financial elder abuse and fraudulent concealment, while CIM argues Winnick was aware of the loan due to subsequent advances.