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