A BMO branch at 621 17th St. in downtown Denver on July 15, 2025. (Justin Wingerter/BusinessDen)
A Denver executive is being accused by BMO Bank of taking out dozens of “sham loans” totaling more than $12 million as part of “a lucrative scheme” to defraud it.
Brad McDonnell, a principal at Littleton-based Horizon Capital, was sued by Chicago-based BMO Bank in Arapahoe District Court at the end of June. Horizon Capital, which operates under the name Technology Leasing, sells information technology equipment and services.
McDonnell is accused of exploiting BMO’s dealer trading agreements, a program that allows sellers such as Horizon to refer customers in need of financing to BMO. The bank then sends the money directly to the seller — in this case Horizon — to cover the purchase.
McDonnell reached out to BMO on behalf of Horizon in 2023 and represented that Horizon had annual revenue of $2 million, BMO says. After conducting standard due diligence, BMO approved Horizon’s application for a dealer trading agreement in early 2024.
Using an online submission tool, McDonnell and Horizon then referred 91 supposed borrowers to BMO, which sent Horizon $12.27 million between January 2024 and March of this year.
“Shortly after proceeds were disbursed, many of the customers (McDonnell and Horizon) referred to BMO defaulted on their payments,” according to its June 30 lawsuit.
“BMO began attempting to collect payments. BMO discovered that many of the defendants’ ‘customers’ did not know about the loans from BMO and had not authorized the defendants to submit a loan application. Others complained that the defendants never provided them with the equipment paid for by BMO’s funds. BMO has been unable to locate others.”
Only 34 of the 91 loans are current. BMO claims that at least 16 loans worth $2.1 million were “wholly fraudulent” and it suspects an additional 30 (totaling $4.6 million) were too. It has been unable to find 42 supposed borrowers whose contact information appears to be falsified.
BMO alleges that its investigation into McDonnell has revealed that on occasion he immediately transferred loan disbursements to a man named Craig D. Davis. Last August, Davis pleaded guilty to a felony wire fraud charge in Virginia after admitting that he used a phony IT company to fraudulently obtain millions of dollars in loans from banks, according to BMO.
McDonnell and Horizon did not respond to requests for comment on BMO’s allegations.
“Across 91 loans issued in just 14 months, they received $12,267,657 directly from BMO,” that bank says of Horizon and McDonnell, who is listed as its vice president, “all while knowing that if BMO knew the truth, it never would have entered into the relationship with Horizon.”
BMO’s lawyers are Adam Massaro and Nick Erickson in the Denver office of Reed Smith.
