A former Denver Broncos fourth-string quarterback has filed for bankruptcy on an 18,000-square-foot home in Cherry Hills Village that has 10 bathrooms.
But the bank to which he owes $5.4 million wants the Chapter 11 case thrown out. He claims he only filed for bankruptcy on August 16 only to end the foreclosure sale of the mansion on August 17.
Preston Parsons, 43, owns 5 Mockingbird Lane in the upscale suburb of Arapahoe County. Real estate listings describe it as one of “Cherry Hills Village’s finest luxury estates,” with a six-bedroom, 10-bathroom main house and a 1,900-square-foot guest house. Its “2.15 lush and landscaped private acres” include an infinity pool and hot tub, according to the listings.
Parsons’ bankruptcy filing claims the home is worth $9.5 million. Redfin and Zillow estimate its worth at $8.4 million and $8.1 million, respectively.
Parsons filed for bankruptcy with the house through a new LLC, Press on Holdings. He lists only one creditor: InBank, which loaned him $4.3 million in 2019 and has not been repaid. Parsons used the home, which he bought for $5.1 million in 2017, as collateral for the loan.
In April, InBank sued Parsons and his wife as a result. He claims they also haven’t paid insurance premiums or property taxes in several years and asked an Arapahoe County judge to allow the mansion to be sold. On June 8, Judge Peter Michaelson did.
A foreclosure sale was scheduled for August 17. Two days prior, Parsons created Press on Holdings and transferred the deed to the mansion from a trust to the LLC, InBank claims. On August 16, Press on Holdings filed for bankruptcy and the foreclosure sale was reversed.
Chapter 11 bankruptcy allows a business to restructure and pay its creditors over time. InBank says Press on Holdings should not be allowed to file for Chapter 11 because it “has little to no cash flow” and cannot restructure because it is a single-asset real estate LLC.
A U.S. bankruptcy court judge has yet to rule on InBank’s motion to dismiss bankruptcy.
Parsons played college football at Northern Arizona University but did not graduate and was not drafted by a National Football League team, according to “A Few Seconds of Panic,” a 2008 book that followed him and other Broncos players into the 2006 season. He was a backup quarterback for the Arizona Cardinals in 2002 and 2003 and then bounced between teams.
The book describes Parsons as a fourth-string quarterback for the Broncos and a “camp arm” who practiced with the team “but is unlikely to make the team.” The book traces his failed attempts to make the team and then his retirement in 2008.
“I never felt like this. It hurts my heart. It gives me ulcers,” he says at one point.
Parsons then worked in the medical device industry as a sales representative and distributor, according to his LinkedIn page, before founding Assure Neuromonitoring in 2015. The company observed surgeries to ensure the brain and spine of the patients were not injured.
In 2018, Parsons stepped down as CEO of the publicly traded company, according to a company press release. That same statement claimed that a forensic audit by Assure found that Parsons had spent $850,000 on a company credit card for personal expenses and had been wrongfully paid an additional $600,000. Parsons agreed to refund the money, the press release said.
In April, Assure announced it was “terminating its working relationship” with Parsons, who remains a board member.
Emails and voicemails left with Parsons’ attorney, Aaron Garber of Littleton Wadsworth Garber Warner Conrardy’s firm, went unanswered this week.
This story was reported by our partner BusinessDen.