Lawsuit: Brinkman alleges Texas man caused $1.3 million charge with financial fraud

FORT COLLINS — Brinkman Construction Inc. is suing a Dallas resident for allegedly providing false financial statements for a subcontractor on a Longmont development project.

In the suit filed Friday in the U.S. District Court of Colorado, the Fort Collins-based construction company said it hired Arkansas-based Naylor Concrete and Steel Erectors LLC in June 2018 as a concrete subcontractor for the South Main Station development in downtown Longmont.

Prior to that contract, Brinkman’s due diligence on Naylor showed that it was carrying a line of credit with a $2 million balance and appeared undercapitalized, raising worries that it wouldn’t have the cash on hand to fulfill the agreement. Christopher Lloyd, a Dallas resident, was listed as creditor to that loan.

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Lloyd is the only named defendant in the suit.

Brinkman alleges that Naylor cleared the loan from its books by giving Lloyd a 40 percent ownership stake in the company, while Lloyd provided false financial statements to make it appear that the concrete company was in a better position to take on the project than it was.

Brinkman alleges that after the project began, Naylor fled the project and failed to pay $1.02 million to its subcontractors, leaving Brinkman to cover those invoices and an additional $300,000 in legal and administrative costs.

Brinkman later filed lawsuits in June against Naylor co-owners Ricky Naylor and Paul Brewer in Boulder County District Court and won an automatic judgment after they failed to respond. Both have declared bankruptcy.

Lloyd is currently suing Ricky Naylor in Oklahoma, according to federal court records. He alleges Naylor owes him as much as $6.54 million from a series of loans he gave to the Naylor company since August 2016, loans he provided based on what he claims were falsified financial statements.

Brinkman is asking for a jury trial and a judgment of at least $1.3 million and additional punishment as deemed appropriate by the court.

BizWest could not reach Lloyd for comment. His listed attorney, Floyd Harley, did not respond to a request for comment Monday morning.