Lakeville mayor Holly Dahl faces more scrutiny related to husband’s failed business
by Derrick WilliamsThisweek Newspapers
Lakeville mayor Holly Dahl is facing additional legal scrutiny, this time over the legitimacy of documents her husband, Kevin, provided to a bank for a business loan that Holly had personally guaranteed.
According to the trustee in an involuntary bankruptcy case against Kevin Dahl, a financial statement provided to Community Banks of Colorado for a $500,000 business loan in 2007 was fake.
According to court documents, bankruptcy trustee Nauni Manty found that Kevin provided a financial statement to the bank representing that he and Holly had more than $9.8 million in securities that never existed.Holly is listed in court documents because she also personally guaranteed the loan.
A “portfolio summary” provided to the bank by Kevin claimed New York- based Silvercrest Asset Management was managing the multi-million dollar account for Kevin and Holly.
Community Banks of Colorado said in a claim for relief filed on March 5, that they would never had entered into the transaction had they known of Kevin’s true financial condition, or that of his business, Dahl Financial & Consulting Services, LLC.
The bank goes on to say Kevin “knew the financial statement was materially false” and used it to “deceive” the bank into entering the loan.
The bank is seeking $544,044.38 in the bankruptcy case.
Kevin Dahl didn’t immediately return messages seeking comment. When reached by telephone, Holly pointed to a statement released on Oct. 1 addressing their legal issues.
“These reports are troubling to my family and me as we consider them personal and unrelated to my public life as an elected official,” she wrote.
All told, Kevin has $1.7 million in judgements against him and his business, but the loan from Community Banks of Colorado is the only one Holly personally guaranteed, she said in her statement.
“I am embarrassed and saddened by these reports and personal attacks on my integrity in a community I love and serve every day,” Holly wrote. “When one places oneself in a public position as I have, it is an unfortunate reality in politics that personal attacks become the method used to discredit others.”
Last month, Holly faced a contempt of court hearing in Dakota County District Court because she hadn’t responded to subpoenas to be deposed for a different case against Kevin.
As a result, Holly was deposed on Oct. 7, at which time she provided the plaintiff in that judgement with financial records for both her and Kevin.
Holly is seeking re-election as Lakeville’s mayor on Nov. 2.
In addition to the financial turmoil Holly and Kevin are experiencing, Kevin is battling advanced colon cancer.
“(Kevin’s) battle with cancer, and the various complications that are associated with this disease, have made it nearly impossible for him to conduct his business affairs, let alone meet his financial obligations,” Holly said in her statement.
The bankruptcy case against Kevin is ongoing.
E-mail Derrick Williams at:lakeville.thisweek@ecm-inc.com
Lakeville mayor Holly Dahl faces more scrutiny related to husband’s failed business
Tags: silvercrest asset management, New York, Derrick WilliamsThisweek NewspapersLakeville, return messages, involuntary bankruptcy, Judicial Event
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