OMB Bank sues Plaza Towers owner to initiate foreclosure proceedings

OMB Bank has filed suit against Springfield Property LLC and its owner, Marco Denis, seeking a court declaration that would allow foreclosure proceedings to be carried out.

The March 10 petition, filed in Greene County Circuit Court, alleges that Denis and Springfield Property, which owns Plaza Towers, are in default on three loans from OMB Bank and have not taken the necessary steps to rectify the delinquencies. The suit points to three mechanic's liens – from Base Construction & Management LLC, Doing Steel Fabrication LLC and Springfield Sun Control LLC – totaling nearly $992,000 that have been filed against Plaza Towers related to its renovation. It alleges that Springfield Property's inability to resolve these liens has caused foreclosure proceedings to move forward, as the 1736 E. Sunshine St. property is listed as collateral for the loans.

The petition indicates that a 2020 deed of trust between OMB Bank and Springfield Property states, in part, that Denis' company would not "permit or suffer any mechanic’s, laborer’s, materialman’s, statutory or other lien on the property." According to the lawsuit, OMB Bank sent letters to Springfield Property last year requesting the mechanic's liens be discharged and notifying the company that the loans were in default.

The lawsuit seeks a court judgment of nearly $15 million against Denis and Springfield Property to repay the remaining loan balances. The suit also requests court approval of a temporary receiver to take over the property amid foreclosure proceedings.

Denis' attorney, Chad G. Mann of the Law Office of Chad G. Mann LLC, provided a statement to Springfield Business Journal indicating "that Springfield Property LLC contests the Base lien on the Plaza Towers, a lien we believe lacks legal validity." The statement indicates OMB Bank was informed through a formal notice on Feb. 20 that the lien is contested.

"The remaining liens, filed by Doing Steel and Springfield Sun Control, likewise stem from nonpayment by Base to its subcontractors. Under Missouri law, a property owner has no obligation to satisfy liens it deems legally unsupported or fraudulent," the statement from Mann reads. "Springfield Property LLC is prepared to address these matters through proper legal channels.”

Mann's statement also takes issue with Denis being personally served, noting his law office was previously designated to receive official notices.

"I am truly puzzled by this departure from professional protocol and question whether this step was taken to expedite an action that was, in our view, premised on inaccurate information," the statement reads.

OMB Bank's attorneys could not be reached for comment by deadline.

Through Mann, Springfield Property and Denis earlier this year sought and then rescinded a request for a temporary restraining against OMB Bank to prevent foreclosure of Plaza Towers, according to past reporting.

In August, Denis was indicted by a federal grand jury for allegedly possessing eight firearms illegally and lying about his criminal record when buying two of the weapons, according to past reporting. Denis was arrested and jailed in mid-July amid Greene County Circuit Court charges of domestic assault and kidnapping.