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.

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