Intrust Bank started foreclosure proceedings on Sheldon Coleman Jr, personally and several of his corporate entities including the buildings where Big Dog Motorcycles was housed until its closure in 2011 and the building where BDM Performance Products, the company founded after the demise of Big Dog Motorcycles, was doing e-commerce of custom parts and gear for Big Dog and Harley motorcycles. In the suit, Intrust Bank is seeking to recover a total of $20 million on 6 different loans. Named defendants are: Sheldon Coleman, individually, the Sheldon Coleman Living Trust, Waterview Holdings, Waterview Realty, CD Investment Partnership, Big Dog Motorcycles, Motorcycle Enterprises, BDM SC and Wichita Motorcycles.
According to the suit, Coleman signed four different notes in 2011 for a total of $4.7 million. In the loan agreements, he pledged as collateral almost all of the Big Dog site and the company’s equipment and inventory. Coleman had also signed a $16 million note in 2009, of which he owed $14 million as of October 2013, and a 2012 note for $1.2 million, according to the court documents. Those loans are secured by the Big Dog property, as well as a stream of monthly distributions from his investment company, and his life insurance policies. These notes are in default because the Big Dog property is the subject of foreclosure, the lawsuit claims.
After the demise of Big Dog Motorcycles in 2011, Sheldon Coleman started BDM Motorcycle Products, an e-commerce originally founded to supply parts and accessories to the estimated 25,000 Big Dog owners, then trying to expand in offering general PG&A for the on- and off-road markets.