Karen Winnick fights to save $190M Bel Air mansion from predatory loan dispute
Karen Winnick, widow of telecommunications billionaire Gary Winnick, is battling to preserve her historic Bel Air mansion, Casa Encantada. The $190 million property is now endangered due to a legal dispute with lender CIM Group. She asserts that the company employed a 'loan-to-own' strategy that could leave her financially ruined.
The disagreement revolves around a $100 million loan Gary Winnick obtained in 2020, using Casa Encantada and another property as collateral. Karen Winnick maintains she was unaware of the loan until after her husband's passing in 2023. The agreement featured a variable interest rate that never dipped below 9.55 percent, causing the debt to balloon to $155 million.
The loan also listed artwork, furniture, antiques, jewellery, and even Karen's wedding ring as security. She contends that CIM's co-founder, Richard Ressler—a friend of her late husband—took advantage of Gary when he was vulnerable. Now, CIM has issued a notice of sale, with an auction for the properties scheduled for mid-December.
Karen and her son Alexander are seeking a jury trial. Their lawsuit accuses CIM of financial elder abuse and other misconduct. The Winnicks initially purchased Casa Encantada in 2000 for $94 million, then the priciest home sale in U.S. history.
The legal tussle puts one of Los Angeles' most valuable estates at risk. If the auction goes ahead, Karen Winnick could lose not only her home but also invaluable personal belongings. The resolution of the case will decide whether she retains control of the property or faces financial ruin.
