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COLORADO SPRINGS,COLO. -- Could the deal to upgrade and expand the Olympic Training Center in Colorado Springs be in jeopardy?

Concerns first arose following allegations that LandCo, the company overseeing the construction, didn't have the money to move forward.

While LandCo officials deny those allegations, FOX21 News has learned of extensive legal trouble facing the company and its principal shareholder, Raymond Marshall.

According to the Colorado Springs Business Journal (CSBJ), that broke the story, Marshall is facing several civil suits and criminal allegations.

These cases have a price tag in the millions, and while it's speculative right now, could potentially prevent LandCo from living up to its end of the bargain.

Court records first obtained by CSBJ paint the picture of a company in trouble, trouble that started well before LandCo struck a partnership with the city and the United States Olympic Committee (USOC).

"And they have continued since and, of course, worsened," said CSBJ's John Hazlehurst.

Investors with several limited liability corporations created for specific purposes by LandCo are accusing Marshall of misusing money. Those investors include Ward Berlin and Jack Mason, who have asked the court to appoint a receiver.

Both Mason and Berlin had more than $1 million invested in entities under LandCo's umbrella.

Affidavits indicate both men are accusing Marshall of transferring funds from entities in which they had interest to entities in which they did not.

"One filing alleges that Marshall diverted funds from many ventures in order to fund the USOC venture and that those diversions were made without the knowledge or consent of partners," Hazlehurst said.

Then in October 2008 the Internal Revenue Service placed a federal tax lien for $1.6 million on Marshall's home.

FOX21 News tried to reach Marshall Tuesday afternoon regarding how these suits could affect his ability to complete the USOC project, but staff was unable to.

FOX21 News also left several messages with members of city council regarding the project. Staff reporter Danielle Leigh couldn't reach them, but Hazlehurst did.

"They had fragmented knowledge of these matters. I don't think they had any notion of the scope or size," said Hazlehurst.

As for the USOC project, city officials say they are waiting to sell bonds for the $27 million they have promised because of current poor market conditions.

An anonymous source with CSBJ says the city is actually waiting because LandCo has been unable to come up with the $16 million it has promised, and so the USOC won't sign a lease on the building downtown set to be the new headquarters.

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