Tarkanian Says $17 Million Judgment The Result Of Fraud

(Sean Whaley/Nevada News Bureau) – A leading candidate for the Republican nomination for the 4^thCongressional District seat said today a $17 million court judgment again him and his family is the result of fraud and not bad judgment.

Danny Tarkanian, one of several Republicans vying in the June 12 primary to face state Sen. Steven Horsford, D-Las Vegas, in the November general election, said the developer in the transaction took his money and used it for purposes other than developing a project in Anza, Calif.

Tarkanian discussed the case on Jon Ralston’s Face To Face television program today. The son of basketball legend Jerry Tarkanian, he is viewed as a favorite in the primary, which includes state Sen. Barbara Cegavske, R-Las Vegas.

Tarkanian said his family was misled in the real estate deal, and that it bears no correlation to how he would perform as a member of the House of Representatives. The judgment is the result of a dispute that bankrupted both the original developer, Robert Dyson, and La Jolla Bank, which financed most of the deal.

“He was to use that money to develop the property in Southern California,” Tarkanian said. “He didn’t do that. Instead he used the money for other purposes, including repaying a loan he had with a bank that loaned us the money. We believe there was clear evidence of fraud there.

“We’re just like thousands of other Nevadans around here that are losing their life savings because of unscrupulous acts by banks and others that are involved in that stuff,” he said. “Yes, I feel horrible for my family and I wish we could have done something differently.”

The judgment, entered by a federal judge, comes at a bad time for Tarkanian as voting is underway in the primary.

As reported first by Ralston, the federal judge has ruled that Tarkanian, his parents and siblings owe the Federal Deposit Insurance Corp. $17 million for a loan they took from the now-defunct bank that is under federal receivership.

Tarkanian has said he will appeal the judgment, and that it in no way is a reflection of his suitability to serve in the 4^th Congressional district.

“I think it is a big stretch to say that because [a] guy defrauded our family, that that gives me poor judgment,” he said.