FDIC Sues Tarkanian|Family for $17 Million

LAS VEGAS (CN) - The FDIC sued Danny Tarkanian and his family for $17 million, blaming the unsuccessful politician for the collapse of La Jolla Bank.

As receiver for the failed bank, the FDIC sued Danny Tarkanian and his wife Amy, Tarkanian's parents Lois and Jerry Tarkanian - the legendary basketball coach at University of Nevada Las Vegas - and Danny's siblings and brother-in-law, in Federal Court.

Danny Tarkanian took out a $17 million loan to try to develop an "equestrian destination resort" in Anza, Calif., a small town on the edge of the Southern California desert. The deal bankrupted the developer and the bank, which financed it, according to the Las Vegas Sun.

Danny Tarkanian's attorney blamed the developer for the fiasco, claiming he lost money too, to the developer, Robert Dyson, who is not a party to the FDIC complaint.

Danny Tarkanian ran four times for political office as a Republican and lost: for state Senate (2004), for secretary of state (2006), in the primary for U.S. Senate (2010), and for Congress (2012).

A federal judge ruled against the Tarkanians a year ago - apparently, as the only ones left with any assets to go after for the failed development deal.

In the Writ of Execution, filed Wednesday, the FDIC seeks $16,995,005.17 in principal, plus $32,991.52 in interest and costs. The 10 percent interest continues to accrue at $4,656.16 per day.

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