Tarkanian Development Scheme Forces Embattled Candidate to Default on $17 Million Federal Judgment
A federal judge ordered Danny Tarkanian to repay $17 million in loans for a development scheme that bankrupted him, his family, and numerous companies he did business with. A deeper look into the professional politician’s background shows it was fraudulent from the start and the investigative process and legal action revealed much more than just defaulting on a loan.
According to the Federal Deposit Insurance Corporation (FDIC), Tarkanian used “materially false statements” and inflated his assets to secure the loans to build an equestrian destination resort—complete with its own jockey school—in Southern California.
The resort was never built and Tarkanian was sued after refusing to pay back the loans he fraudulently obtained.
Tarkanian declared bankruptcy after moving his assets and orchestrating large transfers for his personal benefit, and left others footing the bill for his failed scheme.
The details of this revelation are troubling and revealing.
- The FDIC accused Danny of making “materially false statements and representations” to secure the multi-million dollar loan that he ultimately defaulted on.
- The FDIC claimed that Danny “knowingly and fraudulently made materially false statements under oath in” his bankruptcy filings.
- According to the FDIC, Danny manipulated family and friends to funnel untraceable cash his way.
- The FDIC called out Danny’s history of “questionable recordkeeping” and “manipulating accounting practices.”
- The FDIC accused Danny of transferring, removing and hiding assets “with the intent to defraud, hinder, or delay” his creditors, including the FDIC.
- The FDIC claimed that Danny “orchestrated” transfers of hundreds of thousands of dollars to hide money from his creditors.
- In response to multiple claims of fraud, deceit, and perjury, Danny agreed to pay the FDIC $525,000.
Excerpts From The Case
- “Has a history of questionable recordkeeping and has been accused of manipulating account practices”
- “Orchestrated multiple transfers of approximately $822,425 in funds…some of it for his benefit.”
- “With the intent to hinder, delay, or defraud creditors”
- “Used the bank accounts of the entities for his own personal expenses and purposes”
- “Knowingly and fraudulently made materially false statements under oath”
- “Made materially false statements and representations in order to benefit from a $14,568,750 loan”
- “intended…to defraud and induce”
- “made such false oaths knowingly and fraudulently”
- “made false written statements concerning of their financial condition”
- “Began engaging in cash transactions”
- “The cash and its disposition was and remains unaccounted for”
- “They specifically closed their bank account while contemplating bankruptcy and to prevent plaintiff from attaching or garnishing their assets.”
- “Tarkanian paid himself substantial sums of money…some of which was characterized as a non-taxable ‘loan repayment’… and his ‘loan repayment’ records are inaccurate and do not disclose the details concerning such alleged repayments.”
