Friday, October 19, 2012

NV-04: From Delusional to Shameless & Hypocritical

So today, it happened. It finally happened. Why am I not surprised?

Danny Tarkanian finds himself in the hot seat yet again. And this time, it's over "funny money" he's been loaning to his own campaigns.

The Nevada Democratic Party has filed a complaint with the Federal Elections Commission against Republican congressional hopeful Danny Tarkanian.

The complaint filed Thursday questions Tarkanian’s legal standing to forgive a $250,000 loan he made to his failed 2010 U.S. Senate campaign after a judge signed a $17 million judgment against him.

It also questions the legality of other transactions, including a subsequent $40,000 loan made to his U.S. House campaign.

Democrats allege the GOP nominee for Nevada’s 4th Congressional District lacked legal control over his personal funds after a federal judge in May signed the judgment against Tarkanian and other members of his family stemming from a failed real estate deal.

On Monday, we discussed Danny Tarkanian's inability to take responsibility for his own actions. And we're seeing this on full display yet again today. Even though he's been spending the past two tears facing a $17,000,000 (!!!) FDIC judgment over a shoddy plan to develop am "equestrian resort" 35 miles from Palm Springs, CA, Baby Tark keeps pretending that this is "no big deal" and he can keep behaving as if it doesn't exist.

But here's the problem: It does exist. And Baby Tark just can't wave a magic wand to make this $17,000,000 judgment go away.

Earlier this month, The Sun's Patrick Coolican pointed out the eye popping reality of what happened.

As my former colleague Michael Mishak reported during Tarkanian’s failed 2010 Senate bid, Tarkanian was approached by a friend and business partner in 2007 to invest in Dignitary Downs, an “equestrian destination resort” in Anza, Calif., complete with a 200-room hotel, restaurant and jockey school.

The Tarkanian family company, Diamond Properties, would play the role of “hard money lender.” It would borrow money from La Jolla Bank, using its own property as collateral, and then lend it to the developer at high interest. This was faddish during the boom, especially for “unconventional” development schemes —such as, say, a horse resort — that couldn’t get regular financing.

Tarkanian personally guaranteed the loan from La Jolla Bank, which means he was on the hook. He used a nearly 9-acre undeveloped parcel near the M Resort as collateral. Needless to say, it’s worth a fraction of what it was in 2007.

Horse resort ... Anza, Calif. ... hard money loan ...2007 ... La Jolla Bank: This is a thickly stacked failure sandwich.

Almost immediately, the developer went into default. Sadly, there would be no horse resort after all.

Meanwhile, La Jolla Bank failed and was seized by the FDIC, the independent government entity that insures depositors and supervises the soundness of banks, managing them when they fail.

And once La Jolla Bank was seized by the FDIC, Danny Tarkanian was then required to pay back the $17 million he borrowed in order to invest in a (supposedly) soon to be developed "horse resort" 35 miles away from Palm Springs. But so far instead of owning up to this EPIC FAIL of a development scheme, Tarkanian keeps running away and pretending like it doesn't exist.

Seriously, is this the kind of person Nevada wants to send to Congress? Coolican asked that earlier this month, Harry Reid asked it earlier this week, and I have to ask it now. If Danny Tarkanian refuses to take responsibility for his own development debacle, how can he be responsible with the entire budget of the federal government?

What makes this disgusting is seeing how Baby Tark and his teabagger buddies have been attacking Steven Horsford for his family's past tragedies. Yet while Tarkanian and the G-O-TEA attack Horsford, they keep conjuring up more excuses for the $17,000,000 FDIC hot mess. They must truly have no shame.

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