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Developer Jim Rhodes smiles on Blue Diamond Hill on Monday, May 5, 2003. Las Vegas can be seen in the background.
Monday, Feb. 7, 2011 | 2:01 p.m.
Sun Coverage
The Federal Deposit Insurance Corp. is suing Las Vegas developer Jim Rhodes to enforce a personal guarantee for a soured real estate loan.
The FDIC, receiver for the failed Community Bank of Nevada, sued Rhodes last week in Clark County District Court.
The dispute arose in April 2009 outside of the bankruptcy of Rhodes' home-building empire when Community Bank sued Rhodes before Community Bank failed.
The bank lawsuit at the time charged defaults under a $2.65 million loan made in December 2005 to a Rhodes company called Tropicana Durango Ltd.
Last week's lawsuit says the April 2009 lawsuit had been settled, with the loan modified and extended.
But, attorneys for the FDIC allege, the loan again went into default and the FDIC foreclosed on the land backing the loan -- with the FDIC buying it at auction for $750,000 in February of this year.
More than $2 million was owed on the loan when the collateral was foreclosed on and Rhodes is liable for the deficiency -- but hasn't paid the FDIC for the deficiency, the new lawsuit charges.
The suit charges breach of contract, unjust enrichment and other counts.
"Plaintiff funded the loan for the benefit of defendant James Rhodes with the legitimate expectation that defendant James Rhodes would repay the loan," charges the suit, which seeks unspecified damages.
A request for comment was placed with Rhodes' office.
Too bad it was not a casino marker, or the FDIC (all of us really since we pay for this "insurance") could just get DA Roger to get the money back.
Interesting priorities this town has.
Rich guy down! Rich guy down!
RNC to Sandoval. Divert more tax dollars from the poor and children to save rich people.
This is an emergency!
James Hardie Gypsum, sold at the right time cause they were loosing their shirt on the mine..Rhodes stepped in and paid dearly for the site...now everyone is upside down..too bad Hardie didn't get the shaft..
Typical Jim Rhodes business deal. Promise to pay and then hold out until you are sued or the other guy goes broke. I'm sure a donation to Senator Reid can make this little problem go away.
It appears Mr. Rhodes did the same thing that many homeowners did in this Valley and across the country.
Will be interesting to see in time if the banks start going after homeowners that are walking away from houses.
It could happen. Some are selling the bad notes off for pennies on the dollars to investor groups that are planning on chasing people for the money once they get resettled.
Arizona let him develop Golden Valley.
I wish he would go away.
Vegasles - isn't there a 6 month statute of limitations on deficiency judgements?
On short sales they have six years. Some people get the lender to sign away their right to sue when they do short sales. Many lenders WILL NOT sign off and they will sell the short amount to collectors.
If there is a trustee sale they have six months.
The holder of the SECOND has six years if the holder of the first held the trustee sale.
He never pays back his loans. And when he does, he brings you in and says I can't (won't) pay the amount we agreed on but I will pay a lower amount. Then you have to suck it up because you have to pay your own employees. He opens a separate company for every one of his projects so it makes it difficult to nail him down. He has been hosing people in this town for 20 years. And people probably don't even realize he started Harmony Homes after Rhodes Homes failed. But not to worry, Harmony will do the exact same thing Rhodes Homes did. Screw as many people as possible...
i always found it ironic that his wife was on the cover some local magazine a few years with a ring on her finger the size of a doorknob and inside she was saying how much she wanted to give back to her community.
that ring could have fed every homeless person in vegas for a month.
Jim Rhodes is the example of a lying, cheating, greedy and dishonest businessman. It is only a matter of time that the FBI and IRS start working on getting him indicted....then hopefully he will be convicted in federal court for all the fraud he has committed! JIM RHODES IS A CRIMINAL FRAUD.
Yeah, I feel REAL sorry for this guy as he drives his Maybach all over town and his wife shops at Crystals and Wynn's Esplanade.
Thank you FDIC. This is WHY WE NEED REGULATION--a bit more in the real estate industry. A bit more specific in the banking world. A bit less of repetitive ineffective meaningless unenforceable stuff.
Rhodes is a fraud only if he is convicted. Of course, that partially depends on who is hired to defend him. Who is he using "this time"?
I have lived in Las Vegas for almost 15 years, and I have never heard anybody say one good thing about Jim Rhodes. It can't only be because of his wealth. There have been good things said (here and there) about other rich guys, from Steve Wynn to Sheldon Adelson. But never Jim Rhodes. What does that say about his character? Not much, I'm afraid.
The great irony is, when he screws people out of money for services provided, he thinks that "negotiation process" is just him being a good businessman. But somehow he keeps reinventing himself. How in the world is he able to start Harmony Homes with all the people he has screwed over. And who in their right mind would buy his homes?
How many times has this guy been sued?
@ vegaslee ...Home owners who have their home foreclosed are protected if they file for bankruptcy. If they don't file before the auction most cases they will have to afterward. Rhodes has the money, he is just an A$$.