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October 30, 2014

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FDIC sues developer Jim Rhodes over real estate loan

Image

Steve Marcus

Developer Jim Rhodes smiles on Blue Diamond Hill on Monday, May 5, 2003. Las Vegas can be seen in the background.

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.

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  1. 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.

  2. Arizona let him develop Golden Valley.

    I wish he would go away.

  3. Vegasles - isn't there a 6 month statute of limitations on deficiency judgements?

  4. 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.

  5. 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.

  6. 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"?

  7. How many times has this guy been sued?

  8. @ 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$$.