NCUA Sues Real Estate Developers over Failed Vegas Condo Project

Five months after the NCUA filed a complaint against a business lending CUSO with the liquidated Ensign Federal Credit Union, the regulator is going after real estate developers who allegedly defaulted on a nearly $2 million loan.

According to a March 24 suit filed in the U.S. District Court for the District of Nevada, Las Vegas, Habitat Center II LLC was approved for a $1.9 million loan with Ensign on May 30, 2007. The NCUA said the developers and other individuals associated with the condominium project failed to make payments on the promissory note and construction loan agreement on property in Clark County, Nev. On Nov. 1, 2010, the regulator foreclosed on the property, but the proceeds from the sale were not enough to pay the full amount of the defaulted debt, according to the complaint.