Businessman’s firm sued over failed complex

BISMARCK (AP) — A federal judge in Bismarck is considering a lawsuit filed by the Bank of Oklahoma against one of North Dakota businessman Gary Tharaldson’s companies in a dispute linked to a failed Las Vegas complex.

Tharaldson and his financial adviser, Brad Scott, owner of Bismarck’s Scott Financial Services, are at the center of lawsuits over millions of dollars in financing, including $15 million from the Bank of North Dakota, for the ManhattanWest condominium complex in Las Vegas.

The Bank of Oklahoma, a lead investor, sued Tharaldson Motels II Inc., in North Dakota to recoup its $20 million investment as well as accrued interest.

Tharaldson and his companies, Club Vista Financial Services and Tharaldson Motels II Inc., earlier sued the Bank of Oklahoma and Scott Financial Co., in Clark County, Nev., alleging that they hid information about the Las Vegas development.

U.S. District Judge Daniel Hovland in Bismarck is considering whether to allow the North Dakota case to proceed while the Nevada case goes forward.

Martin Aronson, an Arizona attorney for Tharaldson and his entities, said: “We allow our court filings to speak for themselves.”

Scott, in a written statement to The Bismarck Tribune, said he could not comment on the cases, but said his company “denies all allegations of wrongdoing.”

The Bank of Oklahoma, in court documents, argued that Tharaldson was not taken advantage of and that he is a “sophisticated businessman who has engaged in numerous financial transactions.”

John Clayman, an attorney for the Bank of Oklahoma, said he expects a decision in the coming weeks on whether the North Dakota case can proceed.

“This is the kind of thing that happens when people fight about money,” Clayman said.

The $350 million ManhattanWest project combined luxury condos, shopping and dining and office space in Las Vegas.

Tharaldson and Scott were part of a financing deal early last year that involved investment in the project by 29 banks in North Dakota and other states. It was halted a year later with millions of dollars in liens filed against its developer.

Eric Hardmeyer, president of the Bank of North Dakota, confirmed his bank had lent $15 million in financing for the project. He and other officials said state law bars him from disclosing details of the loan.

Tharaldson, a native of Dazey, a small town northwest of Valley City, built a fortune by developing and managing motels and financed an ethanol plant near Casselton. The University of Mary in Bismarck named its business school after him. Tharaldson Enterprises Inc. is based in Fargo.

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