ReviewJournal.com - News - Desai organizing board member of bank

PRINT THIS Popular

Apr. 16, 2008
Copyright © Las Vegas Review-Journal

Desai organizing board member of bank

By JOHN G. EDWARDS
REVIEW-JOURNAL

Hepatitis C Investigation

Dr. Dipak Desai, majority owner of the Endoscopy Center of Southern Nevada that closed earlier this year, was among the founders and organizing board members of the Bank of George.

The clinic was shut down following disclosures in February that clinics reused syringes on infected patients and contaminated single-use vials of medicine. Officials have identified six individuals who they believe contracted hepatitis C during visits to Desai's center at 700 Shadow Lane.

Share & Save

What is this?

Most Popular Stories

NORM: Penthouse wants piece of the Strip

RAMPAGE ENDS IN SUICIDE: Man runs amok in Las Vegas

ROBBERY-HOMICIDE CASE: Juror sent flirtatious messages

Father mourns his daughter

NORM: 'Joe the Plumber' too booked for LV

Judge asks court to release son arrested after crash that killed girl

NORM: Strip club owners, 'Vinny' part ways

Anger over cuts reaches fever pitch

Working beneath Lake Las Vegas

DISCIPLINE COMMISSION: Halverson removed from bench

In February, the Southern Nevada Health District sent notices to 40,000 individuals, urging them to be tested for hepatitis and HIV, the virus that leads to AIDS.

Desai's departure from Bank of George preceded stories about his clinic, however. The doctor resigned from the board in November, just a month after the institution opened, bank Chief Executive Officer Diane Fearon said.

Fearon confirmed that Desai served on the bank's board but declined to give the reason for his resignation. She said policy prohibited her from disclosing the amount of money he invested in the privately held community bank.

Desai's attorney, Richard Wright, declined to comment on the reason for his client's resignation from the bank board.

A banker, speaking on condition of anonymity, said Desai earlier served as a director at Nevada First Bank and is remembered for opposing pay raises for executives at Nevada First. Western Alliance Bancorporation acquired Nevada First in 2006.

A search of Web sites for local community banks and Nevada corporations uncovered no financial institutions that now listed Desai as a director.

It appears unlikely that Desai has any leadership roles with financial institutions in Nevada, partly because of his notoriety, but also because he is a director of Nevada Mutual Insurance Co., which insures doctors against medical liability claims.

Banks select directors based on their financial responsibility, acumen and good reputation, according to another banker who spoke anonymously.

When a director becomes the subject of negative publicity, he or she often will leave the bank board. That's what happened with David Keys, former CEO of Southwest Exchange.

Keys joined the board of Henderson-based Silver State Bancorp in 2007 only to resign a few days later when Southwest Exchange failed while owing clients $95 million.

Bankers also say they would not knowingly allow an individual to serve on their boards if they knew the person was on a competing bank's board because it would present a conflict of interest.

George Burns, commissioner of the Financial Institutions Division, said the division and the Federal Deposit Insurance Corp. prohibit directors from serving on the board of more than one community bank competing in the same area.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

Leave Your Comment	7 Reader Comments
Terms & Conditions The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor. Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: gorodskoy wrote on April 30, 2008 07:03 AM: http://mp3fake.com/ astroved.ru [url=http://astroved.ru/]astroved.ru[/url] dwc wrote on April 16, 2008 11:44 AM: Hey, check their website. One of the directors is..... .... .... .... Dr. Rudy R. Manthei, the guy that wants to BUY DESAI'S CLINICS, as reported in today's RJ article. Something is smells here. And it AIN'T the endoscope. Furious wrote on April 16, 2008 08:55 AM: Bear is right. "What's the point?" RJ writer, John Edwards, does a five minute search on Desai, finds his name on a bank board, makes a couple of calls and bingo! He's got a "news" story with Desai's name in it and he's off for the week. I wish I had a cush job like that. In fact, I wish I had ANY job! Tell you what, RJ: Hire me as a reporter and I promise to come up the names of the other bank founders. bear wrote on April 16, 2008 07:55 AM: What is the point? Desai has money? They forced him to resign? The bank is infected with hepatitis? The money at the bank is infectious? James wrote on April 16, 2008 07:42 AM: Who were the other "founders" of the Bank? After that snow job the public received from the city council the public should dig deeper. The city could have fined Desai three times what it did and revoke his business license. However, Oscar and his business partner Jay Brown came to a "win win" LOL behind closed doors for Desai. What happened to our open meeting law? VegasGal wrote on April 16, 2008 07:04 AM: Not like I'd have any confidence in a financial institution with a name like "Bank of George," anyway. Where do they keep your money,in a piggy bank under a mattress? skunk wrote on April 16, 2008 06:22 AM: Where did Desai buy groceries? I should not buy groceries there? Does he buy gas from Chevron?