FAIRHOPE, Alabama— A federal lawsuit against former executives of Silverton Bank, alleging mismanagement in the largest bank failure in Georgia history, has shed light on a failed subdivision project east of Fairhope city limits on State Highway 104.

Fairhope Falls LLC is listed as one of 15 bad loans in the lawsuit seeking $71 million in damages filed last month in Atlanta by the Federal Deposit Insurance Corp.

The complaint says the loans were approved “in blatant violation of the duties owed by them to the bank,” and that the bank “suffered a loss on the Fairhope Falls Loan” in the amount of at least $7,421,535.

Touted on its faded sign as a community of nature trails, canoe launches, craftsman architecture and fish-stocked lake, Fairhope Falls has become a maze of dead-end streets through chest-high grass—a place for high school kids to park and birders to spot a variety of warblers, vireos and buntings.

“It’s overgrown and blighted,” said Fairhope’s planning director Jonathan Smith, adding he did not think the county had “accepted” the roads, meaning it was the owner’s responsibility to maintain them.

Carl Olson Jr. and Sandra Phillips of Destin, Fla., the original owners of Fairhope Falls LLC, which borrowed the money, according to the complaint, could not be reached for comment by deadline.

A Baldwin County resident who posted on a bird-watching website last month noted “vandals” often dump trash there.

“It’s quite a shame because I’ve tallied 127 species since July 2009.”