Blixseth Family Files Suit Against Credit Suisse Group
BOISE, Idaho -The son of Coachella Valley philanthropist Tim Blixseth has joined the growing list of parties filing suit against Credit Suisse Group, accusing it of “predatory lending.”
Property owners at four struggling and bankrupt resorts in Idaho, Montana, Nevada and the Bahamas have filed a $24 billion federal lawsuit against Credit Suisse, saying the bank gave predatory loans to the resorts’ investors as part of a scheme to take over the properties.
The Blixseth’s owned the Yellowstone Club in Montana. Property owners at Idaho’s Tamarack Resort,Nevada’s Lake Las Vegas resort and the Gin Sur Mer Resort in the Bahamas joined Beau Blixseth in filing the lawsuit Sunday. They are seeking class-action status.
The property owners say Credit Suisse set up a branch in the Cayman Islands to skirt U.S. federal banking regulations and appraised the resorts at artificially inflated values as part of a plan to foreclose.
A Credit Suisse spokesman says the Swiss-based bank will fight the claims.
The Blixseth’s reached a court-approved deal in May of 2009 to turn over control of the resort to Cross-Harbor Capital Partnerships, claiming Credit Suisse drove the club into bankruptcy with a fraudulent $375 million loan. Those claims were dismissed.
