Tamarack, Yellowstone Founders Want In on $2.5-Billion Suit

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Publish Date

07/26/2011

SAM Magazine-Boise, Idaho, July 26, 2011-Resort founders Alfredo Miguel of Tamarack Resort, Idaho, and Tim Blixseth of the Yellowstone Club, Mont., are hoping to recoup money lost at their failed resorts from lender Credit Suisse Group. The two men hope to join a $2.5 billion suit claiming that Credit Suisse engaged in predatory lending.

The original lawsuit claims Credit Suisse set up an offshore branch to skirt U.S. rules, appraise resorts at inflated prices, provide loans the properties could not repay, and then gain control of the resorts through foreclosure. Property owners at Tamarack, Yellowstone Club, Lake Las Vegas resort, Nevada, and the Ginn Sur Mer Resort, Bahamas, launched the original suit.

Miguel and Blixseth claim that fraudulent appraisals led to bloated loans that were doomed to fail. Credit Suisse, they argue, protected itself by syndicating the loans, reducing its stake but earning sizable commissions.

In a statement, Credit Suisse declared the charges baseless, and accused Blixseth in particular of trying to shift blame for a series of poor deals he made. It's not an unreasonable argument; in 2010, a federal judge ordered Blixseth to pay $40 million for causing the collapse of Yellowstone Club via a series of fraudulent deals.

Comments

Bob

Madoff proved that there is no such thing as a sophisticated investor. Miguel and Blixseth need to put on their big boy pants and go to the hall of shame with the rest of those that considered themselves intellectual elites. It is unfortunate that the economists that called this crash 7 years ago, were ignored.

mediaman

Can't speak for the others, but when the previous Tamarack head honcho thought he was bullet proof, and spent all the money on ill-advised development outside the base area...Did Credit Suisse make him do it? Yeah, let's blame the lender for one's own arrogance!

...

yea, it sure does sound pretty messed up. but i will say, if i had far too much money that i didnt know what to do with it. i would prob join the YC Club. It was some of the best skiing i have ever enjoyed, and it was an epicly bad snow year. to look up the lift and maybe see 4 legs hanging down is a cool feeling. after working at vail, park city, alta i would rather be by myself on a vacation and still get fresh tracks a full week after a snow or rip down a groomer at 4 in the afternoon and not feel a bump.

some nerve

Blixseth is a timber billionaire who is claiming Credit Suisse took advantage of him with predatory lending practices. C'mon now. He tried to build a gated resort for the ultra-rich, but then found out skiers, even high net worth skiers, actually like having other people around on vacation. It was a bad business model that failed. As someone who is known to be a shark in the timber business, don't act like a financial illiterate who was taken advantage of, Tim.

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