When we think of predatory lending, we usually think of victims who are relatively poor and unsophisticated. But a group of luxury resort homeowners in Nevada, Idaho, the Grand Bahamas, and Montana are moving forward with claims that they, too, were taken advantage of by a predatory lending scheme orchestrated by Credit Suisse and Cushman Wakefield. Last week, a federal magistrate judge denied the defendants’ motion to dismiss all the plaintiffs’ claims, but he did dismiss their RICO claims with prejudice.
Seeking $8 billion in damages, seven homeowners and one development company filed a 115-page purported class action on behalf of 3,000 individuals or entities that bought land and property in the resort developments of Lake Las Vegas, Tamarack, Ginn Sur Mer, and Yellowstone Club. The complaint accuses the defendants of running a predatory “loan-to-own” scheme in which Credit Suisse made loans to the resort development companies that they could not pay back, resulting in Credit Suisse taking control of the properties. Cushman Wakefield assisted this scheme by giving inflated appraisals, the plaintiffs allege. These actions harmed the plaintiffs because, among other things, the defendants failed to follow through on their contractual obligation to develop the resorts as promised.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]