Salt Lake City, UT / January 6, 2010 / --  It reads like a script straight out of Hollywood.  Credit Suisse and the law firm titan Cushman & Wakefield have been accused with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) that include fraud, negligence and breach of fiduciary duty to the tune of $24 billion.    

At the heart of the lawsuit is the use of an appraisal method that is not compliant with U.S. Banking regulations.  According to court documents Credit Suisse took the estimated market value of all sell-able real estate without applying the normal "discount rate" for market fluctuations.  At Yellowstone Club the loans totaled $375 million; at Tamarack Resort in Idaho it was $250 million; at Lake Las Vegas it was $540 million. 

Credit Suisse spokesman Duncan King said, "We believe the suit to be without merit and will defend ourselves vigorously."   

But while Credit Suisse and Cushman Wakefield claim no wrong-doing there may be evidence to the contrary.  What gives this case such merit is the Yellowstone Club case ruling by U.S. Bankruptcy Court Judge Ralph B. Kirscher, who called the Credit Suisse loans to the club "predatory" and said the behavior of the bank "...shocked the conscience of this court." 

The institutional investors who bought the debt from Credit Suisse lost about 70% of their money on Yellowstone Club and virtually all of their money on Promontory in Utah, Tamarack Resort in Donnelley, Idaho and Lake Las Vegas.   

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