Credit Suisse Group is being sued by property owners at ski resorts in Montana, Idaho and the Bahamas, who claim the bank made "predatory" loans based on inflated appraisals so it could take over the resorts when the debts couldn't be repaid.

LJ Gibson and Beau Blixseth are seeking $24bn (€16.7bn) in damages on behalf of at least 3,000 investors who bought land or homes at four developments, including Tamarack Resort in Idaho, that received loans from Credit Suisse, according to a complaint filed recently in federal court in Idaho.

Blixseth is suing for losses from his property at the luxury Yellowstone Club in Montana, developed by his father Tim.

That resort borrowed $375m from Credit Suisse in September 2005 and sought bankruptcy protection in November 2008. The Zurich-based bank retained the right to collect on the loan after the resort's purchase by CrossHarbor Capital Partners was approved in June.

The lawsuit alleges racketeering, breach of fiduciary duty, fraud and negligence. The damages sought amount to triple the $8bn in alleged losses for property owners allowable for racketeering violations and names three Credit Suisse units and property advisers Cushman & Wakefield as defendants. Cushman & Wakefield provided appraisals, according to the complaint.

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

Cushman & Wakefield, the New York-based, privately-held property services firm, says the complaint's allegations are "completely without merit", said Dwayne Doherty, a spokesman.

Starting in 2004, Credit Suisse engaged in a "loan-to-own scheme" that encouraged developers to take cash out of their resort projects in the form of loans or "profit dividend" based on projected future growth, according to the complaint.

That led developers to "mortgage their development projects to the hilt," leaving resorts with "excessive and unsustainable debt", according to the complaint. The bank collected fees and sold the loans to investors, the suit said.

When the property market collapsed, the resorts went into default or sought bankruptcy protection, devastating property owners who were promised pools, golf courses, shops, hotels and other luxury amenities, according to the lawsuit.

Credit Suisse "has received huge fees up-front, and consummated ownership or control over all but one high-end resort", according to the complaint.

The bank used "its predatory loans to generate excessive loan fees and to acquire the respective properties in foreclosure", the filing said.

Gibson owns property at Tamarack, which received a $250m loan from Credit Suisse, and two other resorts in Nevada-based Lake Las Vegas, and the Bahamas.

Tamarack ski facilities have been closed, according to the complaint.

Bloomberg