Eagle businessman Matthew D. Hutcheson, who made a bid to buy failing Tamarack Resort, was arrested by the FBI today as a federal grand jury indicted him on 17 counts of wire fraud and 14 counts of theft from an employee pension benefit plan. The charges include that in 2010 and 2011, Hutcheson, 41, allegedly misappropriated millions in pension plan assets for his personal use, including to renovate his home, to purchase luxury cars, motorcycles, ATVs and a tractor, and to put up $3.2 million toward his bid to buy Tamarack. Wendy Olson, U.S. Attorney for Idaho, said, “We take allegations of pension fraud very seriously. I commend the federal law enforcement officers who conducted the deliberate and detailed investigation in this case.” You can read Olson's full announcement here, and the federal indictment here.

Tamarack Resort - which unlike Bogus Basin is open for skiing, thanks in part to snowmaking - is joining Brundage Mountain in offering discounts to out-of-luck Bogus Basin season passholders. The resort has announced it'll charge $25 on Thursdays with a Bogus pass, down from the usual $49; and $35 Fridays through Sundays and holidays; there's more info here.

A would-be buyer of Tamarack Resort in Idaho is the subject of new questions, as AP reporter John Miller reports that Matthew Hutcheson is being investigated by the U.S. Department of Labor, plus faces liens on his home plus bad checks and a former employee's lawsuit totaling $350,000. Click below for Miller's full report.
  

Here's a news item from the Associated Press:  BOISE, Idaho (AP) — Tamarack Resort homeowners want to buy two ski lifts that Bank of America has been trying to tear out. Tamarack Municipal Association director Tim Flaherty told The Associated Press on Tuesday he's been in discussions with the bank. Bank of America was stiffed on the lifts by Tamarack majority owner Jean-Pierre Boespflug, who disappeared this year when the bank sought $4 million. Even with Boespflug on the lam, Flaherty says he's also working to open the ski resort for a second straight year. Tamarack Municipal Association ran a limited season last year on a $1 million budget, earning a small profit. Flaherty is now in talks with Idaho over another sublease to 2,100 acres of public land where the ski runs are located, in advance of a Dec. 15 opening.

Steven Vames, vice president for corporate communications for Credit Suisse bank, has issued this statement on the latest legal filings in federal court in Idaho, in which Alfredo Miguel, founder and former board chairman of the failed Tamarack Resort in Idaho, and Tim Blixseth, founder and former manager and developer of the Yellowstone Club in Montana, have filed to intervene in a pending lawsuit against Credit Suisse, charging the Swiss bank with fraud, conspiracy and more, in a scheme they charge directly contributed to the financial failure of both resorts:

“Credit Suisse rejects Mr. Blixseth's and Mr. Miguel's entirely meritless allegations and their attempt to latch onto an existing suit which has already seen many of the plaintiffs' claims dismissed. For Mr. Blixseth in particular, this is simply the latest attempt to shift blame to others and away from his own conduct.”

The lawsuit's racketeering claim under the federal RICO Act, or Racketeer Influenced and Corrupt Organizations Act, was dismissed in March as not applicable to the case. Other claims, however, including charges of fraud, conspiracy, tortious interference and breach of fiduciary duty, were allowed to proceed. You can read my full story here at spokesman.com.

Alfredo Miguel, founder and former board chairman of the failed Tamarack Resort, and Tim Blixseth, founder and former manager and developer of the Yellowstone Club in Montana, have filed to intervene in a pending lawsuit against Credit Suisse, charging the Swiss bank with racketeering, fraud, conspiracy and more, in a scheme they charge directly contributed to the financial failure of both resorts.

The existing lawsuit, originally filed in January of 2010 by a group of property owners from four failed luxury resorts, charged the second-largest bank in Switzerland with engaging in a “predatory” lending scheme designed to force all four resorts into foreclosure, and acquire the pricey properties for pennies on the dollar while raking in “enormous” fees. In addition to Tamarack and the Yellowstone Club, the 2010 federal lawsuit covers two other failed luxury resorts: Lake Las Vegas in Nevada, and Ginn Sur Mer resort in the Bahamas.

The filings from Miguel and Blixseth charge that the two resorts suffered “defaults and foreclosures caused directly by shoddy, deceitful, misleading and fraudulent appraisals deliberately inflated by appraisers and lenders resulting in catastrophe for lending institutions, innocent borrowers and other parties collaterally affected by defaulting loans secured by property such as vendors, contractors, subcontractors, material suppliers, title insurance companies and purchasers of real estate.”

The scheme, according to the legal filings, involved a “new and exotic real estate loan product” that Credit Suisse developed in 2004, targeting owners of high-end real real estate resort developments with the pitch that they could enjoy all the future profits and equity from their developments, just as, at the time, homeowners were tapping into their fast-rising home equities through loans. There were differences, though: Little to no risk to Credit Suisse, potential huge profits for the bank when the loans failed, and the bigger the loans, the higher fees the bank made. Plus, appraisal values for the properties were vastly inflated using a new methodology. As a result, the Yellowstone Club was appraised at $420 million in September of 2004, but in July of 2005, it was appraised at $1.165 billion. Tamarack was  appraised at $284 million in December of 2005, but one month later Credit Suisse told Miguel it was worth $1.5 billion.

The Swiss bank ran the huge loans through its Cayman Islands branch, which the new filings charge “consisted of a lonely PO box and no office personnel whatsoever,” stating, “The Cayman Island Branch of CSFB was an outright sham and subterfuge.”

When the original lawsuit was filed, a Credit Suisse spokesman said the bank believed the suit to be “without merit” and would defend itself “vigorously.” The original lawsuit seeks $8 billion in actual damages and $16 billion in punitive damages, including $150 million each for the four communities impacted by the failed resort projects. You can read the Miguel/Blixseth brief here; it includes an allegation that Credit Suisse and Highland Capital called Miguel to a meeting in Dallas in March of 2010, told him not to bring his lawyers, and leaned on him for $1.2 million saying that Highland Capital had a party who was “close to the FBI and was prepared to use 'unorthodox methods' to collect on the guaranty.”

Two ski lifts that weren't used this past season at Tamarack Resort are targeted for removal by Bank of America's leasing division after the bankrupt ski resort near Donnelly defaulted on payments; the bank is filing paperwork with the state to remove the two lifts, the AP reports; they're partly on state land that was leased for the resort. The two are a transport lift for homeowners, and a high-speed chairlift accessing intermediate and advanced terrain on the resort's northern boundary; their removal could hurt chances of reviving the resort. Click below for a full report from AP reporter John Miller.

Two of Tamarack Resort's chairlifts can be repossessed by Banc of America Leasing, a bankruptcy judge ruled today. The Associated Press reports that U.S. Bankruptcy Judge Terry Myers lifted an automatic stay that protected the two lifts as part of the central Idaho resort's pending bankruptcy case. Neither of the lifts - the Wildwood Express and the Buttercup chairlift - are in use now, during the resort's limited ski season this year. You can see where the two are at the resort on its trail map here.

In court documents, Banc of America Leasing & Capital LLC said Tamarack has made no payments on the two Dopplemayr CTC chairlifts since January of 2009, and the bankrupt resort has no equity in the lifts, whose value the leasing firm estimated at nearly $2 million, less a half-million in removal and transportation costs.  The firm also questioned whether Tamarack is adequately maintaining and insuring the unused lifts. The judge granted the leasing firm's motion orally during a hearing today; you can read the firm's successful motion here.
  

The Bank of America still wants two of Tamarack Resort's ski lifts back as part of bankruptcy proceedings, and is accusing the troubled resort of holding the lifts hostage to extract more money for its assets. Click below for a full report from AP reporter John Miller.

Tamarack Resort owner Jean-Pierre Boespflug said today that he's selected Green Valley Holdings of Eagle to buy the Valley County ski resort, a move that could kick off additional bidding for the bankrupt golf and ski resort. That firm's Matthew Hutcheson announced earlier a $40 million cash offer for the resort; Boespflug announced today that he's selected that offer over two others, the AP reports. That means he'll submit it to a U.S. bankruptcy judge in mid-January; if the judge approves, other potential buyers could then submit additional bids to gain control of the property. Click below for a full report from AP reporter John Miller.

Here’s a news item from the Associated Press: BOISE, Idaho (AP) — Skiers and snowboarders hoping to hit the slopes at Tamarack Resort should thank a federal bankruptcy court judge who gave his approval to using equipment and property necessary for skiing to begin Dec. 20, as planned. U.S. Bankruptcy Judge Terry Myers’ decision late Monday sets the stage for the first lift-serviced skiing at the resort since March 2009. Tim Flaherty, who is leading homeowners who are financing the skiing plan, says his group is “totally ramped up for this.” Myers’ endorsement was necessary because Tamarack’s equipment is collateral in the $300 million bankruptcy case. Lawyers for lenders led by Credit Suisse Group spent the day trying to convince Myers to move the beleaguered vacation getaway out of a reorganization — and into liquidation. Those proceedings are due to continue Tuesday morning.

Today’s new offer to buy Tamarack Resort for $40 million cash is one of five being considered by Jean-Pierre Boespflug, the French-born co-founder of the ski and golf resort, the Associated Press reports. “Obviously we’re happy that they’re interested,” Boespflug said. The five include a $42 million offer submitted in August by Salt Lake City-based Pelorus Group and three others whose details haven’t been disclosed; click below to read a full report from AP reporter Todd Dvorak.

That was a very strange press conference. Matthew Hutcheson, co-founder of Green Valley Holdings, took no questions from the press. Instead, he made a statement, then posed to himself and answered a series of questions, such as whether “JP” would be involved in the resort in the future. “We do not anticipate that he will be involved,” was the answer; JP is Jean-Pierre Boespflug, Tamarack Resort founder and former owner.

Hutcheson said he and his partners - his wife, Annette, and Larry, Scott and Rod Givens - are offering $40 million cash for Tamarack Resort, which he termed a “fair price.” He acknowledged that none of them have experience running a resort, but said they’ve “assembled an initial team of experts,” and if their offer is successful, they’ll bring in others with expertise “to make Tamarack a successful and viable going concern.”

Hutcheson is an independent fiduciary, a 40-year-old entrepreneur, an advocate of 401K reform and a bit of a mystery; check out this article from August in Retirement Income Journal headlined “The Gospel of Matthew Hutcheson.”

Hutcheson said today, “My professional career has been dedicated to securing and if possible enhancing the financial security of American workers.” He cited his push for regulatory reforms, and the insecurity Idahoans and others face in planning for secure retirements, particularly in this time of economic downturn. “We believe Tamarack’s future can be secured by taking a benevolent approach,” Hutcheson said, though he did not elaborate. He said he hopes to “enhance hope and economic vitality in Valley County.”

Green Valley Holdings LLC was established specifically to purchase Tamarack, Hutcheson said, finish construction projects there including the base village, and restore jobs. “This is a special property to us and for the state of Idaho. … We intend to be stewards of Tamarack, prudently safeguarding its resources,” he said. “Significantly greater work and investment lies ahead if our bid is accepted.” He said his offer calls for closing the sale no later than March 15, 2011.

Green Valley Holdings has called a press conference for 10 a.m. today to announce its intent to purchase Tamarack Resort, the bankrupt Valley County ski and golf resort. Green Valley Holdings is a newly established limited liability company based in Boise and headed by Matthew Hutcheson.

Idaho’s state Land Board voted today to keep Tamarack Resort’s lease for state land alive through next June, opening the door to a possible ski season at the ailing Valley County resort this winter. “My only comment would be ‘bravo,’” Secretary of State Ben Ysursa said before voting for the lease deal. Click below to read the full story from AP reporter John Miller.

The head of a Salt Lake City-based real estate investment group that’s now trying to buy bankrupt Tamarack Resort in Idaho lost his own $5 million private jet and $450,000 Mercedes sports car to bankruptcy, the AP reports; JT Bramlette told reporter John Miller, “If you want to refer to me as the comeback kid, you can.” Click below to read Miller’s full report.

A Salt Lake City real estate investment company that’s had issues of its own over an eastern Idaho real estate development says it’s put in an offer to buy the bankrupt Tamarack Resort, the AP reports. Pelorus Group owner JT Bramlette told the AP he hopes to buy Tamarack “at a discount.” Click below to read the full story from AP reporter John Miller.

When George Bacon, director of the state Department of Lands, made his budget presentation to lawmakers today, he was asked about the failed Tamarack Resort, which recently missed a $250,000 lease payment to the state for the state lands on which its ski runs lie. “They have, for the first time, missed their payment - it was for $250,000,” Bacon said. “That would put them into breach of lease and we could take … several different courses of action to try to rectify the breach. We don’t anticipate they’re going to be able to pay that money even if we send additional billings. So then we try to find someone else to run the ski resort, or we could latch onto a bond that has been posted to reclaim the site, and we could do everything in between from starting all over to trying to find someone to run it in its current condition.” There’s a complicating factor, however, Bacon said: That Tamarack is in federal bankruptcy court and in state court on receivership. “Our attorneys have advised us … we don’t have to do anything right now,” Bacon said. “This is all going to play out in the next few weeks.”

Here’s a link to my full story on the class-action lawsuit against Credit Suisse over an alleged “predatory” lending scheme involving four failed luxury resorts, including Tamarack Resort in Idaho, the Yellowstone Club in Montana, Lake Las Vegas in Nevada and Ginn Sur Mer on Grand Bahama Island in the Bahamas. Duncan King, a spokesman for Credit Suisse in New York, told Eye on Boise this morning, “We believe the suit to be without merit, and will defend ourselves vigorously.” He had no further comment.

Tamarack, near Donnelly, Idaho, was touted as the first new four-season resort developed in the U.S. in decades, with extensive skiing, golf, hiking and mountain biking trails, hotels and high-end real estate. But its financial failure left unfinished buildings, unpaid contractors and unhappy owners holding pricey slopeside homes. This year, Tamarack’s ski lifts never opened for the season.

Credit Suisse, which the lawsuit accuses of racketeering, conspiracy, fraud and more, is the second-largest bank in Switzerland.

A group of property owners from four luxury resorts - including Tamarack Resort in Idaho - has filed a $24 billion class-action lawsuit against Credit Suisse, alleging that the big Swiss bank engaged in a “predatory” lending scheme designed to force all four resorts into foreclosure and acquire the pricey properties for pennies on the dollar, while raking in “enormous” fees. The lawsuit, filed in federal court in Boise, alleges racketeering, conspiracy, fraud, money laundering and more, and seeks billions in damages, including $150 million each for the states impacted by the failed resort projects. The resorts, in addition to Tamarack, are Lake Las Vegas in Nevada; the Yellowstone Club in Montana; and the Ginn Sur Mer resort in the Bahamas.

Seven attorneys from California, Nevada, Texas and Idaho are listed in the complaint; none are commenting on the case, but the group issued a press release accusing Credit Suisse of “naked greed,” and said the bank’s scheme artificially inflated the value of the resort properties with the intention of then foreclosing on the debt-saddled owners. Also named as a defendant is Cushman & Wakefield, the real estate services firm that appraised properties for Credit Suisse, using a “total net value” appraisal methodology. Incidentally, the “naked greed” phrase in the press release is a quote from a federal bankruptcy judge in Montana, who wrote in a May 2009 court order that the bank’s actions in the Yellowstone Club case “shocks the conscience of this court,” adding, “Credit Suisse lined its pockets on the backs of the unsecured creditors.”

You can read the full federal court complaint in the class action suit here - it’s 81 pages long - or click below to read the press release from the plaintiffs. The two named plaintiffs, L.J. Gibson and Beau Blixseth, represent a group of about 3,000 homeowners, landowners and investors in the four resorts, according to the complaint.

The Boise attorney involved in the lawsuit is former Idaho Supreme Court Justice Robert Huntley, who has been involved in two previous national class-action lawsuits. One of those, on behalf of 19,000 hemophiliacs who contracted the AIDS virus from the nation’s blood supply decades ago, resulted in a $640 million settlement from drug companies. The other, regarding people who got hepatitus C from an immunoglobulin product, represented about 6,000 patients who each received significant settlements, including a Boise plaintiff who won a $2.34 million verdict.