Former Billionaire Tim Blixseth Jailed Over Missing Funds
Former Billionaire Tim Blixseth Jailed Over Missing Funds
By Daniel Fisher Forbes Staff / 12/18/2014 @ 10:13PM
Onetime billionaire developer Timothy Blixseth found himself in jail after an exasperated federal judge said he had failed to provide a required accounting for what happened to some $13.8 million in proceeds from the sale of a Mexican resort.
After Blixseth provided mostly secondhand reports from his former Mexican lawyer and accountant as to how the money was spent, U.S. District Judge Sam Haddon ordered him to jail for contempt. Blixseth made a deliberate effort to “thwart or delay compliance with a court order,” Hadden said, according to an Associated Press report on the hearing in Butte, Montana.
Blixseth has been battling creditors for years over $208 million in loan proceeds he pulled out of his jet-set Yellowstone Club resort and spent on luxury properties, yachts and other purchases. Today’s court hearing came after the Ninth Circuit Court of Appeals rejected his attempt to overturn Haddon’s finding of contempt for refusing to explain what he’d done with a small fraction of that money, the sale of a Mexican resort called Tamarindo that he claims to have bought for $40 million and sold for $13.78 million in 2011.
Attorney Brian Glasser, the trustee in charge of liquidating the bankrupt Yellowstone Club estate, asked Haddon to throw Blixseth in jail if he refused to provide better documentation of where the money went. Glasser has offered a 10% bounty for any tips that lead to the recovery of Blixseth’s missing millions....
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http://www.forbes.com/sites/danielfisher/2014/12/18/former-billionaire-tim-blixseth-jailed-over-missing-funds/