After being accused by creditors of hiding assets, a federal bankruptcy judge has ordered real estate mogul Tim Blixseth to answer some questions.
Bankruptcy Judges Asks About Fortune
One-time billionaire Blixseth has been ordered by U.S. Bankruptcy Judge Ralph Kirscher to answer questions under oath about what happened to his one-time fortune. The Montana Department of Revenue is seeking $57 million in back taxes that, according to officials, Blixseth owes.
The bankruptcy proceedings will hopefully shed some light on what happened to the $200 million that Blixseth diverted from the Yellowstone Club to his own personal bank account prior to filing for bankruptcy on the resort founded by Blixseth and his then-wife.
Kirscher, who closed the debtor’s examination at Blixseth’s urging, said he did so to “get candid statements” from Blixseth that “might not otherwise be heard.”
Fortune is Gone
According to Blixseth’s attorneys, his fortune is now gone as the result of legal fees, divorce, and the failing economy. In 2008, prior to the bankruptcy, Forbes estimated Blixseth to be worth $1.3 billion. But creditors think he’s hiding assets, accusing him of concealing and transferring assets to avoid paying two civil fraud judgments against him. The total of those come to $241 million.
“I don’t believe him, not for a minute,” said trustee of the Yellowstone Club Liquidating Trust, Brian Glasser. “We’re going to try to figure out where everything is and where everything went.” According to court documents, the trust has only managed to collect on $141.07 from Blixseth.