A federal judge in California has issued a $200 million civil judgment against one-time billionaire Tim Blixseth for the fraudulent transfer of money out of an ultra-luxury resort he founded in southern Montana.
U.S. District Judge Gary Feess referred to Blixseth's actions while at the Yellowstone Club near Big Sky as an "elaborate fraudulent scheme of self-dealing." Feess said the club's creditors deserve to be repaid.
Beginning in 2005, Blixseth and his former wife, Edra, diverted most of a $375 million loan to the club for their personal use. When the couple divorced in 2008, Edra got the club and it immediately fell into bankruptcy.
Tim Blixseth has since spent millions of dollars trying to fend off the club's creditors. Blixseth, who lives in Washington state, said Wednesday he will appeal the ruling.