A judge says the co-founder of the Yellowstone Club is in contempt of court for selling a resort in Mexico that was part of his bankruptcy proceedings.
U.S. District Judge Sam Haddon's Dec. 23 ruling asks Magistrate Judge Keith Strong to recommend sanctions against Tim Blixseth.
Yellowstone Club Liquidating Trust trustee Brian Glasser says Blixseth violated a court order when he sold the Tamarindo ocean resort.
Blixseth's attorney responded that Blixseth believed he was legally capable of selling the resort without violating any court orders.
Attorney Patrick Fox wrote the resort was in a hot spot for drug-cartel violence, was losing money and Mexican authorities threatened to seize it over unpaid taxes.
Fox says Blixseth sold the resort in 2011 for $13 million and all the proceeds have been spent.