Tim Blixseth

According to Blixseth, he "grew up on welfare in Roseburg, Oregon".[http://www.prnewswire.com/news-releases/developer-tim-blixseth-asks-judge-to-punish-montana-tax-officials-for-illegally-trying-to-force-him-into-bankruptcy-123022168.html Tim Blixseth asks judge to punish tax officials, will donate all punitive damages to legal aid], Tim Blixseth Press Release - PRNEWS Wire, June 2, 2011 He attended Roseburg High School (Class of 1968) and after graduating, he worked in a sawmill.Cohan, William [https://money.cnn.com/2008/02/04/lifestyle/paradise_lost.fortune/index.htm Paradise Lost], Forbes Magazine, February 6, 2008. His parents were members of "a local cult" called Jesus Name of Oneness.

Blixseth began his business career using land swap deals and federal timber contracts.[http://www.bozemandailychronicle.com/news/article_9996b63d-d08b-5451-9a62-c99505f51b9c.html Here's how Blixseth did it], Bozeman Chronicle, April 12, 2008

Following bankruptcies in 1981[http://issuu.com/jasmeetdhamija/docs/property_wealthdec2011.pdf?mode=window&pageNumber=34 Tim Blixseth, Twisted saga of a former billionaire], Property & Wealth Magazine, December 2011 and 1986, Blixseth began to rebuild his timber business endeavors. In 1988, he co-founded Crown Pacific, LTD with Peter Stott and within a year he had $44 million in sales.[http://www.landgrant.org/blixseth.htm Montana's members only mountain], Oregonian, March 18, 2001

During this time,{{when|date=January 2013}} Blixseth was involved{{clarify|date=January 2013}} with three Oregon companies that defaulted on 22 national timber sale contracts owed the U.S. Forest Service more than $8 million. Two of Blixseth's timber companies, Capital Veneer and Capital Log Sales, filed for bankruptcy{{when|date=January 2013}} with debts totaling more than $16 million. A third company, Little River Box Co., was dissolved following two federal contract defaults.[https://news.google.com/newspapers?nid=1243&dat=19881202&id=7ZtTAAAAIBAJ&sjid=koYDAAAAIBAJ&pg=3003,875352 Crown Pacific deals its way into county timber market], The Bulletin (Bend, DeChutes County, Oregon), December 2, 1988. By 1992 Blixseth had sold his interests in Crown Pacific and launched Big Sky Lumber in Montana.

In 1995 Blixseth's Big Sky Lumber sold another {{convert|8100|acre|km2}} to the U.S. Forest Service for $16.4 million and then swapped the remaining {{convert|101000|acre|km2}} in checkerboard layout for {{convert|47000|acre|km2}} contiguous and an additional $25 million. Following this final sale and swap, Blixseth dissolved the Big Sky Lumber partnership and divided up the proceeds, keeping {{convert|15000|acre|km2}} and tens of millions in cash for himself. The cash and new acres became the foundation for Blixseth's Yellowstone Club project.{{Cite web|accessdate=April 12, 2011|url= http://www.bozemandailychronicle.com/news/article_9996b63d-d08b-5451-9a62-c99505f51b9c.html |title=Here's how Blixseth did it|date= 12 April 2008 |publisher=Bozeman Daily Chronicle }} Blixseth with Pittsburgh financier James J. Dolan also started the Spanish Peaks development, a high-end but somewhat less exclusive resort on neighboring property to the Yellowstone Club with land from the swap deal.[http://www.bozemandailychronicle.com/special-reports/wealth_series/article_2aa9f2e1-e83c-52ad-b8be-fd19313a3196.html The $100 million house the Blixseth built], Bozeman Chronicle, April 15, 2008. Spanish Peaks announced it was closing and filing for bankruptcy in 2011.[http://www.bozemandailychronicle.com/news/article_895f2ccc-f375-11e0-97a0-001cc4c03286.html Spanish Peaks closes, employees laid off], Bozeman Chronicle, October 10, 2011. Between sales to timber interests, developers and the U.S. government, Blixseth's team grossed $56.9 million and {{convert|47000|acre|km2}} of prime development real estate valued at over $100 million in less than three years from the date of their initial $27.5 million investment, of which Blixseth reportedly put less than $3 million.

With cash and land from his 1995 deal with the U.S. Forest Service, Blixseth began development of {{convert|15000|acre|km2}} of pristine Montana real estate outside of Big Sky. Blixseth said to a Montana Bankruptcy court as "I started the club with a pick-up truck and a hammer."[http://www.newwest.net/topic/article/tim_blixseth_defends_yellowstone_club_deals/C35/L35/ Tim Blixseth defends Yellowstone Club deals], New West, April 29, 2009.

In 2005, they took in over $200 million from the sales of building lots and memberships to wealthy business leaders, media icons and celebrities. Early Club members and investors included Bill Gates, Mary Hart, Dan Quayle and Steve Case.[https://www.forbes.com/2005/09/01/luxury-travel-clubs-cx_sb_0901feat_ls.html The most expensive private clubs], Forbes, September 1, 2005. Leading to the Club's eventual financial failure was Blixseth's dealings with cyclist Greg LeMond. In 2002 LeMond, with four other family members and associates, invested in the Yellowstone Club.[http://www.westword.com/1994-01-12/news/that-s-tim-as-in-timber/ "That’s Tim as in timber"] Denver Westword News, 12 January 1994 Each of the five partners paid Blixseth $750,000 for one percent shares in the exclusive resort. LeMond also purchased several building lots and maintained a property at the resort. LeMond and partners sued Blixseth in 2006 following reports of a Credit Suisse loan to the resort of $375 million from which Blixseth reportedly took $209 million in a disputed partial payout for his ownership stake. Blixseth said he used the money to expand the Yellowstone Club into the Yellowstone World Club. In 2006 Blixseth told the New York Times that he "paid cash, with no help from investors, for each of the properties that make up the Yellowstone World Club."[https://www.nytimes.com/2006/03/05/magazine/305vacation.1.html?pagewanted=5&_r=0 Club Med for the Multimillionaire Set], by Susan Dominus, New York Times Magazine, March 5, 2006.

The Credit Suisse loan was based on a $1.16 billion Cushman & Wakefield valuation of the resort and for which LeMond and partners each sought $11.6 million for their one percent shares.[https://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=am9JkhotUrPs/ "LeMond claims he was swindled on Montana’s millionaire mountain"] Bloomberg News, 27 October 2006 LeMond settled his suit with the Blixseths for $39 million in 2007.[https://www.usatoday.com/news/nation/2008-08-15-3268195309_x.htm "Greg LeMond ‘s lawsuit with exclusive club settled,"] "USA Today", 15 August 2008[http://www.newwest.net/topic/article/lemonds_continues_long_legal_fight_with_yellowstone_club/C35/L35/ "LeMond continues long legal fight with Yellowstone Club"] New West, 21 November 2008

Blixseth appealed several aspects of the Yellowstone Club bankruptcy. The judge found Blixseth's claims unconvincing, noting, "Given the evidence, Blixseth's arguments are without support"[http://www.newwest.net/topic/article/judge_blixseth_caused_yellowstone_clubs_collapse_orders_him_to_pay_some_not/C35/L35/ Judge: Blixseth responsible for Yellowstone Club collapse], New West, August 18, 2010 and on March 6, 2013 U.S. District Court Judge Sam Haddon denied Blixseth's final appeal noting his lack of standing to revisit his rejected claims of "bad faith" in the bankruptcy reorganization."[http://www.pacer.gov In RE: Yellowstone Mountain Club, Timothy Blixseth Appellant], Case 2:11-cv-00071-SEH, Document 26, Filed 03/06/13 United States District Court Montana. In December 2013 Judge Haddon ruled Blixseth in contempt for committing fraud and deception against the Court after it was revealed that in 2011 he had illegally sold-off assets frozen by an earlier court order to cover judgments against him in the Yellowstone Club bankruptcy proceedings.[http://www.mydesert.com/viewart/20131231/NEWS11/312310006/Tim-Blixseth-contempt-selling-Mexican-resort-judge-says Tim Blixseth in contempt for selling Mexican resort, judge says], Associated Press, December 31.2013.

In 2006 the Blixseth's partnered with a computer software designer Dennis L. Montgomery, former Microsoft executive Michael Sandoval[http://seattletimes.com/html/businesstechnology/2008017860_brier26.html Atigeo at issue in divorce settlement], by Brier Dudley, Seattle Times, June 26, 2008. and former Congressman Jack Kemp to sell software they claimed could recognize patterns and objects hidden in video streams. They invested in several companies named Blxware, xPatterns, and OpSpring, and promoted their technology to the U.S. government as being able to identify hidden messages from Al-Qaeda terrorists in Al Jazeera broadcasts and find terrorists in pictures taken by CIA predator drones.[http://www.newwest.net/city/article/yellowstone_club_chronicles_edra_blixseth_bankruptcy/C396/L396/ Yellowstone Club Chronicles: The Edra Blixseth Bankruptcy], by Jonathan Weber, New West, June 11, 2009.

According to the New York Times, Mr. Kemp used his friendship with Vice President Dick Cheney to set up a meeting in 2006 at which Mr. Kemp, Montgomery and Ms. Blixseth met with a top Cheney adviser, Samantha Ravich, to talk about expanding the government's use of the Blxware software. Blixseth reportedly sought to sell the software to the government for $100 million; however, investigations later revealed it to be a "hoax" with CIA officials reporting they knew the technology to be fake as early as 2003.[https://www.nytimes.com/2011/02/20/us/politics/20data.html?pagewanted=all&_r=0 Hiding Details of Dubious Deal, U.S. Invokes National Security], by Eric Lichtblau and James Risen, New York Times, February 19, 2011.

The software was reportedly responsible for false terror alerts which grounded international flights and caused Department of Homeland Security Secretary Tom Ridge to raise the government's security level.[https://www.wired.com/threatlevel/2009/12/montgomery-2/ Programmer conned CIA, Pentagon into buying bogus anti-terror code], Wired Magazine, December 28, 2009. In February 2006, the FBI opened an economic espionage and theft of intellectual property investigation. The U.S. Air Force office of Special Investigations also investigated.[http://www.lvrj.com/news/47141377.html Nevada company's troubles], Las Vegas Review Journal, June 7, 2009 Bloomberg news reported that Blixseth family attorney Michael Flynn represented Edra Blixseth, Montgomery and Blxware against various charges until he claimed he learned the software "was a sham,"[https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aehZLi13aTPI Yellowstone Club Divorcee Entangled in Terrorist Software Suits], by Anthony Effinger, Bloomberg, August 29, 2008. characterized Montgomery as a "con man" and quit.[http://www.boston.com/news/nation/articles/2011/02/20/us_regretting_dubious_deal_with_computer_programmer/ US regretting dubious deal with computer programmer], Boston Globe, February 20, 2011.

"Heart of America" is a charity single written by Blixseth and his wife, Edra Blixseth.[https://www.nytimes.com/2006/03/05/magazine/305vacation.1.html?pagewanted=3&_r=0 Club Med for the millionaire set], by Susan Dominus, New York Times Magazine, March 5, 2006. The song became the anthem for the Today TV show's "Make a Difference" campaign to benefit the victims of 2005's Hurricane Katrina.Ward, Leah (Oct 23, 2005) Considerable land swap in the works, Yakima Herald-Republic The song was recorded by Wynonna Judd, Michael McDonald, and Eric Benet.{{YouTube|jJgPK3sKlnY|Heart of America}}, Accessed October 2011. In June 2006, Ebony magazine reported the song had raised $41 million with projected revenues of $100 million.Kinnon, Joy Bennett (June 1, 2006) Eric Benet's voyage for India: singer-songwriter is balancing stardom and fatherhood., Ebony, ("It is estimated that the project will raise $100 million to benefit victims of Hurricane Katrina. To date, $41 million has been raised") In August 2006, The Desert Sun reported the song had generated $127 million in revenues for hurricane-relief charities.Downs, Maggie (Aug 6, 2006) [https://web.archive.org/web/20120618024317/http://pqasb.pqarchiver.com/mydesert/access/1758360451.html?FMT=ABS&FMTS=ABS:FT&type=current&date=Aug+30%2C+2006&author=Maggie+Downs&pub=The+Desert+Sun&edition=&startpage=A.4&desc=Blixseth%27s+tune+raises+%24127+million+for+ongoing+hurricane+relief+efforts Blixseth's tune raises $127 million for ongoing hurricane relief efforts], The Desert Sun, August 30, 2006.

Blixseth's personal and professional life has had a number of lawsuits.[https://blogs.forbes.com/luisakroll/2011/04/07/twisted-saga-involving-former-billionaire-tim-blixseth-takes-another-turn/ Twisted saga involving former billionaire Tim Blixseth takes another turn], Forbes Magazine, April 7, 2011. Following Blixseth's claims that his legal issues are the result of government corruption and conspiracies against him, in 2010 Blixseth filed suit to have Federal Bankruptcy Judge Ralph Kischer removed from a case in which the judge issued a $40 million fraud judgement against him. Blixseth alleged the judge was biased against him and had conspired with Montana state government officials and the creditors suing Blixseth. The creditors, however, also disagree with the judge and have appealed his ruling claiming they are owed $286 million by Blixseth.[http://billingsgazette.com/news/state-and-regional/montana/article_8e9d53ae-d5bb-11df-a5ec-001cc4c03286.html Blixseth says bankruptcy judge biased], Billings Gazette, October 11, 2010 In response to the conspiracy and bias charges, Judge Kirscher ruled against Blixseth's request for recusal noting, "This Court has not and will not succumb to any pressure, political or otherwise." Adding, Blixseth's "ultimate goal" appeared to be to upset prior rulings in the numerous cases against him pending various appeals.[https://www.deseret.com/2011/2/28/20176329/judge-won-t-step-down-from-yellowstone-club-cases/ Judge won't step down from Yellowstone bankruptcy cases], My Desert News, February 28, 2011

In a separate bankruptcy case against Blixseth brought by California, Idaho and Montana tax officials in Nevada seeking tens of millions in allegedly unpaid taxes, Blixseth again claimed he was the victim of conspiracy and government corruption. "The state of Montana, the Montana Department of Revenue and their partners were in cahoots", Blixseth told the Associated Press, claiming Montana Governor Brian Schweitzer conspired with his ex-wife Edra, Yellowstone Club creditors and the tax authorities in three states seeking to bring him down. Blixseth added, "It's completely and absolutely provable, and we will be bringing all the facts out shortly." The state tax authorities, creditors and Governor Schweitzer all denied the conspiracy claims as "baseless allegations" having "no factual basis."[https://www.google.com/hostednews/ap/article/ALeqM5hDvN6GTx7jjM4Wd2mMn4fnZLPbHQ?docId=ee0f1ba7657945bdbde989b653744eb4 Ex-billionaire takes on Montana authorities]{{dead link|date=June 2024|bot=medic}}{{cbignore|bot=medic}}, Associated Press, May 19, 2011 In a subsequent press release by his attorney Mike Flynn, Blixseth claimed, "All parties who played any role in the forced bankruptcy will now be subject to depositions, including Montana Gov. Brian Schweitzer."[http://www.prnewswire.com/news-releases/federal-judge-rejects-attempt-to-force-developer-into-bankruptcy-122207309.html Blixseth press release], PR Newswire, May 18, 2011

In June 2011 Blixseth filed suit against one of his personal attorneys for legal malpractice and personal injury associated with the Yellowstone Club bankruptcy.{{Cite web|url=https://www.law360.com/articles/316329/yellowstone-club-owner-s-375m-malpractice-suit-shut-down|title=Yellowstone Club Owner's $375M Malpractice Suit Shut Down - Law360|website=www.law360.com|language=en|access-date=2018-06-01}} Blixseth sought $375 million in damages claiming his former personal attorney Stephen Brown conspired to "plot against" him in bankruptcy proceedings which found Blixseth had looted the club prior to passing it debt-ridden to his wife Edra Blixseth as part of their divorce. Brown denied the claims.[http://www.bozemandailychronicle.com/news/crime/article_9acc5364-92df-11e0-bd2a-001cc4c002e0.html Yellowstone Club founder blames lawyer for woes], Bozeman Chronicle, June 9, 2011 Blixseth's claims were dismissed in March 2012 by U.S. District Judge Donald W. Molloy whose order noted, "The Bankruptcy Court addressed the Credit Suisse loan and the marital settlement agreement and concluded that (1) Mr. Blixseth fraudulently misappropriated the proceeds from the Credit Suisse loan and (2) the release in the marital settlement agreement was fraudulent."[http://www.law360.com/bankruptcy/articles/316329/yellowstone-club-owner-s-375m-malpractice-suit-shut-down Yellowstone Club Owner's $375M Malpractice Suit Shut Down], Law360, March 5, 2012. Blixseth's conspiracy and fraud allegations in the Yellowstone Club bankruptcy were vacated in July 2011 by the federal bankruptcy judge overseeing the case who ruled the accusations were previously addressed and found without merit.[http://www.greenfieldreporter.com/view/story/33b2006e62db40e998def4937512560f/MT--Billionaires-Club/ Judge vacates further hearings in Montana resort bankruptcy case], Greenfield Reporter, 27 July 2011 Blixseth then filed suit against Credit Suisse and their appraisal company claiming they deceived and mislead him into accepting some $300 million in loan payments which eventually led to the resort's bankruptcy.[http://www.spokesman.com/stories/2011/jul/25/idaho-resort-founder-sues-swiss-bank-fraud/ Resort founder sues Swiss bank for fraud], Spokesman Review, 25 July 2011 A claim to which Credit Suisse responded, "This is simply the latest attempt to shift blame to others and away from his own conduct" in a Bloomberg News report which added, "Blixseth had, among other things, been ordered to pay $40 million to creditors in 2010 when a federal judge pinned the financial collapse of the ultra-exclusive Yellowstone Club on a series of his fraudulent deals."[https://web.archive.org/web/20121102085036/http://www.businessweek.com/ap/financialnews/D9OMSO7O2.htm Failed resort owner wants to join $2.5 billion lawsuit], Bloomberg News, 25 July 2011 Creditors are seeking an additional $286 million in alleged misappropriated funds which trustees claim Blixseth looted from the Yellowstone Club prior to its bankruptcy. Blixseth continues to fight these claims and seeks to have the various judgments against him vacated.[http://www.law360.com/appellate/articles/277012/yellowstone-trustee-loses-bid-to-raise-40m-judgment Yellowstone Trustee loses bid to raise $40M judgment], Law360, October 7, 2011

In December 2014{{cite news|url=http://missoulian.com/news/state-and-regional/ex-billionaire-blixseth-booked-into-missoula-county-jail-judge-demands/article_274aac74-8787-11e4-ac24-5b3966a027ae.html|title=Ex-billionaire Blixseth booked into Missoula County jail; judge demands accounting for millions|first=Matthew|last=Brown|agency=Associated Press|date=December 18, 2014}} and again in April 2015{{cite news|url=https://abcnews.go.com/US/wireStory/ultra-rich-resort-founder-due-court-contempt-hearing-30450581|title=Judge Returns Ultra-Rich Club Founder Tim Blixseth to Jail]|author=Matthew Brown and Amy Beth Hason|agency=Associated Press|date=April 20, 2015}} he was jailed for civil contempt for failing to pay court ordered sanctions and disclose what happened to assets the court had ordered held to pay his creditors. In July 2016, Blixseth was granted bail pending appeal and was released.{{cite news|url=http://www.greatfallstribune.com/story/news/local/2016/07/07/exclusive-blixseth-hopes-end-near-legal-saga/86825334/|title=What will Tim Blixseth do with his freedom?|first=Phil|last=Drake|date=July 7, 2016|work=Great Falls Tribune}}

Tim Blixseth has two children, son Beau and daughter Morgan, from his second wife Desiree Langlois. In 1981 he met and married his third wife Edra Denise Crocker, a partner in a local Roseburg-based hotel and restaurant business called Choo-Choo Willy's. Crocker had two children from a previous marriage, Julie Barve and Matthew Crocker. Blixseth married his fourth wife Jessica T. Ferguson Kircher after his 2009 divorce.[https://www.forbes.com/sites/danielfisher/2014/10/14/yellowstone-trustee-sues-blixseths-wife-over-missing-assets/ Yellowstone Trustee Sues Blixseth's Wife Over Missing Assets], by Daniel Fisher, Forbes Magazine, October 14, 2014. In 2016 Ferguson served Blixseth with divorce papers while he was serving jail time for contempt of court.[http://www.latimes.com/nation/la-na-bankrupt-billionaire-20160715-snap-story.html Billionaire who went bust is out of jail and still owes millions. Many are watching his next move], by Rick Anderson, Los Angeles Times, July 27, 2016.

Blixseth's third divorce from wife Edra Denise Crocker was first touted in 2009 as a case study in amicable separations where the two hashed out their agreement over wine at a Hollywood hotel without attorneys.[https://www.wsj.com/articles/SB116768283829864021 A billionaire divorce - and not a lawyer in site], Wall Street Journal, January 2, 2007. However, wife Edra and creditors later claimed Blixseth duped her into taking on debt-encumbered assets while keeping cash and siphoning off liquid assets for himself. The debt burden which accompanied Ms. Crocker's portion of the divorce settlement subsequently forced her and the Yellowstone Club business into bankruptcy.[https://www.forbes.com/2008/08/15/blixseth-property-settlement-forbeslife-cx_kd_0815yellowstone.html Edra Blixseth gets the Yellowstone Club], Forbes, August 16, 2008

While initially both were quoted amicably about each other and the divorce, the tide quickly changed as the details of Ms. Blixseth's newly acquired financial debts came to light. Commenting on her ex-husband, Ms. Blixseth told the New York Times in 2009, "I would rather feel the cold steel of a revolver in the roof of my mouth and pull the trigger than to ever think about living a day with that man again."[https://www.nytimes.com/2009/06/14/business/14yellow.html Checkmate at the Yellowstone Club], New York Times, June 14, 2009

{{Reflist|colwidth=30em}}

• [https://web.archive.org/web/20121105060602/http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=am9JkhotUrPs%2F Tim Blixseth – Rags to Riches Timber Baron], Bloomberg Businessweek.
• [https://www.forbes.com/2006/09/20/ent-manage_biz_06rich400_self_made_entrepreneurs_tim_blixseth.html Tim Blixseth - The 400 Richest Americans], Forbes, September 21, 2006.
• Dexheimer, Eric, "[http://www.westword.com/1994-01-12/news/that-s-tim-as-in-timber/ That's Tim as in Timber]", Denver Westword, January 12, 1994.
• [https://www.forbes.com/lists/2006/54/biz_06rich400_Timothy-Blixseth_10PV.html Forbes Richest 400 People listing for Tim Blixseth]
• [http://www.fridayrecords.com/aboutus.html Friday Records - About Us, Founder Tim Blixseth]
• {{official website|http://timblixseth.com Tim Blixseth.com}}

{{Authority control}}

{{DEFAULTSORT:Blixseth, Tim}}

Category:1950 births

Category:Living people

Category:People from Roseburg, Oregon

Category:People from Rancho Mirage, California

Category:2009 in economic history

Category:American businesspeople in real estate

Category:Philanthropists from Oregon

Category:American white-collar criminals

Category:American confidence tricksters

Category:Pyramid and Ponzi schemes

Category:American businesspeople in timber

Category:American businesspeople convicted of crimes

Category:People from Medina, Washington