The Blixseths know drama.
They fought visciously to split their millions in a high-profile divorce last summer. Their ultra-luxurious Yellowstone Club for millionaires went bankrupt. Now, they might be accused of fraud.
It turns out that the millions the couple spent during their happy days together were not even theirs. And the courts are looking for them.
AP via The Boston Globe: The financial unravelling of the ultra-exclusive Yellowstone Club traces back more than three years, to a $375 million loan secured under club founder Tim Blixseth.
On the same day the millionaires-only club obtained that loan through Credit Suisse, it transferred at least $271 million to a Blixseth-owned corporate entity, BGI. The loan specified that most of that money could be used for purposes unrelated to the club — and it appears Blixseth did just that.
More than $150 million was soon deposited in various banks under the names of Tim Blixseth and his ex-wife, Edra Blixseth. At least $15 million was used to pay off various Blixseth-owned houses and properties. And almost $4 million went to pay off a pair of aeroplanes owned by a Blixseth company, according to court records in a 2006 lawsuit against the club and a copy of the loan documents obtained by The Associated Press.
But the money spent was meant for improvements on their posh Yellowstone Club, which members include billionaire Bill Gates and former Senate Majority Leader Bill Frist of Tennessee. The ritzy resort, which recently filed for bunkruptcy, is $400 million in debt including $307 million still owed on the 2005 Credit Suisse loan.
A bankruptcy judge is looking into why the club failed to collect the money transferred to Blixseths’ BGI. Edra Blixseth was awarded control over the club and BGI in the divorce.
In an interview with The Associated Press, Edra Blixseth rejected any assertion that the $271 million in loans went to her benefit.
“Even if it was under my name, I had nothing to do with opening any accounts. I had nothing to do with where the money was transferred. Tim was totally in charge,” she said Monday.
She described herself as being “frozen out” of the club’s day-to-day operations for much of the last two years and said her accountants were still trying to piece together the money trail to see if any of the missing money might be recovered.
Tim Blixseth has referred questions about the matter to his lawyer, who stated that Tim is no longer involved in the company and, therefore, not involved in the club’s bankruptcy.
Is there any way that Tim foresaw the doom of Yellowstone, and handed over the mess to then-wife in the divorce?
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