Creditors go after jailed real estate mogul's wife

Creditors go after jailed real estate mogul's wife

1 photo
Save Story
Leer en español

Estimated read time: 2-3 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

BILLINGS, Mont. (AP) — Creditors of jailed real estate mogul Tim Blixseth are asking a federal judge in Washington state to find the onetime billionaire's wife in contempt of court as they try to chase down his far-flung assets.

Creditors' trustee Brian Glasser said Tuesday that Jessica Blixseth unlawfully transferred more than $1 million from the sale of a 156-foot luxury yacht to her mother and other entities.

Some of the money was moved after U.S. District Judge Richard Jones imposed a temporary restraining order barring such transfers, Glasser said.

Jessica Blixseth's attorney in Washington, Paul Brain, said he was reviewing the trustee's allegations and had not yet consulted with his client on the matter. He declined to comment further.

Glasser represents the remaining creditors from the 2008 bankruptcy of the Yellowstone Club, a Montana resort founded by Tim Blixseth in the 1990s.

Tim Blixseth has been in a Montana jail since last week after failing to meet a court order to account for the proceeds from another property sale involving a Mexico resort.

His lawyers on Friday filed an emergency motion with the 9th U.S. Circuit Court of Appeals seeking his immediate release.

Creditors have suggested he's trying to hide the $13.8 million in proceeds from the Mexico property sale. Tim Blixseth has insisted the money is gone

Similar allegations have surfaced in the Washington state case, which involves the sale of a luxury yacht known as the Piano Bar.

Attorneys for Glasser and the creditors said Jessica Blixseth began transferring money from the yacht sale out of her bank account Oct. 14.

The same day, the creditors filed a lawsuit alleging Tim Blixseth illicitly transferred money to Jessica in an attempt to avoid paying off a pair of civil fraud judgments against him for $241 million.

By the end of the month, Jessica Blixseth's account balance dropped from more than $1 million to just $19,650, according to court documents filed by the creditors.

The movement of money included $600,000 in wire transfers to Jessica Blixseth's mother, Cherrill B. Ferguson, the creditors said. Ferguson will be named as a defendant at a later date, they said.

Ferguson could not be reached for comment.

On Oct. 22, Jones granted a temporary restraining order that blocked any transfer of the money from the yacht sale.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Most recent Business stories

Related topics



    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
    By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

    KSL Weather Forecast