HELENA, Mont. (AP) — A previous billionaire has submitted a lawsuit against Montana’s Section of Revenue trying to find hundreds of thousands and thousands of pounds in damages together with lawyers service fees just after a federal choose ruled the state wrongfully tried to force him into bankruptcy to obtain taxes the state said he owed.

The department’s communications director, Jason Slead, said Thursday that company attorneys were being aware of Tim Blixseth’s criticism but had not found it and experienced no comment.

Blixseth and his third wife, Edra, established the distinctive Yellowstone Club vacation resort in the vicinity of Major Sky in the late 1990s. The non-public ski hill and golf training course in the mountains around Yellowstone Countrywide Park attracts celebrities and other rich associates.

The club spiraled into individual bankruptcy in 2008 adhering to the couple’s divorce. That released a legal saga that pitted Blixseth towards the club’s lenders, Montana tax authorities and banking giant Credit history Suisse, which had loaned the club $375 million it was unable to totally repay.

A lot of the 2005 mortgage went to Blixseth, who made use of it to bankroll a jet-placing way of living he claimed was part of endeavours to generate an global luxurious holiday vacation club modeled after his Montana resort, which eventually emerged from personal bankruptcy in 2009 less than a new proprietor.

In 2006, Blixseth acquired the Tamarindo Resort in Mexico for $40 million and a residence on a personal island in Turks and Caicos for $28 million, his criticism states, in listing the monetary losses he suffered by obtaining to market the homes to pay back his authorized costs.

Blixseth regularly denied wrongdoing in spite of a string of court rulings that found he fraudulently transferred the mortgage to enrich himself.

The Yellowstone Club’s creditors suspected Blixseth experienced concealed belongings. They put in yrs pursuing him, but collected only a compact fraction of the $286 million they once sought. Federal courts had issued judgements from Blixseth totaling $525 million.

The club’s lenders settled for $3 million in 2018. Oregon real estate developer Martin Kehoe produced the payment in exchange for Blixseth transferring to Kehoe the suitable to the proceeds of his planned lawsuit towards Montana’s Office of Earnings. Blixseth has due to the fact repaid Kehoe, Blixseth’s attorney John Doubek said Thursday, but he declined to say how.

In June, a U.S. Personal bankruptcy Courtroom decide in Nevada upheld lessen courtroom rulings that said the state of Montana did not have the legal standing to file its involuntary individual bankruptcy petition from Blixseth in 2011. Montana was seeking to accumulate about $219,000 in taxes, but also hoped to use the individual bankruptcy filing to pressure payment of one more $56 million in taxes that Blixseth had contested, then-Revenue Director Dan Bucks said in 2011.

Below federal legislation, involuntary bankruptcies can be pursued to collect money owed if at minimum a few entities file the petition and the amounts owed are not in dispute. California and Idaho initially joined the petition, but settled with Blixseth about two months immediately after the case was filed.

Montana refused to settle, Blixseth’s lawyers have mentioned.

Blixseth argued the amounts owed have been in dispute, noting that California and Idaho settled for lowered payments, and that he was however disputing the total Montana was trying to find in hearings right before the Condition Tax Attractiveness Board when the petition was filed.

The lawsuit Blixseth submitted on Dec. 23 in U.S. Bankruptcy Court docket in Nevada, and initially documented by the Independent Document, seeks a jury trial and argues for $300 million in damages from Montana mainly because he was pressured to promote resorts and other qualities, together with an airplane and a yacht, at financial losses to fund his lawful battles. He’s also in search of $500 million in damages for lost monetary possibilities, Doubek said.

His legal professional charges above the involuntary personal bankruptcy complete about $10 million, Doubek explained. The ongoing authorized battle also harmed Blixseth’s own and professional popularity and his overall health, led him to getting jailed and harmed his philanthropic attempts, the grievance states.

Blixseth was jailed for 14 months, starting in 2015, for violating a bankruptcy judge’s purchase not to sell the Tamarindo Resort, and then refusing to say what he did with the $13.8 million in proceeds. A federal appeals court ultimately requested his release.

Blixseth is also seeking punitive damages and sanctions versus the condition.


AP reporter Matthew Brown in Billings, Montana, contributed to this story.