Former timber baron Blixseth goes on trial, accused of ‘looting’ $286M from Yellowstone Club

Club founder goes on trial for ‘looting’ MT resort

BILLINGS, Mont. — The founder of the millionaires-only Yellowstone Club goes on trial this week to face claims that he fleeced the private Montana resort out of at least $286 million.

Before its 2008 bankruptcy, the club gained a reputation as a Western haven for the nation’s elite.

In 2005, founder Tim Blixseth diverted most of a $375 million loan to the resort and bought luxury estates in Mexico, France and the Caribbean.

The club was later transferred to his former wife, Edra, during their divorce settlement. Blixseth says that ended his obligations on the loan.

But creditors accuse Blixseth of “looting” the resort to line his own pockets. A three-day trial begins Wednesday in U.S bankruptcy court in Missoula to determine whether Blixseth has to repay any of the money.