Tim Blixseth, founder of Montana resort, will stay in jail

BILLINGS – A federal judge says the founder of a Montana resort for the ultra-rich remains in contempt and will stay in jail for failing to account for millions of dollars from a Mexico property sale.

Yellowstone Club founder Tim Blixseth has been in the Cascade County jail since April 2015. He sold the property in Mexico for $13.8 million in 2011, violating a bankruptcy judge’s order.

U.S. District Judge Sam Haddon said Blixseth’s incarceration is meant to coerce him into revealing what happened to the money.

Haddon says Blixseth has submitted more than 22,000 pages of accounting entries and other documents. But the judge says at least some of money has “simply vanished” without adequate explanation.

Creditors from the Yellowstone Club’s 2008 bankruptcy are seeking more than $250 million from Blixseth.