Escolar Documentos
Profissional Documentos
Cultura Documentos
(2 of 178)
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(3 of 178)
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(4 of 178)
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(5 of 178)
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(6 of 178)
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(7 of 178)
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(8 of 178)
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(9 of 178)
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(10 of 178)
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(11 of 178)
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(12 of 178)
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hardrive. See Flynn Supp Dec at Exhibit 1 attaching the Reply to the
Emergency Motion to Stay which is also at Dkt 56 in this appeal. Their
allegation that I am somehow in collusion with Mr. Montgomery is
absurd. I sought and received sanctions against him and his attorneys
and have hundreds of thousands in judgments against him. See
(13 of 178)
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(14 of 178)
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believer in the morality of the law to still hope that after 44 years in
the pit there is such a thing as true justice.
CONCLUSION
Independent jurists on the Ninth Circuit must ask themselves if
ever in their careers have they seen such a collection of evidence
supporting judicial bias, let alone judicial corruption, buttressed by
admissions by the central figure in all of these proceedings, Edra
Blixseth, now reportedly receiving $70,000 PER MONTH from the
Yellowstone Club, stating that the proceedings were rigged, ie, SB
[Sam Byrne] and BS [Brian Schweitzer] have spent enormous
capital
and political favors to ensure they get the right outcome
from the
Montana bankruptcy judge.
May 1, 2014
/s/ Michael J. Flynn
Michael J. Flynn
Counsel for Mr. Blixseth
14
(15 of 178)
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CERTIFICATE OF COMPLIANCE
Pursuant to this Courts Order to Show Cause, I certify that this
Response is proportionally spaced in serif font (Century style), has a
typeface of 14 points, and contains 2,487 words, excluding the parts of
the brief exempted by Fed. R. App. P. 32. By consolidating the Replies
to both the YCLT and the Cross Harbor, Yellowstone Mountain Club,
Debtors, and Sunrise Ridge Responses, in this document, I am under
the word limit for a joint reply. This Brief was prepared using Microsoft
Word and the word court was determined using the Microsoft Word
word count application.
May 1, 2014
15
(16 of 178)
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PROOF OF SERVICE
I hereby certify that I electronically filed the foregoing with the Clerk of the Court
for the United States Court of Appeals for the Ninth Circuit by using the appellate
CM/ECF system on May 1, 2014.
Participants in the case who are registered CM/ECF users will be served by the
appellate CM/ECF system.
I further certify that the following individuals are not participants in this appeal but
will receive service of the foregoing as they are interested parties to this appeal. I
have mailed the foregoing document by First-Class Mail, postage prepaid, or have
dispatched it to a third party commercial carrier for delivery within 3 calendar days
to the following non-CM/ECF participants:
Evan R. Levy
George A. Zimmerman
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
May 1, 2014
16
(17 of 178)
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(18 of 178)
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(19 of 178)
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31, 2014 letter to the Judicial Conference. The Judge Kirscher emails
and the two Edra Blixseth documents, one of which she has already
authenticated - notwithstanding the appellees pitiable attempt to
disown it are fundamental to my due process rights to defend against
these unjust sanctions. The appellees have placed these matters, and
the credibility of Edra Blixseth at issue along with the reasonableness
of my reliance on her admissions. Given the stated basis for the OSC, if
the Ninth Circuit deems my reliance reasonable in the totality of the
circumstances, including my reliance on the Edra Blixseth admissions,
it must in good conscience revoke the OSC. The overwhelming weight
of the evidence not only supports the reasonableness of the appeal, it
also supports disqualification itself, along with an investigation into all
matters raised in the judicial misconduct complaint.
3.
(20 of 178)
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provable form with unaltered metadata; that the chain of custody of the
computers containing these documents is established directly from Edra
Blixseth and her partner, Dennis Montgomery, to the expert, who has
verified the authenticity of the two documents based on forensically
(21 of 178)
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me, but also her relationship with her partner, Mr. Montgomery to
whom she paid over $6 million for work now subject to a criminal
investigation. For a summary of Ms. Blixseths perjured and criminal
conduct, all ignored by Judge Kirscher, see Exhibit 1 attached hereto,
which is also Exhibit 1 to our Reply on the Emergency Motion to Stay,
included in this appeal at Dkt entry 56.
4.
computers when Mr. Montgomery was her partner and she was paying
him $100,000 per month, regardless of all the Edra Blixseth / appellee
piteous attempts to now disown them. Her subsequent deposition
authentication confirmed one of the documents. THAT is what I relied
upon. Together with all of the other evidence, they support the
accuracy of her statements that the bankruptcy proceedings were
effectively rigged beyond a reasonable doubt. See my letter requesting a
criminal investigation, dated March 30, 2010, subsequently sent by
Judge Peterson to the U.S. Attorney, attached hereto as Exhibit 3. The
concept that I would rely upon Mr. Montgomery alone as argued by the
appellees, given our history, is absurd. The appellees cavalier disregard
for the forensic evidence, without their own examination, and
(22 of 178)
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(23 of 178)
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its value through a secret deal with Edra Blixseth made weeks before
she obtained the YC on August 12, 2008, and then 89 days later put it
into bankruptcy in the context of using political pressure in the
bankruptcy process, and meetings with the Montana Governor, and
financial data proving that Mr. Burkle the recipient of the YC in
Judge Kirschers approved plan, paid the Governor almost $1.5 million
(24 of 178)
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(25 of 178)
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7.
(26 of 178)
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(27 of 178)
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Edra Blixseth, Judge Kirscher, the Worden Thane law firm, and Ms.
Blixseths partner, Mr. Montgomery remains at issue. Although I do
not represent Mr. Montgomery, I have been in contact with law
enforcement authorities relating to his involvement with Ms. Blixseth
(28 of 178)
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and the CIA; and I have reason to believe that Mr. Montgomery is in
the possession of evidence, and is in the process of securing immunity,
and that the authenticity of evidence in his possession will be subject to
scrupulous forensic examination.
11. The Court should know that Edra Blixseth and her attorney also
filed a plainly perjured bar complaint against me which has been
dismissed. Hence, the motives of Ms. Blixseth to aid the appellees in
this matter. See Exhibit 1 attached hereto.
12.
(29 of 178)
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People of the Lie. Simon and Schuster, 1983. The bankruptcy plan
approved by Judge Kirscher itself fits this model with the
scapegoating of Mr. Blixseth, and now the targeting of his lawyers.
The proceedings in the Montana Bankruptcy Court in my professional
assessment involve rampant lying and a resultant evil plan involving
a gross miscarriage of justice. Remarkably, as cited below, Mr. Byrne
and his cohorts used this precise term of evil to describe their conduct
(30 of 178)
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(31 of 178)
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concern that she would blow open their entire fraud unless she was
protected. Hence, Ms. Blixseth now reportedly receives $70,000 per
month as the historian for the YC.
13.
(32 of 178)
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the day before Mr. Byrne had to close or risk default on Cross Harbors
$455 million contract to purchase the Yellowstone Club - to put the
Club into a pre-packed bankruptcy to leverage the Bs the minority
shareholders and to deal with the nervous Credit Suisse
bondholders. Mr. Blixseth rejected this judicially manipulated scheme.
Edra Blixseth did not. Exhibit 6 attached hereto. Mr. Byrne the next
day, March 26, 2008, revoked the contract and then within 60 days
began negotiating with Edra Blixseth to have her obtain the Club out of
the divorce proceedings and put it into bankruptcy. An evil and illegal
plan to use the Montana bankruptcy court to pull off their billion
dollar scheme.
14. The foregoing exhibits, and those cited in my response to the OSC
and numerous additional documents in the appellate record, constitute
just a few documents buttressed by many, many more that I have
examined, justified then and justify now, my belief and professional
judgment that my client has been the victim of the appearance of
judicial bias. Judge Kozinski should in good conscience disqualify
himself for all of the reasons cited in my Reply brief.
(33 of 178)
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Signed under the pains and penalties of perjury this First day of May,
2014 under the laws of the United States.
/s/
Michael J. Flynn
Michael J. Flynn
(34 of 178)
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Exhibit 1
(35 of 178)
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INTHEUN
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SHCO
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TAPPEALS RY
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AUS212213
NO.12-35986
TIMOTHY L.BLIXSETH
Appellant,
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nj
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YELLOWSTONEMOUNTAIN CLUBJLLC
YELLOWSTONEDEVEOPMENT,LLC
B1G SKY RIDGE,LLC
YELLOWSTONECLUB CONSTRUCTION CO.,LLC
Appellees.
REPLY IN SUPPORT OFEMERGENCY MOTION UNDER CIRCUIT
RULE 27-3AND 27-13TO FILE UNDER SEAL AND IN SUPPORT OF
RELATED MOTION TO STAY
Appealfrom theUnitedStatesDistrictCourtfortheDistrictofMontana
CaseNo.2:11-73-BU-SEH
ChristopherJ.Conant
ConantLaw LLC
73017thStreet
Suite200
Denver,CO 80202
MichaelJ.Flynn
P.O.Box690
RanchoSantaFe,CA 92067
PhillipH.Stillman
Stillman& Associates
300SouthPointeDrive,
Suite4206
MiamiBeach,FL33139
MichaelJ.Ferriro
LawOfticeofMichaelFerrigno,
PLLC
1200N.MainStreet,Suite486
Meridian,ID 83680
Telephone:(303)298-1800
Cconantxcon(Intxj
6Wrs.com
Telephone:(858)775-7624
mike@mjfesq.
com
Telephone:(888)235-4279
Telephone:(208)319-3561
pstillman@stillmanassociates.com
michaelferri
gnoWerri
gno-law.col
n
AttorneysforAppellantTimothyL.Blixseth
(36 of 178)
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Appellant,Mr.Blixseth,herebysubmitsthisReplyBriefin Supportofhis
EmergencyMotiontoStaythatheconditionallyfiledunderseal.
lnlightofthetimesensitivenatureoftheEmergencyMotion to Stayand
necessarilyshortreplyperiod,Mr.Blixsethcannotfullyrespondtothenumerous
mischaracterizations,half-trtlthsandincompleterecordssetforth intheYCLT'S
Opposition.Thisissimplynotthefol'
um inwhichtospininafavorablelightone
party'sversion ofnearlyfiveyearsofhighly contentiouslitigation in numerous
fonlmsbetweenthesameparties.
Mr.Blixsethwillthereforemakethreeprimaryandsuccinctpoints.
Firstand foremost,theYCLT opposestheEmergency Motionto Stayby
attackingthecredibilityandveracityoftheevidencesubmittedbyMr.Blixsethin
supportthereof.Asthesupportingevidencedemonstrates,Mr.Blixseth'scounsel
undertook sufficient independent efforts to verify as best they could the
authenticity oftheevidenceofjudicialmisconductsupportingtheEmergency
Motion. Mr.Blixseth'scounselobtained sworn testimony from Edra Blixseth
authenticating certainevidence and also hired independentcomputerexpertsin
pursuitoftheirinvestigativeduties. Undoubtedlyotherpartieswillanddodispute
(37 of 178)
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Kirscherhasengagedinjudicialmisconductandthatdueprocessandtheinterest
andappearanceofjusticerequiresthatalloftheYCLT'Sjudgmentenforcement
effortsbestayedpendingresolutionofthesegenuineissuesofmaterialfactbyan
Moreover,justtodaydidMr.Blixsethlearnthathisconcernsjustifying
emergencyreliefhavecometofruitionasunbeknownsttoMr.Blixseth,theYCLT
ispresentlyexecutingonthe$40millionjudgmentgrantedtoitbyJudgeKirscher.
SeeU.S.DistrictCourtfortheDistrictofNevada,CaseNo.2:13-cv-01434.
Second,muchoftheYCLT'SOppositionisdedicatedtomakinggratuitous
personalattacksagainstMr.Blixseth andhiscounsel. Suchpersonalattacksare
notonlyunfortunatefrom apersonalperspective,butirrelevanttotheEmergency
Motion. Seee.g.,InreLoloee, 24lB.
R.655,663n.9(9thCir.B.
A.P.1992)
(EtAbusetheopponentwhenyouhavenobasisforargument.''Cd
A.
sCicerosaid,Gin
(38 of 178)
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WhileitisalltooeasyfortheYCLT toopposeanyjudicialreliefMr.
BlixsethseeksbasedontheperceivednegativecharactertraitsofMr.Blixsethand
hiscounsel(aperceptionthathasbeenwrongfullyperpetuated),the1aw shouldbe
blind to such methods of advocacy and should defer on factual issues to
independentandobjectiveadjudicators.
Thirdandfinally,theYCLT believesthereissomemeaningtobegleaned
from thefactthatMr.Blixsethhasnotyetrenewedhiscontemptmotionagainst
1Theappealinthiscaseisoneofmanyintenelatedappealspendingbeforethis
Court.seeStatementofRelatedCasesincludedinMr.Blixseth'sOpeningBriefin
thiscase.
2Basedonarecentorderfrom theChiefJudge,hehisholdinghisreview ofthe
ComplaintofJudicialMisconductthatMr.Blixsethinabeyancependingresolution
oftheappealspendingbeforethisCourt.Thus,Mr.Blixsethrequeststhatallof
theYCLT'Sjudgmentenforcementeffortsbestayed,atleastuntilresolutionofthis
appealaswellasthenumerousotherrelatedappeals.
3
(39 of 178)
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EdraBlixsethbasedonherperjuryintheCalifomiaSuperiorCourtsupported,in
part,onthesameevidencewithwhichhesupportedhisEmergencyMotion. While
theYCLT'Sargumentisentirelyirrelevant,nosuchmeaningshouldbeinferred.
perjuryaspartofherdocumentedscorchedlitigationtacticsagainstheradversaries
andtheirattorneys. SeeMont
gomery v. Etreppid Technologies,LLC,2009WL
910739,31(D.Nev.2009).Withthatevidencenowgatheredandhavingrecently
defeatedtheYCLT'Sand MontanaDepartmentofRevenue'sseven-month long
effol
'
tto forceMr.Blixseth into an involuntarybanknlptcy which hasdiverted
muchofMr.Blixseth'sattention(seeU.S.Bankruptcy CourtfortheDistrictof
Nevada,CaseNo.11-15010),Mr.Blixseth is now preparing to re-new his
contemptmotion3againstEdrausingthesameevidencethatheusedtosupporthis
EmergencyMotion. Moreover,astotheYCLT'Srelianceonthetafterthefact''
declarationsofEdraBlixsethandherattomeyfiledinCaliforniaSuperiorCourtin
whichtheyattempttoretracttheirpriorswornstatementsinwhichtheybothadmit
tocreatingadocumentwhereintheyacknowledgetheircomplicityinjudicial
misconduct,Mr.Blixsethhasalreadyrespondedtothoseallegationsinpre-hearing
3TheCaliforniaSuperiorCourtdeniedhiscontemptmotioninJanuary2012)
withoutprejudicetoallowMr.Blixsethre-fileitinappropriatefonuandformat.
4
(40 of 178)
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briefingbeforetheCaliforniaSuperiorCourtandhasinnumerablegroundsupon
whichtoimpeachanythingEdraBlixsethandherattorneysayunderoathwhenthe
opportunityfinallypresentsitself. A completecopy ofthisreply briefwith its
supportingdeclarationsfiledwiththeCalifomiaSuperiorCourtisattachedhereto
asExhibit1.4 ButthatofcourseisthepointoftheEmergency Motion. Due
processandtheappearanceofjusticerequirethatalltheYCLT'Seffortsagainst
Mr.Blixsethbestayedpendingresolutionbyanindependentadjudicatorts)ofthe
genuineissuesraisedintheEmergencyMotion. ThatisallMr.Blixsethseeks. He
?
,
.
Mi elJ.Flynn
Chrl herJ.Conant
AttorneysfortheAppellant
4Inthisreplybriefanditssupportingdeclarations,Mr.Blixsethandhiscounsel
explaintheeffortstheyundeltookverifytheevidencesubmittedinsupportthereof,
whichevidencewasalsousedtosupporttheEmergencyMotion.
5
(41 of 178)
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CERTIFICATE OFSERVICE
RobertBell
MullinHoard& Brown,LLP
AmarilloNationalPlazaTwo
Suite800
500SouthTaylor,LobbyBox#213
Amarillo,Texas79101-2445
CounselfortheYCLT
CharlesW.Hingle
ShaneP.Coleman
Holland& Ha1
4LLP
401North31stStreet
Suite1500
Billings,MT59101-1277
August20,2013
- N.
ChristopherJ. ant,Esq.
(42 of 178)
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RRRPONDENT'SREPLYBRIRFIN
SUPPORTOFMRMORANDUM OFPOINTS
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(43 of 178)
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1 CHRISTOPHERJ,CONANT
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4 Facsimile:$03)298-1804
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(44 of 178)
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1
RespondentTilnothyL.Blixseth,throughhisundersigned,herebysubmitsthisReply
2 briefinsupportofhisRequestfbrOrder.Asaninitialmatter,Petitionerrepeatedlysuggeststhat
Respondcnt'sRequestforOrderwasnotappropriatebecauseitwasallegedlynotfiledby
4 Respondent'scounselofrecord.Petitionerisincorrect.TherecordreflectstlaatonoraboutJuly
14,2O11,Mr.Conant,amemberoftheCaliforniaBar,associatedinascounselinthismatter.
6 1. PETITIONERHASBEENCAUGHTINHERTANGLEDWEB;HER
EXP
LANATI
ONS
UNAVAI
LING
1
ADMI
SSIONS
'
OFARE
HERNOT
PERJONLY
URYAND
FRAUD
ONBUT
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SCOURTNFURTHER
g
A. PetitionerandMr.HolahanAdmittotheirPeriurvandFraudonthisCourt
ItisnowundisputedthatPetitionerandMnHolahannotonlyconcealedassetsfrom
RespondentsotllathecouldnotenforcetheMSAobligationsthatPetitioneroweshim,butthey
mademateriallyfalserepresentationstothisCourtinfurtheranceoftheirconcealment. Altlaough
PetitionerandMr.Holahanattempttoprovideinnocentexplanationsfortheil'now admitted
gaudulentconduct,theireqplanationsembroilthem furtherandareadmissionsoftheirfraudon
thisCourtwhentheyrepresentedthatshehadnoassetswithwhichtosatisfytheobligatiousshe
owestoRespondent,Specifically,Petitioneradmitsthatshedidnotopenbankaocountsinher
16 ownnamebecauseshewmztedtoconcealherassetsfromRespondenttowhonnsheowes$20+
17 millioninnon-dischargeableMSA obligations.Petitioner'sDeclarationatp.4:25-5:2.Thisisby
10
11
12
13
14
15
18 definitionfraudulentaotivity.Cal,Civ.Code3439.04(a)(1).Petitionerevenadmitsthather
19
20
21
22
concealmenteffol'tsinthisregardpaidoffwhenshesuccessfullythwarttdRespondent'sattempts
toenforcetheMSAinOctoberof2011.fJ.Ofcom%e,oneofthereasonsPetitionerwas
successfklinthwrtingRespondent'seffortstocollectmoneylegitimatelyowedtobim was
becausePetitionerandMr.HolalaanrepresentedtothisCourtinJulyandOctoberof2011thatshe
23 hadnoassets,PetitionerandMr.Holahalnowadmitthatshedidhavemoneyandassets,shejust
24 didnothaveitinherownnamebutwasadmittedlyconcealingandlatmderingherassetswiththe
ypuposeofdefiaudinnRespondentbeforeth.k
25 facilitationofMr.Holahanandothersforthevel'
26 CourtinhisabilitytoenforcetheMSAobligationsPetitionerowestohim.1d.lns1Aol4,
27 Petitioneradmitstosuccessfullydefraudingandconcealingassetsfrom Respondentbymeansof
28 intontionalmisrepresentationstothisCourt.Thisisashockingadmissionandmostassuredly
IGSPONDENT'SREPLYBR1El7
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1 warrantssanctionsagainstherandMr.Holaham:SeealsoCal.RuleofProf.Conduct5-220)5-
2 2001).
3
Asidefrom theirshockingadmissionsaboutintentionallyconoealingassetsandmaking
4 knowinglyfalserepresentationstothisCoul-t,otheraspectsofPetitioner'sandMr,Holahan's
5 declarationsrevealsignificantdeception.Forexample,Petitionerinherdeolarationdeniesthat
6 sheownedFF&ELiquidators,lnc.Peti
tionerDeclaration!(6.Yet,Mr.Holahantestiesthat
7 Petitionerdi
rectedhimtoincorporateFF&ELiqui
dators,Inc,
.d
tforhe1
'
.'HolahanDecl.!6.
*8
9
10
11
12
Whiletheirinabilitytotdgettheirstory''straightaboutFF&ELiquidators,lnc.,isindicativeof
theirlackofoandorwiththisCouTt,thatlackofcandormorphsintooutrightdeceptioninlig'
htof
Petitioner'sotheradmissionsinhcrdeclaration.Speciscally,inhisdeclaratlonMr.Montgomery
explainshowmanyofthepaymentstohim from PetitionerswerefunneledthroughFF&E
Liquidators,Inc.,whichisthecompanyMr.Montgomerytestif'
ieswasacompanyownedand
13 cont
TolledbyPdtitioner.Montg.Decl.!j6.ThebankstatementssublnittedbyMr.Montgomery
14 oorroboratethis.Mont.Decl.!12,Ex,2.AndPetitionerdoesnotdenyt
hatshepaidMr.
15 Montgomm'ythroughFF&ELiquidators,Inc.Jndeed,PetitioneradmitsthatshepaidMr.
16 Montgomeryoverthelastyeal
'todevelopsoft
ware(PetitionerDeclaration!6)butisnoticeably
17
18
19
20
21
22
23
24
25
26
27
28
evasiveabouthowshepaidhim particularlyinlightofthefaotthatsheadmitsthatshedidnot
haveanybankaocountsinherownname.WhatisrevealedbyPetitioneracknowledgingth'
atshe
-.
1Inherdeclaration,Potitionerexousest
hefactthatshedidnotopenbankaccountsinherown
namebyshiftingtheblametoRespondentan.dhisdesiretocolleotonmoneylegitimatelyowedto
him:inotherwords,shecries:d'Tim mademedoitl''Petitioner'sDeolarationatp.4:25-5:2.
EvenassumingthatRespondentistheonlyreasonPetitionerengagedin amoneylaundering
schemetohideherassets,thisdoesnotexcuseherfzaudulenttransferactivity. Petitioner
legitimatelyowesRespondehtover$20millioninoutmacdingMSAobligatiohs.Petitionermay
notlikethefactthatsheowesthismoneytoRespondent,butshedoesandsheowesittohim after
bargainingatarms-lengthwhiletheywereb0threpresentedbycompetentcounsel. Petitionor,
unfortunately,endedupinbanltruptcyslzortlyahertheMSA wasconsmmmatedbeoause,coupled
withinancialandc'reditcrisisthathittheworldeconomiesinthefallof2008,shemadea
numberofriskybusinessdecisionsandassumptionsinenteringintotheMSA,al1ofwhiohher
a
o
ey
uqtu(
ee
bhit
o
)
e,fosr
n
h
A,
St
et
er
ltn
in
gstc
oau
at
vio
on
idedthheeroa
ob
no
se
es
n
ceE
sxohfi
er2ot
wnCo
pn
oa
on
lt
'De
decc
i1
s.
i
onbs
heeen
ht
ae
sri
dg
eci
in
dt
eo
dt
toeMS
blame
Respondentfora1lofherpost-MsA woes,WhilethishasbeenPetitloner'sthemeforthelast
severalyears,Petitioner'slatestdeclarationisremarkableinthatitappearstobethesrsttimethat
Petitionerhasopenlyadmittedtoengaginginf'
raudulentactivity,yetsheistmashamedofdoing
sobecausesheapparentlybelievesthatblamingRespondentforherownconductisasuffcient
excusetoexoulpateherfromwrongdoing'
lulsl'oxoENT'sRSPLYBluISF
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paidM.
1*.MontgolnerytlaroughFF&ELiquidators,Inc.whileatthesametimedenyingthatshe
ownedFF&ELiquidators,Inc.eventhoughMr.HolahanadmitsthatheincorporatedStfo1'her''is
asignificantandunmitigatedlevelofdeceptiononthisCourt.z
B. Petitioner'sExplanationofHerPen-uredStatementsConcernhzzMr.Flvnn
AreUnavallinc
PetitioneradmitstotheauthenticityoftheemailsprovidedbyM1
'.BlixsethinhisRequest
fororderwhereinsheadmtstoherattornysandothersthatMr.Flynnwasneverherlawyer,
Petitionel-ftlrtheradmitsthatduringtherelevanttimeperiodinwhichshemadethesenumerous
representationstoherattornoysuaatthoseemailsacouratelyreneotedlwrbeliefthatMr.Flynn
wasnevm.herattorney.Petitioner'sDeolarationlfs(
qtistruethatIlaterstatedthatMikeFlynn
wasnevermylawyer.Thatwasmyunderstandingthen....').However,inatlattempttoexplain
awayherdemonstrableper
jm'
ybeforethisCourtinwhichshetestilesunderoat
hthatMr,Flynn
washerattorney,Petitionerhidesbehindtheexpedientexcusethatwithhindsightshenow
understandsandbelievesthatunderCalifornia1aw Mr.Flynnwasherattorneybecauseshepaid
hisfeestorepl.esentDennisMontgolneryandheallegedlyprovidedhersomecasualinsight
ooncemingllerdivorcebecauseitimpactt &isthonolentM'
r.Montgomery,'-lrl.
lll'
tlonex,sposb hocexcusesimplyhigllligl
tsthatsieknowss:ehasbeonoaughtpeTjudnghevself.
Ms.Blixseth,stwlstedpeljuriesarespecmcallyencapsulatedinherpresentswornuseof
thewo1.dqater''intheaforesaidquote.Whenshenowstatesunderoathtllatt4istruethat1later
2JnsupportofherdefonsethatsheandMr.Holahandidnotmisleadt'
htsCourtwhenthey
representedthatshe'
hadnoassets,Petitionerbelievess.
tisskgnifloantthatthepictmesskowing
21 hel
.lavishful
mishingsandartinherluxuryBevel'
lyHillsapartment(anapal
-t
mentcosting
,5ma
00/dmo
nrerpen
,
i
ohC
De
5
22-2
re
h
aaft
eyl'
22 $
sh7e
etn
ht
eh
sei
ret
seE
nx
th
at
ib
oi
nts1
.t
T
ison
isan
st
iin
plc
yl.
i,
np
cp
re.
d8
ib:
le8
.,Do
P4
e)
tiwe
tion
mt
'a
ak
ne
dnhf
eo
rur
atmo
tornnet
ys
rc
ll
23
24
25
26
27
oxpectthisCotu'ttobelievethatshewasdestituteinJulyandOctoberof2011butthenonlytwo
monthslater'thititbig''allowinghertoliveinaluxuryBeverlyHillsapartlnentdecoratedwith
thea'
rtandfurnittvefrom PorouphleCreekwhiohsheownedbeforethedivorce? Thisisnone
n
s
e
1Peti.tioner,sbeliefthatCalifornia1awdictatesthatMr.Flynnwasherlawyerbecauseshepaid
Mr. F
.lynn'slegalfeestorepresentMr.Montgomeryisunsupportedbylaw. First,whetlaer
california1aw appliesishighlyquestionablebecauseMr.FlynnrepresentedMr.Montgomeryin
connectionwithlitigationinNevadafederalcomt Regardless,bothCaliforniaandNovadal'ules
ofprofessionalconducts'pecicallycontemplateandallow someoneotherthantheclienttopay
theclient'sattorneys'feeswithoutthepayoralsobecomhlgaclientoftheattorneybyvil-tueof
payingthoclient'sfees.CaliforniaRuleof*ProfessionalConduct3-31O(F);NevadaRuleof
28 professionalConduct1.8(9.
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statedthatMikeFlynnwasnevermylawyer,''sheisagainlyingtotheCourt.Shedidnotllater''
statethatMr.Flynnwasherlawyer,sherepeatedlymadethatassertioncontemporaneouslywith
whentheissuewaspending.ShepreviouslyinJuly,2007,whentheresgestaeofthisissuewas
thenbeinglitigatedintheNevadaFederalCoultmadethosedenials,notd<later''asshenow
swears.Ms.Blixsethwrotethenow authenticatedemailsdenyingMr.Flynnwasherlawyerin
July,2007whenMr.Flynnwaswithdrawingfrom therepresentationofMontgomery,andthe
issuesofhisrepresentationwerethenbeforetheNevadaFederalCourtinthecontextofhisand
8 associatecotmsel'sclaimsforfeesinexcessof$690,000.Ms.Blixseth'sthenatlorneyDeborah
9 Klar,therecipientoftheseemails,wastryingtocoaxherintoclaimingthatMr.Flynnwasinfaot
10 herlawyer,whichMs.Blixsethvehementlydeniedatthattime.ltwasonlyE'latel'''inDecember,
11 2009whenMr.HolahanreplacedKlarandwasthencoachinghertocommitperjury,thatshe
12 chmlgedherposition.Ms.BlixgethagaindeniedinanemailtoHolahaninDecember2009that
13 Mr.Flynnwashorlawvel
'.ThenHolahan'ssubornationreallytookholdresultingintheper
jured
14 deolarationbeforethiscourt.
15
ItisobviousthatPetitioner'speljureddeclarationconcerningMr.Flynnwastheprodtlct
16 ofM1'.HolahrcoachingPetitionertoconcoctwhateverstorytheycouldtofl-ustrateMr.
17 Blixseth'sl'ighttoberepresentedbythecounselofhischoice,Mr.Flylm.ThatPditioner's
18 perjureddeclarationhasnobasisinfaotisestablishedbyherownemails,butithas11obasisin
19 1aweitlwrbecauseherclaim thatshenowbelieves,albeityearsafterthefact,thatMr.Flynnwas
20 herattorneyislogallyspeciousandMr.Holahanshouldknowbetter.M1'.Holahanprobably
21 recognizedthislittleproblem whenheslippedtheword<slater''intotheaforesaidquote.
22 RespondentsubmitstothisCourtthatMr.Holahan'scomplicityinthisperjtlryisevldencednot
23 onlybyMs.Blixseth'spreviousdenialstoKlaT,butherdenialstohim.Hehasnowchosento
subornfurtherperjurywithMs,Blixseth'srespondi
ngdeclarationunderoat
h.Thisoourtshould
referhimtotheCaliforniaBar.Speoiically,itiswell-eatab2sh.ed-t.
h.at-lmd
.er-Calic
fernia-taw-ttit-i
26 theintentandconduotoftl4epartiesthatooht'
rolstlwquestionastowlletkeranattoTnoy-clketat
27 relationshiphasbeencreated.''Zcnlthlns.Co.v.CozenO'Connor,148Ca1.A1&.4th998,1010
28 (2007).Theallegedclient'sdd
hindsightbeliefs'thatsucharelationshipexistedarethuslegally
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irrelevant.''1d.ThePetitioner'scontemporaneousemailstoherthenattorneysandothers
repeatedlydisolaiminginnouncertaintermsthatMr.FlymAwasC'neverherattorney''
uneqtlivocallydemonstratethatshedidnotbelievcthatMpFlynnwasherattorney.Thus,
becausePetitionerneverbelievedthatMr.Flynnwasherattorney,anddetailsinemailsher
5 conductconsistentwiththatcontemporaneousbelief(i.
e.
,thatshehadherownattorneysand
6 alwayscorrectedMr.Flynnifhesuggestedthathewasherattorney),asamatteroflaw,Mr.
7 Flynnwasneverherattorney.ThePetitioner'snowSfhindsight''belieftothecontraryafterbeing
8 coachedbyMr.Holahanandtakenfornootherpurposethantogainastrategiclitigation
9 advantageoverMr.BlixsethmerelyhigblightsheratldMr.Holahan'sunmitigatedwillingnessto
10 commitpel
jurywhenitsuitstheirends.
1j
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
c. Petitioners'ClaimsthatExhibits9.10.11and12AreAlte
-r
edandFabricated
Rin-uHollow
Petitionel.andlwrattorneyhavenootherchoicebuttoclaim thatthedocumentsattached
asBxhibits9,10,11or12arefabrioatedoraltel.edbecauseforthem toadmittotheirauthenticity
isforthelntoadmitseriouscrimes.Moreover,todeflectfl.
om tlw criminalimplicationsoftheir
oNvndocuments,PetitionerandherattorneypisdirectthisCourtbygoingontheoffenseagainst
Respondent,hisattorneysandM1
-.Montgomery.Theirefrortsringhonow.
F11.s'
t,petitionercannotdenytheauthenticityofthetsNotesontheMSA''dooument
attachedasB'
xhibit11toMontgomm'y,sDcclarationbecauseonDecember14,2012,she
authenticatedthisvel.ydocumen.tunderoathduringherdeposition.lndeed,notonlydid
petitionet.autlwnticatethisdocumentatherowndeposition,butthetranscriptreflectsthatMr.
HolahanspontsigniscanttimealsoauthenticatingitasadocumentheworkedonwithPetitioner.
seeEdraBlixseth'sDecembel'14,2012depositiontranscript,pp.268-276anddepositionexhibit
11,attachedtoconantDeclarationasExhibit1lledconcurrentlyherewith. 113theirRespons:
filedwiththiscourt,PetitionerandMr.Holahanfailtoacknowledgethattheyauthenticatedthis
verydocumentjustweeksago. Instead,Petiuonel.andherattorneysubmitself-servingemails
thatallegedlycontaina$copyandpaste''ofsomeform oftheSNotesontheMSA''documentthat
27 petitionerpe
.paredinseptembm'of2009(HolahanEx,A-1)andtlaeyalsosubmittheallegedreal
28
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NotesontheMSA''document(HolahanEx.A-3).Neitherofthesedocumentshelpstheircause,
2 Ctlriotlsly,onthelastpageofwhatPetitionerclaimstobetherealti
NotesontheMSA''document
3 (HolahanEx.A-1andA-3),thereisanunusuallylargegaporl
nultiple'
hardreturn''spacing
4
5
6
7
8
9
10
wherePetitioner'smostillicitstatementswerelocatedinthe''NotesontheMSA''document
attachedtoMontgomery'sdeclaration.ClearlyPetitionerandherattorneydeletedhorillicit
statementsfrom thedoculnentstheyfiledwiththisCourtbutfailedtoproperlyeditthose
doctmzentsfollowingtheiro'
wnalterationthereoftoRcovertheirtracks''byremovingthegap
createdbytheirdeletion.
Moreimportmttly,however,independentevidencesupportstheauthenticityofthe
doculnentssubmittedbyMr.Montgomerytl
aatcannotbedisputedbyPetitioner'sandMI..
Holahr'sself-servingdeclaration.Submittedconcm-rentlyherewithisthedeclarationofRobel't
12 WhitefordwhoisanindopendentcomputerexpertthatMr.BlixseyhandMr.Flynnretained
13 monthsagofortheptlrposeofinvestigatingthe''mdadata''containedonelectronicflesand
14 computersthatMr.MontgomeryproducedtoMr.Bli
xset
h'scounsel.SeealsoConantDecl.!7.
15 AmongthemanythingsinvestigatedbyMr.WhitefordwerethedatesthatExhibits9,10andi1
16 werecreatedandlastmodifi
edonVs,Blixseth'seleotronicallystoredmedia.1d.AsMr.
17 Whitefordtestiesinhisdeclaration,theGtblotesontheMSA''documentwascreatedon
18 September20,2009andlastmodifiedonOctober23,2009.WhitefordDeclaration!7.Thefact
19
20
21
22
23
24
25
26
27
28
thattheNotesontheMSAdocumentassubmittedbyMr.Montgomeryinhisdeclarationwaslast
modifiedonOctobor23,2009rendersmeaninglessthesupposedSeptember29,2009earlier
versionorthedocumentthatMr.Holahanattachestohisdeclaration.Indeed,notablyabsent
from Petitioner'sandMr.Holahan'sdeclarationisanyrepresentationthatExhibitsA-landA-3
toMr.Holahan'sdeclarationarethelatestversionsofthatdocumentintheirpossession.
Mo1'eover,thelastmodiicationonOctober23,2009occurredatatimewhenPetitionerhad
possessionandcontrolofthecomputeronwhichthisdocumentwasmodified.lnqddition,
PetitionersuggeststhatMr.Montgomerywouldhavehadamotivationtoalterthedocument
himselfonlysinceJuneof2012whenshepartedwayswithhim,yetthelastmodiicationtothis
documentoocurredyearsbeforethenatatimewhenMs.Blixsothhadpossessionoftheflesand
.
6
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wellbefol'eanyallegedmotivationbyMr.Montgomerytotamperwiththedooumentswould
havearisen.
Second,todeflectfrom thecriminalimplicationsoftheirowndocuments,Petitionerand
Mr.HolahangoontheoffenseagainstRespondentandhiscounsel,claimingthatRespondentand
Mr.ConantsubmittedknowinglyfabricateddocumentsinMr.Montgomery'sdeclaration.
Nothingcouldbefurtherfrom t'
hetruth.lnfm-theranceoftheirinvestigativedutiestothisCourt,
priortofilingMr.Montgomery'sdeclarationanditsaccompanyingexhibits,Respondentandhis
counsell'etainedMr.Whitefordtoindependentlyvmifytheauthenticityoftheelectronic
documentsonPetitioner'selectronicstoragedevices,andparticularlyExhibits9-11toMr.
10 Montgomery'sdeclaration.ConantDeclaration!79FlynnDecl.!13,Asdiscussedabove,
11 RespondentandhiscounseltaslcedMr.Whitefordwithdeterminingthedatecreatedandlastdate
12 modifiedofExhibits9-11todetennineifthesedocumentswerelastmodi'
fiedatatimewhen
13 Petitionerwasinpossessionofthefilesoriftheywererecentlymodifed,therebysuggestingthat
14 Mr.Montgomeryhadalteredthecontzntsoftizefiles.1d.MnWhitefordreportedtoRespondent
15 atzdhiscounselthattheoriginalelectronicfilesrepresentedbyExhibits9-11werelastmodified
16
17
18
19
onOctober25,2009,July17,2011(notablythisisthedatebeforePetitionerfi
ledheropposition
wit,
hthisCotu'
ttoRespondent'sprolzacviceapplicationforMr.Flynn),andOctober23,2009,
respectively,WhitefordDeol,!!7-10.Thesedatesarea11datesthatPetitionerhadcontrolofthe
electronicfiles(aocordingtoMr.Montgomery'sdeclarationwhichPeti
tionerdidnotrefute)and
20
21
22
23
24
25
26
thereforeRespondentatldhiscounselwereandaresatisfiedastotheauthenticityofthe
documentsinamannm.thatisindependentofanyrelianceonMr.Montgomery,Mereover,given
thehighlypersonalanddetailedcontentofthedocuments,Respondentandhiscotmselwel'e
suflkientlysatisfiedthatthedocumentscouldonlyhavebeendraftedbyPetitioner.
Third,theironyofPetitionerattackingthecredibilityofMr.Montgomeryandreferringto
him asadscon-man''onlynowshouldnotbelostontheCourtandcannotbcbelieved.Petitioner
acknowledgestbatMr.Montgomeryhasbeenherbusinesspartnerforthelastsixyears.
27 Petitionersot
wstedMr.Montgomerythatshepaidhim$100,000amonthbetweenAprilof'2006
28 andMayof2009todevelopsoftwareforher.See2009depositionofPetitionerattachedto
7
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1 ConmAtDecl.asEx.3.Indeed,inanemaildatedNovember5.2008(aftertheMSAwas
2 consummated)Ms.Blixset
htoldMr.Montgol
nerythatbeingsuccessfulwiththei
rteohnology
3
4
5
6
companywasa11shecaredabout,notwithstandingthehundredsofmillionsofotherassdsshe
obtainedoutoftheMSA.SeeEx.1toPetitioner'sdepositiontranscriptattachedtoConantDecl.
asExhibit1.Moreover,herownattorneysweresmwtionedbyafederalcourtinfurtheranceand
indefenseofherpadnershiprelationshipwithMr.Montgomery,SeeMontgomeryv.Etreppid
7 Technologies,LLC,2009WL910739,31(D.
Nev.2009).Pditionerisalsocmrentlyincontempt
8 of@Coloradofederalcourtandthereiscurrentlyawarrantoutforherarrestasaresult.Conatlt
9 Decl.!J4.Additionally,inherdeolarationPetitioneradmitstolalmderingmone/andcashover
10
11
12
13
14
15
16
17
18
20
thelastyeartopayMr.Montgomerytodevelopteclmologyforher.
Thepointbeing,PetitionerhaslongplacedhertrustatldconfdenceinMr.Montgomery,
payingh1m $100,000amonthforthreeyears,5andhasengagedinhighlyquestionableconducton
hisbehalf;thereforehercuzrentattemptstoattackhiscredibilityisp'edictable,butnotwelltaken.Indeed,beoauseofthelong-standingpartnershiprelationshipbetweenPetitionerandMr,
Montgomery,heknowspreciselyGwherethebodiesareburied''andisthereforebestsuitedto
reveala11thefraudsthatPetitionerhasbeenengaginginoverthelastsevel.a1years.6
z. PETIT-IONER'SSUGGESTION T-HATMR.FLYNNHASG
VENMR.
-I
MONTGOMERY AaGIFT''ISNOTSUPPORTEDBYTHERECORD
Petitioner,basedpurelyonconjecture,claimsthatMr.Montgomery'sdeclarationisthe
ProductofRespondent'sattorney,MikeFlynn,purchasingMr.Montgomery'sfonnerhomeinthe
townofYal
rowPoint,StateofWashington(hereinafteruYarrowPointPropertyh'
)outofMr.
4Altlzoughsheclaimsthatsheisnotlaunderingmoney,sheadmitstonotopeningbankaccounts
22 inhernameand usingotherstofunnelmoneytoMr,Montgolnerya11undertheguiseof
concealinghe1
.assetsfrom Respondentbecausesheoweshimoverf20millioninolkigations
23 undortheMSA. Thisisthedefinitionofmoneylaunderingandisbydeinition fraudulent
oPnedtu
c
t.
Sree
c
a
l.
cii
v.
C
od
e
j
3
4
3
9
.
04
.atshengvel'sharedanofficewithMr.Montgomerybpt
24 i
i
t
i
o
n
e
c
l
q
i
m
s
n
h
e
r
d
e
o
l
a
r
a
t
i
o
n
t
h
thatslw occaslonallysetupalaptopcomputerm hisconferenceroom.Petitioner,sassertionls
hi
a
ck'
'hi
nt
tD
oe
en
ma
ilMo
sor
we
mt
ey
sto
ol
fdah
ne
yr
ot
nheat
oR
re
os
tp
ho
en
rwi
obtainlnformat
ionfromthirdpartiest
lu'
oughillegalmeans.Respondenthasneverrequestedthat
28 Mr.Montgomerydoanysuchthing.
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p
l
I
1
2
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1
i
l
I
4 purohasedtheYarrowPointPropertysubjecttoa11liensandencumbrances.ExhibitE,p.6,to
5 HolahanDecl.TheYarrowPointPropertyissubjecttoa$2.
4millionloanwhichBankof
I
!
6 Amoricaiscurrentlyforeclosingupon. FlynnDecl.!69Ex
E,p.4toHolahanDeclaration.ltis
..
!
1
i
i
.
Montgomery'sbankruptcyestateandgivingitbacktoMr.Montgomery.ThePetitionerfailsto
understalldthenatureofMr.Flylm'spurchase.AsthemotionfiledbyM1',Montgomery's
ballkruptcytrusteetosellal1ofMr.Montgomery'sassetstoMr.Flynnmakesclear,M.
r.Flymz
7 alsosubjecttoa$26millionjudgmentlieninfavorofe'
rreppid.FlynnDecl.!6.r
nAus,Mr.
8 Flynncouldnot's
gift''theYarrowPointpropertytoMr.Montgomerybecausethatpropelywill
9 soollbeforecloseduponbyBanlcofAmerioaasthereisnowayMr.Flynncanorwillsatisfythe
10 defaultedindebtednessencumberingthatmoperty.WhatPetitionerignoresonthisatready
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Montgomery'estatethatMr.Flynn,asalftigatol'andwlthextensiveknowledgeofMr.
Montgolnery'sbusinessdealings,percei
vestohavepotentialvalue.FlynnDecl.!(
!(3,7.This
factismadeclearinareviewoftheSaleMotbonasawhole.Ex,EtoHblahanDecl.Astoher
.
15 claimthatMr.MtmtgomeryhasmovedbaclcintotheYarrowPoin!property,Mr,Monlgolnery
16 (lidthatofhisownvoli
tionandwitlouttheconsentofMr.Flynn.FlynnDecl.!9.Indeed,the
17 bankruptcyjudgeadministeringMr,Montgomery'sestateapprovedhistrustee'ssaleMotion
l
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i
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i
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onlyonJanuary2,2013,andtlworderapprovingtlzatmotionhasnotyetbeenentered,nordoes
Mr.Flynnevenhaveadeedtothevanmwlaointpropty.lqynnoecl,!(8.Thus,despite
petitioner,sinsinuationsthatMr.Flynnsomelaow improperlyinducedMr.Montgomorytosigu
hisdeclarationbytgiving'sMr.MontgomerytheYal-rowPointpropertyandallowh4gMr.
Montgomm'ytomovebaclcin,Mr,Flynnhasnotdoneanysuchthingandtherecordsreflectsthat
Mr.Flynnandnoauthoritytodoanysuchthing.lnfact,MnFlynnintendstopursuethe
l
I
24 satisfactionofhisnearly$1,000,000.00injudgmentsagainstMontgomerythroughhaving
!
l
25 purchasetlt'
heolaimsof-theMorltgomerybmucmptcyestateagainsttlwmortgageesonthevarrow
26 PointPropert
y.FlynnDecl.!7.
27
28
9
RESPONDENT'SREPLYBRIEF
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t
'
heyl
Aavelostanymivilegethatmay'
haveattaohedtothem.Cat.Evld.Codob912(a);Jnsurcncchyl/
zlcrfc,
cv.SuperiorCourt,108Cal.
xpp.
3d758)765-766(19%%($'
lftheolsent
18 Co.ofNort
19
20
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22
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disclosesattornepclientcommunicationstommecessarythirdparties,l)emanbfesfsa11Jntentto
walveconfidentiality.').
9Petitionerstal'tsherarguluentinbystatingd'lnadvertentdisclosureduringcliscoverynoconsent:
Byitsverynature,discoveryiscoercion....''Petitioner'sResponse,p.10,lines7-8.Respondent
isbaffledbythepremiseofPetltioner'sargtunentinthisregardbecausetheargumentassumes
thatPetitionerdisclosedthedooumentsatissueduringthecourseofdiscovery.Nosuchthing
everhappened.Mr.Montgolnery'sdeclarationmakesclearthathereceivedtlhesedocuments
from Petitioneroutsideofthediscoveryprocess.Inttum.Mr,Montgomeryt'
urnedoverthese '
docmnentstoRespondent'scotmsel. Petitioneroffersnoevidencetothecontrary. Inother
words,theentirepremiseofPetitioner'sargumentthatsheproducedthesedocumentsduringthe
discoveryprocesshasnobasisinfactorlaw;i.e.,itisafrivolousargument.
10
lulspolqo>r'sItEPLYBRIEF
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Dated: December7,2013
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CHRISTOPHERJ.CONANT
By:
Christo J.Conant
AttorneyT1 hyL.Blixseth
.
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I
1
11
IIIi
;SIAONDEN'
I-*SREPLYBRIEF
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PROOFOFSERVICE
1,ChristopherJ.Conants-fkjy
lgmq.....
,. .- ..,
.. ...-.......
........
-....----.....
..- -...
lam aresidentoftheStateofColoradoandkvertheageofeighteenyeaTs,andnot
apartytothewithinaction.Mybusinessaddressis73017b'Street,Suite200,Denver:CO
4 80202.OnJanuary7,2013,1servedthewithi
ndocumentts);
5
6
RESPONDENT'SREPLYBRIEFINSUPPORTOFMEMORANDUM OF
POINTSANDAUTHORITIESIN SUPPORTOFRFSPONDENT'SMOTION
FORSANCTIONSAND TOSHOW CAUSE
bytransmitti
ngviafacsi
milethedocumentls)listedabovetothefaxnumbertsjset
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above.
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13
14
15
16
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forthbtlowonthisdate.
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ocpheet
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UPSfollowingthefil-m'sordinarybusinesspractices.
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iaelectronic/e-mailsel
wice.Thedocumentts)listedaboveweresel
wedviae-mail
totheaddresseeslisted.
B
yhavingacopydeliveredpersonallytoM1*
.Holahan'soff
sceattheaddresslisted
below
DennisJ.Holahan
2049CenturyParkEast
suite3180
L
sAngeles,CA90067
Fo
ax:(707)586.
2983
d
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ah
law.
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Blc
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20
21
1amreadilyfamiliazwiththefirm'spracticeofcollectionandprocessing
correspondenceformailing.UnderthatpracticeitwouldbedepositedwithUPSonthatsame
22 d
aywithgostagethereonfullyprepaidintheordinarycourseofbusiness.1amawarethaton
motionotthepa14yserved,serviceispresumedinvalidifpostalcancellationdateorpostage
23 metel'dateismorethanonedayafterdateofdepositformailinginaffidavit.l
24
ldeclareunderpenaltyofperjuryunderthelawsoftheStateofColoradothatthe
25
26
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foregoingistrueandcorrect.
ExecutedonJanual'y7,2013atDenver,Colorado.
rlstopherJ.Conant
POS
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1 CHRISTOPHERJ.CONANT
2 Cal.BaJNo.244597
73017tnstreet,Suite200
3 Denver,Colorado80202
Telephone:(303)298-1800
4 Facsimile:(303)298-1804
ma
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lawiyxesr
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supsRloRcokm'roFCALIFORNIAFoRTHEcouxTvolrRIVERSloE
9 lnretheMarriageof:
CaseNo.RIDIND9I152
10 Petitioner:Plaintiff
gReassignedtoDept.10fromDept.F501)
11
SUP
PLEsME
NTALDECLARATION OF
and
os
xxl
L.MO
NTGOMERY
12
Respondent:TimothyL.Blixseth
Judge:sharonJ.Waters
13
Hearjng:January14,20l3
14
Time:8:30a.m.
Dept.10
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DECLARATIONOFDENNISL.MONTGOMERY
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1,DennisL.Montgomery,doherebydeclareasfollows:
1. lmnover18yearsofageandhavepersonalknowledgeofthefactsstatedbelow.
lfcalledasawimess,Icouldandwouldtestifycompetentlytothem.
2. IhavereviewedtheDeclarationofDennl
.sHolahanandEdraD.Blixsethfiledin
thismatterandhavethefollowingcomments.
3. EdraBlixsethsGtesthatshedidnotshareofficespacew1t.
11meandthatsheonly
occasionallysetupalaptopintheconferenceroom.'rhisisfalse.Asthepicturesattachedhereto
asExhibit1demonstrate,Ms.BlixsethsetupanomcewithmeinPCI'softkespace,andhad
n'lmerouscomputers,includingherlaptop,files,boxesofdocuments,furnitureandpersonal
effects.ThisisreflectedbythepicturesofherdeskandherpersonaleffectstlkeninPCI's
omceswhereIworkedalongsideofherin2011and2012,whichpicturesareattachedheretoas
Exhibit1.
4. Ms.Blixseth'ssuggestionthatlstoledocllmentsfromhercomputersand
electronicstoragedevicesiscompletelyfalse.Ms.Blixsdhintentionallylefthercomputersand
electrorlicstoragedevicesinmycustodyandcontrolandsheinfactabandonedtheseitemstome
in2012.
5. Mr.FlylmhasnotKgiAed''theYarrow Pointpropertytome.Imovedintothe
YarrowPointproperty,whichwasmypropertyuntillfiledmybanknlptcypetition,withoutMr.
Flynn'sconsent.Iwasrecentlyevicted9om thehouse1wasrentingirlthePalm Springsareaand
solmovedintotheYan'
owPointpropertyhousebecauseIneededaplaceformeandmywifeto
liveand1knew itwasvacantandthatBnnkofAmericahadnotyetcompletedtheforeclosttre
.galoanofmore
process.BankofAmericaholdsafirstpositionmortgageonthepropertysemmn
than$2.4millionandisintheprocessofforeclosingonitsmortgage.TheYarrowPointproperty
isalsosubjecttoa$26.
5millionjudgmentlieninfavorofWarrenTreppandhiscompany.I
knowthatinmybankrnptcyMr.Flynnpl
zrchasedtheYarrowPointpropertysubjecttotheBnnk
ofAmericamort
gageandthe$26.5millionjudo entlienoutofmybanknzptcyesGte,but.itis
abstlrdforMs.BlixsethtosuggestthatMr.Flynn%tgifted''thatpropertytome.Mr.Flynn'sonly
l
DECLARATIONOFDENNISL.MONTGOMERY
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interestin thatpropertywillbewipedoutonceBankofAmericacompletestheforeclosm'
e
process.ldoknowthatM.
r.Flynnpurchasedotherasetsoutofmybnnknxptcyestate.Those
otherassetsareprimarilylitigationclaimsthatIownedbeforeIliledforbnnknlptcy.Mr.Flynn
hastoldmethatheintendstopursuethoselitigationclnimsinanattempttocollectupon
approximately$800,000ilzjudgmentsthat1owehim.
6. Ms.Blixsethhastoldmeonseveraloccsionsthatshehaspaidherattorney
DennisHolahanapproximately$350,000overthelastyearandahalf.
7. Mr.Blixsethhasneverrequestedthat1gaintmauthorizedaccessintoother
peoples'emailaddresses,computers,websitesorthelike.Similarly,Mr.Blixsethhasnever
requestedthatIobtainevidenceforhim inanyillegitimatemanner.
8. Bycontrast,Ms.BlixsethandherattorneyDeborahKlarrepeatedlyaskedmeto
gaintmauthorizedaccessintothephonerecordsandemailaccolmtsofMr.Blixsethandhis
attorneys.AttachedheretoasExhibit2aretwoemailsdemonstratingthis;onewhereisMs.
BlixsethasksmeifshecanhavemegainaccesstoMr.Blixseth'semails;theotheriswhereher
attomeyDeborahKlarasksmetofindouttheidentityofMr.Blixseth'scellphoneservice
providers.
9. Ms.Blixseth'sclaimsthatIalteredandfabricatedExhibits9-12tomypdor
declarationarefalse.Ididnotalter,forge,orfabricateanyofthedocumentsattachedtomyprior
declaration.
10. .Ms.Blixseth'sclaimthatshedoesnotownFF&ELiquidators,lnc.isfalse.Ms.
BlixsethrepeatedlypaidmeformyserdcesthroughFF&ELiquidators,lnc.andheldouttomeat
a11timesthatshewasitsownerandmanager.Mr.Holahanformeditforherandasreflectedin
hermanypaymentstometlzroughFF&ELiquidators,Inc.,shewasatalltimesthebeneficial
ownerthereof.Bmsedona11themoneythatMs.BlixsethflmneledtometlzroughFF&E
Liquidators,lnca,IbelieveMs.Blixsethisdenyingownershipthereofbecauseshedoesnotwant
thebnnkrecordsofFF&Eproduced,asthoserecordswillretlectssignificantsumsofmoney,al1
ofwllicharetheassetsofMs.Blixseth.
2
DECLARATIONOFDENNISL.MONTGOMERY
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11. Ms.BlixsethhasbeenshoppinghertestimonyazotmdregrdingtheCreditSuisse
loansthathasbeenthebasisformuchoftheliabilitythatnumerouspartieshavebeen
attemptingtopinonMr.Blixsethforthelasttwoyears.Ms.Blixsethhastoldmeonmorethan
oneocc%ion(withDennisHolahanpresentononeofthoseoccasions),thatshewanted$10mil
f'
rom Tim BlixsethtochangehertestimonyregardingCreditSuisse,orattheleastnotcoopemte
withthem,orshewouldgotoCreditSuisseandgetitfrom them.
1declaretmderNnalt
yofperjuryofthelawsoftheStateofCaliforniathattheforegoing
istrueandcoaect.Signedthis7thdayofJanuary,atBellevue,Wmshington.
De s . ontomery
3
DECLAM TIONOFDENNISL.MONTGOMERY
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Exhibit1
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Exhibit2
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From:
To:
S
ubject:
Date:
LearGzaaol.com
denni
sancoder.net
t
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u
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hl?
Sunday,August19,200710:25:59AM
Thismessageandanyattacheddocumentsmaybeconfidential,privilegedorboth.If
youarenottheintendedrecipient,youarenotauthorizedtoopen,read,copy,store,
distributeorusethisinformationinanyway.Failuretocomplywiththisnoticemaybe
aviolationofapplicableIawsconcerningthereceiptofelectronicmail.Ifyouhave
receivedthistransmissioninerror,pleasenotifythesenderimmediatelybyreplying
tothise-mailandthendeletethismessage.Thankyou.
********%***W************W************
Getasneakpeekoftheall-new AOLathttp'
.//discover.aol.com/memed/aolcom3otour
(69 of 178)
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From:
To:
Cc:
Subject:
Date:
DeborahA.Klar
Ncoder
LearGzaaol.
com
TimBl
ixseth
Tuesday,November20,200710:48:30AM
Dennis,CanIpleasegetthenamesofthecarriersTim hasrecentlysignedupwith
forcellservice.lwanttogivethatinformationtotheJaffefirm,sotheycansubpoena
Tim'sphonerecords.Also,ifyoucangetusthenameoftheprosecutorinOntario,
thatwouldbehelpful.Bestregards,D.A.K.
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cnotherpartvanptcx-relatedmatteraddressedherein.
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PROOFOFSERVICE
1,ChristopherJ.Conant,declare:
1mnaresidentoftheStateofColoradoandgvertheageofeighteenyears,andnot
apartytothewithinaction.Mybusinessaddressis73017*uStreet,Suite200,Denver,CO
4 80202.OnJanuary7,2013,1servedthewithindocumentts):
5
6
SUPPLEMENTALDECLAM TIONOFDENNISL.MONTGOMERY IN
SUPPORTOFRESPONDENT'SMOTION TOLIFTSTAY
IZ
b
ytransmittingviafacsimilethedocumentts)listedabovetothefaxnumberts)set
forthbelowonthisdate.
8
9
I--I b
yplacingthedocumentts)listedabovei
nasealedenvelopewithpostagethereon
fullyprepaid,intheUnitedStatesmailatDenver,Coloradoaddressedassetforth
above.
10
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11
12
13
14
l5
16
17
UPSfollowingthefinu,sordinarybusinesspractices.
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iaelectronic/e-mailservice.Thedocumentts)listedabovewereservedviae-mail
totheaddresseeslisted.
B
ylohwavingacopydeliveredpersonallytoMr.Holahan'sofficeattheaddresslisted
be
DennisJ.Holahan
2049CenturyParkEast
Suite3180
LosAngeles,CA90067
l8
Fax:(707)586.
2983
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AttorneyforEdraD.Blixseth
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rrespondenceformailing.UnderthatpracticeitwouldbedepositedwithUPSonthatsame
do
aywithpostagethereonfullyprepaidintheordinarycourseofbusiness.1nm awarethaton
motionofthepartyselwed,serviceispresumedinvalidifpostalcancsd
ellationdateorpostage
meterdateismoret1
4% onedayaherdateofdepositformailingina avit.g
23
ldeclaretmderpenaltyofperjuryunderthelawsoftheStateofColoradothatthe
24 foregoingistrueandcorrect.
ExecutedonJanuary7,2013-a nver,Colorado.
25
26
27
Chlist
28
POS
9
J.Conant
(71 of 178)
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1 CHRISTOPHERJ.CONANT
2 Cal.ByrNo,244597
73017'1Stzeet,Suite200
3 Denvor,Colozado80202
Telephone:(303)298-1800
4 Facsimile:(303)298-1804
E
mail:cconant@conantlawyers.com
AttorneyforTimothyL.Blixseth
6
SUPERIORCOURTOFCALIFORNIAFORTHECOUNTY OFRIVERSIDE
9 InyetheManiageof:
CaseNo.R1DmD91152
10 Petitioner:Plaintiff
Xd
(ReassignedtoDept,10fromDept.F501j
12 Respondent:Ti
mothyL.Blixseth
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DECLARATION OFMICHAELJ.FLYNN IN
SUPPORTOFRESPONDBNT'SREQUEST
FoRAN ORDER
,
yu(jgo;sharonJ,watel.s
Hearing:Janum'y14,2013
Time:8:30a.m.
Dept.10
DECLARATIONOFMICHAELJ.PLYNN
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1,MichaelJ.Flynn,doherebydtolareunderpenaltyofpel
juryofthelawsoftlaeStateof
Californiaasfollows:
1havepersonalknowledgeoftheforegoingfactsandifcalledupontodoso,could
andwouldtestifybeforethecourtregardingthesame.
1am leadlitigationcounselforTimothyL.Blixsethinahostoflitigationmatters
throughouttlwUnitedStates.1previouslysubmittedmyproJlficviceapplicationtothisCourt
butwithdrewbasedonmywitnessstatusafterMs.BlixsethandMr.Holahanopposedby
admissionintothiscasebasedontheirperjureddeclazations.Iintendtorenew1
nyapplication
andwouldrequestthattheCou14suaspontegrant1uypreviouslywithdrawnappllcationinlightof
Ms.Blixsdh'sandMr.Holahan'sperjury.AsMs.Blixsethhersolfstatedonnumerous
occasions,1haveCC
NEVER''beenMs.Blixseth'slawyer,(Capsandboldinnwltipleoriginal
emailsofMs.Blixset
h)
13
3. Ihavebeenalitigatorsince1972.
14
4. OnoraboutNovember12,2012Ienteredintoanassetpurchaseagreelnentwith
15 Nfl'.Montgomery'sbankruptcytrusteewhereinIagreedtopurcllaseanumberofassetsofMr.
16 Montgomery'sbankruptcyestate.
5. Mostoftheassets1purchasedwerelitigationclaimsthatweroownedbyMr.
18 Montgomery'sbankruptestate.
19
IncludedintheassdslpurohasedwasMr.Montgomery,sformerhouselocatedat
20 38129thAve,NE,YarrowPoint,Washington.However,priortoenteringintotllepurchase
21 agreement1investigatedwhatamountofdebt,ifany,encumberedtheYm'row Pointhouse.
22 discoveredthatBmll
tofAmericaheldafirs'
tpositionmortgageonthepropm'tyunderwhichit
23 wasdueapproxi
mately$2.4million.Mr.MontgomerywasindefaultundertllisloanandonMay
24 26,2010Banl
tofAmericahadobtainedrelieffrom tlleautomaticbanlcruptcystaytocompletoits
25 foreolosuresaleoftheproperty.1havenoabilityordesiretocurethedebtowedtoBankof
26 Americaandthefai
rmadtetvalueofthispropertyisfarlessthan$2.4million.TheYarrowPoint
27 Propert
yisalsosubjeottoanapproximate$26.
5millionjudgmentinfavorofWm.l.ennyeppaud
28
DBCLARATIONOFMICHAELJ.FLYNN
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hisentities,Again,Ihavenoabilitytodesiretosatisfythisdebt.
7. 1boughttheYarrowPointpropertybecauseaspartofmypurchaseagreementwith
Mr.Montgomery'sbankruptcytrustee,1alsopurchaselitigationclaimsassociatedwiththis
propertythatMr.Montgomery'sestatehasagainstBanlcofAmetica.Iintendtopm'suethese
13
14
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16
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z1
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Moreover,nodeedtotheYarrowPointpropm'tyhasydbeenissuedtomebyMr.Montgomery's
bankruptcytrustee.
9. IunderstandthatMr.MontgomeryrecentlymovedintotheYarrowPointpropel-ty.
However,hedidsowithoutmyconsent,However,atthistime1havenoauthoritytoevictMr.
MontgomeryasldonothavetitletotheYarrowPointproperty.Also,1understandthroughMr.
Montgomery'scotmselthatMr.Montgomeryismaintainingthepropertyandpreventingitfrom
fallingintodisrepair.Sountil1haveauthoritytosellthoproporty,1havenostandingtodo
tecr,anytlgngtoMr.
anythingrelatingtoMr.Montgomery'sstatusintheproperty,IhavenotugjjMontgomeryasfalselystatedbyMs.Blixsethandherlawyer.
1O. AttachedheretoasExhibit2toMr.Conant,sdeclarationisatt
.ueaa(joorxctoopy
ofaletterdatedJune10,2008toEdraD.Blixsethfrom herdivorcecounselDanielJaffeadvising
Ms.Blixsethofa11tl'
lerisksassociatedwithherenteringintotheMSA.lnevel.sawtus
docttmentbeforethesummerof2009andonlysawitasaresultofMr,Conantbringingittomy
attentionafterhediscoveredit5otyRussell,shaxddrives.
CJ.Conantalsoropresontsmeinmysuccessfuleffol.tstodonyDennisL.
litigationclaimsinanefforttoreoouptheapproximate$1,000,
000injudgmentsincluding
.
interestthatMr.Montgomeryowestome.1understandMs.BlixsethowesMr.Montgomery
.ionclaimsagainstMs.BlixsethwhichIintendto
moneyandthatMr.Montgomeryhaslitigat
pursueandtogarnishanymoniesduehim inordertosatisfythedebt.
8. Although1enteredintothepurchaseagreementwiththetrusteeonNovember12,
2012,thebalkruptcyjudgeadministeringMr.Montgomery'sbankruptcyestatedidnotapprove
thepurchaseagreementunti
lJanuary2,2013.Moreover,eventhoughthebankruptcyjudge
12
approveditontheJanuary3rd,todatethejudgehasnotenteredtheorderapprovingthesale.
DECLARATIONOFMICHAEL1.FLYNN
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Montgomeryhisbanknlptcydischargeandherepresentsmeinmystatusasacreditorand
interestedpal'tyinMr.Montgomery'sbankruptcycasependingintheU.S.BankruptcyCourtfor
theCentralDistrictofCalifornia,CaseNo.2:10-bk-18510.Mr.Montgomery'sapproxilnate$1
millionindebttomeincludinginteresthasnotbeendischargedand1intendtocollectitthrough
litigationclaims.
12. Aspartofmfjudpnentenforcementeffortsagai
nstMr.Montgomery,1
subpoenaedMz'.Montgomerytoobtaindocumentsandeleotronicdatathatwouldevidenceany
paymentsowedtoMr.Montgomeryfrom anythirdparties,includingMs.Blixseth.Inresponse
tothatsubpoena,Mr.Montgomeryt
'urnedovertheelectronicdatathatisreferencedinMr.
Montgomery'sdeclaration.
13. Toverifytheauthenticityofthedocumentfilesontheelectronicstoragedevices
12 andcomputersthatMr.Montgomeryproducedtome,andtodetenuinethedatesthatthefiles
13 t
hereonwerecreatedandlastmodiied,togetherwithMr.Blixsethandh1slawyers,weretained
14 computerexpertRobertWhitefordtoanalyzethemetadataontheseelectronicstoragedevices
15
andcomputersandthefilesthereonandreporttomeandMr.Blixseththeinformationrevealed
16 bythismetadataandwhetherthereappearedtobeanytnmperingormanipulationwiththe
17
electronicstoragedevicesandcomputerswhichmightsuggestwhethertheinformationcontained
18 onthemetadatahadbeentmnperedwithoraltered.
19
1declareunderpenaltyofperjuryofthelawsoftheStateofCaliforniathattheforegoing
ztl istnzeandcorrect.
21
22
Dated: January7,2013
23
,q
/1
24
'
MichaelJ
25
26
27
28
3
DECLARATIONOFMICHAELJ.FLYNN
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PROOFOFSERVICE
1,ChristopherJ.Conant,declare:
lamaresidentoftheStateofColoradoandjzvertheageofeighteenyears,andnot
apartytothewithinaction.Mybusinessaddressis73017=Street,Suite200,Denver,CO
4 80202.OnJanuary7,2013,lservedthewithindocumentts):
5
RESPONDENT'SREQUESTFORANORDER
IZ
b
ytransmittingviafacsimilethedocumentts)listedabovetothefaxnumberts)set
forthbelowonthisdate.
8
9
r--l b
yplacingthedocumentts)listedaboveinasealedenvelopewithpostagethereon
fullyprepaid,intheUnitedStatesmailatDenver,Coloradoaddressedassetforth
above.
10
I
Z
11
12
13
14
l5
16
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22
1
causedsuchenvelopetobedeliveredviaovernightdeliveryaddressedas
indicatedontheattachedselwicelist.Suchenvelopewasdeposiledfordeliveryby
UPSfollowingthefirm,sordinarybusinesspractices.
IZ
M
v
atheeleacdtr
mla
il
r
ice.Thedocumentts)listedabovewereservedviae-mail
toi
do
rn
ei
sc
s/
ee
es
is
tes
de
.v
BeylohwavingacopydeliveredpersonallytoMr.Holahan'sofficeattheaddresslisted
b
DennisJ.Holahan
2049CenturyParkEast
Suite3180
LosAngeles,CA90067
Fax:(707)586.
2983
d
h
o
l
a
h
a
n
@h
o
l
a
hanlaw.com
AttonwyforEdraD.Blixseth
lam readilyfamiliarwiththefil
qn,spracticeofcollectionandprocessing
c
rrespondenceformailing.UnderthatpracticeitwouldbedepositedwithUPSonthatsame
do
aywithpostagethereonfullyprepaidintheordinarycourseofbusiness.1nm awarethaton
motionofthepartyserved,serviceispresumedinvalidifppstalcancellationdateorpostage
meterdateismo'
rethanonedayafterdateofdepositformailinginaffidavit.l
23
ldeclareunderpenaltyofper
juryunderthelawsoftheStateof'coloradothatthe
24 foregoingistnleandcorrect. ..
N13-a enver,Col
E
x
e
c
u
t
e
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o
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y
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,
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orado.
25
26
27
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C 'topherJ.Conant
POS
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1 CHRISTOPHERJ.CONANT
Cal.BarNo,244597
73017thStreet7Suite290.
Denver,Colorado80202
'
Teleghone:(303)298-1800
E
mail:cconant@conantlawyers.
com
AttorneyforTimothyL.Bllxseth
4 Facslmile:(303)298-1804
6
8
supErtloltcourcroycAI-IFoRxIAFoRTIIEcoux'
rvoyRIVERSIDE
9 InretheMarriageof:
casexo.RIDIxD91l52
10 Petitioner:Plaintiff
gReassignedtoDept.10fromDept.F501q
DECLARATION OFROBERTWHITEFORD
and
l2
Judge:sharonJ.Waters
R
e
s
p
o
n
d
e
n
t
:
Ti
mo
t
h
y
L
.
Bl
i
x
s
e
t
h
uearing:Jan.14,2013
l3
Time:8:30a.m.
14
Dept.10
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16
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DECLARATION0FROBERTWHITEFORD
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1,RobertWhiteford,doherebydeclareunderpenaltyofper
juryofthelawsoftheStateof
2
3
4
5
6
7
8
Californiaasfollows:
lamovereighternyearsofageandhavepersonalknowledgeofthefactstestified
toherein.
Withrespecttomyexperienceandknowledge,Ihercbyincorporatebyreference
myswornstatementssetforthinapriordeclarationthatlfiledintheMontanabankruptcycourt,
Paragraph2,whichisattachedheretoasExhibit1.
OnSeptember25,2012,DennisL.MontgomeryhadanApplePowerMac65
9
10
11
12
13
computer(serialnumber68531lIURUO)deliveredtomebyBrianCalhoun.Thijcomputer
containedoneharddrive(ModelWD3200AAKS,SerialNumberWCAWFD924346).
OnSeptemberzs,2012,Mr.Montgomeryhadaharddrive(Model
WD3200AAKS,SerialNumberWCAWFD940504)deliveredtomeviaUPS(TrackingNumber
1Z7F4Y152468329746).ThisdriveisaSATAharddrivethatwasnotinstall
edinacomputeror
14
15
l6
17
18
19
20
externaleilclosure.Thisiscommonlyknownasalbaredrive''.
Mr.MontgomeryinformedmethatthesedeviceswereEdraBlixseth'sandthat
Ms.Blixsethleftthesedevicesinhiscustodyandcontrol.
Uponreceivingthesedevices,lmadeforensicimagecopiesofthefilescontained
thereon.TheprocessofmakingtheseforensicimagesensuredthattheG'metadata''ontheGles
waspreservedunalteredsothatauserofthefilescouldreviewtheCimetadata''onthesefilesand
fromthatt'metadata''determinethatdatethatthet5liwerecreatedandthelastthattheywere
modified.
From thePowerMacharddrive1retrievedthefileknownasdsNotesonthe
MSA.doc''.lreviewedthemetadataonthisfileandfoundthatthisdocumentwascreatedon
09/20/200909:33:37andlastmodifiedon10/23/200915:31:49.
8. From thebaredrivelretrievedthedocumentknownasSDl-lpoints.pdf'.
reviewedthemetadataonthisf5leandfoundthatthisdocumentwascrqatedon07/17/2011
19:18:10andlastmodifidon07/17/201119:18:1l.
9. From thePowerMacharddrivelretrievedthefileknownastCMyDearest
22
23
24
25
26
27
28
j '
DECLARATIONOFROBEFTWHITEFORD
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Jack.doc''.Ireviewedthemetadataonthisfileandfoundthatthisdocumentwascreatedon
10/25/200915:59:42andlastmodifiedon10/25/200916:3.4:20.
1reviewedinformationon1hePowerMactodetermineifthecomputerclockhad
beenalteredinsuchawaythatwouldallow ausertomanipulatethemetadatacontainedonthe
Glesthereon.Ifoundnoindicationofanysuchtampering.
Ideclartunderpenaltyofper
juryoftheIawsoftheUnitedStatesthattheforegoingistrue
8 andcorrecttothebestofmyknowledge.
9
DATEDthis3rddayofJanuary,2013.
10
Dated: Janualz3,2013
12
13
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15
16
17
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21
Robe
iteford
22
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DECI-ARATIONOFROBERTWHITEFORD
'
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Exhibit1
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MichaelJ.Flynn,AdmittedProHacVice
OneCentralPlaza,Suite240
Boston,MA 02108
Telephone:858-775-7624
Facsimile:858-759-0711
Email:mike@mifesc.com
AttorneyforPlaintiff-lntervenor
TimothyL.Blixseth
UNITED STATESBANKRUPTCYCOURT
FORTHEDISTRICTOFMONTANA
CaseNo.08-61570-1I-RBK
lnre:
JointlyAdministeredwith08YELLOWSTONEMOUNTAW CLUB,LLC,
61571,08-61572,and08-61573
eta1.,
Debtors.
Chapter11
TIMOTHYBLIXSETH,anindividual,
Adv.Pro.No.09-00014and
consolidatedwithAdv.No.09-00017
Plaintiff-lntervenor,
MARCS.KIRSCHNERAASTRUSTEEOF
THEYELLOWSTONECLUBLIQUIDATWG
TRUST,
DefendantandCounter-plaintiff.
AFFIDAVITOFROBERT
WHITEFORDINSUPPORTOF
MOTIONFOR SANCTIONS
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AttachedheretoasExhibit5isthespreadsheetSonyDesktop-Recovered
FoldersfileIisting''thatdisplaysthefolders/fileswhichwereabletoberecoveredonthe
drives.
1O. AttachedheretoasExhi
bi
tfisthespreadsheetd
'Ini
ti
ali
zeCase-sonyDesktop''
thatshowstheuserswhichhaveaccountsontheDesktopandtheassociated
dates/timesforeachuseraswellasthedate/timetheOperatingSystem wasinstalled.
AttachedheretoasExhibit7isthespreadsheet''InitializeCase SonyLaptop.''
ThisdocumentshowstheuserswhichhaveaccountsontheDesktopandtheassociated
dates/timesforeachuseraswellasthedate/timetheOperatingSystem wasinstalled.
12. GuidancealsostatedinitstransmittalIetterthatitrana'datefilter''onthe
deleteddata,fortheLastAccesseddate/time,from June23,2009topresentand
exportedtheresultsintotwospreadsheets,''Sony-vAlo- Laptop- DeletedFile
Listing-O6232009-Present.xIs''and''Sony-VAIO Desktop-DeletedFile
Listing-O6232O09-Present.xls,''whichshowthefilesdeletedfrom theIaptopandthe
desktopafterJune23,2009,thedateonwhichlunderstandthebankruptcycourthad
orderedtheproductionofthedrives.TheseareattachedasExhibits8and9,
13. lnadditiontoreviewingthefilesobtainedbyGuidanceSoftware,Iattemptedto
review andrecoveremailfrom JoryRussell'sdrives.lwasabletolocateanofflinedata
filecalledan.OSTfile,whichisaMicrosoftOutlookfilethatstoresemailsentand
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isessentiallyadatafileforMicrosoftOutlook.
14. Thelargestandmostcurrentsetofemailthatwasrecoveredfrom Jory
Russel'smachineswastheMicrosoftOutlooko#linefolderfileIocatedontheSonyVAIO
Laptop.ThedriveusedwasGuidanceSoftwareEvidence#110-00175.Emailswere
foundinafilenamed:
z64l46-EolAsony-vAlo- LaptopcDocumentsandSettingsuoryLocal
SettingsWpplicationDataMicrosotoutlookoutlooko.ost
Inordertoview thedataintheOSTfilethatlhadlocated,Iused''Advanced
ExchangeRecoveryv2.0'softwaretorecoveremailsfrom the.OSTfiletoa.PSTfilethat
hcanbeviewedusingMicrosoftOutlook2003ornewer.Atotalof60,132itemswere
recoveredfrom thisOSTfile.Therecovereditemsincludeanyrecoverabledeleted
messages.
16. However,ltisnotpossibletodeterminethetotalnumberofemailsdeletedfrom
anOutlookPSTorOSTfile.AIIemailmessagesarestoredinadatabaseformat.When
oneormoremessagesaredeleted,itisonlypossibletorecoverthemessagesfora
Iimitedamountoftime.Theabilitytorecoverdeleteddataisgreatlyreducedovertimeas
thecomputerandOutlookisused.Ifthedatabaseiscompacteditisimpossibleto
recoverdeleteditems.
Inpadicular,everymonthitappearsthattherewerehundredsofemailssent
andrecei
vedbyMr.Russell.However,thenumberofsentmessagesfrom October1,
2008toOctober31,2008intherecoveredOSTfiledi
#ersfrom thePSTfilesthatwere
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Idecl
areunderthepenal
tyofperjuryundertheI
awsoftheUni
tedStatesandthe
StateofMontanathattheforgoingistrueandcorrect,this12thdayofJanuary2010.
/s/R& A/freN
RobertWhiteford
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Exhibit1
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ROBERTWHITEFORD
4202SorrentoValleyBlvd.,SuiteS
SanDiego,CA92121
(619)741-4579
E-mail:robert@bcsus.com
EDUCATION
CoastalCarolinaUniversity,Conway,SC
PursuedB.S.,ComputerScience,1998-2000
NorthlandCollege,Ashland,WI
PursuedB.S.,ComputerInformationSystems,1996-1998
PROFESSIONALEXPERIENCE
ITServicesCompanyOwner
BusinessComputerSolutions,SanDiego,CA
February2003-Present
ProvideITconsultingservicestobusinssesandindi
viduals.Supportcomputer
networksranginginsizefrom homeofficestocompanieswithover1000employees.
SupportIargeemailsystemsincludingMicrosoftExchange2000-2007.Perform data
recoveryandforensicwork.
SeniorNetworkTechnician
NetworkResourceslnc.,LaMesa,CA
February2002-February2003
ProvidedITconsultingservicesforcustomersandtrainednetworktechnicians.
Deployedandmaintainedfileservers,emailserversandworkstations.Performeddata
recoveryandforensicwork.
NetworkTechnician
TheAutomatedOffice,Fullerton,CA
June1996-February2002
ProvidedITconsultingservicesforcustomers.Deployedandmaintainedfileservers,
emailserversandworkstations.Pe/ormeddatarecoveryandcomputerrepair.
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1
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PROOFOFSERVICE
1,CluistopherJ.Conant,declm'
e!
lamaresidentoftheStateofColoradoand:vertheageofeighteenyears,andnot
apartytothewithinaction.Mybusinessaddressis73017'
HStreet,Suite200,Denver,CO
4 80202.OnJanuat.
y7,2013,1servedthewithindocumentts):
5
6
7
8
DECLARATION OFROBERTWHITEFORD
IW bytransmitti
ngviafacsimilethedocumentts)Iistedabovetothefaxnumberts)set
forthbelow onthisdate.
I--I b
yllp
a
eid
satteedsa
boiv
as
enlv
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en
pg
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4hn
10
11
12
13
above.
I
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UPSfbllowingthet'
irm'sordinarybusinesspractices.
IZ
IZ
14
15
v
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below
DennisJ.Holahan
2049Cent'uryParkEast
Suite3180
LosAngeles,CA90067
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1-3-:tDenver,Colorado.
ristopherJ.Conant
POS
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CHRISTOPHERJ,CONANT
Cal.BarNo.244597
2 73017P'Stroet,Suite200
3 Denver,Colorado80202
Telephone:(303)298-1800
4 Facsimile:(303)298-1804
Email:cconant@conantlawyers.com
5 AttorneyforTimothyL.Blixseth
6
7
8
SUPERIORCOURTOFCALIFORNIA FORTHECOUNTY OFRIVERSIDE
9 InretheMazriageof:
CaseNo.R1DlND91152
1() Petitioner;Plaintiff
EReassigl
wdtoDept.10fromDopt.F501)
11
DE
LARAT
CHRI
coC
xA
x'rINION
SUPOF
POR
TOFSTOPHER J.
R
ES
PO
oa
oy
xNDENT'SREQUESTF.ORAN
and
12 Respondent:TimothyL.Blixseth
13
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Judge:SharonJ.Waters
Hearing:January14,2013
Time:8:30a.m.
Dept.10
DECLARATIONOFCHRISTOPHERCONANT
(89 of 178)
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1,ChristopherJ.Conant,doherebydeclareunderponaltyofperjuryofthelawsofthe
StateofCaliforniaasfollows:
1havepersonalknowledgeoftheforegoingfactsandifcalledupontodoso,could
andwouldtestifybeforethecourtregardingthesnme.
Inm counselforTimothyL.Blixsethintheabove-referenoedcaseand1a1nalso
counselfol'Mr.Blixsethinanumberofotherlitigationmattersinvolvinghim.
AttachedheretoasExhiblt1isatnzeandcorrectcopyofexcerptsfrom the
depositiontranscriptofEdraD.BlixsethtakenonDecembel'14,2012aswellasExhibits1and
11tothattranscript,
AttachedheretoasExhibit2isatrueandcorrectcopyofaletterdatedJune10,
2008toEdraD.Blixsethfrom herdivorcecounselDanielJaffeadvisingMs.Blixsethofa11the
risksassociatedwithherenteringintotheMSA.ThisdoculnenthasbeenfiledwiththisCourt
previouslyandanyprivilegeassociatedwitkthisdommlentwastmequivocallywaivedwhenMr.
HolahanfiledithimselfwiththisCourtonNovember1,2011inCaseNo.RlC1115247.This
docmnentwasfoundontheemailscontainedinharddrivesofthecontrollerofBlxware,LLC,
JoryRussellthatheproduoodtoMr.BlixsethandWesternCapitalPartnersLLCinJulyor
Augustof2009.Mr,Russell'sproductionoftheseelnailstoM1'.BlixsethandWesternCapital
PadnersLLCisthersttimetllatMr.Blixseth'sattorneys,includingMichaelFlynn,eversawthe
letterattachedasExhibit2.
5. 1alsorepresentMichaelJ.FlynninlzissuccessfuleffortstodenyDennisL.
MontgomeryhisbanknptcydischargeandlrepxesentMr.Flynninhisstatusasacreditorand
interestedpartyinMr.Montgomery'sbankruptcycasependingintheU.S.BankruptcyCourtfor
theCentralDistrictofCaliforniwCaseNo.2)10-bk-18510.Mr.MontgomelyowesMr.Flynn
24 approximately$800,
000inoutstandingjudgmentswhichwerenotdischargedi
nMr.
25 Montgomery'sbankruptcy.
26
AspartofMr.Flytm'sjudgmentenforcementeffort
sajainstMr,Montgomery,he
27 subpoenaedM1'.Montgomexytoobtaindocumentsatdelectvonodatathatwouldevidenc,
eany
28 pam entsowedtoMr,Montgomeryfrom anythirdpmliesainclutlingMs.Blixset'
h.Inresponse
1
DECLARATIONOFCHWSTOPHERCONM T
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tothatsubpoena,Mr.MontgomeryturnedovertheelectronicdatathatisreferencedinMr.
Montgomery'sdeclaration.
7. Toverifytheauthenticityofthedocumentfilesontheelectronicstoragedevices
andcomputersthatMr.MontgomeryproducedtoMr.Flynn,andtodeterminethedatesthatthe
filesthereonwerecreatedandlastmodified,Mr.FlpmandMr.Blixsethandtheirlawyers
retainedcomputerexpertRobertWhitefordtoanalyzethemetadataontheseelectronicstorage
devicesandcomputersandthefilesthereonandreporttoMr.FlynnandMr.Blixseththe
infonnationrevealedbythismetadataandwhetherthereappearedtobeanytamperingor
manipulationwiththeelectronicstoragedevicesandcomputerswhichmightsuggestwhetherthe
infonnationcontainedonthemetadatahadbeentamperedwithoraltered.
8. AttachedheretoasExhibit3isatl'
ueandcorrectcopyofexcerptsfrom a
December2009depositiontranscriptofEdraD.Blixseth.
9. AttachedasExhibit4heretoisatrueandcorrectcopyawarrantforMs.
Blixseth'sarrestissuedbytheU.S.DistrictCourtfortheDistrictofColorado.TheColorado
federalcom4issuedthiswarrantaAerholdingMs.Blixsethincontemptforfailuretoobeyacourt
order.lhavepersonalknowledgeofthestatusoftllisarrestwan'antbecauselwascounselof
recordfortheparty/creditorthatsoughtthiswarrantagainstMs.Blixseth.Thiswan-antisstill
outstandingagainstMs.Blixseth.
1declareunderpenaltyofperjuryofthelawsoftheStateofCaliforniathattheforegoing
20 istrueandcorrect.
21
22 Dated: January7,2013
23
24
25
26
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'
Christo e . onant
2
DECLARATIONOFCRRISTOPHERCONANT
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Exhibit1
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Edra D. Blixseth,Volume I
December 14,2012
IN RE:
EDRA D.BLIXSETH,
Debtor.
)
)
) Case No.09-60452-7
)
RICHARD J SAMSON,aSChapter7Trustee )Adversary NO.10-88
of the Estate of Edra B1ixseth,
)
Plaintiff,
)
v.
)
TIMOTHY BLIXSETH; DESERT RANCH LLLP;
Deposition of:
Volume 1:
Date:
Reported by:
EDRA D. BLIXSETH
Pages 1 through 305
December 14,2012
James Matthews,CSR No. 7916
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7 APPEARANCES:
8
9 For the Plaintiff and the Witness:
10
LAW OFFICES OF DENNIS HOLAHAN
11
BY: DENNIS HOLAHAN
12
Attorney at Law
13
3640 Kelsey Knolls,Suite 832
14
Santa Rosa,California 95403
15
707.623.9116
16
17 For Defendant Timothy B1ixseth:
18
STILLMAN & ASSOCIATES
19
20
21
22
23
24
25
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1 APPEARANCES (CONT'D)
2
3 For Defendant Timothy B1ixseth
4
HATCH, RAY,OLSEN & SANDBERG,LLC
5
BY: Christopher J.Conant
6
Attorney at Law
7
730 Seventeenth Street,Suite 200
8
Denver,Colorado 80202
9
303.298.1800
10
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INDEX
Deposition of EDRA D.BLIXSETH,Volume I
Taken on Friday,December 14,2012
Examination by:
MR. STILLMAN
Afternoon Session
Page
6
139
Exhibits:
1 November 5,2008 e-mai1 from Dennis to Edra
B1ixseth and previous e-mai1
2 Affidavit of E. B1ixseth in Support of B1ixseth
Family Investments,LLC's Emergency MotiOn fOr a
Temporary Restraining Order and Orderto Show
15
16
17
18
19
20
21
22
23
24
Expedited Discovery
Agreement between Tim and Edra Biixseth dated
June 4,2008
Apri1 16, 2008 e-mail from Zemosv@aol.com to
Jory Russel1 and previous e-mails
Assumption Agreement
U.S.Department of Justice letters to Timothy
B1ixseth dated November 8,2007 and December 12,
2007
3
4
5
6
Page
69
101
129
155
168
200
25 (Continued)
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December 14,2012
Exhibits:
Page
7 August 11, 2008 e-mail from LearGz to dennis and 214
previous e-mail
8 OrderApproving Waivers and Reieases
227
9 December 29,2008 e-mail from LearGz to Sam Byrne 245
10 Amended Complaint
250
11 Notes on the MSA,including amendments and the mini 268
settlements
12 Tax Analysis Memo
279
13 June 26,2008 letter from Timothy Blixseth to Edra 293
Blixseth signed by Edra Blixseth and copy signed
by Timothy Blixseth
14 June 1O,2008 letter from Jaffe to Edra Blixseth
294
15 November 2, 2011 letter from Holahan to Kolodny, 3O3
Conant, Hatch and Flynn
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December 14,2012
EDRA D. BLIXSETH
having first stated that she would testify the truth,the
whole truth,and nothing but the truth,testified as follows:
EXAMINATION BY MR.STILLMAN
MR.STILLMAN: Q.A11 right. Good morning,Mrs.
Blixseth. We've agreed we're going to be a little bit
informal and call you Edra since there's obviously also Tim
Blixseth,so we'll refer to Tim as Tim and you as Edra if you
don't mind.
A. Perfect.
Q. Good. We've never met?
A. No.
Q. My name is Philip Stillman and I'm one of Tim
Blixseth's lawyers. We're here obviously for your deposition
in Adversary Proceeding Number 88 that's pending in Montana
Bankruptcy Court in the bankruptcy case that you had filed
personally.
So before we get started I know you've been deposed
and testified many times, so we'll kind of fast forward
through that. But you understand of course you're testifying
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4 I wasn't sure.
5
Q. No problem. So 1et me get started with some kind
6 of basics. What's your current address?
7
A. 202 North Crescent, Beverly Hills, California
8 90210.
9
Q. And is that a condominiumora house?
10
A. It's a condominium.
11
Q. Do you own that or do you rent that?
12
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A. Neither. I'mjuststayingthereforthetime
being.
Q. Okay. How long have you stayed there?
A. A year and a half. A little over. Maybe three
quarters.
Q. Who owns that condo?
A. The landlords, I believe.
Q. Well, 1et me ask it in a different way. Who let's
you stay in that condo for the last year and a half?
A. It was part of an agreement that I had with
Discovery Land for something I was doing for them.
Q. Okay. And who was the agreement made with at
Discovery Land?
A. Sky Joyner.
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property,correct?
A. Correct.
Q. Okay, And you didn't have to pay Discovery Land
anything?
A. Well,that was part of what they were taking care
of for my compensation.
Q. And that was part of your compensation?
A. Correct.
Q. For the --whatever work you were doing for
Discovery Land?
A. Correct.
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December 14,2012
made.
Q. H0w much of a deposit did they make?
A. I believe it was three months. I could be wrong on
that,but I think it was.
Q. Do you have any other residence that you would call
a residence where you customarily would occupy?
A. No,I don't.
Q. So other than this property in Beverly Hills you
have no other residences?
A. No,I do not.
Q. Do you own any other homes anywhere else besides
that?
A. N0. Besides that. I don't 0wn that.
Q. Other than the place where you are now,do you own
any homes?
A. But I don't 0wn where I am now so it's a difficult
question to answer.
Q. I understand. It was a badly phrased question on
my part. Do you understand the question now?
21
Q. Other than -- than the place where you're living
22 now,the condo in Beverly Hills,do you own any other
23 property?
24
A. Okay, but you still asked it the same way. So if
25 answer -- I don't own the place in Beverly Hills. So -- and
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other person's.
Q. So Blxware was the logical -A. Correct.
Q. F0ryou to get?
A. Correct.
Q. Okay. But that was an important part of your
ongoing business plans after the divorce,wasn't it?
A. I I had such high hopes for it. Yes. It was
totaiiy part of and frankiy,one of the reasons that I
even got involved in the tech was that nobody else knew but
Tim and I were already talking some things, not knowing if we
were going to be together, and part of the things that we
agreed that might be easier on our personal relationship was
not to have so much work reiationship together. And so
that's why in early '06 that was one of the things we had
hired hired Dieter Huckerstein to come in as Tim resigned
as CEO,I resigned as COO, Dieter Huckerstein came in. So it
was going to maybe be gradually where Tim and I could be more
of a couple than a business couple,so the tech was what I
got interested in and what I was looklng at.
22
23 this as an exhibit, and ask you about it, and let's mark this
24 Exhibit 1.
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identification.)
2
MR.STILLMAN: Q. Let me know When you've finished
3 reading it.
4
A. Okay.
5
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25
(Pause.)
Okay, I've read it.
Q. Have you seen that e-mail before?
A. I must have because I wrote I wrote the bottom
part of it. So
Q. So Exhibit 1 is an e-mail it's actually two
e-mails. So one is from Dennis to Edra Blixseth. And I
assume that's Dennis Montgomery, correct?
A. It is.
Q. And below that is a -- another e-mail from
LearGz@aol.com,and that's your e-mail address,orwas one of
your e-mail addresses?
A. Yeah,it was my e-mail address until Tim Blixseth
took it over last year and I don't have access to it now.
Q. Okay. Until 2011 it was your e-mail address?
A. Ten or eleven.
Q. Okay. And and dennis@ncoder.net,that's Dennis
Montgomery's e-mail address,correct?
A. This is the last time I had -- yeah, had
communication with him that was his address
Q. Okay. When was that the last time you had
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(Pause.)
24
MR.STILLMAN: Why don't I aSk a question while
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1
2
MR.HOLAHAN: Ijustneedaminute.
MR.STILLMAN: Sure.
5
6
(Pause.)
MR.HOLAHAN: We're going to Object to this exhibit
7 as work product.
8
MR. STILLMAN: Okay.
MR.STILLMAN: Okay.
MR.HOLAHAN: FOr y0u to make it an exhibit or to
ask any questions.
MR.STILLMAN: Well,it's already been made an
exhibit,and the client has said that this is her comments in
green. So her comments are obviously not work product,
Dennis.
MR.HOLAHAN: HO1d it.
MR.STILLMAN: SO that's the way it goes on that.
MR.HOLAHAN: Okay. This exhibit,to be -- to be
accurate,this exhibit which is called Notes on the MSA,
including amendments and the mini settlements,Edra's
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1 theworkproductprivilege. Soweobjecttoitbeingmadean
2
3
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6
7
8
9
10
11
12
13
that's it.
14
Q. But you remember the context, Edra?
15
MR.HOLAHAN: She's not going to answer any
.
16
MR. STILLMAN: Q. DO yOu rememberWhy that document
17 was created?
18
I'm not talking about the contents,we're talking
19 about creation now. We're not talking about the contents.
20
Q. Do you rememberwhy that was created?
21
A. Not exactly.
22
MR.COTNER: Excuse me,Phil.
23
MR.STILLMAN: Yeah?
24
MR.COTNER: I Couldn't quite hear Dennis's
25 objection.
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MR.HOLAHAN: MyObjection,Dave,isthatthis
2 document -- did you hearmyfull objection?
3
MR.COTNER: I did, but I didn't you,in your
4 explanation you described communications between lawyer and
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
December 14,2012
MR.HOLAHAN: AndWe'vemadeOurObjections.
MR, STILLMAN: Wait a minute,Dennis,please. A11
see is Edra's comments and I don't See anything at a11 in
this document other than Edra's comments.
MR.HOLAHAN: YOu don't have to See anything.
MR.STILLMAN: Perhaps you Can tell me where it is
on this document that you believe to be a work product.
MR. HOLAHAN: This document was prepared pursuant
to communications between Edra and her attorneys. It's also
work product. It came out of my office. It's work product.
And it was prepared pursuant to communications between Edra
and her attorneys. So it's work product.
MR. STILLMAN: What attorneys? You?
MR. HOLAHAN: Me.
MR. STILLMAN: Okay. Edra and you.
MR.HOLAHAN: Work product and attorney client
privilege.
(109 of 178)
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Edra D.Blixseth,Volume I
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2
3
4
5
6
December 14,2012
800.669.1866
(110 of 178)
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December 14,2012
transcript?
MR.STILLMAN: NO,we are attaching it to the
transcript. It's a marked and authenticated exhibit.
MR.HOLAHAN: Wh0 authenticated it?
MR. STILLMAN: Edra and nOW you. SO it's nOW,any
privilege, to the extent there was one, has been long since
waived. So
MR.HOLAHAN: And how is it waived? Why don't you
tell us how it was waived if you're going to attach it as an
15
16
17
18
19
20
21
22
23
exhibit.
MR.STILLMAN: It is going to be attached as an
exhibit.
24 lawsuit.
25
MR. HOLAHAN: When waS it waived? It's a simple
Page 274
800.669.1866
(111 of 178)
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4
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7
8
9
10
11
question.
MR.STILLMAN: Dennis, I'm nOt ansWering your
questions. I'm going to continue with the examination
because I only have 45 minutes left today.
MR. HOLAHAN: Okay,let's gO.
MR.STILLMAN: If you want to argue about it 1'11
argue we'll argue and argue and use up the time and then
we'll -- that will be it and we'll come back again another
day.
MR.HOLAHAN: Okay.
MR.STILLMAN: So I'm trying to get as much done as
12 I can.
13
MR.COTNER: Phil? Let me make a suggestion that
14 Exhibit 11 be placed under seal as part of the record at
15 least until we can determine if some kind of privilege
16
17
18
19
20
21
22
23
24
25
(112 of 178)
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December 14,2012
1
MR.CONANT: We gave you a black and white copy.
2 You have a copy.
3
MR.STILLMAN: Oh,I've got the black and white
4 copy. I'm sorry. Here,you Can have my copy. There you go.
5
MR.HOLAHAN: Thank you.
6
MR. STILLMAN: Q.A11 right. So now let's talk
7 about misrepresentations made during the divorce proceedings.
16
(Pause.)
17
A. Okay.
18
Q. Well,we've already discussed,haven't we,this
19 morning,that as of April 2008 you knew that it was serious
20 financial problems with the Yellowstone Club,correct?
21
A. Correct.
22
Q. And so what representations were you relying on
23 that were regarding BGI,the Yellowstone Club and other
24 assets and liabilities under his control when negotiating the
25 MSA?
Page 276
YATES COURT REPORTERS
800.669.1866
(113 of 178)
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From:
To:
Subject:
Date:
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Wednesday,November05,20087:32:00PM
Ihaveneverwaiveredfromyoursi
deonemi
nute.Iam notbailingfromanything!IoweaIotof
money,
andthatreali
tyisinfrontofthis.ImovedfromBellevue15monthsago,andhave
tobeg,borrowandstealtogethere,andstayhere.
Mytoxicmessi
sLiner,Flynn,andBellevue.ChrismanassuredmebeforeImovedthiswouldaIl
beresolved.Webothknowwhereheendedup.
F
rom:LearGz@aol.com(mailto:l-earGz@aol.coml
Sent:Wednesday,November05,20087:22PM
To:dennis@ncoder.net
Cc:nickolasrhodes@yahoo.com
Subject)Re:Gov
beyondthefunding............ihave40mmtiedupinthisbeingastlccess.ihaveneverwaveredonmysupport,even
whenithurtmepersonally.itisaIlof-ourfutureandnotourpast.dennis.pleaseunderstandwhatyouaredoing
tomebyactingasifyouaregoingtobailoutonthis.blxwareisalIicareaboutforgoingfol
-ward.therestisjust
stuffihavetodealwithtoridmyselfofthecleanupoftoxicmesses.
Thismessageandanyattacheddocumentsmaybeconfidcntial.privlegedofboth.lf'youarenottleint
endedrecipi
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open,readscopy,More,distribuleorusethisinfonnati
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(114 of 178)
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NotesontheMSA,includingamendmentsandtheminisettlements
(E(
1ra'scommentsinGreen)
FullMSA-Paaes1-42-CaseNo.RmIND91152intheRiversideCountv.CA
K 1ofPage1says,t'ThisStipulationisenteredintoforthepurposeof
compromisingandsettlingcontestedissuesbetweentheparties.Ifforanyreason
thewaiversandreleasesinthisStipulationarenotacceptedbytheCourtandthis
Stipulationbecomesnullandvoid,orthisStipulationfailsforanyotherreason
whatsoever,nothingcontainedhereinshallbeanadmissionoffactorastatement
a
gainsti
nterest.Eachgartyhasrefrainedfrommakingcontentiousstatements,or
assertingpositions,whlchmightcausetheothertobeupset,sothatcompromise
andsettlementcouldbepromotedandachieved.''
Doesn'tthisrightheregiveustl'
lev'('
)utzstogoafteranythinguze'
w'antandtohavethe
elltireN/ISAnullanclvoid'
.
7
Also,renyeloberthat1u''
asconzllletelyfl-tlzellotltofalltheconlpaniesandt.
1lly
inforlllation'
f
l-olushol-tlyafte1-1.t'
iledfol-divorce(l3ec.06)untiliustatbeforetlleclosing
ofthefintl11
.,
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K 4ofPage2-ReadaIIofitandA-C
Tlleycouldusethisasal1argttnnentthatw'eagreednottogobacktotl)evaiuesoftl'
le
assetsveagreedtotake,lNvillgointothedifferentassetsas'
wegt7throughthis,butolle
tbingtllatsllouldbepointedouthere,is'riln;sveryoy.
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-IeluacleIuanyl'alsestatenlents.'
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her,lladasduciaryl-esponsibilitytollle,ifit'
tvasfottj'
ldtllat17esvasnottellingthetruth.
?
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-f'
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ew-examplesofthisnrouldt'
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-inlstatingtllattileirNvasnocolulntlnitycash.
11
,ow',
vvllenI1eurastaking.
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lndslkornBigSpl'ingsReality(llotpayingcol.
nll)issionstothesales
elling
people):SunriseRidge(notpayingtheIlal4llel-stheirshare'
tvhenhetookt
klndsl
.,s
colulllunityassetsandusingtheftlndsyvithotltadivisiengirentolue,a1-1:1thel-earenlchre
exmuples.
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when'
f'
tvastllk
.
eillgtostopC.1r
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tegolfcourselots.
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tana'
flidavitsupp.ol-tingTinl-sclailnofthevalueoftheLots.Tilnstated
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ftheseI-otstt)CH.Yet:laterlve1511:1
outthatnoneotherthel)Eric.
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ddvvasprolmised50Ok-.ofwhich250k-vvaspaidt()hiln.
Ericlaterf'iledastlitallclgo'
ta.J-uc
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K 8ofPage4alIofpage5-Ct
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(115 of 178)
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* 16ofPage6andalIreferencestoBGIstockbelow
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was
intended.i
kletalcillgtheB(J'
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l
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h,
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ulllunity
propertyasset.)
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businesses.N-Chad:114expel'
ttestifyw'ithhoAvthisw-ashandled.
(116 of 178)
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vvouldIlave1)oyvayofknovvingthat.
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thatwasperceivedandnounforeseenliability.
* 17.ofPage14
-1!st
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tobel-idofhin),I)ygetting1.0to2.0mm ondosing..
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(117 of 178)
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of 111
K 20.ofPage14Thisisnot.abigdeal,butTimtooknlostofthisout.Soluethings
werktbrotl
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ts
theyhadintendedtodoh'
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eiththeothel-l'
lotesforthenloneytllatvastakenti-op'
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loan.'
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thedidnotNvalltto
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ranlal-indoin1
4isllan'
lewhenthefundsthalptlrcllasetlit
vveretfol'
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sorthepurchaseprice.Ithinkthis,
el-anlel-lld'oiulcltheotllertllingsgotosl
-lovvthat,havingnletakeontlleentireproluissoi-y
l'
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K 0.ofPage18
llaterfoundoutthatyvhothat-vastl-ansferredtos'
vasJim lDolan.'
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thetirneofnlyQtfi-ozenout''.JimDolanisalsoathil-d
thatvel'
etlnnsfef-redtt)1
)inndu.
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partnerof'
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-iluTsin.
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$'esternPacii
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nsold,Nvell
undep-valued,0Lll-personalinterestinthe.
17BO1
-1)Bozernan.Jim Dolanisalsotheone
thatprolmisudtobepayingthe8121noteontinle,yetadlll.
ittedto1uealldotllel-sthatl)e
w-astalkingsvitl'
lTilllatthesaluetinteaboutthepaylnent.TinzNvastellingothersthat
.
Jin-lw'asnotgoingtobelmakillgtllepaynlenttokeepnleoutoflnoney.
lclon;tknow?vvherethisl'
itsil1,btttthel-eisllot&nypartofInyassetstllatlNvasavarded
thatTim ditlnotcallpeoplealldinterfere'
withJ'
nebeingabletodotllingsforthegood
andbenetltoflnysel.l'
lecolltactedAlanItyeabotltmyIoanspuzhichptltAlaninfearof
hiscollateralin111ysllareofBFl.'
.
I-ilnhadnocurrentbusinessTvithAlal)andhisbank.
H.
econtacted.
$'
-arrel)Treppregardil'
lgBlxvvareandcatlseda1lkindso1Dissuethel'
eAvllel'
e
wecouldI)()tmoveforward.IZIehil-ecl*
N
,
..
'
likeF1ynn-hvhouzasDenais5.
1lawyerand
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handledthirlgsfbf-Blx'
v/are.11eandNz
likeFlynnstal4edaI
lresscannpaignagainstlMe.
'
5
'z
.lanyrepot-tershaveconf'irlnedthatTiluorFlynnAvouldcallthen'
landtellthen)Nvhereto
goandlookthingsupthatAverefiledintheRenocourts.These'
were'
15ledby17lylln.
.
:
'
l
a
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.
repoi-tinghaclalreadyhappened.j%'btl'
ntlstknockXlike'
Flynnof'
fthe'
N?
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lleedtodosvhateverittal
tes-norlnatterAvllat.urehi
tvetot
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edoesstillhavebusillessTvitl).
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NationalBank,btttcontinuedtogivethelu
lnisinfornlationaboutlnybttsinessesandlue.
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nyfrieldslikei)u14Stlgarnlanand
otherstostayaliveduringthislilne.
K 25.ofPage20
'
l-hisisanotherarea.tllt'
ttwAndl,Pattencal)lltzlpyouunclerstand.-l.
-llerella.
sbeell
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t
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n''hadplacedavalue
of3.4mm o1)it.YC'
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loorelniglltalsohaveadditional
int
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terthfzclosingot'the1k'I
'SA-lfoundoutthatTiluendedupsonlehoAvgettingthis'
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zkf
z
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ndt'
lfTon'
l.1believethatTil
'
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2n1mtoN-t
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gnedvvith'
YC/Nr'
DI
.
,
K C.ofPage22Readandtelllnesvhatyouthinkofthisolle.
* E./F.G-ofPages22/23
lveneverreceivedproperbooksanclrecordsnlninutesanclotherthings.Patcangointo
thisnlore.BFesl'illcayearlater:havenotbeenabletof'
igurelntlchot-tllisotltuithhoAv
t11e)/turnedvvhattheydidovei-.
K J.ofPage23
ltstatesheretllatasofJunel:2008lwastt7receiveallcashetc.............againsPatcan
tellyotlhowtjlings'
weretbu-nedovertotls.Til'
nalsoenterttdintoseveralcontractsthat1.
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nalsotoldmethathehadpaida110f'YC
payabiescurrenth
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rdovvnero1'B/P'
1I
Thisturnedoutnottobetrue.ItalkedtoNN
vayneabotltthis.lnJttdgeTuckers
c'ourtrooln,BobSunlpter,onTiln'sbellalftinAprilorszlayof2008-statedasmuchas
well.
K Pages24/25/26/27inreferencetotaxesIwanttotalkaboutinourmeeting,as
itistoohardtoputinaI1inthisoverview.
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* (a)ofPage27
Intel'estingthattheyadnpitherethattheresvascoluIntlnitycashtlow't'
TonlBigSprings,
BigSkylkidgeLLCandSunrise'
RidgeI.z1wC.andthatTil'
ntookal1ofthatnloney.This
w'
asduringthetin'
ltlthatheAvdsstatingthatthereBras1197colnlllunitycashtlovv.1.hadto
borrov/
'nloneytojustliveduringthistime,asldidnotgetaI
lel
Mlyoftel
nporal
yspotlsal
suppol'
t1101-1()r1gtenuafter.1diclnotcatchthisbefore.
* 33.ofPage29
-(
llisisNvhereTroyGreentseldhadakl-ield-;daytlttrillgtlzetJO.Cvsf-SandTim .
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nstatedol'
)tllestandthatthe-icornel-stol'
leofthe.
N'
fSz%f'
orllil'
nD'vvasmetakingover
llis'
iitluciaryresponsibilityforanyandal1ofhisactiollsinthebusinessthatl.
1eha.
drul'
l
and1got.ltvvoklldbenzorthapllonecalltollil'
uonthisone,.
Al
-ldyPattenyvasthereas
uzell.-I''r(7ytoldlnethatl1.
edid11(
7ttllinkthattl'
tisal-eaoftheNIS,
A.vvotlldstnndupasl
couldnotllold-1'im harlulessl'
lt7rtakeonllisactiollsiftherevverefraudandotllert
'lliklgs
illvolved.1.
,ofcourseyuntil'I-ill)statedthatincotlrt,didnottllinki1)a-l'
p.
''
w'a.
ytllatthc
Rocornerstolte''oftllehzI'
SA,but1
'Nvassurelyavvaretlatittvasilnpoftanttollin'
l..
lLlovcan
lgetarotllldthisisstte??
K 35.ofPage30
lrlereisvvliereIthink'
vvehaveal
.II.
L
JG.
Eupsideit7youc'an'
lindinthe.layvwrilerethis
tVctivel-0al1l1OtStal
-ld.AS1toldyou,NvhenJafr'
eputtogetlerthe51ingfol.sllousalsuppol-ts
itIltsnciledotltatover2.0mm perl'
nontl)-btlt1nevel'exllectedtogetthat.
'
l-in'
lI-elleatedlysaidatsolnellointthattherevvasnoluorecolnnalnityc.ashf'1ovv.kk'e
lavesincefoundoutthatthi
svvasnottrue.1
1eiustkeptal1thentoneyforhinlsetf.
Becausehew'
assayingtherevvasl1ocasl)flo-tv-1hadtobon-ovvlnoneytolive011-v-hen
thereAvasinfactftlndstbrthecol
mlmunity.
lftlteassetsvvouldhavebeenNvhatIAvasleadtobelievetheyTvereAN'l'
.
)ifTinzhadnot
staltedhiscalnpaignto-tcrtlshanddestroyher''.. ..(kthentunledinto--keepalt
'erher
blltilsheiscnlshedordeadz'
)........1
.vvouldnotI
laveneededthespotlsalsupport.
Btttthefactsarenow'clearthatthereAvascash1l
'on'thatlshouldhavereceivedattl'
le
tin-teIxkvasfrozenout.Theassetsandlmoreovertlleliabilitiesthat1Avaslnisleadabotlt,
)tolnaintail)Illy-lifestyle,Avhicl)isthelettt
zrof
vverestkch(ornotsuchasfarasassetsgo.'
tlpefanl.
ilylavv,
',letalone,anylifestyle.1anlsittinghttreinaChapter7.
l
'
-astyearataboutthistil
ne.justbeforesi
gningthe5'
I.
SASlhadl
nanageableliabilities,no
nponeyborronzedagainstPorcupineCreel
tnorCasa.Captiva.ThefkctisthatTiluknen.,
exactlyNvhat1)e'
vasdoingalldurllatJwasgettingnlyselfilltosn.rhicl)iswllythe
corllerstoneofthek
.J
%
ISA
'
'.tol'
litn,vvasNvhatitvvas.
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lflhadk-novvjlallyofthis,1.vvoklldnothaveSettledinthe'
wzity1did.1.'kvotlldhavebeel:
grantedbothtelnpandlong-terluspousalsupport.lwouldnothavehadtocontinuelo
borrovvl'
noneytolive.1vvoklldnothaveborrtnved351
411ntogetthe5IS/Nclosed.
R
enlelnber,ofthe1e35
1
:11
u,1personallyo'llygotlju
stover1.
01
u1
1
)ofthat.Therestvventto
Tilnc)rtoX-C.Tl'
pal-ttllatNventtoYC.shotTlc'
havebeenpai(1bitcktoIz-le:ifthingstllere
vvereastheywerepresented.
1.1)CA familylavv,a25yearmarriagewiththeincomeandtaxreturnstllatwehadawould
havegivenmeaveryniceannualincomefrom spousalsuppol'
t.
rJ 36.-44.ofPages30-34Yougtlysaregoil1gtohavetoreadalldtellmelvhat
yotlthillk,
* Reallyforyouguys.........it'salltherepsandwarrantiesyouwillhavetotell
n'
lewhatyouthink.
* 64.ofPage41
Itt
linkthishelpstlstojusti
fy.
vl
z
.
l
yvveare'
l
slingourl
uotionsol'
ltlleNz
l'
'
sr
NintheBI
4.cotl
rts
inN'lolltana-clon'tyotl?.
pvenlenli
lervvellaveaddedhelptherefkonn.the13
'14JudgeNvho
lovesus,alldlpates-1.
-il)'
ia3lds'likeFlynn.?
&tthispointtheycouldnotgetadecentrtling
il)theil'favor1:
1-01,
).
)tllatJtldgeif'tlleytried.Eitilel-Nvay,S'
BandBShavethingsil'
.
lplacejn
thatcourtfoon'
itohelptts.'
A''
enuedt()luakestlrethevalidityoftlleSr
ISAneverelldstlp
.
beingdecidedbyJudge'
h2
.
$laters.''
l-llatu'ouldbeaniglltlllarefora1l0(
'
-us.
ObviouslylhavellottnentionedthecollapseoftlleUSeconolnyil'
ttllisdocuiment,antl
clon't'
wanttogodovvllthatroacl.Doll'tletthatbeconleanisslieil7tlle'
N/
JSAlmatter.
Okay,IlmostIikelygaveyouluorethenyouwantedandit-snotingreatorder.S()ny.
Letn4eknow'ifsomethingdoesnotluakesense.Ithink,
1()eElniglltbeofsomellelpllere
too.
A-tntlg.uysshotlldalsoreadthetkssigllnnentOfCotnpanyInterestsAgreenlentandthe
ztssulmptionAgreenlent.Thereal-eseveralthingsin'
theluinisettlelments,likeTil'
nw-csto
k'eeppayingtheoverheadtbrPC,butthatendedashesaidtlteresvasnoctnnllntlnitycash
1l
'05,
/.N&'enow'knovFtherew-aszso.
I.an'
lnotsurew-herew'
ecant'
ittllatin.
Hopethisllelps.'
Edl-a
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Exhibit2
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DANIELd.UmF'FE*TA
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LORNAA.RIF'
F.C.P.A
OF'COUNSEL
MARKE MAHLER
June10,2008
#IAE'MAILANDU.S.MAIL
Ms.EdraBlixseth
42765DunesView Road
RanchoMirage,CA92270
Re: MarriageofBlixseth
DearEdra:
Lastweek,youandGeorgeMackcraftedaproposalforapadialdivisionofreal
propedy,personalpropedyandcedainbusi
nesqinterest.Yousignedandsenti
ttoTim
Ni
thoutconsul
tingourfirmz LastFriday,wefecel
vedanal
teredveyi
onofyourdraftfrom
T
lm'
sattornjy,StephenKolodny.Youhavei
nstructedustoasssstyouinprepari
nga
revisedverslonofMr.Kolodny'sproposedstipulation.Youhaveexpressedthatthismust
beaccomplishedquickly.
eel
i
mi
nfoTrm
artei
o
ab
outctahneotr
u
oj
esats
etsea
ndrtl
i
aebi
i
toi
epsoy
u
proposWe
etoh
da
iv
ld
wi
tt
hed
Tii
m.
he
fn
ore
,we
fu
fee
rv
na
ol
oe
pin
lot
nha
os
wh
me
h
pl
r
so
ed
a
re
tw
dllre
nlt'
a
gcolo
orr
dmagTI
rjmeme
fo
e
derr
a
y
hg
av
eeame
rignh
tto
oufl
u
sp
nr
ae
ns
ceia
dis
od
su
ebfa
ro
ann
dta
pr
py
ro
ag
ls.
aP
lsl
oa
fs
fe
aiu
rn
ma
ks
et
tn
vd
alt
uh
eat
fr
oomu
neutralthirdparties?andthatbyenteringintoafinalsettlement,withoutthebenefitofthose
things,youaferiskingmakingabaddeal.
Youhaveexpressedtousthatyoubelieveyoucancreatevalueoutoftheassets
youwouldbereceivingandthatyouhaveplannedoutandmadepfovisionsforyourcash
fl
owfortheatI
eastthenextt
wel
vetoei
ghteenmonthsandbeyoqd.WehaveI
imited
k
n
o
w
l
e
d
g
e
o
f
y
o
u
r
b
u
s
i
n
e
s
s
p
l
a
n
s
a
n
d
h
a
v
e
n
o
t
s
e
e
n
o
r
p
a
f
t
i
c
i
p
a
t
e
d
l
n
c
r
e
a
t
i
n
g
y
o
u
rcysh
flowanalysis.Weknowyouareasophisticatedbusinesspersonandthatyouarerelypng
nnyourownbusinessacumeninanalyzingtheMacksettlementoffer.
Werespectyourdeci
siontoproqeedwi
ththi
sprgposedsettl
ementandwewi
lldo
w
h
a
t
e
v
e
r
we
c
a
n
t
o
f
a
c
i
l
i
t
a
t
F
s
e
t
t
l
e
me
n
t
I
n
a
c
c
o
r
d
a
n
c
e
w1
t
h
y
o
u
r
w
i
s
h
e
s
.
H
o
w
e
v
e
q
i
t
i
s
our
dutytoadviseyouofthestgnificantrisksthatweseeinthisproposedsettlement.
te
rd
o
ma
e
twoo
hp
s
epnhyoonfetwi
h
osuthan
you
y
i
l
andtaxYaets
to
rn
ea
yy
s,
awte
Ls
inp
ee
rn
Ytaanpkp
er
lex
vi
itzgt
ol
iy
ng
ve
ry
lnr
deotn
at
ilh
ma
het
risyk
ad
twe
sr
ec
ei
ln
t
hteop
rq
o
sbeutt
e
me
ntt
net.fol
t
d
akie
to
I
ome
ngt
ac
fsth
os
eac
rnes,
i
n
th
l
spI
es
te
ted
r,
tl
Iw
an
ea
dg
tr
oee
ome
ut
lin
rw
yo
ou
ul
int
wr
ti
n
go
so
oofp
thu
ete
ma
jh
oro
n
ks
th
to
wn
ece
se
(123 of 178)
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Ms.EdraBlixseth
June10j2008
WaiverofFudherDiscovely
Timhasbeenincontrolofthecommunityassetssinc,
eDecember.2006.Wehave
o
b
t
a
i
n
e
d
s
o
me
d
i
s
c
o
v
e
r
y
d
u
r
i
n
g
t
h
e
c
o
u
r
s
e
o
f
t
h
i
s
I
i
t
i
g
y
t
i
on,butourdi
scoveryisnot
compl
ete.Moreover,inthediscoverythatwehaveobtalned,wehaveIeafnedthatTim
d
i
vn
eid
g
ni
s
a,nt
ac
mo
s
of
or
mmu
l
t
y
neby
srk
th
tn
hd
el
at
roto
n
th
Yo
mi
-se
ed
tts
lei
me
nc
ts
su
hu
an
st
We
sc
le
qPan
c'
i
f
i
cmo
Ti
m
et
roaa
ns
dse
Tt
u
saa
C
aq
l
c
so
.kTi
hu
se
,j
l
t
I
s
possible,andevenprobable,thatTlm hasdivertedcommun'
l
tyfundstoTamarindooreven
toentitiespreviouslyawardedtohim.W'
lthoutconductingfudherdiscovery,wehaveno
waytotel,Accordingtothesettlementproposalthatyouareconsi
deri
qg,bothyouand
T
i
m
w
o
u
l
d
w
a
i
v
e
a
n
y
f
u
r
t
h
e
r
r
i
g
h
t
t
o
o
b
t
a
i
n
d
i
s
c
q
v
e
r
y
a
n
d
y
o
u
a
r
e
wa
i
v
lngyourri
ghtsto
recovercommunityassetshiddenormisappropnatedbyTlm.
eec
tl
e
tspero
l
srosc
l
aTtehs
hoatt
c
t
sfa
ofath
IiabilitieT
shb
lounrr
ge
in
nt
gs
te
ot
e
ame
chans
ttp
ho
as
ta
hl
eao
ho
en
tt
ae
kmp
es:
et
p
ee
na
ti
ah
llq
laa
bl
l
ly
ltig
ee
st
o
Bl
GI
ne
d
theYell
owstoneCl
ub?reenormous.Youal
readyknow thatYell
owstoneCl
ubowes
approximately$309milllontoCreditSuisseFirstBoston,andTimcontendsthatBGIowes
$243mi
ll
i
ontoYell
owstoqeCltlb.Inaddi
ti
onuyouknowthatTimhasahi
stolofpromi
si
ng
Y
e
l
o
w
s
t
o
n
e
a
s
s
e
t
s
t
o
t
h
l
r
d
p
a
r
t
i
e
s
i
n
s
i
d
e
d
e
a
l
s
.
Y
o
u
a
l
s
o
k
n
o
w
t
h
a
t
t
h
e
r
e
a
J
e
ma
ny
disgruntled members and B shareholders.In addition,there is a possibllity that
CrossHprborCapitalPartnersmaysueBGland/ortheYellowstoneClubinconnection
w
i
thTi
m'sfai
ledattempttoselsqbstanti
all
yal
IoftheassetsoftheYelowstoneCl
ubto
CrossHarbor.TheremayalsobellabilityexposurefromYellowstoneClubemptoyees.To
suTmari
ze,youkngwtherearesi
gni
t
icantli
abil
i
ti
esassociatedwiththeassetsthatyouare
t
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Ms.EdfaBlixseth
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Ms.EdraBli
xseth
June10,2008
NotFilingtheStinulationwi
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callmetodiscusstheseandanyotherissues.
InyourJune4,2008e-mail,youadvisedusthati
fwe'Signoff'onthedealyou,
yourself,madeandsignedwithTim,youwouldnotholdusresponsibleforanydamages
9
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Ms.EdraBlixseth
June10,2008
Iawyers,areinnowayresponsibleforthisagreement.Youshouldgetoutsidecounselto
reviewthiswaiverbeforesigning.same.
Sincere
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EDRABLIXSETH
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Exhibit3
(129 of 178)
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96 of95112
of 111
In re
EDRA D.BLIXSETH,
Debtor.
In re Ye1lowstone C1ub, LLC,
Debtor
TIMOTHY L.BLIXSETH,
P1aintiff,
vs.
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS,
Defendant.
Deposition of:
Date:
Reported by:
)
)
)
)
) Case NO.:09-60452-RBK
)
)
)
)
)
)
)
)
)
)
)
) Case No.:09-00O14
)
)
)
)
)
)
EDRA D. BLIXSETH
December 17, 2009
Stephanie P. Borthwick
c.s.R. No. 12088
(130 of 178)
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23 ///
24 ///
25 ///
(858) 756-0771
For the Debtor, Edra D. Blixseth:
LAW OFFICES OF DENNIS HOLAHAN
Attorneys at Law
BY: DENNIS HOLAHAN, ESQ.
2049 Century Park East
Suite 3180
Los Angeles, California 90067
(310) 286-3344
Page 2
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4
5
(406) 761-6112
7
8
9
10
11
12
13
(304) 345-6555
14
15
16
17
18
19
20
21
22
23
24
25
(806) 337-1112
///
///
///
///
///
Yates Court Reporters 800.669.1866
Page 3
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Edra D.qixseth
December 17,2009
For the Trustee BLX:
BALLARD SPAHR ANDREWS & INGERSOLL, LLP
Attorneys at Law
BY: CHRISTINE K. MIN, ESQ.
2029 Century Park East
Suite 8O0
Los Angeles, Caqifornia 90067-2909
(424) 204-4400
For the Dick Samson as Trustee of the Edra Blixseth
bankruptcy estate:
DATSOPOULOS, MAC DONALD AND LIND, PC
Attorneys at Law
BY: DAVID B.COTNER, ESQ. (Via Speakerphone)
Centrai Square Building
Suite 201
201 West Main
Missoula, Montana 59802
(406) 728-0810
For the Montana Department of Revenue:
Joel Silverman, Esq. (via speakerphone)
125 North Roberts
Helena, Montana 59604
(406) 444-7990
Page 4
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(303) 298-1800
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Also Present:
Timothy L.Blixseth
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INDEX
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Page Line
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one it was.
And then it was talking about his salary, which
was a hundred thousand a month. He had the right to
additional loas or bonuses based on performance and
turning over certain specific things that I don't think
that he ever actually got.
He got some additional monies when he was
purchasing a home,but I don't recall the exact amount.
Q. Okay. Did you give him loans totaling
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21 accounts.
22
Q. Did Mr. Blixseth tell you that he opposed this
23 investment and didn't want you to use the Credit Suisse
24 loan proceeds to give to Mr.Montgomery?
25
A. No,he did not.
Page 32
Yates Court Reporters 800.669.1866
(137 of 178)
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Edra D.Blixseth
December 17,2009
Q. What is your best memory, regardless of the
source of the funds,as to how much you loaned Dennis
Montgomery in April 2006?
A. I've already testified to that. My best
recollection is it was a signing bonus,which was either
a million or a million and a half, and I don't recall
which one it was.
Q. So that was a loan?
A. That was part of -- I think it was a signing
bonus, actually. If it was a loan, it was a loan. I
don't remember the contract. There's been a 1ot of
contracts and things between that time frame so -Q. Did you ever forgive that loan?
A. No, I did not.
Q. Did you report those loans on your bankruptcy
schedules?
A. Those were monies that were into corporations
that I reported what was invested in the corporations,
but it wasn't for me personally.
Q. Are those loans still outstanding?
A. That's within the Opsprings Blxware books I'd
have to go back and look. To the best of my knowledge,
if that's how they were and they weren't signing
bonuses
Q. Just so we're clear,Ms. Blixseth,the loans
Yates Court Reporters 800.669.1866
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Edra D.Blixseth
December 17,2009
A. Until we couldn't afford to keep the company
running.
Q. Yeah. When ws that?
A. I think April or May of this year.
Q. So from April '06 to April or May of '09 you
paid him a hundred thousand dollars a month; is that
correct?
A. That is correct.
Q. What role, if any, did you play in having him
arrested for the $1.9 million casino fraud that he was
involved in?
A. I had no role in it.
Q. In the last 60 days have you been texting
messages with Mr. Montgomery?
A. Yes, I have.
Q. Have you texted messages with Mr.Montgomery
relative to the fake target letters that you and he
contrived to try to destroy the -MR. HOLAHAN: Stop. Stop.
BY MR. FLYNN:
Q. -- sale of the Yellowstone Club?
22
(140 of 178)
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Exhibit4
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WARRANTFORARREST
CivilActionNo.08-cv-02707-CMA-KMT
WESTERN CAPITALPARTNERSLLC,
Plaintiff,
EDRAD.BLIXSETHand
MATTHEW R.CROCKER,
Defendants.
To:TheUnitedStatesMarshal
andanyAuthorizedUnitedStatesOfticer
YOUAREHEREBYCOMMANDEDtoarrestEdraD.Blixsetha/k/aEdraD.Crocker
andbri
ngherfort
hwi
thtothenearestmagistratejudgetoansweran
t
O Indictment D lnformation ED Complaint X Orderofcoul'
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O PretrialReleaseViolationPetition
D SupervisedReleaseViolation O ViolationNotice
JudgmentDebtorEdraD.Blixsetha/ldaEdraD.Crocker,wasfoundincivilcontemptofthis
Court'sorderandauthority.
ExecutionofthewarrantforarrestshallbelimitedtothecontinesoftheStateandDistrictof
Colorado.
GREGORYC.LANGHAM
NameoflssuingOfficer
CLERK
TitleoflssuingOfficer
bys/EileenVanAlphen,DeputyClerk
SignatureofIssuingOfficer
February20,2009,Denver,Colorado
DateandLocation
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RETURN
Thiswarrantwasreceivedandexecutedwiththearrestoftheabove-namedindividualat
DATERECEIVED NAMEANDTITLEOFARRESTINGOFFICER
DATEOFARREST SIGNATUM OFARRESTINGOFFICER
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LASTKNOWN EMPLOYMENT:
PLACEOFBIRTH:
DATEOFBIRTH:
SOCIALSECURITYNUMBER:
HEIGHT:
WEIGHT:
SEX:
RACE:
HAIR:
EYES:
SCARS,TATTOOS,OTHERDISTINGUISHINGMARKS:
FB1NUMBER:
COMPLETEDESCRIPTION OFAUTO:
INVESTIGATIVEAGENCYANDADDRESS:
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2
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PROOFOFSERVICE
1,ChristopherJ.Conant,declare:
1am aresidentoftheStateofColoradoandkvertheageofeighteenyears,andnot
apartytothewithinaction.Mybusinessaddressis73017u'Street,Suite200,Denver,CO
4 80202.OnJahuary7,2013,lservedthewithindocumentts):
5
RESPONDENT'SREQUESTFORANORDER
7
8
M b
ytransmittingviafacsimilethedocumentts)listedabovetothefaxnumberts)set
forthbelowonthisdate.
r--l byplaci
ngthedocumentts)listedaboveinasealedenvelopewithpostagethereon
10
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W
fullyprepaid,intheUnitedStatesmailatDenver,Coloradoaddressedassetforth
above.
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12
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iaelectronic/e-mailservice.Thedocumentts)listedabovewereservedviae-mail
totheaddresseeslisted.
B
ylohwavingacopydeli
veredpersonallytoMr.Holahan'sofficeattheaddresslisted
be
DennisJ.Holahan
2049CenturyParkEast
suite3180
LosAngeles,CA 90067
Fax:(707)586.
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1amreadilyfamiliarwiththefirm'spracticeofcollectionandprocessing
correspondenceformailing.Underthatprh
acticeitwouldbedepositedwithUPSonthatsame
daywithpostagethereonfullyprepaidinteordinal'ycourseofbusiness. lam awarethaton
motionofthepartysefved,serviceisp
resumedinvalidifpostalcancellationdateorpostage
meterdateismorethanonedayafterdateofdepositformailinginaftdavit.g
ldeclareunderpenaltyofper
juryunderthelawsoftheStateofColoradothatthe
24 foregoingistrueandcorrect.
ExecutedonJanuary7,2013atDenver
,Colorado.
25
..
26
27
28
'chn o er .Conant
POS
(145 of 178)
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CHRISTOPHERJ.CONANT27
RQOELLYCc.DEWYI
EAV
,CLE
EBKD
tl.2.cotln!OFA/PEALS
August20,2013
AtJ0212013
VIA OVERNIGHTDELIVERY
TotheClerkoftheCourt,NinthCircuitCourtofAppeals
95SeventhStreet
SanFrancisco,CA 94103
FILED
DDCKETED
IMTQ
--INfTIAL
Re: FilingUnderSealinCaseNo.12-35986
DearClerkoftheCourt:
PleasefindtheenclosedReplyinSupportofEmergencyMotionUnderCircuitRule27-3and
27-13toFileUnderSealandinSupportofRelatedMotiontoStay.OnAugust8,2013,AppellantMr.
BlixsethfiledanEmergencyMotiontoSealandRelatedEmergencyMotiontoStayProceedings.The
EmergencyMotiontoStayProceedingswasconditionallytiledundersealptlrsuanttoCircuitRule27-
13(c).TheenclosedisintendedtobeAppellant'sReplyBriefinSupportofhisEmergencyMotionto
StayProceedings.AstheMotionsPanelhasnotyetruledonEmergencyMotiontoFileUnderSeal,it
isAppellant'sunderstandingthattheenclosedReplyBriefshouldbefiledprovisionallyunderseal.
Sincerely,
By:'
..-.
-.
-.
>
.
hristop
.C0 ant
Phone:303-298-1800 Fax:303-298-1804
CcolRalnt@conantlawyers.com
(146 of 178)
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Exhibit 2
(147 of 178)
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2
3
4
CHRISTOPHER 1. CONANT
Cal. Bar No. 244597
730 1i h Street, Suite 200
Denver, Colorado 80202
Telephone: (303) 298-1800
Facsimile: (303) 298-1804
Email: cconant@conantlawyers.com
Attorney for Timothy
Blixseth
6
7
8
9
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11
and
12
Respondent: Timothy L. Blixseth
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DECLARATION OF ROBERT WHITEFORD
(148 of 178)
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I, Robert Whiteford, do hereby declare under penalty of perjury of the laws of the State of
2
California as follows:
1.
to herein.
2.
I am over eighteen years of age and have personal knowledge of the facts testified
my sworn statements set forth in a prior declaration that I filed in the Montana bankruptcy court,
9
10
11
3.
computer (serial number G853111 URUO) delivered to me by Brian Calhoun. This computer
contained one hard drive (Model WD3200AAKS, Serial Number WCA WFD924346).
4.
12
13
1Z7F4Y 152468329746). This drive is a SATA hard drive that was not installed in a computer or
14
15
16
17
5.
Mr. Montgomery informed me that these devices were Edra Blixseth's and that
Upon receiving these devices, I made forensic image copies of the files contained
18
thereon. The process of making these forensic images ensured that the "metadata" on the files
19
was preserved unaltered so that a user of the files could review the "metadata" on these files and
20
21
modified.
22
7.
From the Power Mac hard drive I retrieved the file known as "Notes on the
23
MSA.doc". I reviewed the metadata on this file and found that this document was created on
24
25
8.
26
reviewed the metadata on this file and found that this document was created on 07117/2011
27
28
9.
From the Power Mac hard drive I retrieved the file known as "My Dearest
I
(149 of 178)
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Jack.doc". I reviewed the metadata on this file and found that this document was created on
2
10.
I reviewed information on the Power Mac to determine if the computer clock had
been altered in such a way that would allow a user to manipulate the metadata contained on the
6
7
8
I declare under penalty of perjury of the laws of the United States that the foregoing is true
and correct to the best of my knowledge.
DATED this 3rd day of January, 2013.
10
11
Dated:
January 3, 2013
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PROOF:. OF SERVICE
2
3
4
I am a resident of the State of Colorado and over the age of eighteen years, and not
a party to the within action. My business address is 730 I i h Street, Suite 200, Denver, CO
80202. On November 15,2012, I served the within document(s):
6
7
o
D
10
13
14
15
16
by placing the document(s) listed above in a sealed envelope with postage thereon
fully prepaid, in the United States mail at Denver, Colorado addressed as set forth
above.
I caused such envelope to be delivered via overnight delivery addressed as
indicated on the attached service list. Such envelope was deposited for delivery by
UPS following the firm's ordinary business practices.
11
12
by transmitting via facsimile the document(s) listed above to the fax number(s) set
forth below on this date.
via electronic/e-mail service. The document(s) listed above were served via e-mail
to the addressees listed.
Dennis 1. Holahan
2049 Century Park E #3180
Los Angeles, CA 90067
Attorney for Edra D. Blixseth
17
18
19
20
21
I declare under penalty of perjury under the laws of the State of Colorado that the
foregoing is true and correct.
Executed on November 15,2012 at Denver, Colorado.
23
24
Christopher J. Conant
25
26
27
28
POS
(151 of 178)
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Exhibit 3
(152 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 2 of 14
(153 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 3 of 14
(154 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 4 of 14
(155 of 178)
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(156 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 6 of 14
(157 of 178)
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(158 of 178)
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(159 of 178)
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(160 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 10 of 14
(161 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 11 of 14
(162 of 178)
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(163 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 13 of 14
(164 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-5, Page 14 of 14
(165 of 178)
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Exhibit 4
(166 of 178)
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Case 2:11-cv-00073-SEH Document 49-1 Filed 09/13/12 Page 1 of 8
On appeal from
Bankruptcy Case No. 08-61570 and
Adv. Case Nos. 09-14, 09-18, 09-64,
10-15.
SECOND SUPPLEMENTAL
DECLARATION OF MICHAEL J.
FLYNN IN SUPPORT OF PRO HAC
VICE APPLICATION
(167 of 178)
Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-6, Page 3 of 9
Case 2:11-cv-00073-SEH Document 49-1 Filed 09/13/12 Page 2 of 8
I, Michael J. Flynn, being of lawful age and duly sworn, based on my own
personal knowledge, hereby make this Declaration pursuant to the provisions of 28
U.S.C. 1746.
1.
Debtors and CrossHarbor, through counsel, have made against me in their filing of
September 5, 2012. See Doc. #41 with attachments.
2.
I am 68 years old, graduated Magna Cum Laude and was ranked first
in my class in law school, served as Editor in Chief of the Suffolk University Law
Review, clerked for the Massachusetts Supreme Judicial Court, and have been
actively engaged in civil and criminal litigation since 1972. I have litigated highlycontentious cases for over 40 years. My record is particularly and notably clean,
especially given the volatility of the cases I have litigated, the powerful interests
with substantial financial resources and political connections I have litigated
against, and the seemingly unfettered schemes of my opponents, who have ranged
from powerful cults to organized crime, and who have sought to influence the
outcome of cases using their political, financial and judicial connections.
3.
(168 of 178)
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Case 2:11-cv-00073-SEH Document 49-1 Filed 09/13/12 Page 3 of 8
not appear to be on the court record in Riverside CA. We are continuing to search
for the documents. I have no memory of ever listing this almost 30-year-old
contempt citation in numerous pro hac applications over the years in numerous
jurisdictions. Having no memory of it when I filed the application in this matter
solely to appear for the oral argument on August 24, 2012 (now moot as I did not
appear), I did not commit perjury. Given my 40 year litigation history and strict
compliance with court orders throughout that period, I also reject any claim that I
violated any court orders 30 years ago or continuing to the present in any matter. I
am presently researching this matter to determine what actually happened.
4.
Debtors filed this and their prior filings also accusing me of perjury in connection
with a vacated Daytona , FL court order, all relating to what can only be described
as the massive, well-documented, scientology attack on me, my co-counsel, clients
and the judicial system between 1979 and 1987. Thus, it appears that their motive
for resurrecting these 30 year old litigation matters with scientology, (anything
scientology filed against me is suspect as recited below), is retaliatory for
defending Mr. Blixseth, an attempt to deprive Mr. Blixseth of effective assistance
of counsel, and part of a present campaign to crush [me] into submission
because I am defending Tim Blixseth against them while they are seeking to use
Mr. Blixseths ex-wife, Edra Blixseth, to obtain hundreds of millions of dollars in
Blixseth marital community assets. See Montgomery v eTreppid Technologies,
2009 U.S. Dist. LEXIS 35543 at 17-18, wherein a federal magistrate judge cites
Edra Blixseths campaign to crush [me] into submission. The Debtors know that
I am the primary lawyer for Mr. Blixseths defense team and that exclusion of my
representation will severely weaken his defenses and perpetrate an injustice. This
Court should be aware, as noted by the Nevada Federal Court, that the present
2
(169 of 178)
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Case 2:11-cv-00073-SEH Document 49-1 Filed 09/13/12 Page 4 of 8
campaign is far more extensive than resurrecting these 30-year-old, long forgotten
issues, which I will testify about if necessary. Because of the recent disclosures by
Edra Blixseths ex-partner, Dennis Montgomery, and his possession of insider
documents and emails proving the details and magnitude of her criminal conduct
involving the Yellowstone Club bankruptcy, this latest filing appears to be an
especially desperate attempt to suppress the truth integral to Mr. Blixseths
defenses in the Montana Bankruptcy Court.
5.
release from July 8, 1983, as well as a certified copy of a July 8, 1983 minute
order from the Riverside County, California Superior Court in In re Estate of L.
Ron Hubbard, purporting to hold me in contempt of court and ordering me to pay
a $250 fine.
6.
When I filed the pro hac vice application in this Court I had no
memory of this Order from 30 years ago, issued by a California court in the midst
of what can only be described as a litigation war involving the Scientology
organization, where they routinely filed sanctions motions, bar complaints and law
suits against me, and my clients, in multiple jurisdictions throughout the United
States over a period of seven years. These frivolous filings were all made pursuant
to the written policy of L Ron Hubbard that the purpose of the law is to harass
and destroy rather than to win. Thus, most courts routinely dismissed their
filings which were self-evidently filed to harass and destroy me and my clients.
Hubbards wife, numerous high ranking scientologists, and mobsters they
employed were convicted of a battery of crimes. The scientology cases were
ultimately settled in favor of my clients in early 1987.
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7.
sanctions motions, law suits, etc., had been denied, dismissed or vacated, either by
the trial courts, on appeal, or by the ultimate settlement documents. I have filed
innumerable pro hac vice applications in multiple courts throughout the United
States since 1983 and I have no memory of ever listing this purported contempt on
any application. I note that the scientology press release states that I gave
documents in an unrelated case to my co-counsel Julia Dragoyevicz. But Ms.
Dragoyevicz was ONLY my co-counsel in scientology related cases, and had
possession of the so-called Armstrong documents, which were apparently at
issue in this matter ( I am now researching these issues). See Church of Scientology
v. Armstrong, 232 Cal App 3d 1060, 283 Cal Reptr. 917 (1991), essentially
affirming the trial courts ruling after a lengthy trial.
8.
I recall several months in 1984 in which I was lead trial counsel with
Ms. Dragoyevicz. Had the contempt order not been vacated in some manner,
perhaps by the settlement documents in the DeWolf matter, I would have listed it
on the pro hac application filed in this court and in every other court for the last 30
years, but if I received the subject documents from Mr. Armstrong with Ms.
Dragoyevicz as my co-counsel, I could not have been held in contempt for giving
her the documents. As in most scientology matters, their litigation tactics were so
abusive, fabricated and frivolous, except for situations in which they manipulated
the judicial system, their manipulations were denied, dismissed or vacated. See
Sentencing Memorandum relating to several convicted high level scientologists,
attached hereto.
9.
Supplemental Declaration filed with this Court on August 17, 2012, I gave this
4
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Court a glimpse of the litigation war with the Church of Scientology in which I
was embroiled during the 1980s. As this Court read in U.S. v. Kattar, 840 F.2d
118, (1st Cir. 1988), during the 1980s I was deemed an enemy of the Church of
Scientology and due to this designation, was the target of the Churchs Fair Game
Policy, Black PR policy, and legal policy to harass and destroy, which
Policies were the Churchs (or more precisely its leader L. Ron Hubbards)
equivalent of a proclamation of war against me to have his minions and mobsters
destroy me through any means necessary. Id. at 125-126. One manifestation of
the Churchs attempt to destroy me was its use of a Boston mobster to frame me as
the perpetrator of a fraudulent check writing scheme as detailed in U.S. v. Kattar.
Such tactics were universally pursued by Hubbard against his perceived enemies.
For instance, the Scientologists instituted Operation Freakout against one of my
clients, a journalist, who Hubbard and his minions framed for writing a book
about them called The Scandal of Scientology.1
10.
DeWolf and in that capacity caused the In re Estate of L. Ron Hubbard case to be
filed in Riverside County Superior Court.
11.
until a global settlement in 1986-87. This litigation war was all consuming and
involved litigation spanning the nation, all of which I can testify to at the
September 14th hearing in this matter, should this Court be interested.
12.
In light of the litigation war with the Scientologists that was raging in
1983, and the subsequent settlement, and given the passage of time, I have no
1
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to crush [me] into submission and deprive Mr. Blixseth of effective assistance of
counsel, I am sending one of my co-counsel to Riverside County Superior court to
physically review, retrieve and copy relevant documents from the file that the
Riverside County Superior Court still maintains on the In re Estate of L. Ron
Hubbard case. I am informed that that Riverside County Superior Court possesses
6 unsealed volumes in the case as well as sealed documents.
14.
application to save judicial resources, because the matter may now be moot by my
non-appearance on August 24, in order to preclude any prejudice to my client, and
to permit this Court to focus on the issues relevant to my clients appeals so my
client will not be prejudiced while his appeals are pending before this Court, I am
withdrawing the application, but preparing to answer under oath any questions that
this Court may have for me on September 14th should it decide to proceed
notwithstanding the withdrawal of my application. I take these allegations against
me and this campaign seriously and look forward to the opportunity to refute his
allegations.
15.
sought justice for my clients who were the victims of abuse, corruption and the
criminal schemes reported in cases such as the scientology criminal matters.
Fighting injustice for my clients and exposing the truth for my clients has often put
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my professional reputation, physical safety, life and liberty in serious peril. Mr.
Blixseth in this appeal and elsewhere in litigation in Montana has exposed and
threatened to upset the confidential relationships some lawyers appear to have with
Judge Kirscher and his staff. This relationship is one where some can speak
confidentially with Judge Kirscher and his chambers about upcoming and pending
cases (ER 846 (Docket No. 10-1)) and even feed case citations from the
bankruptcy court on the eve of his trial against Mr. Blixseth (ER 754 (Docket No.
10-1)). This relationship is also one where some enjoy weekend, cell phone and
home phone access to Judge Kirschers law clerks (and by logical extention Judge
Kirscher). ER 828, 837 (Docket No. 10-1). Thus, it is somewhat unsurprising that
this present effort to negatively impact the defense of my client would be based on
a 30-year-old questionable order against me, which is in need of research and
explication. The Debtors jumped the gun and sought to have this Court rush to
justice on the Daytona matter, which was plainly a frivolous and inaccurate filing.
I am looking into whether any of my 30 year-old files and the DeWolf settlement
documents still exist.
I declare under penalty of perjury that the foregoing is true and correct.
/s/Michael J. Flynn
Michael J. Flynn
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Exhibit 5
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Exhibit 6
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