Blixseth wants $3.3M in fees from Mont. tax case

BILLINGS, Mont. (AP) - Montana revenue authorities are seeking to block former billionaire Tim Blixseth from collecting $3.3 million in attorney fees he racked up during the state's frustrated efforts to force him into bankruptcy.

State officials said Wednesday Blixseth should be barred from pursuing the fees while they appeal a July ruling that dismissed the forced bankruptcy case.

A Friday hearing is scheduled on the state's bid to stop proceedings on the attorney fees before U.S. Bankruptcy Judge William Thurma in Nevada.

The state alleges the founder of Montana's ultra-exclusive Yellowstone Club owes $57 million in back taxes.

Blixseth, a Washington state resident, denies the claim. He's twice gotten the case dismissed by a now-retired federal judge.

Blixseth also wants to recover fees from Yellowstone Club creditors who sided with the state.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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