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Case: 12-35986, 05/01/2014, ID: 9080331, DktEntry: 98-1, Page 1 of 16

IN THE UNITED STATES COURT OF APPEALS


FOR THE NINTH CIRCUIT
NO. 12-35986
TIMOTHY L. BLIXSETH
Appellant,
v.
YELLOWSTONE MOUNTAIN CLUB, LLC
YELLOWSTONE DEVEOPMENT, LLC
BIG SKY RIDGE, LLC
YELLOWSTONE CLUB CONSTRUCTION CO., LLC
Appellees.
MICHAEL J. FLYNNS REPLY TO YCLTS, CROSS
HARBORS, THE YELLOWSTONE MOUNTAIN CLUBS, THE
DEBTORS, AND SUNRISE RIDGES RESPONSE TO THE
ORDER TO SHOW CAUSE
Appeal from the United States District Court for the District of
Montana
Case No. 2:11-73-BU-SEH
Michael J. Flynn
One Center Plaza, Suite 240
Boston, MA 02108
mike@mjfesq.com

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Attorney Michael Flynn herewith replies to the YCLTs, Cross


Harbors, the YMCs, the debtors, and Sunrise Ridges Responses to the
Courts order to show cause why Appellant and his attorneys should not
be sanctioned for filing the appeal in the disqualification matter. In
their Responses, the appellees have created evidentiary issues as to the
evidence I relied upon as an advocate for Mr. Blixseth in support of our
motion to disqualify Judge Kirscher and then our decision to seek
review in the Ninth Circuit. If these sanctions are upheld under these
circumstances, the Court will effectively chill any litigants right to
challenge a judge for bias while sweeping under the rug documents
forensically authenticated in which the central figure in the Montana
bankruptcy cases before Judge Kirscher admitted that the proceedings
were rigged. An abundance of supporting evidence relied upon by Mr.
Blixseths attorneys supports the same inescapable conclusion. The
Ninth Circuit can itself authenticate all of this evidence, as did the
Blixseth attorneys. Notably, the Chief Judge never addressed these two
documents in his dismissal of the judicial misconduct complaint.
Sanctions in this matter are themselves indicative of a failure to

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address these admissions, to disclose the emails of Judge Kirscher and


to intimidate Mr. Blixseth and his counsel into submission.
Mr. Flynn herewith adopts the arguments and briefing of his cocounsel, and incorporates their positions herein as if fully stated. Mr.
Flynn also invokes F.R.A.P. 46(c) and Circuit Rule 46-2(d),(e) and
requests an evidentiary hearing as recited below. The purpose of this
Reply, as was the original Response to the OSC, is to present the facts
and the law as the undersigned analyzed them as an advocate for Mr.
Blixseth as trial counsel in AP 14 having actually observed Judge
Kirscher during the AP 14 trial. The appellees misconstruction of this
primary issue is demonstrated in their gratuitous, irrelevant, ad

hominem attacks on me and co-counsel. This should alert the Court to


their utter failure to address this critical issue in their Responses.
Given the Courts order on the OSC presumably invoking its
inherent power, it is now plain to the undersigned after 44 years of
litigating in the federal court system that it is in a crisis. The law and
the rules are often not followed by a growing number of federal courts,
and, specifically, gross deviations from the rules and fundamental due
process, as occurred here, routinely occur in many bankruptcy courts,
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particularly in large money cases, of which this case is reportedly the


largest bankruptcy in Montana history. See LoPucki: Courting Failure:

How Competition for Big Cases is Corrupting the Bankruptcy Courts.


97-122 (2005). It is likely that the Supreme Court in Stern v Marshal
and Executive Benefits (In re Bellingham) is attempting to correct a run
away freight train of judicial corruption.
My 44 years of experience and my conscience tells me that I am
being sanctioned because I am exposing the systemic corruption now
commonly present in the bankruptcy system and rapidly gaining
District and Circuit Court acceptance.
Based on my analysis of the totality of the circumstances and the
documentary evidence, and my observations as trial counsel, it became
obvious in this case that there were such deviations from judicial
propriety as to suggest the corruption of the judicial process by the
assertion of political pressure in the Montana Bankruptcy Court
which is exactly what one email states. (See Exhibit 1 to Flynn Dec.,
Dokt 78-2). Mr. Burkles approximately $1.5 million in donations and
meetings with the Montana Governor at the same time he and Mr.
Byrne were acquiring the Yellowstone Club (YC) and putting it into
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bankruptcy through collusion with Edra Blixseth, the hiring of Mr.


Patten Judge Kirschers best friend who repeatedly engaged in what
I considered wholly improper ex parte communications, the remarkable
admissions of Edra Blixseth in two forensically authenticated
documents, the judicially sanctioned criminal conduct of Edra Blixseth,
all suggested gross deviations from the rules governing our system of
justice. It will now require independent jurists to correct this
demonstrable miscarriage of justice.
The rulings, orders and conduct by the Montana bankruptcy judge
and now by the Chief Judge, in my professional analysis, involves the
exercise of raw power in further deviation from the rules of
fundamental fairness; and the scapegoating of Mr. Blixseth and his
attorneys for seeking Judge Kirschers disqualification; and then
retaliating for seeking remedial assistance from the Judicial
Conference. My January 31, 2014 letter to the Judicial Conference
(Exhibit 7 to my Declaration, Dokt 78-9) recites the basic facts involving
Judge Kosinskis holding the Judge Kirscher investigation in connection
with our judicial misconduct complaint in abeyance. This is directly
analogous to what Judge Kosinski did in connection with Judge Cebul
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and his mootness order, where he was subsequently ordered by the


Judicial Conference to make public Judge Cebuls emails.
Here, the circumstances are far more serious than the Cebul
emails which did not involve a specific case. The Yellowstone Club and
Edra Blixseth bankruptcies involve allegations of judicial misconduct
directly impacting the distribution of a billion dollars in assets, and the
targeting of my client in an ex parte deal made at a hotel between
Judge Kirscher and my clients adversaries. Yet, Judge Kosinski seeks
to sanction Mr. Blixseth and his lawyers for raising these issues, while
issuing an abeyance order on the judicial misconduct complaint which
directly concealed Judge Kirschers emails. These emails are at the
heart of the disqualification motion, the judicial misconduct complaint,
the reappointment of Judge Kirscher, and finally directly impact Judge
Kosinskis sanctions order. It is plain from Judge Kosinskis
involvement in the Judge Cebul case that it became a political football
in Montana and in the Circuit Court system. The Judge Kirscher
matters involve the same political forces. But here the issues and the
evidence are far more serious. Judge Kosinskis attempt to stop the
disclosure of the Judge Cebul emails with mootness, subsequently
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rejected by the Judicial Conference, is benign compared to his orders on


these matters which include the suppression of the Kirscher emails in
the face of evidence that Judge Kirscher maintained an email account
with his prior law firm to whom he awarded $22 million with no trial;
and two forensically authenticated documents from Edra Blixseth to her
lawyer that the bankruptcy proceedings were rigged based on the
expenditure of enormous capital and political favors by Mr. Byrne,
Burkle and the Montana Governor. These facts mandated investigation
not an abeyance issued by Chief Judge Kosinski.
The conundrum for me is that I have had to appeal these matters
to the very judges, Judge Kirscher and Judge Kosinski, who, pursuant
to my duties of advocacy, are exercising their powers without following
the rules. Thus, I am forced to challenge their judicial authority to
conduct these matters, thereby invoking their ire, anger and retaliation,
and the potential ire of their colleagues, which I believe has resulted in
the sanctions and a gross miscarriage of justice to my client and now to
his attorneys. Throw into this mix, the undisclosed relationships and
potential communications of Judge Kosinskis wife, a former U.S.
Trustee within the federal bankruptcy system, and Judge Kosinskis
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abeyance of the misconduct investigation, and this Court is confronted


with potential judicial manipulation to protect a colleague, which, under
the law, mandates the purest means of judicial independence and
review by the most untainted members of the Ninth Circuit. If this
Court is to uphold our system of justice, rather than making myself,
and my client and colleagues, sacrificial lambs under a false rubric of
upholding the law in order to conceal demonstrable judicial bias, it
should order the following:
1. Mr. Flynn respectfully requests the disqualification of Chief
Judge Kosinski on the following grounds: (a) his wife is a former U.S.
Trustee, and all communications that his wife has had on this matter
should be disclosed, and her emails produced; (b) in his position as
Chief Judge he was in charge of the Judicial Council misconduct
complaint against Judge Kirscher, and placed those proceedings in
abeyance, notwithstanding documented evidence of corruption,
thereby preventing the disclosure of bankruptcy Judge Kirschers
emails, as was required by the Judicial Conference regarding Judge
Cebul; (c) in his position as Chief Judge he was in charge of the
reappointment committee involving Judge Kirscher and sanctioned his
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reappointment after the expiration of the time mandated for


reappointment, and after staying the investigation into Judge
Kirschers conduct specifically involving the production of his emails,
thereby thwarting review by the Ninth Circuit of Judge Kirschers
communications; (d) he exercised the inherent powers of the Ninth
Circuit to sanction myself, Mr. Blixseths attorneys, and Mr. Blixseth
for filing the disqualification appeal but continually referencing no
judicial misconduct, thereby inserting into that appeal the matters
relating to reappointment and the judicial conduct complaint, and
effectively destroying Mr. Blixseths right to counsel and fundamental
right to be heard, all of which improperly influenced the disqualification
appeal; (e) Judge Kosinski displayed a lack of judicial propriety in the
oral argument proceedings on the disqualification appeal repeatedly
asserting to Mr. Flynn that there was no judicial misconduct, when
the applicable standard under review at that proceeding was
appearance of bias, thereby injecting into the appeal his positions
with the Judicial Council and the Reappointment Committee; (f) his
sanctions order smacks of overt retaliation for Mr. Blixseth and his
attorneys pursuing their lawful remedies with the Judicial Conference
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in connection with my letter dated January 31, 2014 attached as


Exhibit 7 (Dkt 78-9) to my Declaration filed in Response to the OSC; (g)
Judge Kosinski in an unfounded finding ruled that I have smeared
Judge Kirscher when all I have done is to expose his conduct within the
rules and filings with the appropriate federal agencies I am not
responsible for what has appeared in any form of media other than
court and Public Integrity filings; (h) in an improper zeal to reappoint
Judge Kirscher, and absolve him of misconduct, Judge Kosinski ignored
the underlying facts in the disqualification appeal, more specifically
ignoring the remarkable admissions of the central figure, Edra Blixseth,
in these matters; and is now scapegoating Mr. Blixseths counsel,
thereby substituting his own bias on whether the facts and evidence

within the scope of our professional judgment acting as advocates for


our client warranted sanctions for our request for judicial review by the
Ninth Circuit of the disqualification matters .
2. With their filings, the appellees have injected scurrilous,
irrelevant, unfounded, blatantly false and/or misleading allegations

relating to me that should compel this Court to either strike their


briefing and exhibits or conduct an evidentiary hearing into the truth or
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falsity of the few relevant issues in their pleadings, including the


credibility of Edra Blixseth.
3. Mr. Flynn requests an evidentiary hearing into the
authenticity of the two documents I relied upon on the Edra Blixseth
computers, one of which she authenticated in a deposition, which
authentication by her I specifically relied upon. Specifically, I relied
upon the forensic examination of Mr. Whiteford who authenticated the
metadata on the documents at issue with the time clock on the Edra
Blixseth computer. I request that the Ninth Circuit use its forensic
expert to analyze the metadata; and that Mr. Whiteford be allowed to
testify on these matters; and that Edra Blixseth be compelled to appear.
See Whiteford Declaration attached as Exhibit 2 to Flynn Supp Dec.
The appellees failed to inform the Court that they have never sought
examination of the hard drives to challenge the authenticity of the
documents, nor have they ever responded to the specific facts
authenticating the documents recited in the Reply and the exhibits
attached to The Emergency Motion for a Stay. Instead, they rely upon
Ms. Blixseths credibility and attack her former partner Mr.
Montgomery. Significantly, they have produced a document from Mr.
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Holahan allegedly not including the critical language I cited in my


Response. However, close examination of Mr. Holahans document
reveals a gap where the critical language does exist on the original

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

Montgomery v. Etreppid Techs., 2009 U.S. Dist. LEXIS 35543


(U.S.D.NV); 2009 WL 910739 (U.S.D.NV).
I have scrutinized Mr. Montgomerys statements on the two
documents and subjected the documents to forensic examination. I
considered his partnership relationship with Ms. Blixseth, his insider
knowledge, the chain of custody issues, and I relied upon the facts and
circumstances relating to the contents of the two documents, my
knowledge of Edra Blixseths collusion with Byrne and Burkle, the
demonstrably improper rulings of Judge Kirscher regarding her, the
intrinsic accuracy of the contents of the documents, and the forensic
examination to conclude that the documents are authentic. The
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appellees fantastical ruminations about what they claim I relied upon


in my professional analysis of the two documents should now be made
subject to an evidentiary hearing. Their reliance on Edra Blixseths
credibility is in itself an issue that any independent fact finder would
deem misplaced.
4. Mr. Flynn requests the production of all of Judge Kirschers
emails between November, 2008 and the present to be examined by an
independent referee appointed by the Ninth Circuit.
The appellees are correct that I have no remorse about my
appeal of the disqualification issues but not out of any sense of selfrighteous ego driven compulsion to be right. I have been batted
around in enough courtrooms over the past 44 years to have very little
ego left on such matters. Rather, I know that my sworn duty is to
advocate for my client; and having been immersed in the facts and law
on these matters for 7 years, my professional judgment is that he is the
victim of injustice at the hands of manipulative greed-mongers with the
complicity of the bankruptcy court. To have remorse in these
circumstances would allow falsehood to triumph over fact, lies to
triumph over truth, and evil to triumph over good. I am enough of a
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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

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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

/s/ Michael J. Flynn


Michael J. Flynn

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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

/s/ Michael J. Flynn


Michael J. Flynn

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IN THE UNITED STATES COURT OF APPEALS


FOR THE NINTH CIRCUIT
NO. 12-35986
TIMOTHY L. BLIXSETH
Appellant,
v.
YELLOWSTONE MOUNTAIN CLUB, LLC
YELLOWSTONE DEVEOPMENT, LLC
BIG SKY RIDGE, LLC
YELLOWSTONE CLUB CONSTRUCTION CO., LLC
Appellees.
SUPPLEMENTAL REPLY DECLARATION OF MICHAEL J.
FLYNN IN SUPPORT OF RESPONSE TO ORDER TO SHOW
CAUSE
Appeal from the United States District Court for the District of
Montana
Case No. 2:11-73-BU-SEH
Michael J. Flynn
One Center Plaza, Suite 240
Boston, MA 02108
mike@mjfesq.com
I, Michael J Flynn declare:
1.
I have personal knowledge of the facts stated herein, and if called
as a witness, I could and would testify competently to them.
2.

In their overreaching frenzy to attack Mr. Blixseth and myself in

their Responses, (itself indicative of their failure to address the relevant

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facts), the appellees conveniently misstate the essential issue in the


sanctions appeal, i.e. my professional assessment of the evidence and
the law to support the appeal of the denial of the Motion to Disqualify.
The issue is whether my assessment of the law and facts supporting the
appearance of bias was objectively reasonable to warrant appeal
thereby negating any lawful possibility of sanctions. The Chief Judge,
himself, in his zeal to protect Judge Kirscher, has misconstrued,
misapplied and convoluted this issue. The Chief Judges improper
miscegenation of the evidence and the law (appearance of bias) on the
disqualification appeal to impose sanctions based on Judge Kirschers
misconduct, which involves our requested investigation into Judge
Kirschers reappointment and misconduct complaints, which he deems
to be a smearing of Judge Kirscher, has exposed and placed at issue
the foundational and forensic evidence which I believed justified all of
our filings - the appeal on disqualification, the objection to
reappointment, and the misconduct complaint. Remarkably, the Chief
Judge failed to address this foundational and forensic evidence. I am
seeking an evidentiary hearing on this forensic evidence; and the
production of Judge Kirschers emails, which I requested in my January

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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.

The appellees resort to broad conclusions about grand

conspiracies, remorse, this Court got it wrong, my failure to include


on a pro hac application a sanction from 33 years ago; and that we
failed to inform this Court that the evidence from the computer of
Blixseths ex-wife is of highly questionable credibility. This latter
charge is itself a false red herring. There is and was no duty to inform

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this Court of the legitimacy of the two documents on Edra Blixseths


computers. The forensic evidence and Ms. Blixseths authentication
supports our positions in our adversarial system of justice. BUT,
appellees did have a duty to inform the Court that Ms. Blixseth has no
credibility, is a pathological liar, and defrauded banks and lenders of
over $50 million, all ignored by Judge Kirscher. The real credibility at
issue in connection with these sanction matters, is Edra Blixseths, Mr.
Byrnes, Mr. Pattens and the YCLTs; and their failure to inform the
Court of the forensically demonstrative evidence establishing the
authenticity of the two documents at issue. The YCLT fails to inform
the Court that it has never had a forensic expert analyze the computers,
as we did; that both documents at issue exist in their forensically

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

demonstrative metadata. In order to misdirect the Court, the YCLT and


the appellees not only fail to inform the Court of Ms. Blixseths criminal
conduct, history of perjury, perjured/dismissed bar complaint against

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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.

The documents exist in their unaltered form on Edra Blixseth

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

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subsequent reliance on the credibility of Edra Blixseth, is shameful;


smears my professional assessment of this evidence; and conceals the
underlying significance and impact of this evidence. Presumably, this
hard forensic evidence will not be ignored by this Court in its pursuit of
sanctions; and will result in the requested evidentiary hearing and the
appearance of Ms. Blixseth for cross examination.
5.

The authenticity of the two documents was critical to my

determination that all issues regarding disqualification should be


pursued on appeal outside of Montana. Given Mr. Pattens involvement
with Edra Blixseth as extensively recited in one of the documents, the
infamous Judge Peterson email to Mr. Patten giving Patten advice to
use against Mr. Blixseth, the emails between Mr. Patten and Judge
Kirschers law clerk giving Mr. Patten the ear of the court in this, the
largest bankruptcy in Montana history, the requested investigation into
the Worden Thane secret email account, held in abeyance by the Chief
Judge, when he also possessed the two Edra Blixseth admissions, and
the $1.5 million in donations to the Governor by the
Burkle/Byrne/Blixseth cabal; the emails between Mr. Byrne and his
cohorts evidencing admissions that they obtained the YC at a fraction of

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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

while the scheme to put the YC into bankruptcy was being


implemented, all of this evidence supports not only the authenticity of
the documents, but also the justification for appeal. I specifically
request the opportunity to present this evidence in an evidentiary
hearing to justify the reasonableness of our decision to appeal the
disqualification denial.
6.

The Chief Judge disagrees with my assessment of the evidence

and disagrees with my advocacy and issued the OSC. Obviously, my


right to oppose the OSC supports my disagreement with his evaluation
of how I evaluated the evidence as an advocate for Mr. Blixseth.
However, although the Chief Judge repeatedly and improperly
referenced judicial misconduct in connection with the disqualification
appeal, apparently referencing all of the evidence in the reappointment

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and misconduct complaint matters, he did not address that evidence in


connection with imposing sanctions. As stated, our judgment that
appeal was warranted involves all of the evidence we have on Judge
Kirscher, which the Chief Judge miscegenated into the disqualification
appeal as shown by his judicial misconduct remarks, but without
addressing it as the basis for our justification to appeal. Plainly, our
request for an investigation into Judge Kirschers conduct to the
Judicial Council, given the totality of the evidence, particularly the
Edra Blixseth documents, was justified. In my professional judgment
and experience, the Montana bankruptcy proceedings were the product
of enormous capital and political favors to insure they get the right
result from the Montana bankruptcy judge, just as Ms. Blixseth stated
to her lawyer, and which the overwhelming weight of the evidence
supports. However, the Chief Judge thwarted any investigation into
Judge Kirscher and the production of his emails by holding the
investigation in abeyance. His sanctions order bespeaks retaliation
and an effort the failure to address the critical underlying evidence
justifying our appeal.

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7.

In my professional judgment after 44 years of litigation, the

foundation of our entire adversarial system of justice is based on an


impartial judge with blinders on when it involves ex parte
communications. When evidence exists supporting gross deviations
from that basic principle, particularly when the reputation and
integrity of judges are involved, dutiful advocacy mandates a challenge
to their impartiality. Here, as the evidence evolved, the two Edra
Blixseth documents confirmed everything we already believed was
supported by extrinsic, documented evidence and admissions. The
bankruptcy process had been corrupted against Tim Blixseth in favor of
Edra Blixseth contrary to the law and evidence.
8.

The Chief Judge understandably desires to protect the judges he

oversees. My duty is to exhaust all of Mr. Blixseths rights and remedies


given the evidence and the magnitude of the issues involved even when

it involves a challenge to perceived judicial bias. Almost a Billion


Dollars of Blixseth marital community assets were distributed by Judge
Kirscher. Even the Supreme Court of Montana has stated that the
Montana judiciary has a history of corruption. I sent the letter to the
judicial conference because our system works that way, because I

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continued to protect Mr. Blixseths rights based upon my assessment


that the Court was applying a double standard on my assessment of the
evidence regarding Judge Cebuls alleged misconduct, the Chief Judges
role in that matter, and my assessment of Judge Kirschers bias and
alleged misconduct in this specific case involving far more serious
conduct than that of Judge Cebul. I have no remorse about my
assessment of the evidence, no remorse about my advocacy for Mr.
Blixseth, and no remorse about my letter to the judicial conference
challenging the Chief Judges role in holding the investigation of Judge
Kirscher in abeyance. I have professionally adhered to all of the rules
throughout these proceedings, I observed personally that Judge
Kirscher did not follow the rules in many instances including his court
room exchanges with Mr. Patten, which he endeavored to conceal, in
fact repeatedly deviated from the rules to fulfill a pre-designed result;
and that Edra Blixseth and my opponents in putting the YC into
bankruptcy not only failed to follow the rules, they collectively
concealed over $50 million in Edra Blixseths criminal bank fraud in
order to obtain the Yellowstone Club. SER 2740-2787. Yet Judge
Kirscher exonerated her and now the appellees rely upon her

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credibility; and my client is subject to a $40 million judgment involving


a gross deviation from due process and the Federal Rules of Civil
Procedure. The evidence establishes that recipients of Judge Kirschers
rulings Burkle and Byrne - paid off the Montana Governor to the tune
of $1.5 million at the same time that the bankruptcy scheme was being
implemented.
9.

The whole matter smells.

The appellees cite a vacated 33 year old sanctions order by an

alcoholic judge in Daytona Fl, who I was subsequently informed by an


Assistant Attorney General for the state of Florida was being removed
from the bench, and another 30 year old Scientology war order. These
irrelevant attacks bespeak their desperation to have the Ninth Circuit
sweep this matter under the rug by vilifying me. I responded to those
attempts before Judge Haddon with the attached declaration. Exhibit 4
attached hereto.
10.

As for the continuing investigation into these matters, the roles of

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

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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.

The appellees have made credibility an issue, mandating an

evidentiary hearing, particularly in connection with the Edra Blixseth


documents, and my reliance thereon to justify appeal of the
disqualification motion. My assessment of that evidence and the
requested investigation into Judge Kirscher is at issue. My assessment
of Edra Blixseths conduct and credibility in this matter was
substantially and gravely impacted by Judge Kirschers conduct to
conceal the entirety of the evidence we put before him and the Montana
Bankruptcy Court (see Exhibit 3 hereto) regarding Edra Blixseth. My
44 year study as a litigator before juries specializing in cross
examination about lying and perjury by material witnesses was a

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critical component of my assessment of the evidence supporting


disqualification. Judge Kirschers continuous, unwarranted, improper,
erroneous suppression of the evidence of Ms. Blixseths conduct, and the
admitted destruction of evidence on her computers, which Judge
Kirscher ignored, created a compelling conclusion to me, buttressed by
all of the additional evidence, that political pressure had in fact
influenced him. Much has been written in professional journals, books
and legal articles about lying, particularly in the context of human
evil in connection with scapegoating, which has been defined as the
use of lies to cover over misconduct or other lies by those in a position of

power by means of lies to blame or attack their victims or those who


expose them, thereby perpetuating evil. See eg, M. Scott Peck.

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

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and Mr. Byrnes plan to obtain a billion dollars. Judge Kirschers


findings regarding Edra Blixseth, a proven pathological liar who
defrauded banks and lenders of over $50 million, who blatantly
destroyed evidence on her computers, who filed a perjured bar
complaint against the undersigned dismissed, who entered into an
overtly fraudulent deal with Mr. Byrne to put the YC into bankruptcy,
and who now denies the authenticity of documents on her computers
which have been forensically authenticated and the hard drives

preserved for further examination, must awaken this Court to justice


gone awry. See Exhibit 1 attached hereto. See complaint and exhibits
filed with the Judicial Council. In my professional judgment, the most
compelling inference for Judge Kirschers findings protecting Ms.
Blixseth, relates to ex parte communications between Ms. Blixseths
lawyer, Mr Patten and the Judge which are evidenced in the
authenticated Notes on the MSA. The inference that I draw from the
highly suspect ex parte communications between Mr. Patten and Judge
Kirscher, which are implicitly referenced in the numerous, detailed
references to Mr. Patten in the Notes on the MSA, is that the excessive
judicial protectionism of Ms. Blixseth was done because of Mr. Pattens

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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.

The financial motive for the Burkle/Byrne/Blixseth cabal to put

the Yellowstone Club into bankruptcy, have Mr. Burkle


contemporaneously donate approximately $1.5 million to the Montana
Governer to use political pressure in the bankruptcy proceedings, to
make a contemporaneous secret deal with Edra Blixseth in connection
with the divorce proceedings to obtain the Yellowstone Club, to pursue
a brilliant but evil bankruptcy plan to make a billion dollars and to
now payoff Ms. Blixseth to the tune of a reported $70,000 per month
can be found in numerous documents exemplified by these few: (a) an
October 27, 2008 email between Mr. Byrne and one of his agents, just
12 days before Edra Blixseth filed the bankruptcy petition, in which
Mr, Byrne claims he is writing a bankruptcy plan which could be
brilliant (Mr. Byrne is not a lawyer but has spent 25 years using the
bankruptcy system to acquire assets), the agent responds it could be
worth a billion dollars, dangerous, and possibly evil, and Mr, Byrne
affirms it is brilliant; (b) a March 25, 2008 email to Mr. Blixseth just

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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.

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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

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Exhibit 1

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INTHEUN
TED
STANI
TE
SHCO
URC
RTUI
OF
C
jlV
VI
OR
THE
NT
CI
TAPPEALS RY
st
os)jJF
kC
EjD
AUS212213
NO.12-35986
TIMOTHY L.BLIXSETH
Appellant,

F
us
nj
o
-z.E.zun. DATE -- jN,,j,t

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

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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

the meaning,weightand credibility of this evidence. Butthe pointofthe


EmergencyMotionwasnottohavethisCourtweighevidence,assesscredibility
1

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and adjudicate the factswithin appellate motionspractice,although thatis


apparentlywhattheYCLT seekswithitsOpposition.
Rather,thepointoftheEmergencyMotionistodemonstratetothisCourt
thatthere isagenuine issueofmaterialfactconceming whetherornotJudge

Kirscherhasengagedinjudicialmisconductandthatdueprocessandtheinterest
andappearanceofjusticerequiresthatalloftheYCLT'Sjudgmentenforcement
effortsbestayedpendingresolutionofthesegenuineissuesofmaterialfactbyan

independent and objective fact-finder. Undoubtedly further independent


investigation and fact-findingisrequired, andthatisimpetusoftheEmergency
Motion.

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

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hominem decendum estigitur,quum oratio argumentationem non habet.'PRO

FLACCO j 10''). Again,Mr.Blixseth and hiscounselthrough signiticant


independentinvestigation and vetting have found suffcientevidenceto raise a
genuine issue concerning whetherJudgeKirscherand the beneficiariesofthe
YCLT haveengagedinjudicialmisconduct.ltisnow forthisCourtto decide

simply whethertheYCLT'SeffortsagainstMr.Blixseth shouldbestayeduntil


suchtime asan independentfact-findervetstheevidenceorthisappealandits
relatedappeals1areprocessed.2

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

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EdraBlixsethbasedonherperjuryintheCalifomiaSuperiorCourtsupported,in
part,onthesameevidencewithwhichhesupportedhisEmergencyMotion. While
theYCLT'Sargumentisentirelyirrelevant,nosuchmeaningshouldbeinferred.

ln fact,oneofthereasonsthatMr.Blixseth hasnotyetrenewed hiscontempt


motionisbecausehehasbeen gathering additionalevidenceofEdraBlixseth's

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

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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

doesnotseek,asapparentlytheYCLT does, to havetheMotionsPanelofthis


Courtresolvedisputedfactualissues.
Dated,August20,2013:

?
,
.

Mi elJ.Flynn
Chrl herJ.Conant
AttorneysfortheAppellant

4Inthisreplybriefanditssupportingdeclarations,Mr.Blixsethandhiscounsel
explaintheeffortstheyundeltookverifytheevidencesubmittedinsupportthereof,
whichevidencewasalsousedtosupporttheEmergencyMotion.
5

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CERTIFICATE OFSERVICE

1hereby certify thatonthe 20th day ofAugust,lmailed the foregoing


documentbyFirstClassMail,postageprepaidtothefollowing:

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.

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t9080331,
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1 CHIUSTOPHERJ.CONANT

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14
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RRRPONDENT'SREPLYBRIRFIN
SUPPORTOFMRMORANDUM OFPOINTS
AxoAUTHORITDSm suppolt'rOF
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SANW IONSANDTOSHOW CAUSE

Judge:SharonJ.Watem
Heming:January14,2013
Time:8:30mm.
Dept.10

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25
26
27
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RVPOY X SU LYBRWP

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1 CHRISTOPHERJ,CONANT
2 '
cal.B!JNo.244597
73:17mstreet,Suite2O0
3 Denver,Colorado80202

Telephone:(303)298-1800
4 Facsimile:$03)298-1804
Email:cconant@conaptlawyers.com
5 AttorneyforTimothyL
,Bl
ixsel

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9 InretheMarriageof:Blixseth
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11
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12
Respondent:TimothyL.Blixsdh
13
14
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16
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RES
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18
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RBSPONDENT'SREPLYBMEF

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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
TITICONTAI
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.
RESPONDENT'SREPLYBRIEF

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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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I''SREPLYl3ItIEF

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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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tl
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

25 betmyed by thepicturesofherofflcesetup includedin Mr.Montgomery'ssupplemental


clasr
26 d
6e
Re
paoti
nodne.
ntcategoricallydeniestheallegationsinParagraph7ofPetitioner'sDeclarationand
a
1
1
o
t
l
A
e
l
'
s
i
mi
ar
a
le
gat
opsMo
whe
nme
shreyc<l
a
ms
t
a
nis
nt
gobmq
r
desnet
hadrequestedl
tll
al
t
De
ni
ms
nr
te
gi
o

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.
RESPONDENXSREPLYBRIE12

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i
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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

l
I
1

11 colateralmatt
eri
st
l
zatM,.l
qynnpuwuasedal
wmbero.
fl
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ioac
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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
1
i
'
I
i

12
13
14

18
19
20
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22
23

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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PetitionerAttemptstoDenectfrom HerNow AdmlttedFraudulentConduct


bvAccusintRespondentandHlsCounselofUnethlcallvRevlewlneAttornevCllentPrlvlleaedDocuments
Inanotherattempttodeflectfrom theiznowadmittedfri
mdsonthisCourt,Petitionm'and
'ConanthaveengagedinunetlAioal
4 Mr.HolahansuggestthatRespondentandhiscounsel,M1'
eviewingPetitioner'sattorney-clientcommunications.Pditioner'sResponse,p.1O.
5 conductbyl'
rgument.Firstandforemost,Exhibits10and11toMr.Montgomery's
6 Thisisadesperatea'
declarationontheirfacearenotprivilegedbecausetheyevidencePetitioner'sandMr.I-lolahan's
8 knowi
ngparticipationincriminalconduct,i.
e.
,judicialcorruption.Cal.Evid.Codej956.
9 Second,PetitionerreliesonanargumentthatExhiblts10andl1toMr.Montgomery'sdeclaration
10 weresomehowsinadvertentlydisclosed''duringtl)ecourseofdiscovery.Thislineofargument
andthecasescitedinsupportthereofarewhollyinappositebecausetheydealwiththesituation
12 whereapartytoalawsuitinadvertentlydisclosespdviiegedcommunicationsduringthecourseof
sindiscovery.inadvertentlyorotherwiso.-/
-t
13 discovery,Petitionerneverdisclosedtllesed-ocm-u.en
her,Respondentandhiscounselobtainedthesedocumentstlu'oughanindependentsourceand
14 Rat
15 therefol'etheyuzpersenotprivilegedbecausethemerefactthatPetitionervoluntarily
zolofathird-partynon-lawyermeansthat
16 abandonedthesedocumentstothecustodyandcont

t
'
heyl
Aavelostanymivilegethatmay'
haveattaohedtothem.Cat.Evld.Codob912(a);Jnsurcncchyl/
zlcrfc,
cv.SuperiorCourt,108Cal.
xpp.
3d758)765-766(19%%($'
lftheolsent
18 Co.ofNort
19
20
21
22
23
24
25
26
27
28

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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l
Dated: December7,2013
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CHRISTOPHERJ.CONANT
By:
Christo J.Conant
AttorneyT1 hyL.Blixseth
.

23

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28

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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1a

13
14
15
16
17
l8

19

forthbtlowonthisdate.

l
u
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ocpheet
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ahov
evl
mei
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ad
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soerddaesliveryby
inc
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UPSfollowingthefil-m'sordinarybusinesspractices.

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v
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
ho
a
ayn@h
ah
law.
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D.
Blc
ix
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20
21

1amreadilyfamiliazwiththefirm'spracticeofcollectionandprocessing
correspondenceformailing.UnderthatpracticeitwouldbedepositedwithUPSonthatsame
22 d
aywithgostagethereonfullyprepaidintheordinarycourseofbusiness.1amawarethaton
motionotthepa14yserved,serviceispresumedinvalidifpostalcancellationdateorpostage

23 metel'dateismorethanonedayafterdateofdepositformailinginaffidavit.l
24
ldeclareunderpenaltyofperjuryunderthelawsoftheStateofColoradothatthe
25
26
27
28

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
i
l:c
nran
lawiyxesr
s.
com
5 E
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tol
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6
7
8
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
h
o
u
g
hl?
Sunday,August19,200710:25:59AM

Dennis-Matthew andIhavetwospechomesthatareonthemarketatYC.WeknowthatTim him


nowtwi
cepulledthemfrom thehometoursandistellingthesalesguysnottoshowthem orpush
them.Isthereanywaytogetthee-mail
'sfromthesalesguysorTim ifwedonothavethecontrolof
thesever?Iam goingtowaittowri
teane-mailtothesalesguys,untilIhearfromyouifthereis
anotherwaytogoaboutit.Edra
PSLetmeknowwhenlshwantstoclosethehouse.

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

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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.
1
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voumavnotcopyordeliverthismesscgetocnyone.Insuchccse,poushoulddestrogthismessageandkindly
notifytheSenderbpreplyemcil.pleaseodviseimmediatelgi
fgouoryouremploverdoesnotcongenttolnternet
emcilformessogesofthiskind.Opinions,conclusionscndotherinformati
oninthismeBagethatdonotrelateto
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unle55otherwiseexpresslvindiccted,anyfederaltcxadvicecontainedinthiscommuncationwc5notintendedor

writtentobeused,andcannotbeused,forthepurposeof(i)cvoidi
ngtax-relatedpenaltiesundertheInternal
RevenueCodeorapplicableStcteorIocultoxlawprovisionsor(ii
)promoting,marketingorrecommendingto
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

I
Z

11

12
13
14
l5
16
17

UPSfollowingthefinu,sordinarybusinesspractices.

IZ
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v
iaelectronic/e-mailservice.Thedocumentts)listedabovewereservedviae-mail
totheaddresseeslisted.
B
ylohwavingacopydeliveredpersonallytoMr.Holahan'sofficeattheaddresslisted
be
DennisJ.Holahan
2049CenturyParkEast
Suite3180
LosAngeles,CA90067

l8

Fax:(707)586.
2983
d
h
o
l
a
h
a
n
@h
o
l
a
hanlaw.com
AttorneyforEdraD.Blixseth

l9
20
21
22

I
ddsu
chtheenv
l
v
ahoevnevrn
ig
eli
er
asdid
re
soerddaesliveryby
ino
da
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ae
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cp
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et
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ie
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pt
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ey
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f

lnm readilyfamiliarwiththefilnn,spracticeofcollectionandprocessing
c
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

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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
15
16
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19
20
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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10

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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2

PROOFOFSERVICE
1,ChristopherJ.Conant,declare:

lamaresidentoftheStateofColoradoandjzvertheageofeighteenyears,andnot
apartytothewithinaction.Mybusinessaddressis73017=Street,Suite200,Denver,CO

4 80202.OnJanuary7,2013,lservedthewithindocumentts):
5

DECLARATION OFMICHAELJ.FLYNN IN SUPPORTOF

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
17

18
19
20
21
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
d
o
n
J
a
n
u
a
r
y
7
,
2
0
orado.
25
26
27

28

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
15
16
j'

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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
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25
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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
18
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21

Robe

iteford

22
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DECI-ARATIONOFROBERTWHITEFORD

'

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Exhibit1

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09-0O014-RBK Doc#:473-3 Filed:01/16/10 Entered:01/16/1012:48:30 Page1of194

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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1,RobertWhiteford,deposeandstate:
1. Iam overeighteenyearsofage.Ihavepersonalknowledgeofthefactsstated
herein,andifcalledasawitness,Icouldandwouldtestifycompetentlytothem.
2. Iam anITconsultantwithextensiveexperienceintherecoveryofdatafrom
computerstoragemediaandrecoveryofMicrosoftExchangeandMicrosoftOutlookdata.
Atrueandcorrectcopyofmycurriculum vitaeisattachedheretoasExhibit1.
3. IwasretainedbyTimothyBlixsethto,amongotherthings,conductaforensic
examinationofcertainharddrivesthatwereobtainedfrom JoryRussell,awitnessinthe
abovecase.
From August3,2009throughAugust22,2009,lconductedanexaminationof
theharddrives,Iookingspecificallyforemailthathadbeendeletedandinaddition,
attemptedtorecoverfilesthathadbeendeleted.
lnthisregard,Ireviewedandrelieduponthedeletedfileanalysisperformedby
GuidanceSoftware,anotherforensiccomputerexpert.GuidanceSoftwarereceivedthe
imagefilesfrom theJoryRusselldrivesand scannedthedrivesfordeletedfiles,those
folders/fileswhichcouldberecovered,anduseractivity.Thosefilesprovidedtomeand
createdbyGuidanceSoftwareareattachedheretoasExhibits2-7.
6. AttachedheretoasExhibit2isthespreadsheet''SonyVAIO Laptop-Deleted
fileIisting,'whichdisplaysa1Iactivefileswhichweremarkedasdeleted.
AttachedheretoasExhibit3isthespreadsheet''SonyDesktop- Deletedfile
Iisting,''whichdisplaysaIIactivefileswhichweremarkedasdeletedonthed'desktop''hard
drive.

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l

8. AttachedheretoasExhibit4isthespreadsheetttsonyVAIO Laptop- Recovered


FoldersfileIisting'whichdisplaysthefolders/fileswhichwereabletoberecoveredonthe
drives.

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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received,contacts,andotherinformationthatresidesonaMicrosoftExchangeserver-it

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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provided.Thereare71messagesthatareintherecoveredOSTthataremissingfrom
thePSTfilesontheevidenceharddrivesforOctober2008.

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
2

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.
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above.

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UPSfbllowingthet'
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15

v
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ma
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rvice.Thedocumentts)listedabovewereservedviae-mail
toi
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eslis
tes
de
.
B
yhavingacopydeliveredpersonallytoMr.Holahan'sofficeattheaddresslisted
below
DennisJ.Holahan
2049Cent'uryParkEast
Suite3180
LosAngeles,CA90067

16

17
18
19
20
21
22
23
24
25
26
27
28

I
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chtheenv
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ocp
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asdid
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y'
ax:(707)586.2983
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Iamreadilyfnmiliarwithttlefinn'spracticeofcollectionandprocessing

correspondenceformailing. UnderthatpracticeitwouldbedepositedwithUPSonthatsame
daywlthpostagethereonfullyprepaidintheordinarycourseofbusiness.1amawarethaton
motionofthepartyserved,serviceispresumedinvalidifpostalcancellationdateorpostage

meterdateismoret
hanonedayalerdateofdepositformailinginaffdavit.g
lacre
dterpenaltyofperjuryundert
helawsoftheStateofColoradothatthe
ingistruI
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ExecutedonJanual'
y7,20'
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
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

Judge:SharonJ.Waters
Hearing:January14,2013
Time:8:30a.m.
Dept.10

DECLARATIONOFCHRISTOPHERCONANT

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20
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22
23

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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2
3
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5
6
7
8
9
10
11
12
13
14
15
16
17
18

19

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
27
28

'
Christo e . onant

2
DECLARATIONOFCRRISTOPHERCONANT

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Exhibit1

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Edra D. Blixseth,Volume I

December 14,2012

UNITED STATES BANKRUPTCY COURT


DISTRICT OF MONTANA

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;

DESERT RANCHMANAGEMENT LLC;AND DOES )


1-5,
)
Defendants.
)
)

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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Edra D.Blixseth,Volume I

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2
3
4
5
6

December 14,2012

Deposition of EDRA D.BLIXSETH,Volume I,taken


on behalf of the Defendant Timothy B1ixseth, before James
Matthews,a Certified Shorthand Reporter,commencing at
the hour of 9:18 a.m.,on Friday,December 14, 2012,at
131-A Stony Circle,Suite 500, Santa Rosa, California.

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

BY: Phi1ip Stillman


Attorney at Law
300 Southpoint Drive,Suite 4206
Miami Beach, Florida 33139

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Edra D. Blixseth,Volume I

December 14,2012

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

11 FortheTrustee Richard Samson (Appearing telephonically)


12
DATSOPOULOS, MACDONALD & LIND, P.C.
13
BY: David B.Cotner
14
Attorney at Law
15
201 W.Main Street,Suite 201
16
Missoula,Montana 59802
17
406.728.0810
18
19 For the Trustee Richard Samson
20
DAVIS,WRIGHT & TREMAINE, LLP
21
BY: Bradley R.Duncan
22
Attorney at Law
23
1201 Third Avenue,Suite 2200
24
Seattle,Washington 98101
25
206-622-3150

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14

December 14,2012

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

Cause Regarding Preliminary Injunctionand for

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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4
5
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7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

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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9
10
11
12
13
14
15
16
17
18
19
20

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

21 today under penalty of perjury?


22
A. I d0.
23
Q. And you understand that the court reporter is
24 taking down everything and the idea here is to 1et me get a
25 complete question out and you get a complete answer out

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December 14,2012

1 examined on and gone through many times with various


2 attorneys?

A. Correct. Youjustaskeditina differentway,so

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?

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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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December 14,2012

A. Yeah, I think it's maybe a year and three quarters.

2 Iwastrying to think afterI just answered it.


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Q. And you had said that Discovery Land was letting


you stay there?
A. Yes.
Q. And are they paying the rent for that property?
A. They were.
Q. Okay. They were. When did that stop?
A. That stopped I Want to say -- I want to say
September. October.
Q. Of this year?
A. Of this year.
Q. And why did that stop? If y0u know?
A. Because the part -- my agreement with them what I
was doing that kind of wound down on what I was to doing and
so it stopped.
Q. What was the rent on that property if you know?
A. I think it's 75. 7500.
Q. 7500 a month?
A. Yes.
Q. And they were paying that rent?
A. They were paying that rent.
Q. And you weren't paying that to them,correct?
A. I'm not clearon what you're asking me.
Q. They were paying the rent to whoever owned the
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December 14,2012

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.

12

Q. Andwhat has changed in September/octobersuchthat

13
14
15
16
17
18
19
20
21
22
23
24
25

they're no longer paying the rent?


A. Because as I said,the things that I was doing,
something might come up in the future where I would go back
to something like that,but the things I was doing at the
time were kind of done. Or
Q. Okay.
A. -- you know,it would be redundant for me to go
back and do certain things again, so and the furniture -that has been long over.
Q. Okay.
A. As I stated. So
Q. So who's taking care of the rent now?
A. It's being worked off from the deposit that they

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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?

A. Could you just

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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1 some of thosethings,I mean,that were just logically the


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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

Q. Okay. And so 1'11just this 1'11 just give you

23 this as an exhibit, and ask you about it, and let's mark this
24 Exhibit 1.

25 (Whereupon Exhibit 1wasmarkedfor


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identification.)

2
MR.STILLMAN: Q. Let me know When you've finished
3 reading it.
4
A. Okay.

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(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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1 or Dennis says you said something, it is or isn't in the


2 transcript.
3
A. Okay.
4
Q. Do we have copies of this?
5
MR.CONANT: YeS.
6
MR. STILLMAN: Yeah.
7
THE WITNESS: Are We done with this?
8
MR. STILLMAN: Q.Oh, n0, nO. We've gOt plenty of
9 that.
10
MR.HOLAHAN: YOu'Ve gOt 50 minutes. Next exhibit.

11 (Whereupon Exhibit 11was marked for


12
identificationx)
13
MR. STILLMAN: Q.I'm going to put Exhibit 11 in
14 front of you. You've seen this document before?
15
A. Um-hum.
16
Q. And -- that's yes?
17
A. I have seen this document before,yes.
18
Q. And the green -- is -- as we've seen before your
19 customary way of commenting?
20
A. Edra's comments.
21
Q. Yes. Edra's comments in green, correct?
22
MR.HOLAHAN: HO1d on one second.

23

(Pause.)

24
MR.STILLMAN: Why don't I aSk a question while
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2

MR. HOLAHAN: N0rhold On a second. Sorry.


MR.STILLMAN: I'm Sorry.

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.HOLAHAN: We're going toObject to this exhibit

10 as work product. I helped the client prepare this document.

11 Andit's --wasworkproduct. I'm going toobject to that.


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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

24 comments ingreenwas prepared in conjunctionwith her


25 attorneys,and so as such it iswork product andsubject to
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1 theworkproductprivilege. Soweobjecttoitbeingmadean
2
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12

13

exhibit and request that you not makeanexhibit to Ahis


deposition based on that,and we also don't want her to
answer any questions based on it.
MR.STILLMAN: Well,it's going to be an exhibit.
Any work product to the extent it's even applicable has been
waived.
MR.HOLAHAN: HOW? Where is it waived?
MR.STILLMAN: It'S been -- I'm nOt even going to
get into it. It's going to be an exhibit. You have your
rights to make a motion if you want.
MR.HOLAHAN: Okay.

MR.STILLMAN: And that'sjust

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

5 clientwhich Itrust you meanyou're also objecting on a


6 privilege basis;is that right? And I'm not sure if you

7 indicated that in yourobjection.


8
MR.HOLAHAN: I'm Objecting to it On the basis Of
9 work product. You're right. And attorney-client privilege.
10
MR.COTNER: Okay,thank you.
11
MR.HOLAHAN: It'S communications betWeen Edra and
12 her attorneys. And it's also attorney work product. So

13 we're objectingto this exhibit being made --this document


14
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being made an exhibit to this deposition, and I'm instructing


the client not to answer any questions about it.
MR.COTNER: Thanks, Dennis.
MR.CONANT: Did yOu work On the document, Mr.
Holahan?
MR.HOLAHAN: You're nOt asking questions here.
MR.STILLMAN: YOu haven't laid any foundation for
why that would be work product at all.
MR.HOLAHAN: I don't have t0.
MR.STILLMAN: Sure,what makes this this is
Exhibit 11,and there's now a11 in green is Edra's
acknowledged is her comments -- and then -- there's
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there's -- I'm -- I only see and maybe you can help me


out because I'm trying to understand why this would be
work product -- but a11 I see is Edra's comments about each
one.

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.

MR.STILLMAN: Let mejust make Sure I g0tit. I

23 appreciate your help. So you -- you tell Edra to prepare


24
MR. HOLAHAN: NO.
25
MR.STILLMAN: -- Some analysis,and then she
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prepares it. Right?


MR.HOLAHAN: I'm nOt going to go into how or
how the document was prepared.
MR. STILLMAN: Well,the reason I go into it is
because it doesn't -- I'm looking at it. I don't see
anything at al1 other than Edra's comments. So I'm not sure

7 just because you tell Edra to write something down -- it


8
9
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doesn't mean that that becomes protected in any way. She's


got she's writing her analysis there.
MR.HOLAHAN: She Was Communicating her analysis to
me. I'm her attorney. It can't be simpler than that.
MR. CONANT: YOu don't need to raise your voice,
Mr.Holahan.
MR.STILLMAN: Don't Worry about.
MR.HOLAHAN: That's the Communication between Edra
and her attorneys. It's privileged and it's work product.
MR.STILLMAN: Well I guess we'll flag that for
another day.
A11 right,let's get onto the next paragraph then.
MR.COTNER: Before we move on,Phil,what's the
status of that exhibit with regard to making it part of the
record?
MR.STILLMAN: Well,it's in the record. It's

24 Exhibit 11. And Dennis is objectingto it being inthe


25 record.
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MR.HOLAHAN: I'm Objectingto it beingmade an

2 exhibit as attorney-client communication and as an attorney


3 work product.
4
MR.COTNER: I understand a11 that. So Phil, is it
5 my understanding that we are not attaching Exhibit 11 to the
6
7
8
9
10
11
12
13
14

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.

MR.HOLAHAN; HOW is it Waived? HOw is the


privilege waived if this is the first time -MR.STILLMAN: Dennis, I'm nOt going to get into an
argument with you.
MR.HOLAHAN: Why not? This is a serious matter.
MR.STILLMAN: I agree,and I am -- and S0 iS this

24 lawsuit.
25
MR. HOLAHAN: When waS it waived? It's a simple

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December 14, 2012

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

protects it from being part of the public record,and if that


can't be agreed upon then I would request that the court
reporter not publish the exhibits until we have an
opportunity to present the issue to the court.
MR.CONANT: Mr.Holahan,please place the exhibit
back.
MR.COTNER: I'm Sorry?
MR.HOLAHAN: DO y0u have a Copy Of this forme?
MR.CONANT: Yeah,we have a copy.
MR.STILLMAN: We didn't give you a Copy?
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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.

8 Let's just go right to let's say paragraph 24.


9
10
11
12

Have you had a chance to read 24?


A. Three lines.
Q. Okay.
A. Do you want me to read the whole thing or do you

13 wantto just start asking questions?


14
Q. 1'11 ask questions unless you feel the need to read
15 the whole paragraph.

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?
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From:
To:
Subject:
Date:

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RE:Gov
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
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stuffihavetodealwithtoridmyselfofthecleanupoftoxicmesses.

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nll)issionstothesales
elling
people):SunriseRidge(notpayingtheIlal4llel-stheirshare'
tvhenhetookt
klndsl
.,s
colulllunityassetsandusingtheftlndsyvithotltadivisiengirentolue,a1-1:1thel-earenlchre
exmuples.
Tim alsoliedinahearing'
when'
f'
tvastllk
.
eillgtostopC.1r
1fron)buyillgti'
tegolfcourselots.
First,hehadasalespersol),Ericlwadd.llt
7ttheX'PofSales,yvl'
lich'
wotlldbemole
standarll,sublni'
tana'
flidavitsupp.ol-tingTinl-sclailnofthevalueoftheLots.Tilnstated
tltat1)oconllnissionsvverebeingpaidforthesale0.
ftheseI-otstt)CH.Yet:laterlve1511:1
outthatnoneotherthel)Eric.
Laa
ddvvasprolmised50Ok-.ofwhich250k-vvaspaidt()hiln.
Ericlaterf'iledastlitallclgo'
ta.J-uc
-lgnlentagainstlnetb1-greaterthenthisamount.
K 8ofPage4alIofpage5-Ct
tnyouJ'
eadandtelllllei'
fyouthinkthisisbindlpgt7r

itgoestothefraudthatwetatkedabotlt?

:
-7@ <p: EXHIaIT

j
'.
t
e

.
'
k
p
>

c, - .
K
>m:f
//j.
zg/.g
s
w

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* 16ofPage6andalIreferencestoBGIstockbelow
TllisisNvherethingscottldgetalittlegreytowhatissvrittenaqvhatw-assaidalldvvhat'
was
intended.i
kletalcillgtheB(J'
1stocknzastheBzayto15nallygetPCandCasaCaptivainto
l
myiegalovvnershipaerbeingavardeditinthesecondluinisettlelnent.lf).
'ouw'illgo
baclkallclreadthose,yotlvvilli'
inllthatTil'
nal'
!dhisaccountaatsw-ereto15ndavvaytoget
botl)ot-tlleseassetsintol
mynajnevvithoutcreatingtaxissucs.TakingtheBGI.stocknow-,
inthet
5nal.
h,
'
ISA,lsvasl'
oldRvouldresolve.this.?'
&1so-sinc:.
INvasalsotakingtheN.
'
'C
entities,itseeluedlikeallaturaltosin'
lplytakeTinn'sow-llershipofthestoclk.

(RcnleinbersiftlloughalloftlpestockNvasinl-ilpp'snalne,itvvasstillacol
ulllunity

propertyasset.)
lsventintothisagi-eenlentstillhviththetlllderstandingthatbotllTilnandGeorgeitlack

I'adtoldnlethattlleBGI.notesto-f171asvvellastlle'I-i1MJ3iixsethnotestoBGItvvhich1'
.
endedul
3w'ithasvvell.)NvotlldllaveasvayofNvorkingthelnotltasJzearsv/elltalolgas
iforgiven''A,
vlRell'
s
r
$.
'cneeded'
thetax'
vvriteofi's.Tilulladalwayssaidthat.l'
tvillgointO
thisinluoredetail'
tvhen1tallci
'
tbotlttheTalnel-elldotransfer-btlt'Filualsosaidtlpatabtlut
the40n1'
ntbi-tllat.
lftheaboveAvouldhavebeenasityvastoldtomest'llentheYCDsvvouldhavepaidtheCS
loano'
l't
'viththeproceeds'
f'
t-oln'
Lotsales.
Upol'
ttheclosil'
lgof-the'
N4Sjk
.,thebankaccoulitslladbeelldrainedancl/orNvere
overdralvn.Patcangointolnoredetailsofthatasuzell.r,(717course-vvasnotcountingt'
)1,.
t'
his.Botl)pNmaerical'
l'
.
Banl.
:andPalIuIlesel-taccountsuzerelilcethis.
111additiolt,thebooksalldrecoi-dsthatvvereturnedovercannotl)ereconcilecl.'I-hetrail

balances(lonk
7tjave,z
xgaill:Pi
'
tCax
lgoi1
3tOnlol
edetailOnthi
s.

Therew-erecontractsandpayablesllpatr.
ln'
ilmenteredintoa'
fterknowinghvevveregoingto
beclosillgtheh,
'
ISA.BobSunlpteremploymelltcontracttbrone.

1 (a)ofPage7
C.
BStl
nrisel7al
4nel
s,LLCistl
t
eooethalp
kz
l
bses:
'4oole(5/C7scontroiler)toldnnethat

Tin4hadtakentheftlndsw-henthingssoldalldhadnotpaidthe)7al4lel-sinthis.
Tim hada1s0signeclagreementsf'
rosomemallagementforSt.h.ndrewsafteroursigning
ofknowing1wasgettillgtllis.14edidthistlothi1hYDIandinYC'
$.
''.
S

K (c)ofPage7-Thisdidnol
'happel)and,5N;
ehadissuestryinglol
nal
ceitllappen.
L
'
1 (e)ofPage7-Tal
kto',
%ndyf7attenalotl
tthis.ltAvasbroughtt1pintheUICCvs.
CSand-I-il1)Blixsethvvithhon,Tin'
lboughtandsoldthistohillselfBythetime1
gotit-hehadtakenthevalueoutofitdtllillgthetinle1Nvast'
iozenotltofthe
businesses.N-Chad:114expel'
ttestifyw'ithhoAvthisw-ashandled.

(116 of 178)
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* B.ofPage9-YCj%w-asinsolventvvhelllI
-eccivedit.-I.
-hew-aythisisNvritten,1.
'
vvouldIlave1)oyvayofknovvingthat.

* CofPage10and(1)-(3)
hgain,A'ndyPattenNvillbehelpfulhere.Tiludidnotdisclosethatl)ehadtakenlmillions
oklt0fBigSpringsRealitybeforethisandhadnotpaidcomlmissions.Therehasbeen
soluetl
ningl'
sledagaillsthin'
lol1this,>tl
n.
d)?
zwrillhavetlledetails.Thisisalsowrherehe
statestllatEricLadd'
vvaspaidacomlnissionforthe(JolfCourse'
LotsaletoCH.ln .
falnilycotlrthetestifieclthattherevvasnoconlnlissionstobepaid,Llutl)ealreadyhadthe
dealNvithF-ric,n'hiell1believeishonrhegotErictogivetllestatelnentofvaltte.Tlle'
krp
ofSalessllouldhavedonethat,fitveretobedone,bttthecouldnotbe-Gbought'-.A..
hr
')
f
5001cvvasnotllearlyvvhatu'asovvecl.totl'
tesatespeople.lkllou!thatCharlievvoultlbe
I'
tappytotalkAvitllyouabottttheexactaloounts,btltthisshouldalsobeinNvhat'
was'
lileci.
A'tthetitneTilmdidnotpaythel
m,yr
v.
'l'
tich'
wasmuchlollgertllen-3()-60claysinarrears-'
hetoldthelnthatthefnoneyYs.
'
asneededtf
q
)'
YCop.eratiolls.-l-lle)'latef'fotllldotltthattlle
'
fndsNvel-etlsed601-boatslipsandothertllillgsfbrTi1)1.Thisvvasalsk7durillgthef-frozen.
out''l7allfbrIuenbutBigSpf-ingsv/asinTilnDsnan1eandtherefo
-reacomncunitypropel-ty
asset..
4tthelimehe'
wastakingfundsoutof-BigSpringsforhisuse,hebvasalsostating
inI
klrtilycourtthattllere'
k
vasnoconlmLtnitycasll'
llou,.
* D ofPage101dtlreadyadcllessed13igSkylkidge,at
aove.Pleaseno1(
ethatBigSky
'
Ridgew'
aspartot
'the5'
*C!Cllapter11.
K EofPage11.
lk
.gainthisxvasalreadyatldressedregarclingSunl'iseRidgean:l

.zlosesAzloorestatingthat'l-il'
rltoldthefulldsaskkhl
-soAvnpersollalpiggybankf'
allddidnotpaythepal4ners.7-il'
ndidnotdisclosetltis.Thisvvasalsoconlluunity
cashflow'.
K G ofPage11-1'llisisagoodonefortlles'
s'esternclailus.
* H ofPage11Thisdidnothappenaildendedupbeingpartoftheh'QBK.

K AIIoftheassetslistedthatTimgot,siartingon1.ofpage12yhadthevalue
thatwasperceivedandnounforeseenliability.
* 17.ofPage14
-1!st
Atthetimeofsigningthis?TinztoldlnethatthLehlondgroupwoulddthis,./
tobel-idofhin),I)ygetting1.0to2.0mm ondosing..
1entleduphavingtt'
lpaytheln
8mn1oftlke35n1111(
1)gotfronzC1'
l,togetthem tosignoff.Ihvastogetthisbaclkh-on'
l
NrC,astheyn-eregoingtobetheownersoftheseBshftresandllotn1eperstlnally.Of
courseyouknow't'
llatditlnotllftppn.(Renzmnberasqvcll,1.didnotreallyget
35mn)fron)C1lsbutbnly22n)n1.Tilnhadborro3ved1.
3mn11,-0:11thenzin2007and

1tt
l()l
toverthatprornissorylottwhenlgottheFal
uilyC'olnpoundbacl
tq)

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K 20.ofPage14Thisisnot.abigdeal,butTimtooknlostofthisout.Soluethings
werktbrotl
glltbackbytlleYCenlployeesthatrellpoveditperhisdirectiononce
theyknew'thatllewasnottotal
teit,butnotnearlyall.tN.
l.
'
aybetilisiswllerehe

gottheideathatlvvotlldtakeTnoreoutofl76'
.
7)
K (3)ofPage15including(a)-(d)
ThisisvvhereTinltransfbrredTanlarindotohilnself,beforetlqef'
inaldivorcedecree.lle
statedto1nethatGeorg'
ecotlldIlelpntec1()thesanle011thispropmissoo,notetoYDI.i'
ts
theyhadintendedtodoh'
&'
eiththeothel-l'
lotesforthenloneytllatvastakenti-op'
ntlleCS
loan.'
H.ew-entotltofhisTvaytonlalcethisclear,ashealsostatedtha.
thedidnotNvalltto
haveanytaxisstlesfromgettiqlgl'
ranlal-indoin1
4isllan'
lewhenthefundsthalptlrcllasetlit
vveretfol'
ntheC.Sloan.0fcourse1):)taxesNverepaidonanyol?thatl'
uolley,208mlmaasit
'
wasbookedasaIoanandnotadiviclen.Thisisthepointofthe'
UC(7
-fi1illgagainst'
vrinn.
-17llatsuitcolltillttesinFeb20.
1().4.tldyPattenalldTroyGreenlseldcal)btIlelpt-tllhel-e.

M CofPage16
Ttllksa.
1)tlCaiscosplopertyvvasalsoptlrchasedy'
vithCSloa.
l4fialld-snyetR'im tvas
aurardedtllis'
vvitlloutllavillgtopaybacklhef'
tllldsf
sorthepurchaseprice.Ithinkthis,
el-anlel-lld'oiulcltheotllertllingsgotosl
-lovvthat,havingnletakeontlleentireproluissoi-y
l'
lotesfora1ltl'
le'
Itlnclstakenoutbyl3G.1andtllenTiln,vvotlldnotbeaf
'
airdivisionof
propel-tyn1.infact,lhadtopaybacktlloseIlotesand-'
I-ill)gotal1of'tllosepropel-ties.l3)
otherAxoe
rclszjustTul
'
l
tsandTant
erendoaloneaccott
lltlb'rover701
1
11
)ofthe208171
41
takelloutsplustheotherthillgstllat11egotiTltllet
5lali
h/IS-Aandtlletvolllinisettlellents.
jL'l)ehadnottol(J
'nzetha.
ttllosenotescotlldbesvorkedoutanotherw'
ayandtheyqvere
neverintendecltobepaidbacksvouldlhavethougl'
tttakingthatonA.N'
1'
.
)givinghiln
theseassetsfl-eeandcleal-w-asafairdivisioll?NO.
K 0.ofPage18
llaterfoundoutthatyvhothat-vastl-ansferredtos'
vasJim lDolan.'
Fllereitreseveraltllillgs
thetirneofnlyQtfi-ozenout''.JimDolanisalsoathil-d
thatvel'
etlnnsfef-redtt)1
)inndu.
i
-ilpg
partnerof'
1'
.
-iluTsin.
'
$'esternPacii
',icTiluberColnp.any.l4eisalso'
whoTil'
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
n
y
t
i
n
l
e
s
J
t
l
d
g
e
C
o
o
k
N
v
o
u
l
c
l
n
o
t
l
e
t
t
h
e
l
u
s
t
a
n
d
,
b
u
t
t
h
e
d
a
ma
g
e
v
v
a
sdoneasthe
.
repoi-tinghaclalreadyhappened.j%'btl'
ntlstknockXlike'
Flynnof'
fthe'
N?
1.SA.lmatter.Nve
lleedtodosvhateverittal
tes-norlnatterAvllat.urehi
tvetot
5le.
H.
edoesstillhavebusillessTvitl).
Pa11mDesert'
NationalBank,btttcontinuedtogivethelu
lnisinfornlationaboutlnybttsinessesandlue.
A'syotlguysAvellknow'lhadt()borrovl)R()I1eJ'frolnl'
nyfrieldslikei)u14Stlgarnlanand
otherstostayaliveduringthislilne.
K 25.ofPage20
'
l-hisisanotherarea.tllt'
ttwAndl,Pattencal)lltzlpyouunclerstand.-l.
-llerella.
sbeell
sol
nethingfiledagi
ti
nstTil
ninl
'
egi
trdtotl.
ehal
'
t
cllingof
-thisLot.Ilehadjtlstbefbrehe
i-solditlohiinselfuzitl'
l11t7casl)clovvnandap/-onlissorylloteofzq'nl'
n''hadplacedavalue
of3.4mm o1)it.YC'
-l
-tast'
iledtllisagainsthiln.PaulN'
loorelniglltalsohaveadditional
int
'brnnatio1).
terthfzclosingot'the1k'I
'SA-lfoundoutthatTiluendedupsonlehoAvgettingthis'
lwotto
zkf
z
thenlal)tllathepurchasedX-nnlel'
ndt'
lfTon'
l.1believethatTil
'
nnevel-intelldecltopaythis

2n1mtoN-t
J'justlikeal1theotherprolnissorynotehelladsi
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.
LsvoofAvhich1havementionedalready.7f.
'il'
nalsotoldmethathehadpaida110f'YC
payabiescurrenth
vitlladeall
1edidvvithB.faynePri
l'
n(theotherthi
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 .
B1ixsetll.
.Tij'
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,
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Ms.EdraBlixseth
42765DunesView Road
RanchoMirage,CA92270
Re: MarriageofBlixseth
DearEdra:
Lastweek,youandGeorgeMackcraftedaproposalforapadialdivisionofreal

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Ms.EdraBlixseth
June10j2008
WaiverofFudherDiscovely

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of 111

Ms.EdfaBlixseth
June10,2008

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Ms.EdraBli
xseth
June10,2008

NotFilingtheStinulationwi
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Ms.EdraBlixseth
June10,2008
Iawyers,areinnowayresponsibleforthisagreement.Youshouldgetoutsidecounselto
reviewthiswaiverbeforesigning.same.
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Exhibit3

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Edra D.Blixseth - December 17,2009


UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MONTANA

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

Yates Court Reporters 800.669.1866

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Edra D.Blixseth - December 17, 2009


Deposition of EDRA D. BLIXSETH, taken on behalf of
the Plaintiff, before Stephanie P. Borthwick, a
certified Shorthand Reporter, commencing at the hour of
9:14 a.m. Thursday,December 17, 2009, at the offices
of Yates court Reporters, 74-967 Sheryl Avenue,
Palm Desert, california.
APPEARANCES:
For the Plaintiff Timothy L. Blixseth:
MICHAEL FLYNN, ESQ
Attorneys at Law
BY: MICHAEL FLYNN, ESQ.
6125 E1 Tordo
Rancho Santa Fe, California 92062

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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

Yates Court Reporters 800.669.1866

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Edra D.Blixseth - December 17,2009


1
2

DESCHENES & SULLIVAN


Attorneys at Law

BY: GARY DESCHENES, ESQ. (Via Speakerphone)

4
5

309 1st Avenue North


Great Falls, Montana 59401

(406) 761-6112

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8
9
10
11
12

For Marc Kirschner,Trustee:


BAILEY & GLASSER, LLP
Attorneys at Law
BY: BRIAN A. GLASSER, ESQ.
209 Capitol Street
Charleston,West Virginia 25301

13

(304) 345-6555

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15
16
17
18
19

MULLIN HOARD BROWN, LLP


Attorneys at Law
BY: STEVEN L. HOARD, ESQ.
800 Amarillo National Plaza Two
500 South Tyler
Amarillo,Texas 79101

20
21
22
23
24
25

(806) 337-1112

///
///
///
///
///
Yates Court Reporters 800.669.1866

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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

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2
3

For CrossHarbor, CIP Yellowstone Lending:


DUANE MORRIS, LLP
Attorneys at Law

BY: PAUL D.MOORE,ESQ. (Via Speakerphone)

5
6
7

470 Atlantic Avenue


Suite 5OO
Boston, Massachusetts 02210-2243

(857) 488-4230

9
10
11

For Western Capital Partners:


HATCH JACOBS, LLC
Attorneys at Law

12

BY: CHRISTOPHER J.CONANT,ESQ. (Via Speakerphone)

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14
15

950 Seventeenth Street


Suite 1700
Denver, colorado 80202

16

(303) 298-1800

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25

Also Present:
Timothy L.Blixseth

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INDEX

Deposition of EDRA D. BLIXSETH


Taken on December 17, 2009
Examination By:
MR. FLYNN
MR. GLASSER
Information Requested:

Page
15, 358
319
Page Line
298 18

Questions Instructed Not to Answer:


Q. Have you made any cash transfers within 15
the 1ast year?
Q. Did Mr. Scalia purchase a Bentley from 17
Desert European Motors based on funds
that you had wire-transferred to him in
the amount of roughly $220,000?
Q. Did you report on your income tax
17
return a gift of $220,000 wiretransferred to Mr. Scalia?
Q. The amount was 230,000 that you wire18
transferred. Did you do that,
Ms. B1ixseth?
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Edra D.Blixseth - December 17,2009


A. I was never put on notice that he was a fraud.
Q. Did you have a meeting with aoseph Jonas, a
sit-down, face-to-face meeting with Joseph Jonas,in
January 2007 where he told you that Montgomery did not
possess any of the technology that he had represented to
you?
A. I don't recall who Joseph Jonas is.
Q. So is it your testimony you don't recall the
meeting?
A. I don't recall who he is, so I certainly
wouldn't recall a meeting.
Q. Do you recall a meeting in your office on
April 12th and 13th,2009,with Jack Kemp and myself and
Dennis Montgomery where we reviewed the FBI reports?
A. In 2009?
Q. Strike that.
2007.
A. In what office?
Q. In your office at Porcupine Creek on the second
floor.
A. I don't recall that.
Q. How much did you initially loan to Dennis
Montgomery?
A. There was an employment contract with Dennis
Montgomery that Michael Sandoval had drawn up, had legal
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1 counsel draw up, and there was a signing bonus for
2 Dennis and I believe it was either a million or a
3 million and a half. I don't recall specifically which
4
5
6
7
8
9
10
11
12

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

13
14
15
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20

$3 million in April of 2006?


A. I don't believe so, no.
Q. What is your best memory of the total amount of
money you loaned to him from Credit Suisse loan proceeds
in April 2006?
A. I can't testify to anything from Credit Suisse
loan proceeds. They came from the Tim Blixseth personal
account into -- wiring into the xpatterns or Opsprings

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.
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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
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Edra D.Blixseth - December 17,2009


have never been forgiven; is that correct?
A. I'm telling you I'm not sure if they were loans
or signing bonuses. I'm telling you that I'm not aware
if they were loans of any monies being repaid from
Dennis Montgomery to the companies. It wasn't to me,
personally.
Q. Did Mr. Montgomery ever turn over to you the
source codes that were being given to you in exchange
for those loans?
A. The reason he wasn't given the additional
money,whether it was loans or not loans,was because
the source codes had not been turned over.
Q. To this day have the source codes ever been
turned over?
A. Not to my knowledge.
Q. And what is the total amount of money you have
given either in loans or salary, signing bonuses or any
other characterization to Dennis Montgomery as we sit
here today?
A. I don't recall off the top of my head.
Q. Is it over $5 million?
A. No, it's not.
Q. Isn't it a fact -- strike that.
How long did you continue to pay him a hundred
thousand dollars a month?
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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

MR.HOLAHAN: Objection to that question. It

23 assumes facts not in evidence and this entire line of


24 questioning, I think, is beyond the scope of this
25 deposition.
Page 35
Yates Court Reporters 800.669.1866

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Exhibit4

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Case1:O8-cv-O27O7-CMA-KMT Document47 Filed02/20/2009 Page1of3


UNITEDSTATESDISTRICTCOURT
FORTHEDISTRICTOFCOLORADO

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'
O
P
r
o
b
a
t
i
o
n
Vi
o
l
a
t
i
o
n
P
e
t
i
t
i
o
n
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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Case1:O8-cv-O27O7-CMA-KMT Document47 Filed02/20/2009 Page2of3

RETURN
Thiswarrantwasreceivedandexecutedwiththearrestoftheabove-namedindividualat
DATERECEIVED NAMEANDTITLEOFARRESTINGOFFICER
DATEOFARREST SIGNATUM OFARRESTINGOFFICER

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Case1:O8-cv-02707-CMA-KMT Document47 Filed02/20/2009 Page3of3

THEFOLLOWING ISFURNISHEDFORINFORMATION ONLY:


NAME: EdraD.Blixseth
ALIAS: EdraD.Crocker
LASTIQNOWNRESIDENCE:
42-765DunesViewRd
RanchoMirage,CA 92270

LASTKNOWN EMPLOYMENT:
PLACEOFBIRTH:
DATEOFBIRTH:
SOCIALSECURITYNUMBER:
HEIGHT:

WEIGHT:

SEX:

RACE:

HAIR:

EYES:

SCARS,TATTOOS,OTHERDISTINGUISHINGMARKS:
FB1NUMBER:

COMPLETEDESCRIPTION OFAUTO:
INVESTIGATIVEAGENCYANDADDRESS:

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1
2
3

PROOFOFSERVICE
1,ChristopherJ.Conant,declare:
1am aresidentoftheStateofColoradoandkvertheageofeighteenyears,andnot
apartytothewithinaction.Mybusinessaddressis73017u'Street,Suite200,Denver,CO

4 80202.OnJahuary7,2013,lservedthewithindocumentts):
5

DECLARATION OFCHRISTOPHERJ,CONANTIN SUPPORTOF

RESPONDENT'SREQUESTFORANORDER

7
8

M b
ytransmittingviafacsimilethedocumentts)listedabovetothefaxnumberts)set
forthbelowonthisdate.
r--l byplaci
ngthedocumentts)listedaboveinasealedenvelopewithpostagethereon

10

I
W

fullyprepaid,intheUnitedStatesmailatDenver,Coloradoaddressedassetforth
above.

11

12
13
14
15
16
17

l8
19

20
21
22

23

I
u
nv
etl
eeliv
ahoevnevmei
eli
er
did
re
soerddaesliveryby
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UPsfollowingthefirm,sordinarybusinesspractkces.

I
Z
I
Z

v
iaelectronic/e-mailservice.Thedocumentts)listedabovewereservedviae-mail
totheaddresseeslisted.
B
ylohwavingacopydeli
veredpersonallytoMr.Holahan'sofficeattheaddresslisted
be
DennisJ.Holahan
2049CenturyParkEast
suite3180
LosAngeles,CA 90067

Fax:(707)586.
2983
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law.
om
AttonaeyforEdh
ra
D.
Blc
ix
seth
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

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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

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Exhibit 2

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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

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8

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SUPERIOR COURT OF CALIFORNIA FOR THE COUNTY OF RIVERSIDE


Case No. RIDIND91152
[Reassigned to Dept. 10 from Dept. F501]

In re the Marriage of:


Petitioner: Plaintiff

DEC LARA nON OF ROBERT WHITEFORD

and

12
Respondent: Timothy L. Blixseth
13
14

Judge: Sharon 1. Waters


Hearing: Jan. 14,2013
Time: 8:30 a.m.
Dept. 10

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DECLARATION OF ROBERT WHITEFORD

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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

With respect to my experience and knowledge, I hereby incorporate by reference

my sworn statements set forth in a prior declaration that I filed in the Montana bankruptcy court,

Paragraph 2, which is attached hereto as Exhibit 1.

9
10
11

3.

On September 25,2012, Dennis L. Montgomery had an Apple Power Mac G5

computer (serial number G853111 URUO) delivered to me by Brian Calhoun. This computer
contained one hard drive (Model WD3200AAKS, Serial Number WCA WFD924346).
4.

On September 25, 2012, Mr. Montgomery had a hard drive (Model

12

WD3200AAKS, Serial Number WCAWFD940504) delivered to me via UPS (Tracking Number

13

1Z7F4Y 152468329746). This drive is a SATA hard drive that was not installed in a computer or

14

external enclosure. This is commonly known as a "bare drive".

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16
17

5.

Mr. Montgomery informed me that these devices were Edra Blixseth's and that

Ms. Blixseth left these devices in his custody and control.


6.

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

from that "metadata" determine that date that the

21

modified.

22

7.

were created and the last that they were

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

09/20/200909:33:37 and last modified on 10/23/2009 15:31 :49.

25

8.

From the bare drive I retrieved the document known as "DHpoints.pdf'.

26

reviewed the metadata on this file and found that this document was created on 07117/2011

27

19:18:10 and last modified on 07117/2011 19:18:11.

28

9.

From the Power Mac hard drive I retrieved the file known as "My Dearest
I

DECLARATION OF ROBERT WHITEFORD

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Jack.doc". I reviewed the metadata on this file and found that this document was created on
2

10/25/2009 15:59:42 and last modified on 10/25/2009 16:34:20.

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

files thereon. I found no indication of any such tampering.

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.

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11

Dated:

January 3, 2013

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2

DECLARA nON OF ROBERT WHITEFORD

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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):

DECLARATION OF DENNIS L. MONTGOMERY IN SUPPORT OF


RESPONDENT'S MOTION TO LIFT STAY

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7

o
D

10

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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

I am readily familiar with the firm's practice of collection and processing


correspondence for mailing. Under that practice it would be deposited with UPS on that same
day with postage thereon fully prepaid in the ordinary course of business. I am aware that on
motion of the party served, service is presumed invalid if postal cancellation date or postage
meter date is more than one day after date of deposit for mailing in affidavit.[

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
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POS

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Exhibit 3

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(154 of 178)
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(155 of 178)
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(156 of 178)
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(157 of 178)
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(158 of 178)
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(159 of 178)
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(160 of 178)
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(161 of 178)
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(163 of 178)
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Exhibit 4

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Case 2:11-cv-00073-SEH Document 49-1 Filed 09/13/12 Page 1 of 8

Patrick T. Fox (#8071)


DOUBEK, PYFER & FOX LLP
PO Box 236
Helena MT 59624
406 442 7830 ph
406 442 7839 fax
patrickfox@doubekpyfer.com
Attorney for Appellant Timothy L. Blixseth

UNITED STATES DISTRICT COURT


FOR THE DISTRICT OF MONTANA - BUTTE DIVISION
In re:

Case Nos. 2:11-00073-BU-SEH

YELLOWSTONE MOUNTAIN CLUB,


LLC, et al.

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

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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.

I am submitting this Declaration in response to the allegations, the

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.

The Debtors latest filing involves an alleged 30-year-old $250

sanctions order for allegedly giving documents to my co-counsel in related


scientology cases. The Debtors allege that this constitutes evidence of perjury in
my 2012 pro hac vice application. Prior to Mr. Pattens notification to Mr. Fox on
Friday, August 24, 2012, I had no memory of this sanctions order. If I did have
any memory and it was still valid, I would have stated it in my application. My
lack of memory is likely related to a global settlement with scientology
organizations in December 1986 which likely vacated this order although it does
1

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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.

Without consulting me or seeking an explanation for this matter, the

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

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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.

The September 5, 2012 filing attached a purported Scientology press

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.

It has always been my understanding that all of the bar complaints,

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.

A little context may help this Court understand the situation. In my

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.

At one point, I represented L. Ron Hubbards estranged son, Ron

DeWolf and in that capacity caused the In re Estate of L. Ron Hubbard case to be
filed in Riverside County Superior Court.
11.

This litigation war spanned from approximately 1979 and continued

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

See, e.g., generally, http://en.wikipedia.org/wiki/Operation_Freakout.

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recollection of the 1983 contempt order at issue here involving documents in my


co-counsels possession. Had I recalled the matter, and had a duty to disclose it, I
most assuredly would have disclosed it to the Court.
13.

Because I deem these allegations against me to be part of a campaign

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.

Although I am herewith withdrawing my pending pro hac vice

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.

In my 40 years of trying cases in jurisdictions nationwide, I have

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
6

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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.

Executed on September 12, 2012.

/s/Michael J. Flynn
Michael J. Flynn

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Exhibit 5

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Exhibit 6

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