Court rejects bid to put Blixseth into bankruptcy
Bankruptcy Law
For the second time, a federal judge has turned back an attempt by Montana authorities to force former billionaire Tim Blixseth into bankruptcy to recover $57 million in alleged back taxes.
U.S. Bankruptcy Judge Bruce Markell in Las Vegas dismissed the state's lawsuit in a ruling Wednesday that said the case failed to meet the requirements for a forced bankruptcy under federal law.
At least three undisputed creditors must participate in such a case, but Markell noted Blixseth had challenged his Montana tax bill and others submitted by Idaho and California. The other states dropped out of the case after Blixseth settled their claims against him by agreeing to pay them less than $2 million.
But Montana had far more at stake, and Department of Revenue spokeswoman Mary Ann Dunwell said Wednesday the state was not giving up its efforts to force Blixseth to pay.
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Thai National Sentenced, Faces Deportation for Operating Immigration Fraud Scheme
Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps more than $518,000.
The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request, nor authorize, the applications.
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At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.