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Allegations of fraud against Attorney General Eric Holder, other top Justice officials, several prominent Democratic operatives – including a major contributor to Hillary Clinton – and Credit Suisse Bank has been re-ignited by a federal bankruptcy judge’s decision that also apparently has derailed the U.S. Senate bid of a former Democrat governor.

The decision July 10 by Judge Bruce A. Markell dismissed a bankruptcy judgment against real estate developer Tim Blixseth.

Blixseth, the founder of the Yellowstone Club, a luxury ski and golf resort in Montana, has alleged that Credit Suisse made a criminally fraudulent loan to Yellowstone Club that led to the bankruptcy judgment, which stripped Blixseth of ownership of the resort. Blixseth alleges he was defrauded by an elaborate scheme engineered by his ex-wife and Ron Burkle, the supermarket king who raised more than $1 million for Hillary Clinton’s 2008 presidential campaign.

Though seemingly unrelated, the bankruptcy decision appears to have prompted former Montana governor Brian Schweitzer to announce Saturday that he does not intend to pursue a bid to run in 2014 for the U.S. Senate. The seat has been held by retiring Democratic Sen. Max Baucus, a prominent proponent of Obamacare who in recent months has described the health care law as “a train wreck.”

WND reported in June 2012 that several hundred pages of documents allege Holder and Lanny Breuer, the assistant attorney general for the DOJ’s criminal division, have intervened to block recommended federal prosecutions in an ongoing dispute involving the Yellowstone Club, a private golf and ski resort now owned by Burkle and international bank Credit Suisse.

WND also reported allegations by Blixseth attorney Mike Flynn that Holder and Breuer sought shield from federal criminal prosecution of Credit Suisse Group AG a client of the Washington-based law firm Covington & Burling, as well as key Democratic Party operatives suspected of playing a role in allegedly fraudulent mortgage financing and bank lending practices.

Before joining the Department of Justice in the Obama administration, Holder and Breuer were partners at the international law firm Covington & Burling.

Judge Markell’s decision last week dismissed a $40 million fraud judgment against Blixseth that had been enforced by U.S. bankruptcy judge Ralph Kirscher, a Democrat appointed to the bankruptcy court by the U.S. Court of Appeals for the Ninth Circuit in 1999 during President Clinton’s second term of office.

Blixseth and Flynn have repeatedly charged that Kirscher’s bankruptcy decision was fraudulently influenced in a 2009 meeting with Montana’s governor at the time, Schweitzer. The meeting resulted in a decision to allow Blixseth’s ex-wife and Sam Byrne, a Boston real estate investor with ties to the Democratic Party, to buy the Yellowstone Club at a price substantially below market value after the bankruptcy had been declared.

Flynn further alleged in a letter shared with WND, addressed to the Public Integrity Section of the U.S. Department of Justice, that Burkle, Byrne and Schweitzer funneled more than $1.2 million through the Democratic Governor’s Association in 2008 to the Montana Democratic Party for the benefit of Schwitzer’s re-election campaign.

Flynn asserts in the letter to the DOJ that the “money laundering scheme – having Burkle and Byrne with their friends donate to the Democratic Governor’s Association and then to the Montana Democratic Party, for the benefit of Schweitzer – appears designed to conceal Burkle and Byrne’s financial relationship with Schweitzer while at the same time Burkle and Byrne were taking over the Yellowstone Club and using their relationship and ‘political capital’ and ‘political favors’ with Schweitzer to do it.”

After his re-election in 2009, Schweitzer created two highly controversial funds, The Council for a Sustainable America and The American Sustainability Project, into which Burkle and Byrne funneled $335,000, Flynn said.

Flynn further charged that in early 2010, the Montana Democratic Party political machine with the backing of Holder and Breuer “targeted” Blixseth with a baseless criminal investigation.

Among recent developments is the entry into the Yellowstone case of a whistleblower who claims to have been paid $6 million by Blixseth’s former wife to hack into Blixseth’s computers to obtain highly confidential information that she shared with Burkle and Department of Justice criminal investigators.

Flynn explained to WND his current concern that Holder may have ordered the Justice Department’s Public Integrity Section to block the whistleblower’s application for immunity to prevent disclosure of corruption by the various Democratic Party political operatives involved in the Yellowstone case, including Holder and Breuer.

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