Federal bankruptcy judge requiring Tim Eyman to sell his portion of house, pay down debts

Federal bankruptcy judge requiring Tim Eyman to sell his portion of house, pay down debts

OLYMPIA, Wash. — Tim Eyman, who was found liable for years of violations of Washington’s campaign finance laws and was fined millions in 2021, was required by a federal bankruptcy judge to sell his share of his house to pay down his debts.

Eyman, Karen Williams (formerly Karen Eyman), the trustee, Tim Eyman’s attorneys, and Washington state agreed to the resolution on Thursday, according to Attorney General Bob Ferguson’s office.

Eyman, who has paid a total of $538,840.98 toward his judgment and sanctions, currently owes $5,628,456.42, including accrued interest, Ferguson’s office said. Thursday’s resolution doesn’t absolve Eyman of the addition $5 million-plus he owes.

“I’ve said everything there is to say about Tim Eyman’s outrageous and illegal conduct,” Ferguson said in a press release. “That said, I always enjoy reading how he spins his latest setback to his supporters. Eyman will never take accountability for his actions, because any acknowledgment of wrongdoing would undermine his attempts to pry additional dollars out of his supporters. Consequently, he will continue to falsely portray himself as the victim while losing where it matters — in court.”

Eyman’s lawyer, Richard Sanders, released a statement following Ferguson’s announcement calling it “the latest chapter in Mr. Ferguson’s attempt to destroy his political enemy.”

FOR MORE INFORMATION | Read attorney general’s full press release

After Ferguson filed his lawsuit and prior to the beginning of the trial, Eyman filed for bankruptcy in November 2018 in what Ferguson dubbed “an attempt to avoid accountability for campaign finance violations stemming from an illegal kick-back scheme that the PDC called ‘one of the most egregious’ violations the PDC had ever seen in its nearly 50 years of existence.”

In April 2021, following the trial, a Thurston County Superior Court judge ruled Eyman “repeatedly and intentionally violated Washington campaign finance law,” and ordered Eyman to pay a civil penalty of $2.6 million, Ferguson’s release said. The court also ordered Eyman to pay $2.9 million to cover the state’s costs and fees associated with investigating and prosecuting the case.

“U.S. Bankruptcy Court for the Western District of Washington Judge Marc Barreca signed the order Thursday afternoon,” Ferguson’s release said. “With this court approval, Tim Eyman’s estate is required to sell his share of his Mukilteo house to Karen Williams. She will purchase the home for $906,484, and can continue to live in the house. The proceeds of the sale will pay Eyman’s creditors.

“The bankruptcy will determine at a later date the exact portion of the proceeds that will go to the state to pay down Tim Eyman’s judgment. Other creditors, including Eyman’s attorneys and the bankruptcy trustee, also have claims on the bankruptcy estate. The Attorney General’s Office anticipates that the state will receive hundreds of thousands of dollars as a result of this resolution.”