Items that used to belong to disgraced financier Bernard Madoff and his wife, Ruth, fetched several times their estimated values at auction for a total of about $1 million, twice as much as the auctioneers had hoped for.
Madoff’s blue satin New York Mets baseball jacket with his surname stitched on the back, valued at up to $720, sold for $14,500 at Saturday’s auction. The jacket carries its own special meaning: Team owners Fred Wilpon and Saul Katz were among the victims of Madoff’s fraud.
Madoff’s Hofstra College ring, estimated at $360, went for $6,000.
Excitement filled a Manhattan hotel ballroom as people participating in the auction, run by Pflugerville, Texas-based Gaston & Sheehan, bid for items they could afford without being as rich as Madoff was.
Charlie Blumenkehl raised his hand for a set of Madoff’s golf irons, clinching them for $3,600, against a $350-to-$400 estimate.
“I just wanted Bernie’s name on the clubs,” the New Jersey fund manager said with a laugh, adding, “but I don’t want his vibes to be transmitted — my fund is doing better than his.”
Two pairs of Ruth Madoff’s diamond dangle earrings sold for $70,000 each, against a pre-sale estimate of no more than $9,800 and $21,400. But the most highly prized item in the sale, one of Bernard Madoff’s 17 Rolex watches, fetched only $65,000, paid by an unknown buyer. The watch was valued between $75,000 and $85,000.
The auction was organized by the U.S. Marshals Service, which seized the couple’s properties — a penthouse on Manhattan’s Upper East Side and houses in Montauk, New York, and Palm Beach, Florida.
Inside the homes were some of the items on the block on Saturday, ordered forfeited as part of Madoff’s sentencing after he pleaded guilty in a multibillion-dollar fraud that burned thousands of investors. Proceeds from the auction will be divided among his victims.
The lots ranged from dishes, pens and stationery to decoy ducks, furs and the Rolex, dubbed the Prisoner Watch.
The Swiss chronograph watch was modelled on those made for World War II Allied airmen imprisoned in Germany, who used them to time prison patrols and plan a possible escape. This one graced the wrist of Madoff, now a 71-year-old inmate in a North Carolina prison, serving a 150-year sentence for defrauding investors for decades.
The sale sums up the Madoffs in a nutshell, auction observer Lark Mason said.
“They wanted to show off their lifestyle with big houses, yachts, jewellery,” he said. “They didn’t buy things they were passionate about — they just wanted more and more.”
The nearly 200 lots were an assembly line of conspicuous consumption, fuelled by proceeds from the tens of billions of dollars that Madoff’s pyramid scheme cost investors. Some investors were wiped out financially while the Madoffs thrived.
Ruth Madoff has not been charged with any crime. But she agreed to give up her possessions in return for a promise that federal prosecutors wouldn’t pursue $2.5 million not tied to her husband’s fraud. The scandal forced her to move out of the $7 million penthouse where she and her husband lived.
On the Net:
Madoff auction catalog: http://www.txauction.com
Madoff auction online: http://www.proxibid.com