Luxury homes on auction block to help pay FTC penalty
Courtesy
of Rich SmallThe master bedroom in David Keezer's home at 88 Ocean Ave.
in Monmouth Beach. The Federal Trade Commission will liquidate the
property as part of a record settlement charge Keezer must pay.
Matt
Rainey/The Star-LedgerThe house at 7 Kensington Court, Warren, that
Scott Pasch will have to turn over to authorities as a result of an FTC
settlement.
The opulent, well-appointed mansions of two telemarketing executives are on the auction block.
One is a 14-room Monmouth Beach property with panoramic views of the
Atlantic Ocean, while the other is a stately manor in Warren Township
situated atop three acres of lush, manicured greenery.
But these are not the fire sales that have become routine in a down
real estate market. The homes are being liquidated by the U.S. Federal
Trade Commission to help pay a record $18.8 million in fines leveled
against the two executives.
The settlement brought to an end a long-running scheme that duped
millions of consumers in telephone fundraising campaigns carried out on
behalf of nonprofit groups.
Both homes will be auctioned at 1 p.m. Sunday at the Sheraton Edison
Hotel at Raritan Center. There is no minimum bid for either property,
although the Monmouth Beach home was recently listed for $3.8 million.
Scott Pasch and David Keezer, partners in a firm called Civic
Development Group, agreed to the fine to settle charges that they misled
consumers into believing they were giving directly to charities serving
police, firefighters and veterans.
Pasch and Keezer then siphoned those donations from the groups that were counting on them, authorities said.
It is the largest payout ever in an FTC consumer protection case.
Both men were required to fund a portion of the fine by turning over
the two properties, bank accounts, luxury cars and boats, an art
collection that included a Picasso and Van Gogh and other pricey assets.
Court-appointed receiver Richard Trenk, a West Orange lawyer, has
collected about $10 million in liquidated assets so far.
"These homes are the cornerstone of this liquidation and we invite
anyone who has the resources to bid on these properties," he said.
The Monmouth Beach home — where Keezer lived with his wife and young
children — is a hedge-lined, 12,000-square-foot structure at 88 Ocean
Ave.
It is fully furnished and has five bedrooms, including a master suite
with a 1,500-square-foot closet that can house "a shoe collection to
rival Imelda Marcos," said Charles Blau, president of the real estate
auction firm Blau Appraisal. Other features include a private beach,
pool and poolside cabana.
Pasch’s 10,000-square-foot home is located at 7 Kensington Court in Warren.
The 16-room stone mansion was built on 2.8 acres of land with terraces overlooking an English garden and natural pond.
It has six bedrooms, a climate-controlled wine cellar and two gourmet kitchens.
"These homes are in pristine condition and we believe there will be
spirited bidding on the 27th," he said, adding he has fielded several
phone calls from interested bidders and at least 50 people have toured
the homes so far.
The highest bids on the homes are subject to Trenk’s approval.
Transactions will be made in cash, which means buyers must pay
without a mortgage and close on the homes by July 2. Visit
blaurealestateauctions.com for further auction information.
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