Luxury homes on auction block to help pay FTC penalty
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Luxury homes on auction block to help pay FTC penalty
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Venuri Siriwardane/The Star-Ledger
The Star-Ledger
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on June 21, 2010 at 7:00 AM, updated June 21, 2010 at 12:24 PM
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on June 21, 2010 at 7:00 AM, updated June 21, 2010 at 12:24 PM
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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