Nov. 10 (Bloomberg) -- A tea service, an Oyster chronograph watch and assorted ashtrays once used by Bernard and Ruth Madoff will be auctioned on Nov. 14 at the Sheraton New York Hotel & Towers to benefit victims of his $65 billion Ponzi scheme.

Bernard Madoff, 71, had 17 Rolexes, including the Oyster chronograph estimated to fetch as much as $63,500. He also dressed his wrist with seven Cartier watches, and tickers from Patek Philippe, Audemars Piguet and Franck Muller.

Almost all those watchmakers are in or near Geneva, a city where financial institutions -- including Union Bancaire Privee, Genevalor Benbassat & Cie. and Hyposwiss Private Bank Ltd. -- lost about $7 billion from investments with Madoff, undermining confidence in the fund-of-hedge-funds model that Geneva’s bankers helped pioneer in the 1960s.

The Nov. 14 auction offers 150 to 200 lots documenting the Madoffs’ obsessive acquisition of brand-name products. On the block are 11 leather Hermes handbags owned by Ruth Madoff, 68, as well as bags by Chanel, Prada, Jil Sander, Judith Leiber, Bottega Veneta and Louis Vuitton.

The Madoff material is part of a larger auction of jewelry and other items seized under the federal Asset Forfeiture Program in connection with “narcotics crimes, white-collar crimes, all federal crimes,” said U.S. Deputy Marshal Roland Ubaldo. The sale was organized by the U.S. Marshals Service, which provided the list of items for sale.

Tiffany Cufflinks

The goods come mostly from the Madoff’s penthouse apartment on Manhattan’s Upper East Side and a Montauk, New York, beach house that recently sold for $9.4 million. Large furniture, including Chippendale chairs, and high-end artworks will be sold in future sales, Ubaldo said, adding that Madoff property may wind up at Sotheby’s or Christie’s.

Saturday’s sale includes a pair of Bull and Bear-motif Tiffany & Co. cufflinks and a Tiffany silver key ring monogrammed “BLM” that are estimated to sell for as much as $440.

It’s unclear what sort of premium the Madoff name might bring.

“It has a provenance, albeit a negative provenance, but there are people interested in a famous name no matter how esteemed it may be,” said New York City watch dealer Jeff Morris of J & P Timepieces. “His name is so well-known it will bring curious attention. It means there will be more people competing.”

Besides bags, the sale includes Ruth Madoff’s designer size-28 belts, two pairs of designer leather boots, and five fur coats.

Odyssey, Ping

Golf gear comprises a Belding golf bag, Odyssey and Ping clubs (with the Madoff name on the shaft), towels and gloves. There’s fishing gear, including a pair of waders, three tackle boxes, and a G. Loomis deep-sea fishing rod. Three of Madoff’s boats will be sold next week at National Liquidators, in Fort Lauderdale, Florida, according to Ubaldo.

Other Montauk-related items include three boogie boards inscribed “Madoff’’ in black marker pen, estimated to sell for as much as $90. An 18-inch rescue ring buoy painted “Bullship NY’’ is expected to sell for as much as $160.

Bric a brac includes ash trays from fancy hotels: three from the Hotel Plaza Athenee in New York, two from the Eden Roc in the south of France and one from Hotel Cipriani in Venice. The Madoffs’ Christofle flatware, engraved “RMB” is up for grabs, as is stationery imprinted with “Bernard L. Madoff Securities.”

Rah, Rah, Hofstra

There’s a platinum Tiffany wedding band and a 1960 graduation ring from Bernard Madoff’s alma mater, Hofstra University, in Hempstead, New York. The latter is engraved with his initials and is estimated to go for as much as $360.

The sale is being conducted by Gaston & Sheehan Auctioneers, based in Pflugerville, Texas. On-line bidding is available. Bidders must preregister by Thursday. A preview runs on Friday.

Madoff is serving a 150-year sentence after pleading guilty to defrauding investors by using money from new clients to pay off old ones in the largest Ponzi scheme ever. Prosecutors said he told investors they had as much as $65 billion with New York- based Bernard L. Madoff Investment Securities LLC.

To contact the reporter on the story: Lindsay Pollock in New York at lindsaypollock@yahoo.com.

Last Updated: November 10, 2009 14:54 EST