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Brokers Sought by Marshals for Madoff’s Properties (Update2)

By Oshrat Carmiel

Aug. 14 (Bloomberg) -- The U.S. Marshals Service is seeking proposals from qualified real estate brokers to sell Bernard and Ruth Madoff’s multimillion dollar properties in New York and Florida.

The service is asking brokers to apply by August 21 for one of five positions in charge of disposing the Madoff properties. They are in Palm Beach, Florida, the Upper East Side of Manhattan and Montauk, on the east end of New York’s Long Island, according to a statement today from the Marshals.

In June, Bernard Madoff was sentenced to 150 years in federal prison for masterminding the largest Ponzi scheme in history. Brokers will have to identify how many “high profile or “celebrity listings” they have worked on as well as what steps they took to ensure the privacy of their clients, according to the application published by the Marshals.

They are also being asked to identify how much experience they have in listing and selling co-operative apartments. Buyers of co-ops don’t own the property but instead have shares in a corporation that controls the building.

Brokers will have to prove their expertise in the market in which they are seeking to sell a Madoff home, and will be graded on their past performance selling real estate. Grades range from “outstanding” to “marginal” and “unsatisfactory,” according to the request for proposals.

The selected brokers will agree to forfeit part of their commission as a “referral fee” payable to LPS Asset Management Solutions Inc., the residential real estate contractor for the Marshals, according to the application.

The Marshals list the properties as 133 E. 64th St. in Manhattan, a two-floor penthouse in a co-operative where television newsman Matt Lauer also lives; 216 Old Montauk Highway in Montauk, New York, a beachfront property in the Hamptons, the summer retreat for celebrities and financiers; and 410 North Lake Way in Palm Beach, a winter retreat for wealthy Northeasterners.

To contact the reporter on this story: Oshrat Carmiel in New York at ocarmiel1@bloomberg.net.

Last Updated: August 14, 2009 18:00 EDT

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