By Oshrat Carmiel
July 21 (Bloomberg) -- Marc Dreier’s Manhattan apartment is still home to a half-eaten raspberry peach pie, a collection of Christian Liaigre furnishings and seven pairs of black Ermenegildo Zegna shoes, mostly size eight.
Today the convicted lawyer’s Midtown condominium was sold at auction for $8.2 million in New York, along with almost everything in it. Dreier paid $10.4 million for the unit in 2007. The buyer wasn’t disclosed.
“They’re selling it with the contents, so it’s everything that you see here,” said Arthur Samos, coordinator for David R. Maltz & Co., the Plainview, New York-based auctioneer liquidating Dreier’s real estate and possessions as part of his Chapter 7 bankruptcy filing.
Dreier, founder of New York law firm Dreier LLP, was sentenced last week to 20 years in prison for defrauding hedge funds of more than $400 million and stealing money from clients. U.S. District Judge Jed Rakoff ordered Dreier to pay $387.7 million in restitution.
Before being jailed last week, Dreier, 59, was under house arrest in the 3,000-square-foot apartment at 151 East 58th St., watched 24-hours a day by armed guards. Wires from a monitoring device are still affixed to the ceilings.
The 34th-floor apartment is listed as a four-bedroom unit that was converted to three. One of the bedrooms was used as an entertainment area, Samos said. A closet in that room contains a subwoofer by Velodyne and a Crestron Electronics Inc. home automation panel that controls lights and audio as well as a screen display in the master bedroom that reads “Welcome to the Dreier Residence.” The unit includes four bathrooms and monthly common charges of $4,180. Annual real estate taxes are $16,469.
Champagne Included?
The condo has a 738 square-foot terrace with easterly views of the Queensboro Bridge and planters with a $150,000 irrigation system, said Richard Maltz, vice president of real estate auctions for Maltz & Co.
The successful bidder will get everything the judge ordered left behind -- including flat-panel televisions and a bottle of Laurent-Perrier Cuvee Rose Brut -- plus some things Dreier abandoned. Samos said those items include a photograph of Dreier with singer Diana Ross and a poster for the movie “After Innocence,” a documentary about convicted criminals exonerated by DNA evidence.
Samos said he might clear food from the refrigerator. Richard Maltz said that’s not guaranteed.
Tibetan Carpet
A hand-knotted Tibetan carpet tagged as 100 percent silk is in the living room beneath a red leather chair and gold leaf- print couches by Christian Liaigre at Holly Hunt. The patio includes two chaises, two couches and a wooden dining table.
The 55-story building, designed by architect Cesar Pelli, has a fitness center with swimming pool and sundeck, a business center, children’s playroom, concierge and valet parking. The tower is known as One Beacon Court and is also the headquarters of Bloomberg LP, parent of Bloomberg News.
There’s no minimum bid for the apartment and the sale is subject to approval of the bankruptcy court. Bidders must submit a $500,000 deposit by certified check. Those who did so were entitled to tour the property last night.
Proceeds from the condo sale will go to creditors with claims against Dreier and his former law practice. Details of the distribution have yet to be decided, said Gerald Lefcourt, a special counsel to Dreier’s unsecured creditors.
Competing Interests
“There’s a lot of competing interests here for a pie that is probably 20 percent of what really has been lost,” Lefcourt said.
Gerald Shargel, Dreier’s lawyer in the criminal case, said neither he nor his client has a role in deciding what debts are paid.
“This is not our fight,” Shargel said today in an interview.
Dreier paid $10.4 million in July 2007 for the unit using the corporate name MSD Beacon LLC, according to records on the New York City Department of Finance Web site. Residents of the building have included singer Beyoncé Knowles and rapper Jay-Z.
The last recorded sale at Beacon Court was a 3,058 square- foot unit on the 49th floor. It sold in May for $12 million, city records show.
Judge’s Order
Dreier sold more than 85 phony promissory notes to at least 13 hedge funds and three individuals from 2004 to 2008, prosecutors said. Investors who placed more than $740 million with the attorney lost at least $400 million, they said.
Two of Dreier’s homes in New York’s Hamptons were auctioned last month for $3.8 million and $6.6 million.
According to a schedule of assets filed in June, Dreier’s personal estate was estimated to have $22.3 million in assets and unknown debts. The estimate included $11.9 million in personal property, and $10.4 million in other assets.
Seven rainbow-hued glass light fixtures by glassmaker Dale Chihuly, for which Dreier paid $180,000, will be sold at a separate auction, Maltz said. The forthcoming auction will also liquidate $40,000 worth of Baccarat crystal, he said.
“It’s the Aston Martin of the pied-a-terre,” Giampiero Rispo, president of Domus Realty in New York, said of Beacon Court. The broker has three units for sale there, including a $25 million penthouse.
The building is the talk of his clients in Monte Carlo and Ibiza, Rispo said. One of them plans to bid on the Dreier apartment today, he said.
“Top names in international fashion, top of the list of Forbes, every list you can imagine from everywhere in the world, they want to come see this building,” Rispo said.
The bankruptcy case is In re Dreier LLP, 08-15051, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The personal bankruptcy case is 09-10371, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Oshrat Carmiel in New York at ocarmiel1@bloomberg.net.
Last Updated: July 21, 2009 13:42 EDT
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