“Madoff Auctions” Canceled After Pressure

Connecticut Attorney General Richard Blumenthal said tonight that the auction company advertising Madoff goods has orally agreed to cancel two auctions this weekend after his office threatened legal action for conducting unlicensed auctions.

“These so-called Madoff auctions are going, going — gone,” Blumenthal said in press release. “Faced with legal action by my office, Northeast Galleries has abandoned plans to hold unlicensed auctions featuring unverified items supposedly related to Bernard Madoff and his Ponzi scam.

“These auctions may be off, but my investigation continues on to determine whether items already sold as Madoff-related goods last weekend are legitimate. In a possible scam inspired by scam, Northeast Galleries has so far failed to provide my office with acceptable proof that any items auctioned in Madoff’s name were legitimate.”

Northeast Galleries of New Jersey has advertised auctions for this weekend in Fairfield and Westbrook claiming to feature items connected to Bernard Madoff, his wife and victims of Madoff’s Ponzi scam. These auctions would follow another held last weekend in Avon, which also advertised Madoff goods.

Northeast Galleries has so far failed to provide valid proof that any of the auction items are connected to Madoff, and also failed to apply for or obtain licenses from Fairfield, Westbrook or the Department of Consumer Protection for its auctions, as required by state law, Blumenthal said.

The auction advertisements have emphasized “Personal items belonging to Ruth & Bernie Madoff acquired from the U.S. Marshal Service…[are] to be sold to the highest bidder for immediate cash realization” and “This auction will include select jewelry that belonged to Ruth and Bernie Madoff acquired from the U.S. Marshal Service…”

Blumenthal said the advertisements were designed to entice buyers seeking goods related to the Madoff scandal, but the company has acknowledged that the auctioneer had no information on hand in Avon last Saturday as to which items were previously owned by the Madoffs and which were not.

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