Connecticut Attorney General's Office
Press Release
Attorney General Says So-Called Madoff Auctions Are Off After Threat Of Legal Action For Unlicensed Auctions
December 10, 2009
Blumenthal's office is awaiting written confirmation, but his office is prepared to take prompt legal action if the auctions go forward.
"These so-called Madoff auctions are going, going -- gone," Blumenthal said. "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.
An auction company must apply for a state and local itinerant vendor license at least three days before conducting an auction. Failure to do so may result in fines of up to $50 and imprisonment of up to 60 days.
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.
Buyers were apparently informed that they could only find out by calling Northeast Galleries after purchasing the item, Blumenthal said.
Northeast Galleries has still not provided proof to Blumenthal's office that the items were previously owned by -- or otherwise connected to -- Madoff, his family or victims of Madoff's scam.