Mastro In and Out of French Jail

The Seattle Times and Puget Sound Business Journal had numerous 2012 articles about Michael and Linda Mastro’s flee from justice and their capture in October. The saga was one of the top stories of 2012. The Mastro’s were captured in France after 16 months on the lam. At the end of the year they were still reported to be in France but out of jail under house arrest. They were released from jail in early December. Michael is 87 and Linda is 63. They are wearing electronic monitoring devices and their movement outside of their apartment in Annecy is very restricted. In the US they face 43 counts of money laundering and bankruptcy fraud.

Michael Mastro and his wife disappeared in the summer of 2011. The US issued warrants for their arrest and court orders that they turn over jewelry valued at $1.4 million. The courts confiscated items left behind and sold them at an auction. Unpaid debts are listed at more than $270 million.

Their former mansion sold 12/6/10 for $9.1 million by the bankruptcy court. There are a series of attorneys listed as the buyers: Robert Bruce Johnston, LCY LLC Series Homes, and James F. Rigby Jr. that were used to sign the documents to keep the real buyers’ identity off the official records. Mastro paid $15 million for the mansion in 2006. The Mastro bankruptcy, with original debts of $570 million, is the largest in Washington state’s history. Many “family and friends” lost their fortunes when his commercial real estate investment funds failed. More information about Mastro and his former Medina Mansion is in Seattle Mansions posts on 2/26/11, 4/6/11, 11/10/10, 10/11/10 and 11/12/09.

The listing was by Lisa Whittaker, Coldwell Banker Bain: “A property of significance and glamour. A brilliant pedigree; combining contemporary architecture with classic proportion. Over an acre of manicured, ultra-private grounds; 176' of west-facing waterfront with substantial moorage, boatlift & sandy beach. Magnificent Great Room with soaring 18’ ceilings, luminous wall of windows, soft graphite Venetian plaster. Caterer’s kitchen; wood-paneled library, separate MIL/Staff quarters. A rare offering designed for entertaining, art and the art of living.”

Berg Writing Book

Yacht in front of Berg’s former mansion

Berg’s former Mercer Island mansion

The Seattle Times published an extensive article Friday 12/30/11 by Rami Grunbaum about Darren Berg being in the process of writing a book. “ . . . he's written more than 350 pages of a planned e-book ‘to make some sense of the financial carnage I caused.’ ” Grunbaum quotes portions of the book where Berg makes unsupported claims in gibberish that others were to blame: “ ‘. . . dysfunctional bankruptcy process . . . perversely incented . . . system . . . a daft and disgruntled former employee . . ., etc.’ ”

Berg is charged in the biggest Ponzi scheme ever prosecuted in Washington state. Through his company, Meridian Group, he is accused of defrauding hundreds, some of whom their life savings, of more than $280 million. Berg was indicted and filed for bankruptcy in 2010. The sentencing hearing is scheduled for 1/20/12 and the 49 year-old faces a recommended sentence of 18 years in jail.

The article details other portions of the book and others’ reactions to the book and Berg’s history and personality.

My prior posts on 5/22/11, 1/17/11 and 12/30/10 included information regarding his Ponzi, scheme, the court process and the $5.9 million sale of his Mercer Island north-end waterfront home.

Darren Berg Update 2

Berg’s Former Home and Yacht

The Seattle Times reported 3/25/11 Darren Berg’s (12/30/10 and 1/17/11 posts) creditors will probably recoup only 15 to 25 percent of their investments.  The article further reported the bankruptcy plan report stated Berg’s misappropriations started as early as 2001 but “the magnitude increased each year.”

Berg is charged in the biggest Ponzi scheme ever prosecuted in Washington state.  Through his company, Meridian Group, he is accused of defrauding hundreds, some of whom their life savings, of more than $280 million.

Berg’s Mercer Island north end waterfront mansion was sold for $5.9 million in January 2011 by a U.S bankruptcy court.  The house is not included in Lake Washington 130 Homes. It is located between the homes on pages 42 and 43 and near the Roanoke Inn.  It is one house southeast of a mansion that is listed for sale for $6.45 million.

The weather finally got nice enough to go out on the water and take pictures.  The two previous posts have been updated with pictures. (Updated 12/30/11)

Michael Mastro in the News

Mastro’s Former Medina Mansion Sold for $9.1 Million

Michael Mastro is back in the news. The Seattle Times 4/6/11 article stated, “Judge Marc Barreca turned down a bid by the guardian for the now-incapacitated Mastro to pay her, and her lawyer, from funds administered by Mastro's chief adversary, court-appointed trustee James Rigby.” Further details are in the article. The Mastro bankruptcy, with debts of $570 million, is the largest in Washington state’s history. Many “family and friends” lost their fortunes when his commercial real estate investment funds failed. Mastro was incapacitated following a head injury from a fall in his Palm Springs home two months ago. More information about Mastro and his former Medina Mansion is in previous posts on 11/10/11, 10/11/10 and 11/12/09 and Lake Washington 130 Homes on page 126.

Darren Berg Update

Berg’s Former Home and Yacht

The Seattle Times published an extensive article Sunday 1/16/11 by Rami Grunbaum about Darren Berg (prior post). The article starts: “Financial scandals have trailed Frederick Darren Berg across the Northwest for more than 25 years – each linked to his unusual lifelong fixation on tour buses.”

Berg is charged in the biggest Ponzi scheme ever prosecuted in Washington state. Through his company, Meridian Group, he is accused of defrauding hundreds, some of whom their life savings, of more than $280 million.

The article details Berg’s history of fraud going back to his 1980s fraternity days at the University of Oregon.

My prior post on 12/30/10 included information on $5.9 million sale of his Mercer Island north-end waterfront home. I will post a picture of the mansion taken from the water when the weather gets better. (Updated 12/30/11, 5/22/11)

Darren Berg Home Sale - $5.9 Million

View of Mercer Island North End

Berg’s Former Home

The Seattle Times and Puget Sound Business Journal reported Darren Berg’s Mercer Island north end waterfront mansion is being sold for $5.9 million by a U.S bankruptcy court. The house is not included in Lake Washington 130 Homes. It is located between the homes on pages 42 and 43 and near the Roanoke Inn.

The purchaser is Robert M. Harris Jr., the founder and CEO of Seattle based Pacific Market International. The company manufactures and sells food and beverage containers.

Berg is accused of running a massive Ponzi scheme. His company, Seattle based Meridian Group, raised over $280 million from investors over the last ten years. The money was reported as being invested in real estate investment funds. Berg is charged with wire fraud, money laundering, and bankruptcy fraud. Meridian filed for bankruptcy and Berg filed for personal bankruptcy in July 2010.

The home has 5,400 sq ft with 112 feet of waterfront. Berg paid $5.5 million in 2007 for the property and spent over $3 million in a two year make-over. The property was listed for $8.2 million in September 2010.

(picture posted 5/20/11)
(Updated 12/30/11, 5/22/11, 1/17/11)

Mastro Mansion Sells for $9.1 Million

The Seattle Times reported Michael Mastro’s Mansion sold for $9.1 million by the bankruptcy court. The buyers used an attorney to sign the documents to keep their identity off the official records.

My previous blogs below, dated 10/11/10 and 11/12/09, provide additional information on the Mastro bankruptcy and “family and friends” investors. The photograph above is from page 126 in my book, Lake Washington 130 Homes.

Seattle Times article:  Click here

More in formation is in previous posts on 10/11/10 and 11/12/09.

Mastro Mansion $9.9 Million Selling Price

The Seattle Times and Puget Sound Business Journal have reported Michael Mastro’s Mansion will soon be listed for sale by the bankruptcy court for $9.9 million. The Business Journal article includes numerous pictures of the interior. It has taken over a year for the bankruptcy court to take over the house and offer it for sale to provide some of the partial payment to creditors. The Mastros tried to set up and claim it as property not subject to the bankruptcy.

My previous blog below, dated 11/12/09, provides additional information on his bankruptcy and “family and friends” investors. The photograph above is from page 126 in my book, Lake Washington 130 Homes, http://www.hundredhomes.net/. I remember many times going by the Mastros’ mansion by boat and seeing a large parties (for family & friends?) with a band and waiters and waitresses in formal attire. The Evergreen-Point mansion is 7,050 square feet with 176 feet of waterfront. The Mastros paid $15 million for the mansion in July 2006.

Seattle Times article

Puget Sound Business Journal article with 16 pictures

(More in formation is in a previous post on 11/12/09 and an update is in an 11/10/10 post.)

Machael Mastro's Mansion

These are photographs of Michael R. Mastro’s Medina/Evergreen-Point mansion. It is 7,050 square feet with 176 feet of waterfront. The Mastro’s paid $15 million for the mansion in July 2006. I took these photographs and they are from my book, Lake Washington 130 Homes, http://www.hundredhomes.net/.

The Seattle Times and Puget Sound Business Journal have reported Michael Mastro, age 84, declared bankruptcy this summer. His investors included many “family and friends” who begged to let them invest in his commercial real estate projects. His projects, up until 2008, had substantially higher than average returns for more than 20 years. The publications also reported Mastro, regarding allegations that he tried to put this mansion, Rolls-Royce and jewelry out of reach of creditors, stated, “These allegations are misleading, incomplete and inflammatory.”