Multi-Million $ Mercer Island Homes Discounted

$4.2M Mansion Sold On Right
Darren Berg’s Former $5.9M Mansion On Left 

A property listed for $6.5 million was sold at a 35% discount. A north end Mercer Island home was sold in October 2011 for $4.21 million. This is not as large as the 72% discount ($12 million versus the original listing of $43 million) for the nearby sale of the former Lytle mansion to Peter Edwards of Video Only (see 9/27/10 post). The $4.2M home was featured in a 5/21/11 post when it was listed for $6.45 million. The purchasers are Timothy and Sherie Bernardez. Timothy is the Co-founder and Managing Partner of Evergreen Pacific Partners, a prominent Seattle based private investment firm with $700 million under management.

From the MLS listing (Betty DeLaurenti and Julia Nordby, John L. Scott): (includes numerous interior photos): “European style home, 6 BR,7BA w/a large bonus rm, exercise rm and a home office w/a separate entrance. Extensive use of marble, granite, tile and hardwood throughout. Grand formal spaces and a gourmet kitchen you may never want to leave. All is complemented by graceful manicured gardens, multiple decks, covered outdoor patio and a firepit at waters edge. Approx 104+/- feet of prime North End Lake Washington waterfront is ready for use with a L shaped dock, covered boat lift and a sandy beach.”

The home is 6,071 sq ft on 0.4 acres with 104 feet of waterfront. This home is six houses west of page 43 in LW 130 Homes and one house northwest of Darren Berg’s (Ponzi scheme fame) former house (12/30/10 , 1/17/11, 5/22/11 and 12/30/11 posts). Berg’s house was sold through the bankruptcy court for $5.9 million in January 2011.

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)

Mercer Island North End Home For Sale - $6.45 Million

Home For Sale

Home For Sale On Right

Darren Berg’s Former Home On Left

From MLS listing (Betty DeLaurenti and Julia Nordby, John L. Scott): (includes numerous interior photos):  “European style home, 6 BR,7BA w/a large bonus rm, exercise rm and a home office w/a separate entrance. Extensive use of marble, granite, tile and hardwood throughout. Grand formal spaces and a gourmet kitchen you may never want to leave. All is complemented by graceful manicured gardens, multiple decks, covered outdoor patio and a firepit at waters edge. Approx 104+/- feet of prime North End Lake Washington waterfront is ready for use with a L shaped dock, covered boat lift and a sandy beach.”

The home is  6,071 sq ft on 0.4 acres with 104 feet of waterfront.  This home is six houses west of page 43 in LW 130 Homes and one house northwest of Darren Berg’s (Ponzi scheme fame) former house (12/30/10, 1/17/11 and 5/22/11 posts).

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)