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.”

Paul Allen’s Yachts

The 414 ft $200 Million Octopus

octopus-eventective.com

The 302 ft $162 Million Tatoosh

tatoosh-panoramio.com

The 199 ft $80 Million Meduse

meduse-yacht1-boatinternational.com

Paul Allen is known for many things and one of them is his luxury yachts. His largest ones are pictured above. He is reported to own over fifteen 50 ft+ luxury yachts. Two of them are tenders on the Octopus. The Octopus was in the national news, including The Associated Press/Seattle Times 4/4/12 article, for the yacht’s use in a South Pacific search for a missing U. S. pilot. The pilot was involved in an official pursuit of illegal fishing operations.

The Octopus when it was launched in 2003 was listed as the largest and most expensive privately owned yacht. The mega-yacht has two helipads with enclosed hangers, seven boats used as tenders and runabouts, two submarines, several personal watercraft (PWC – sometimes improperly called jet-skis), a pool, a basketball court, 13 staterooms and 26 crew cabins on seven levels with more than 50,000 sq ft under roof. The Bornrich site now has it listed at number nine and his Tatoosh at number ten in its list of the 16 top privately owned super-yachts. The top ranked private yacht is the $485 million 558 foot long Eclipse owned by Russian multi-billionaire, Roman Abramovich.

The price of the Octopus and Tatoosh are each more than the estimated and appraised $150 million value of his 10 acre, 100,000+ sq ft under roof, campus/compound on Mercer Island. This compound with a viewing guide was featured in a 12/28/10 post. More information on Allen’s super-yachts can be found by clicking on the links for the Octopus, the Tatoosh and the Meduse.

Mastro Pieces and Michael’s Mansion

Mastro’s Former Medina Mansion

“Mastro Pieces” is the title of today’s Seattle Times article on the auction of Michael Mastro’s items that he left behind before he and his wife disappeared last summer. They remain at large following warrants for their arrest and court orders that they turn over jewelry valued at $1.4 million.The courts confiscated items left behind. These include the following items (and the auction net prices): 2007 Bentley ($95,500), Chihuly chandelier ($35,000), Steinway piano ($17,000) and four bottles of wine ($2,200). The auction netted a total $341,000.

The mansion was sold by the bankruptcy court in 2010 for $9.1 million. Unpaid debts are more than $270 million.

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 previous posts on 4/6/11, 11/10/10, 10/11/10 and 11/12/09 and Lake Washington 130 Homes on page 126.

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.

Obama Shirley Fundraiser

A major Seattle fund raising brunch for President Obama was held at the Medina mansion of former Microsoft President, Jon Shirley on September 25, 2011. More information is in a Seattle Times article that reported about 65 guests paid $35,800 per couple and listened to Obama blast the GOP.

Jon was President and COO of Microsoft from 1983 to 1990 when he retired.  He remains as a director of the company and is also a director of Seattle-based Manzanita Capital, a financial services company. Jon and his wife, Mary, are major donors to and supporters of local charities and the arts. Jon is Chairman of the Board of Trustees of the Seattle Art Museum and on the Chairman’s Council of New York City’s Museum of Modern Art. The couple collects art and vintage racing Ferraris.

The home is two houses north of Bill Gates’ property which has multiple buildings with more than 60,000 sq ft. The Shirley’s mansion has 27,255 sq ft with only two bedrooms. Much of the mansion’s space is for the art and automobile collections. The value of these collections is estimated to be worth more than the $40 million estimated value of the property. The property is on 4.35 acres with 244 feet of waterfront. It is on page 120 of Lake Washington 130 Homes.

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)

Paul Allen – Idea Man

Paul Allen’s Campus on Mercer Island

Please see the 12/28/10 post for the guide for viewing the $150 million, 9.6 acre campus.

Paul Allen’s new book, Idea Man, has created a lot of controversy.  Some of the local headlines are:  Paul Allen goes public with hard feelings toward Gates, Paul Allen's attempt to shape his legacy may backfire, Paul Allen says book not revenge against Gates, and Paul Allen's book: Shaping legacy with a chainsaw?

An interesting article (Seattle Times by Kristi Helm) discusses a lengthy interview with Paul at his MI campus and discusses Paul’s relationship with Bill while also describing the author’s tour of Paul’s campus.  Helm’s description of the main controversy in the book is:  “Allen accuses Gates, along with Chief Executive Steve Ballmer, of trying to cheat him out of Microsoft shares while Allen was being treated for cancer in 1982. Allen said he overheard the two conspiring to dilute his shares by issuing options to themselves and others. (Ballmer went to Allen's house later to apologize.)  ‘My partner was out to grab as much of the pie as possible and hold onto it,’ Allen writes."

Most of the book is about the creation of Microsoft and the eight years Paul was with Microsoft.  The headlines are grabbing the obvious rift between Allen and the team of Gates (house guide) and Ballmer (house guide).

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.

Jeffrey Greenstein Sentenced to Prison

Pictures of Greenstein’s mansion on Mercer Island

Site of lavish fund raisers

The Seattle Times published an extensive article Friday 1/28/11 by Mike Carter about Jeffrey Greenstein. Greenstein and his partner, Charles Wilk, were each sentenced to four years and two months of prison. They were found guilty of recruiting wealthy clients to execute one the largest tax-evasion scams in U.S. history involving $240 million of evaded taxes in one year.

Prior to being indicted in 2009 for this crime, Greenstein was a highly regarded and well respected businessman and philanthropist in the Seattle area. He founded and ran Seattle based Quellos Group, a hedge fund, which he sold in 2007 to a New York firm for $900 million. He contributed generously to numerous charities and Democratic candidates. He was on the board of trustees of the Seattle Art Museum.

The photograph above, along with information about the mansion, is from page 76 in my book, Lake Washington 130 Homes.

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)