Steal of a deal? Auctions feature criminals’ goods
If federal prosecutors have their way, Leonard Potillo’s fleet of luxury cars and homes around the world will hit the auction block.
Potillo, a Longwood debt collector, is accused of running a $76 million fraud-and-bribery scheme that authorities say funded his opulent lifestyle.
Prosecutors have already detailed Potillo’s assets they intend to seize if he’s convicted— those items they say were bought with “ill-gotten gains.”
Through the federal government’s asset-forfeiture program, the public can buy boats once owned by drug dealers, homes owned by spies and diamond rings bought by fraudsters.
Proceeds from the auctions
are used to compensate victims and supplement funds for police initiatives.
The U.S. Marshals Service, the main custodian of seized property, managed $2.4 billion in assets last year.
Vehicles and jewelry are the most common items sold through the forfeiture program, said U.S. Marshals spokeswoman Lynzey Donahue.
Other items auctioned include artwork; gold and silver bullion; coins; and designer clothes. Big-ticket items include airplanes and real estate. Sometimes the marshals reveal whom the items belonged to, but not always.
Seized assets are auctioned online through numerous websites, including Texas-based Gaston & Sheehan Auctioneers.
Hundreds of pieces of fine jewelry once belonging to a Washington couple are currently for sale on the auctioneer’s website, including a Rolex that has a current bid of $24,650. That auction ends July 17.
Auctions on Gaston & Sheehan’s website last generally two weeks, and items are appraised before they are listed. Prospective buyers create an account on the website and place their maximum bid. If someone makes a higher offer, bidders are notified.
If you’re the winning bidder, the company will alert you at the end of the sale and make shipping arrangements. Buyers have four days to pay for the item.
The company also holds on-site auctions, such as one July 31 at the Miami Beach Convention Center that will also simulcast online. Coins, bullions and diamonds will be auctioned in that sale.
Though there are opportunities for the public to buy luxury cars and $25,000 watches, much of what is auctioned is routine: a campground lot in Alabama, a mobile home in Marion County, camera lenses and costume jewelry.
Sometimes the auctions make headlines.
In April 2013, the Marshals Service announced it was selling a New Jersey home owned by two Russian spies. The spies, who went by the names Richard and Cynthia Murphy, appeared to be a typical American family and raised a family in the four-bedroom house.
Authorities later had to take the house off themarket because of a lien-holder issue.
Donahue said her agency has seen more interest and demand when it comes to high-profile cases, such as personal items with a “bull” theme in the Bernie Madoff auctions.
The marshals auctioned hundreds of items that belonged to Madoff and his wife to help compensate the victims of his multibilliondollar fraud, including antiques, a piano, wine and velvet monogrammed slippers.
In Orlando— where Potillo is facing seven counts of wire fraud, 10 counts of bribery of a bank official and 16 counts of money laundering — prosecutors have targeted homes for seizure in Heathrow, Pompano Beach, Canada and Scotland.
Prosecutors also want to seize a Maserati purchased for $78,386 in 2011; a Ferrari bought for$170,595 in2012; a Jaguar purchased for $92,901 in 2013; and a 2010 Aston Martin bought for $122,917 this year.
For now, Potillo doesn’t have access to his fleet or homes. A federal judge deemed him a flight risk during a hearing last month and ordered he remain jailed in Orange until his trial, which hasn’t been scheduled.
If Potillo is convicted, there’s no telling when his assets will be auctioned, as the process can take several months or several years.