scandals

The three boats that once belonged to Bernie Madoff generated more than a million dollars for victims of his $65 billion Ponzi scheme on Tuesday. Seventy bidders registered with National Liquidators to chase after the boats, along with a Mercedes and another yacht owned by Madoff's CFO, Frak DiPascali.

"Bull," which was Madoff's 55-foot yacht, sold for $700,000, with the 38-foot "Sitting Bull" following at $320,000 and the 24-foot "Little Bull" fetching a mere $21,000. His 1999 Mercedes Benz CLK 320 convertible was good for $30,000, despite the fact that it has only 12,827 miles on it. The top seller was DiPasclai's 61-foot 2003 Viking sport fishing yacht, which sold for $950,000 at the auction.

The sales were helped along by the fact that Madoff took excellent care of his yachts. Bob Toney, president of National Liquidators, told Bloomberg News, "Mr. Madoff has taken better care of his yachts than anyone else I know," continuing, "they were crew-maintained all the time."

Gallery: Bernie Madoff's Little Bull

Gallery: Bernie Madoff's Sitting Bull

Gallery: Bernie Madoff's The Bull

The latest "Bull" from Bernie Madoff is about to be unloaded. His yacht, which bears that name, will join two others under the gavel, and the action before the sale is already impressive. So far, 29 people have thrown down the $100,000 deposit needed to gain a ticket to the party, and the U.S. Marshals Service expects more registrations to come.

There's a theme in the both names. His largest yacht, a 55-foot 1969 Rybovitch sportfisher is called "Bull," and the other two, a 38-footer and a 24-footer, are named "Sitting Bull" and "Little Bull," respectively. Also, Frank DiPascali's 61-foot Viking fishing yacht will be auctioned off on Tuesday. DiPascali was Madoff's CFO.

Non-maritime lots to wind up on the block include a 1999 Mercedes-Benz CLK 320 convertible, with only 12,800 miles on it.

The auction has not been given a presale estimate, figuring that the Madoff name can push prices higher. This is exactly what happened over the weekend, when an auction of the felon's personal effects brought in north of $1 million.

Says Jennifer Crane of the asset forfeiture division of the U.S. Marshals Service, "You can't really put a price on this."

Gallery: Bernie Madoff's Little Bull

Gallery: Bernie Madoff's Sitting Bull

Gallery: Bernie Madoff's The Bull

With the close of September 8, 2009, Annie Leibovitz saw her deadline with Art Capital Group pass. The famous photographer could now lose her photo archive and New York real estate holdings. Yet, both sides are staying tight-lipped on what comes next.

Matthew Hiltzik, a spokesman for Leibovitz, says, "Annie is continuing to work to resolve this matter with Art Capital, according to a report by NPR. Montieth M. Illingworth, who is the spokesman for Art Capital Group, told me by e-mail today that there is "nothing to report right now."

What remains are choices ... all of them belonging to Art Capital Group. The art finance institution could allow Leibovitz to renegotiate, extend the loan's timeframe or take a portion or all of the collateral. The estimated value of all the collateral posted is between $80 million and $90 million, though the artistic and real estate assets may not sell as easily as some expect.

It seems as though Art Capital Group is approaching the situation delicately, as it wants to avoid the messiness of bankruptcy proceedings. The answers may come at the next court date, scheduled for October 2, 2009, unless the parties can come to an agreement before then.

Now that she's staring down a $24 million lawsuit, Annie Leibovitz is running out of choices. With Art Capital Group claiming the rights to her photo archive, real estate and other assets posted as collateral, some experts say bankruptcy would buy her some time to find a new plan. But, it would come at the cost of privacy, as the photographers finances would be thrust into the public eye.

Neither Leibovitz's attorneys nor financial advisers returned Bloomberg News' calls for comment, but experts suggest that desperate times call for desperate measures. Filing for protection would push litigation into the future and secure the artist a bit of leverage. Hell, maybe it would buy her some time to see if Miley Cyrus wants to get naked again. I don't know if that would be worth $24 million, but I'm sure it would help Leibovitz to chip away at the debt.

Industry insiders seem to call Art Capital Group a capital source of last resort, though that's probably a bit unfair. If you're pledging collateral or are otherwise transacting in an illiquid market, common sense is necessary. And, let's face it, if traditional banks played in this space, Leibovitz may not have been hit with such tough terms. But, it's hard to believe she didn't know the rules of the game.

Mum's the word for now on Leibovitz's future. One thing is certain, however: she didn't spend the money on makeup.

[Thanks, Jason, for the makeup crack]

Larry Salander's glory days may be behind him, but that doesn't mean he stopped being a target. The 60-year-old bankrupt former mover and shaker was arrested again this week on a fistful of felony charges. On the list are three counts of grand larceny in the first degree and a count of falsifying business records in the first degree. If the stars line up against Salander, he could face a total of 29 (25+4) years behind bars.

All of this comes on top of a 100-count indictment filed back in March, in which Salander was accused of stealing a whopping $88 million in art from 26 collectors around the world.

Salander's claim to fame was that he was the first half of New York's Salander-O'Reilly Galleries. Leigh Morse, who worked as the director, was also arrested, charged with grand larceny and scheming to defraud several high-profile art estates. She could do 11 years (7+4) if the worst arises.

Both have gone the "not guilty" route, with Salander out on bail and Morse out on bond. But, neither is likely to be selling art anytime soon (I guess they have bigger problems than the current slump).

Art collectors benefit in two ways. It looks like two (alleged) bad guys are being yanked from the art scene. And, Manhattan District Attorney Robert Morgenthau sweetened the pot by offering some advice: "be careful who you consign your art to."

Yeah, thanks.

Pierre Konowaloff believes that Van Gogh's painting, "The Night Café," was stolen from his great-grandfather during the Communist takeover of Russia. Now, it belongs to Yale University, and he wants it back.

According to this claim, Ivan Morozov acquired the painting in 1908 and owned it until the Russian government snatched it in the 1918 "change" to Communism. What was Morozov's, it seems, became Lenin's. Then, it passed through galleries in Europe and New York until it was eventually left to Yale by a collector in 1961.

The hook, for Konowaloff, is that Yale took the painting "with reason to know that it had been unlawfully confiscated or 'nationalized' without compensation," according to a report in Bloomberg.

This isn't the only claim that Yale is facing. The university also has to contend with a suit by the Republic of Peru, which wants to reclaim artifacts excavated from Machu Picchu.