Former financial backer Phillip Falcone auctions off property in fire sale


This once mighty money man hits skids hard.

Debt-ridden ex-billionaire Philip Falcone has taken to selling his home furnishings for change, just three years after cashing in on the record $77million sale of his huge, ultra-chic Manhattan townhouse in 14-16 East 67th St.

The cash-strapped former hedge fund honcho — worth $2 billion before his financial factory — owes around $100 million, and he turned to an auction house on last month for a fire sale of items from his luxury living space at 22 East 67th Street.

That property, a second home he owns just three doors down from the long-gone townhouse, has itself just been put up for sale for $27 million, down $13 million from previously.

Debt-ridden ex-billionaire Philip Falcone, along with actress and film producer wife Lisa Maria, has taken to peddling his household furniture amid a massive debt crisis.
Billy Farrell/BFA.com

And now everything inside has to go.

But not as much as Falcone originally paid or hoped to get when he first offered his stuff for sale.

The biggest ticket on the block was a custom-built white lacquer Steinway grand piano with a sterling silver frame that Falcone bought for $180,000 in 2006 but hardly ever played, according to its new owner, Ronen Segev. , who bought the instrument for $50,000. auction at Showplace in Manhattan on February 20.

“I played the piano myself and it sounded very full and dynamic,” said Segev, who buys and sells Steinways through his company, Park Avenue Pianos.

Piano Steinway
A custom-built white lacquer Steinway grand piano with a sterling silver frame that Falcone bought for $180,000 sold for just $50,000.
Ronen Segev

“It’s the kind of piano you can see in a concert hall. But I felt like it had barely been played. It looked like it was straight out of the showroom brand new. I feel like it was more of a centerpiece than an instrument used.

It now offers the Steinway for $118,000.

Segev also salvaged a huge work of art, a neoclassical French creation by painter Merry-Joseph Blondel and his partner Joseph Dufour, who produced a series of wallpapers in the early 1800s depicting the Greek mythological figures Psyche and Venus.

A neoclassical French creation by painter Merry-Joseph Blondel and his partner Joseph Dufour sold for $7,500, when it was listed for $23,500.
A neoclassical French creation by painter Merry-Joseph Blondel and his partner Joseph Dufour sold for $7,500, when it was listed for $23,500.
nyshowplace.com

The 7ft by 6ft artwork – which Falcone and his wife, Lisa Maria, billed as the centerpiece of their lavish living room, directly across from where the piano sat – fetched $7,500, a flight considering its list price was $23,500, Segev said.

“I’m keeping this one,” he said.

“It’s a special artifact. There was a team in France that created these pieces for royalty. I have seen overseas that other pieces from the original series sell for between 50,000 and 60,000 pounds ($67,000 to $80,000). The frame itself is worth more than what I paid for.

A pair of Italian baroque floor lamps from the Falcone salon that went on sale for $7,300 only fetched $1,500 at auction.
A pair of Italian baroque floor lamps from the Falcone salon that went on sale for $7,300 only fetched $1,500 at auction.
nyshowplace.com

On February 20, a pair of Italian baroque floor lamps from the Falcone salon were also sold to an anonymous buyer. It was listed for $7,300 but only fetched $1,500 at auction, and a contemporary red leather sofa from the couple’s study was offered for $6,400. and walked away for $3,750.

Despite the proceeds, Falcone’s efforts to satisfy his creditors failed to impress a judge overseeing his cases.

“Mr. Falcone has made it his mission not to pay that money,” Arthur Engoron, the New York State Supreme Court judge charged with his financial mess, said during a hearing last March.

A contemporary red leather sofa from the couple's study that was offered for $6,400 went for $3,750.
A contemporary red leather sofa from the couple’s study that was offered for $6,400 went for $3,750.
nyshowplace.com

The judge noted that Falcone faces a $74 million claim from Melody Business Finance, which loaned him millions to buy his homes, a lien from the IRS and a lawsuit from New York State, which claims he owes $12 million in back taxes.

Falcone told the judge he skipped mortgage payments and failed to pay private school tuition for his 16-year-old twin daughters.

Engoron froze its assets because Falcone – a big short winner who snagged $1.7 billion betting against mortgage-backed securities before the financial crash of 2008 – also allegedly made his lawyers pay $13.7 million after the helped fight the SEC over allegations of fraud.

The auction items come from Falcone's home at 22 East 67th Street (above), which itself just closed a deal to sell for $27 million, down $13 million from previously.
The auction items come from Falcone’s home at 22 East 67th Street (above), which itself just closed a deal to sell for $27 million, down $13 million from previously.
Stefano Giovannini
Falcone House
The Falcones’ Sagaponack home sold last year for $5.5 million.
Google Maps

He eventually settled with the financial watchdog, who accused him of borrowing $100 million from his hedge fund, the defunct Harbinger Capital, to pay personal taxes. Falcone admitted no wrongdoing, but fined $18 million and accepted a five-year securities trading ban.

Meanwhile, he and his wife have been making headlines for all the wrong reasons.

Lisa Maria, a Puerto Rican-born actress and film producer who grew up in Spanish Harlem, has been accused of using the n-word and calling her boss Brian Villanueva’s black girlfriend a “chocolate-covered marshmallow.” “.

A gay house manager claimed the couple sexually harassed him and made him work in a room where they kept their pet pig, Wilbur.

In 2012, Lisa Maria was charged with impaired driving after she allegedly ran over another vehicle in the Hamptons.
In 2012, Lisa Maria was charged with impaired driving after she allegedly ran over another vehicle in the Hamptons.
Courtesy of Southampton Police

A manager who kept house for three years at the couple’s 14-16 East 67th home alleged the woman was a demanding taskmaster and told the Post, “Her judgment day is coming.

In 2012, Lisa Maria was charged with impaired driving after she allegedly ran over another vehicle in the Hamptons. (The Falcones sold their sprawling estate in Sagaponack for $5.5 million in 2021.)

Two years after Lisa Maria’s arrest, she and Philip outraged their neighbors on Halloween with a gory display outside their Manhattan home at 14-16 East 67th Street that featured a decapitated corpse and a gnome-like creature holding a baby dead.

In 2014, Lisa and Philip outraged their neighbors on Halloween with a bloody display outside their home at 14-16 East 67th Street.
In 2014, Lisa and Philip outraged their neighbors on Halloween with a bloody display outside their home at 14-16 East 67th Street.

When contacted by The Post, Falcone said unloading his stuff had nothing to do with raising money to pay his debts.

“That’s crazy,” he said. “I didn’t know that the sale of my sofa would make the news. It’s so retarded. I mean Jesus Christ. I sold it because I moved. It didn’t match what we have now.

He added: “I am fine. I have a public company, Madison Technologies. It has a market cap of $150 million.

Worth $2 billion before his financial setup, Falcone now owes around $100 million.
Worth $2 billion before his financial setup, Falcone now owes around $100 million.
Brendan McDermid

Falcone expressed optimism about a 2017 civil lawsuit he filed in Manhattan Supreme Court that alleges Apollo Global Management LLC defrauded Harbinger Capital Partners, his former hedge fund. He is asking for $2 billion, plus damages.

“It’s a $5 billion lawsuit,” he said. “Do you think it’s worth nothing?

New York Post

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