Two properties owned or controlled by convicted fraudster Michael Swann were passed in at auction yesterday.
The renovated waterfront cottage at Careys Bay and three-bedroom house in Ferntree Dr, Wakari, are among 37 assets seized by the the Crown under the Proceeds of Crimes Act after Swann was convicted of defrauding the Otago District Health Board of $15.1 million between 2000 and 2006.
About 20 people attended the auction, about half of them real estate agents. Some agents had clients on the telephone.
Bayleys auctioneer Robin Hyndman found it difficult to entice bids on either property and passed them in when they failed to reach their reserves.
The Careys Bay property has a capital value of $195,000 and the Ferntree Dr house a capital value of $365,000.
The sole bid on the Careys Bay cottage was $130,000 from a phone bidder, while two people in the room bid on the Ferntree Dr house. The highest bid was $170,000.
The Crown also seized 22 vehicles belonging to Swann, including four Rolls-Royces, two Jaguars, a Porsche and a Cadillac.
Mr Hyndman drew laughs when he mentioned the large basement garage at the Ferntree Dr property, saying "if one had lots of cars this would be a perfect garage for them".
Negotiations were continuing with the top bidders, Bayleys real estate agent Bev Walker said last night. She said she expected to know within 24 to 48 hours whether the properties had been sold or would be placed back on the market.
The official vendor of each property was "Her Majesty the Queen".
Asked after the auction if Crown ownership might have have put off potential buyers, Bayleys Dunedin owner Peter Booth said he did not think so.
Rather, it was an indication of the present housing market, he said.
At Swann's trial, the court heard he bought almost $8 million worth of cars and boats and $3.6 million worth of property. He has been ordered to repay the Government $9.5 million. So far, $1.2 million has been raised from asset sales.
Swann is serving a nine-and-a-half-year prison term.
Next week, Swann's Dunedin mansion, Ferntree Lodge, and an adjoining piece of land will be auctioned. They have a combined capital value of $907,000.
