Skip to Main Navigation

The Buffalo News

Web Search
by YAHOO! SEARCH

Seized property turned over to feds

Hedge fund manager forfeits vehicles, artwork

NEWS STAFF REPORTER

Published:August 21, 2010, 12:00 AM

Font Size:
  • E-mail
  • Share
  • Print

Updated: August 21, 2010, 10:57 PM

A Hummer, a Corvette, a Mercedes Benz and a $100,000 Land Rover are among the vehicles turned over to the federal government this week as part of an investigation into a 23- year-old hedge fund manager.

U. S. District Judge Richard J. Arcara also ordered the forfeiture of seven flat screen televisions and 15 paintings and sculptures, including two works by renowned artists Frank DiVita and Michael Flohr valued at a combined $23,000.

The property was seized last year as part of an FBI investigation into Michael Wilson, the former Cleveland businessman who stunned the local real estate community when he paid $6.3 million for two Hamburg mansions.

U. S Attorney William J. Hochul Jr. said the seized property was purchased with investor funds that were supposed to be invested in high-yield financial products.

Hochul said the forfeiture means Wilson’s assets can now be sold with the intention of returning the proceeds to his victims.

“There can be no better use of federal forfeiture laws than to strip wrongdoers of their illegal proceeds and return them to innocent victims who were defrauded,” he said.

The cars and artwork were taken from Wilson’s mother, Rosemary, and from David Smith, who served as chief operating officer of New Frontier Holdings, one of Wilson’s companies.

The government claims the Corvette, valued at $41,000, was a birthday gift from Wilson to Smith.

Wilson first gained attention in 2008 when he paid the highest prices ever for homes in Western New York.

He made the purchases — 6523 Boston State Road and 6553 Boston State Road in Hamburg—anonymously, through a company called Phantom One Holdings.

Shortly after the company bought the homes, federal agents raided them, seizing documents and computer equipment.

To buy the homes, Wilson obtained two mortgages from the previous owner but later defaulted on them.

 

Comments

There are no comments on this story.

The Feed / What’s Happening Now

Latest Updates
Most Commented
Most Viewed
East Side

Police raids target massive drug ring

City & Region

Catholic institutions here cover birth control

Sabres & NHL

Sabres show some gumption in beating Bruins

Batavia/Genesee County

Woman, 24, found dead in car

Jerry Sullivan

Hall vote deepest cut for Reed

City & Region

What to do with an empty hospital?

Student illnesses in Le Roy

Answers to the many questions in Le Roy

Courts

White firefighters are awarded $2.7 million in bias case

Eastern Erie County

Driver killed as collision closes Thruway lanes

Bills & NFL

Bills hire a quarterback mechanic in Lee

Newsroom Tips

Have a news tip you think The Buffalo News should investigate?

Call The News tip line at 849-4475 or email us at investigations@buffnews.com.

All calls and emails will be kept confidential.

Buffalo Marketplace

Marketplace videos

Watch the latest offers, products and services from our advertisers.

Browse our print ads

It's the ultimate advantage for Buffalo consumers. Never miss another ad again!

Buffalo Savers: coupons

Buffalo coupons at your fingertips.
Just click and print. It's Easy!

close

Browse our print adsclose

Special Sections

Buffalo Saversclose

Local coupons

Featured coupon

Latest Blogs

Gusto

Miers on Music live chat at noon

Sabres Edge

Vanek back for game vs. Stars but won't rejoin Pominville

Campus Watch

UB's Jones leaving for Notre Dame

Strictly Business

"The Biggest Loser" could be a local winner.

Buffalo News Live

Breaking down the USDA plant hardiness zone map