He’s a former master of the universe whose high-flying clients included former Sotheby’s chairman A. Alfred Taubman, Britney Spears and the heirs of Dayton’s Department Stores.
But the fortunes of Michael Lauer, the flamboyant founder of a once-ballyhooed hedge fund, have crashed to earth in spectacular fashion. The latest sign was the open house last Friday of his five-acre Greenwich, Conn. estate, complete with outdoor pool and tennis court, in anticipation of a Sept. 26 auction by the Internal Revenue Service. Lauer’s Cessna plane and Mercedes race car have already been sold to the highest bidder.
Lauer, the founder of Lancer Management Group LLC, was charged earlier this year with conspiracy and wire fraud for allegedly using shell companies to inflate the value of his funds, once estimated at $1.2 billion. Four colleagues were also indicted.
The alleged scheme cost investors, including a Connecticut state pension fund and a University of Montreal pension fund, more than $200 million from 1999 through 2003. Dozens of former clients have filed lawsuits to recoup their losses.
Former Lauer estate
If convicted, Lauer faces as much as 25 years in prison.
A native of the Ukraine who came to this country nearly penniless, Lauer put himself through Columbia University driving a cab at night, and worked for several investment houses before striking out on his own, according to a Forbes profile.
He told Forbes he expects to be vindicated.
In the meantime, he may have to find someplace else to sleep. (The pictures released by the I.R.S. show a very lived-in-looking space with bathroom counters and tables piled high with sundries.)
The I.R.S. set the minimum bid on his estate at $2.5 million – $200,000 more than Lauer paid nine years ago, according to the Hartford Courant.
The announcement lists the property as having three fireplaces, vaulted ceilings, two whirlpool tubs, a wine cellar, four-car attached garage, heated inground outside pool with stone terrace, spa and waterfall, and a tennis court.
But be prepared: the Courant warns that “the property might need some work: At the least, the lawn needs a good trimming.”
A second open house will be held Sept. 25.
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