Sea Eagle, the megayacht owned by R. Allen Stanford, the financier indicted for defrauding investors of more than $7 billion, sold at auction this week for what his lawyers term a “fire sale” price: $3.25 million.
The 112-foot Hakvoort, built in 1998, was seized, along with other assets, in February 2009, after the Securities and Exchange Commission (SEC) filed suit against Stanford. A federally appointed receiver for the SEC has been selling Stanford’s assets and investments, with the raised funds helping repay his creditors and investors. Specific to Sea Eagle, Ardell Yacht & Ship was appointed the central agent for the federal receivership.
Sea Eagle went up for auction on March 11, with an opening bid of $2.5 million and a preset 60-day bidding period. Prior to the auction, Stanford’s lawyers argued that the opening bid was too low. “Mr. Stanford invested over $16 million in renovating the Sea Eagle, stripping the vessel to its hull and rebuilding it into one of the finest sport fishing boats in the world,” Ruth Brewer Schuster, one of his lawyers, objected, according to a report by Bloomberg News. “Any failure to sell the Sea Eagle for an amount far and above Ardell’s asking price of $6.5 million will be a complete waste of estate assets.” The MTU engines only had 471 hours on them, and the yacht had been refitted by Hakvoort from 2005 to 2006.
Despite Stanford’s protest, Sea Eagle was ordered to be sold at that opening bid, “as is, where is.” This included all personal belongings left onboard: china, silver, crystal, linens, sculptures, rods and reels, and more. There’s also a mirror etched with the eagle shield logo of Stanford Financial Group, Stanford’s company.
According to Bloomberg News, just two bidders emerged, with one returning two hours before the auction’s end on May 10 to place the final bid.
Meanwhile, Stanford awaits trial on 21 criminal charges, related to reportedly phony certificates of deposit issued by Stanford International Bank. Parallel civil claims from the SEC are pending as well.
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