Business

Phil Falcone mansions head to foreclosure auction amid money woes

Former high-flying billionaire hedge-fund manager Phil Falcone seems to be shut to dropping his townhouse on East 67th Street in addition to his Hamptons property.

Newmark’s Dustin Stolly and Jordan Roeschlaub of Newmark have posted an commercial for an upcoming sale of two entities that personal the properties on behalf of the lender, Melody Business Finance, itemizing an impressive mortgage steadiness of $74.2 million.



While the advert doesn’t listing Falcone because the proprietor of the troubled entities — Croxton 2 LLC and Three-Hundreth Street LLC — he and his spouse, Lisa Marie Falcone, purchased the East 67th Street home of their names prior to transferring it to the LLC. They are additionally each listed on the Melody mortgage paperwork as guarantors.

Interested bidders may try to gather the remaining $74,251,646 on the mortgage or just foreclose on the 2 properties. The sale will happen on April 13 the advertising and marketing materials states.

The brokers declined touch upon the foreclosure sale.

Falcone rose to prominence in the course of the 2007-2008 monetary crash when he helped his hedge fund Harbinger amass billions betting in opposition to housing — pocketing a $1.7 billion payday for himself within the course of.

By 2012, nevertheless, he obtained into bother with the Securities and Exchange Commission, leading to an $18 million high-quality, and a multiyear ban regardless of no admission of no wrongdoing.

Now he owes $1.8 million in again taxes to New York City, in accordance to public data. And final September he whined that he was too cash-poor to pay a virtually $14 million authorized tab, in accordance to a lawsuit filed in opposition to him in Manhattan Supreme Court that’s nonetheless winding its approach by means of the courtroom.

Lender Melody has additionally sued Falcone and his spouse, Lisa Marie Falcone, in the identical Manhattan state courtroom over hundreds of thousands it claims it’s owed, saying the couple has pledged high-quality artwork and jewellery as collateral, courtroom paperwork present.

In an e mail, Falcone mentioned the foreclosure sale was in response to his authorized battle with Melody, “which could eliminate” their mortgage to him.

The two properties on the heart of the foreclosure auction embody a seven-bedroom townhouse at 22 E. 67 Street and a Sagaponack property at 142 Crestview Drive.

The Manhattan property is listed on the market for $27.5 million by means of The Modlin Group. It boasts 13,300 sq. toes throughout six tales, plus a decrease stage with wine cellar and roof deck. The couple bought the house in 2004 for $10.375 million.

The 67th Street property is completely different, nevertheless, from the house Falcone and his spouse purchased close by in 2008 from Penthouse journal writer Bob Guccione for $49 million — spending hundreds of thousands on renovations and an enlargement. The couple bought that house in 2019 for a then-record $77.1 million.

They purchased the Sagaponack property for $5.5 million in 2006 and created a shocking 14,000 sq. toes with eight bedrooms. There’s a marble waterfall wall on the entry plus a 4,600 square-foot roof deck bar together with an elevator to the decrease stage that options screening and billiards rooms, a wine cellar, gymnasium and outside pool.



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