ARTICLE TOOLS

E-mail story

Comments

Printer friendly version

iPod friendly version

Share This

Text Size: A A A A

Chattanooga: Rivas auction draws curious, bargain hunters

By: Perla Trevizo
(Contact)

Included in this article

More than 1,000 people crowded into Camp Jordan Arena in East Ridge on Saturday to get a look at and possibly get their hands on some of the luxury goods bought by a former Chattanooga man facing federal charges of wire, mail and securities fraud.

“I came mainly to look at the cars,” said Ron Satterfield, a local car dealer. “But with so many people here, it’s hard to get things.”

More than 500 items ranging from glittering diamond rings to artwork and expensive foreign cars, estimated to be worth about $2 million, went on the auction block. There was no minimum price for any of the items auctioned. All money raised at the auction was to go to Luis Rivas’ bankruptcy asset fund.

The former security trader, charged with 19 counts of wire fraud, money laundering, criminal monetary transactions and bankruptcy fraud, is accused of taking millions of dollars from almost 500 investors across the country, records show. Mr. Rivas, in jail in Anderson, S.C., is expected to be in Chattanooga this week and plead not guilty to the charges. He has been unable to make his $250,000 bail.

As crowds milled around shiny cars and eyed furniture and furs, Bankruptcy Trustee Grey Steed said most people don’t want to give up their possessions voluntarily.

“Almost everything here is gifts given to his employees,” he said. “We’ve taken the position these are assets of the state because they were bought with the investors’ money largely, which is essentially fraud.”

By late morning, a Gucci black purse fetched $575 and a butterfly broach sold for $225. Mr. Steed said the 15 vehicles in auction sold for about $350,000 total, and he estimated all items in the auction will bring in about $450,000.

Ken Gravitt, a broker and auctioneer, said in his company’s 37 years, only a few auctions have involved someone facing criminal charges.

“The norm is to have people who get into difficulty and file for bankruptcy,” he said.

Hixson resident Richard Prichard said he doesn’t go to auctions often. The cars for sale at this auction, however, drew him out.

“I’m mainly looking at the BMWs, maybe the Jaguar,” he said, adding he would probably pay up to $45,000 for one of them.

At a table lined with diamond and gemstone rings and pearl necklaces, potential bidders and the curious wondered if the jewelry had belonged to Mr. Rivas’ wife or a girlfriend.

Mr. Rivas bought and gave lavish gifts to employees, his wife and two girlfriends.

Della Gravitt, who fielded questions at the jewelry table, said people were primarily interested in the jewelry and cars.

“They want to know if it’s authentic, where did it came from and how much I think they cost,” she said.

Cara Alday, a local attorney assisting Mr. Steed in his financial investigation, said most of Mr. Rivas’ assets are in Chattanooga.

“We do have some assets in South Carolina, in Tulsa, Okla., and Panama City, Fla., that we are aware of and have not recovered, but we are pursuing them,” she said.

Mr. Gravitt said there will be another auction but couldn’t give details.

Bankruptcy trustee Grey Steed so far has been able to recover only about $2.3 million in cash and about $2 million in assets ranging from real estate and cars to jewelry and furs. Those assets were on the auction block Saturday.

Reporters Monica Mercer and Jacqueline Koch contributed to this article.

Comments