Houses seized in fraud conviction to be auctioned

Two East Quogue homes belonging to Marc S. Dreier, a prominent New York attorney convicted last month of fraud, will be auctioned this Wednesday, June 17.

The modern, oceanview homes are on adjacent properties on Dune Road. One home is a 3,000-square-foot house at 109 Dune Road, and the other, reported to be Mr. Dreier’s primary residence, is a massive, 7,000-square-foot mansion on 2.4 acres at 111 Dune Road.

The larger home includes eight bedrooms and eight baths, a tennis court and a long walkway descending to the beach below. The smaller house has four bedrooms and five baths, direct beach access and a pool.

Widespread reports have estimated the combined sale of the two homes could generate $12.5 million or more. However, Richard B. Maltz of David R. Maltz & Co. Inc., the broker for the auction, said last week that figure had been largely pulled out of the air.

“Nobody knows what they’re going to bring,” Mr. Maltz said. He did add, however, that “We expect active bidding.”

Southern District Bankruptcy Judge Stuart M. Bernstein last month ordered the homes auctioned after Mr. Dreier pleaded guilty to selling fraudulent promissory notes. He was arrested in December 2008 after his four-year scheme fell apart. Prosecutors are now seeking to recoup some $700 million in assets.

Mr. Dreier founded his Park Avenue law firm, Dreier LLP, in 1996 and built it up to 250 members with offices in five cities. He is currently out on bail and under house arrest in his midtown Manhattan penthouse on East 58th Street. A date has not yet been set for the sale of the penthouse, but his sentencing is scheduled for July 13 and another auction is expected to follow.

The East Quogue auction will be held at 1 p.m. this Wednesday, June 17, at the 111 Dune Road property. Prospective bidders must register to bid by presenting a certified check for $400,000 for the larger property and $100,000 for the smaller property, which will be returned after bidding closes.

Registration begins at noon. Conditions of the sale and further details of the homes are available at MaltzAuctions.com.