Stakes in Falcone’s Hamptons, New York Homes Head to Auction
Falcone Stakes in Manhattan, Hamptons Homes Heading to Auction
(Bloomberg) -- Melody Business Finance LLC is auctioning interests in Philip Falcone’s Hamptons estate and Manhattan townhouse, according to a marketing document reviewed by Bloomberg News, a year after suing the former billionaire for defaulting on loans and violating lending agreements.
The Melody entity, an affiliate of Melody Capital, is undertaking a so-called uniform commercial code foreclosure and on April 13 will publicly auction interests in Falcone’s properties at 142 Crestview Drive, Sagaponack, and 22 East 67th St. in New York. Melody is working with a Newmark team that includes Dustin Stolly, Jordan Roeschlaub, Daniel Fromm and Brock Cannon on the collateral auction.
“It’s an ongoing dispute that I believe will get settled,” Falcone said. Melody’s general counsel and a representative for Newmark declined to comment.
Melody last February sued Falcone, accusing him of defaulting on $65.8 million in loans and violating the terms of lending agreements by selling two paintings used as collateral, including one by Andy Warhol.
Falcone, founder of Harbinger Capital Partners LLC, is a former billionaire who amassed his wealth by betting against the U.S. housing market. Harbinger Capital was once one of the biggest hedge funds, managing $26 billion at its peak in 2008.
He was barred from the securities industry for at least five years as part of a 2013 settlement. U.S. regulators had accused him of improperly borrowing money from the fund to pay personal taxes and giving preferential treatment to some investors. Under the deal, he admitted no wrongdoing.
©2021 Bloomberg L.P.