Judge OKs sale of Petters' beachside home in Florida

By ALEX EBERT, Star Tribune

Last update: July 9, 2009 - 11:39 PM

U.S. attorneys got the go-ahead Wednesday to sell Tom Petters' 11,200-square-foot beachside Florida house.

U.S. District Judge Ann Montgomery authorized the $9.48 million sale to Suzanne Steinberg and her husband, Robert, a former executive for Bear Stearns & Co. The only other written offer was for $6 million, and the property has an outstanding $8.4 million mortgage.

Petters purchased the three-level, six-bedroom residence and adjacent beach house in 2004 for $8.75 million, but a March appraisal valued the Manalapan, Fla., property at $9.75 million.

Petters is under indictment, accused of orchestrating a $3.5 billion Ponzi scheme.

According to court documents, Florida's "high end" real estate market took a hit after the collapse of the Bernie Madoff Ponzi scheme, and brokers estimated it would take several months to sell the Atlantic Ocean shoreline property.

In addition to the main home, the property includes a swimming pool and 500-square-foot beach house.

Montgomery also authorized the sale of Petters' 162-bottle wine collection and the home's electronic devices -- cameras, TVs, digital picture frames -- for $2,500 and $4,000 respectively.

Alex Ebert • 612-673-4264

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