"These improprieties, which left the Company with a shortage of reserves in the face of the current economic downturn, came to light following his death in January 2009," according to a company release. Good shot himself to death in a local wildlife preserve in January.

The company submitted its filing to the US Bankruptcy Court in Southern District of New York. While the court restructures it, the company will continue to operate as normal.

"While operating under Chapter 11 protection, Sheldon Good & Co. will maintain and honor all of its commitments to our customers without interruption," says Sheldon Good president Alan Kravets. "Our management team remains committed to offering quality service, which is what separates us from other auction companies. We believe this filing will allow us to make necessary changes to our capital structure in order to operate efficiently. We expect a quick proceeding through the court system."

Sheldon Good has sold more than 45,000 properties throughout the US, Canada and the Caribbean. Sales have totaled $10 billion, since its inception in 1965.