SECAUCUS, NJ-Sept. 29, 30 and Oct. 1 are the dates set for the auction of some 340 properties, mostly residential, owned by NJ Affordable Homes Corp. as part of a court-ordered Chapter 7 action against the company. Sheldon Good & Co. NorthEast and the Melville, NY-based DJM Realty have been retained to conduct the auction by Charles M. Forman of the law firm of Forman Holt & Eliades, the Chapter 7 trustee appointed by NJAH. The auction will be held at the Meadowlands Convention Center.
In September 2005, the US Securities and Exchange Commission obtained a temporary restraining order from the District Court freezing the assets of NJAH and its president, Wayne Puff. The SEC alleged that, "from at least 1999 to the present, the defendants sold, in unregistered offerings, at least $40 million in notes to more than 490 investors located throughout the US in connection with their participation in a Ponzi scheme."
The District Court subsequently appointed Nicholas H. Politan, a former federal judge, as the receiver for NJAH. And in November 2005, the court authorized the receiver to file a Chapter 7 petition under the Bankruptcy Code on behalf of NJAH.
"This will be the largest residential auction thus far to be conducted in New Jersey, and most likely in the US," says Jeffrey Hubbard, executive managing director for Sheldon Good & Co. Auctions NorthEast. According to Hubbard, the holdings consist of 195 multifamily properties, all of six units or fewer, 80 single-family homes, 57 parcels of land and eight commercial properties. All will be sold absolute regardless of price, according to Hubbard, free and clear of liens, subject to the approval of the US Bankruptcy Court, District of New Jersey.
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