Refco isn’t the only one trying recoup lost investor money by auctioning off things of value – in the collapsed broker’s case, works of art. The relatively new kid on the auction block is KL Financial, the failed Florida hedge fund that allegedly owes its investors around $200 million. Now, the Refco auction did brisk business, but earned only a relative drop in the bucket with photographs. The folks watching over KL hope to bring in the bucks by selling the firm’s furniture, which some may consider art as well. The sale held Saturday offered some 100 items, including desk and credenza sets by haute designer Dakota Jackson, which retail between $30,000 and $60,000. Also auctioned off were some pieces from KL Principal Won Lee’s condo. Once before, court-appointed receiver Guy Lewis tried the auction route but ended up canceling some deals after he felt the bids undervalued the items. This time, he intends to do better, and to help the cause, has had a restorer spruce up some of the scratched furniture. “We made it clear that it wasn’t a fire sale,” says attorney David Rosenberg, an associate of Lewis.
