NEWPORT BEACH : Ill-Gotten Gains Going, Going, Gone
Bargain hunters came in droves Wednesday at the dismantling of the fortune of Stephen A. Wagner, paving the normally peaceful streets of his neighborhood with Mercedes-Benzes, Jaguars and Lexuses.
About 500 came to the Galaxy Drive house of the former Newport-Mesa school district finance director, who pleaded guilty in December to embezzling at least $3.5 million over five years.
While Wagner sat in jail awaiting his June 11 sentencing, his possessions --crystal, china, paintings and furs--were put up for auction. Some proceeds will go to the school district.
Wagner’s four-bedroom, three-car garage, two-fireplace, California-style home also was for sale.
Before the 1 p.m. auction started, the house looked like it was hosting a cocktail party. The guests strolled from room to room, examining the gold-plated grand piano here, scrutinizing the Baccarat crystal there. They looked at the etchings and serigraphs signed by Salvador Dali and the lithographs signed by Marc Chagall.
Some basked in the sunshine by the pool; one even dabbed on suntan lotion. Outside the house, a vendor sold hot dogs and sodas near two of the star attractions: Wagner’s 1964 burgundy Rolls Royce Silver Cloud III and his wife’s 1990 Mercedes 3000TE.
“There’s kind of a circus environment here,” said Gary Sinkus, a contractor from Whittier, who put up a $1,000 deposit to attend the auction.
The large turnout was helped by the widespread publicity surrounding Wagner’s case, said Theodor C. Albert, the court-appointed trustee for Wagner’s estate.
Iris Richardson, a homemaker from Anaheim, had her eyes on a couple of rings.
“It’s the only way to buy jewelry--at auctions,” she said. “No one should buy retail, especially in Newport Beach.”
Patti Hillier, a community volunteer from San Juan Capistrano, has been to a few auctions.
“I was disappointed that I missed the Charles Keating auction,” Hillier said. “I was out of town.”
Perhaps the most talked-about items were the fur coats, eight for women and seven for men.
“I don’t feel sorry for anybody who spent that kind of money on furs,” Richardson said.
Added Chas Radovich from San Clemente: “I think it’s pretty gaudy and ostentatious. But having one (fur) wouldn’t be that bad of a deal.”
The auction opened with the bids on the cars. The champagne-colored Mercedes went for $33,000.
The Rolls Royce went to Dale Cheema, a realtor from Irvine, for $15,900. The car, with 99,000 miles, is worth $20,000, he said.
“I was ecstatic,” said Cheema, who plans to use it for Sunday drives. “I was surprised. I thought the bidding would be better.”
The biggest item, the 5,000-square-foot house, went unsold. The final bid of $590,000 was too far under the $740,000 list price for Albert to accept.
Albert was he was reasonably happy with the sales, but a few items didn’t fetch much.
“We took a beating on the paintings,” he said.
Auction Highlights
Selected items sold at the public auction for Stephen A. and Linda S. Wagner included:
Item Amount 1990 Mercedes 300TE $33,000 1964 Rolls Royce Silver Cloud III 15,900 Gold-plated Steggar grand piano 6,875 Baccarat dining service, 61 pieces 4,400 Royal Doulton china, 57 pieces 2,750 Mink coat 2,200 “Raising of Lazarus” 2,090 etching/engraving Sheared beaver coat, fox trim 1,870 Dyed spotted fox jacket 1,265 “Cosmic Madonna” color serigraph 550 Red fur-lined bathrobe 440 Oval loose diamond 440 Men’s Carson High School ring 77
Source: Coulter & Associates Auctioneers and Appraisers
