Laguna Niguel Mayor Buys DiFonzo Home

A federal bankruptcy judge Wednesday approved the sale of accused swindler Luigi DiFonzo’s mansion to Laguna Niguel Mayor Mimi Walters and her husband, David, for $4.95 million.

The couple currently live down the street from the 14,000-square-foot home in the Bear Brand Ranch development in Laguna Niguel.

DiFonzo died Aug. 14 as authorities were investigating whether the Irvine investment firm he founded, DFJ Italia Ltd., was a $44.5-million fraud.

DFJ Italia was forced into bankruptcy in March, leaving in the lurch more than 700 investors, including a handful of professional athletes and celebrities. Minus DiFonzo’s mortgage, the sale of the home will add about $1.5 million, before taxes, to the estate’s coffers for creditors.

The bankruptcy court also auctioned DiFonzo’s furniture and some of his personal possessions for $375,000. James Gladman bought the furnishings that his Costa Mesa store, Gladman’s Furniture, had sold to DiFonzo.