Action 9 investigates Bernie Madoff auctions

ORLANDO, Fla. — Action 9 exposed a traveling auction that came to central Florida, advertising Bernie Madoff assets. Todd Ulrich found the auctioneer is someone he's investigated before, who may have a new name, but his auctions are still controversial.

About 40 people showed up at a hotel in The Villages. It was advertised as a Bernie Madoff Auction where "seized assets" are sold regardless of price, to recover losses from Madoff's Ponzi scheme. But as an Action 9 producer watched inside, that didn't happen.

“He never said there were any belongings connected to Bernie Madoff,” told the producer.

“Never sold anything connected to Madoff?” asked Ulrich.

“Nope,” replied the Action 9 producer.

The auctioneer was Gavin Abadi, who Ulrich has investigated before.

Two years ago, Abadi’s company held a Windermere auction selling seized art. Out of several hundred items, only two had been confiscated by police.

Ulrich caught up with Abadi to ask him about the more recent Madoff auction in The Villages.

“Bernie Madoff assets, are they really here?” asked Ulrich.

Abadi replied, “Today we're doing seized assets as well as Bernie Madoff.”

“But that's not how this was advertised,” said Ulrich.

Ulrich asked to see the Madoff pieces for sale but that didn't happen.

Many past customers complained the seized art was the lure to sell highly inflated art and jewelry.

Action 9 helped a woman recover $42,000 and an area college student, David Toro, got a $14,000 refund.

“I mean that's a lot of money for me,” said Toro.

At the recent auction, Abadi used a new name. He told the audience his name was Gabriel Ashton.

Ulrich asked him about the name change. “So you're Gabriel Ashton now?”

“Yes,” he replied.

“That's not how you're licensed with the state,” said Ulrich.

“That's, that's not true,” he said.

Ulrich checked state records again. Gavin Abadi is the current auctioneer license used for this sale, not Gabriel Ashton.

He told Ulrich that Ashton was his new legal name. “I changed my name because you ruined my reputation,” he said.

“What hasn't changed is how you run these auctions,” replied Ulrich.

“You did so by lying about me,” said Abadi.

In 2009, Time magazine questioned Madoff auctions as fake, with the ads nearly identical. The auctioneers were Gavin Abadi and his brother.

Since 2007, Florida fined Abadi three times. There were two license suspensions, and he served probation for two years.

Abadi sent Ulrich a Georgia court document showing a name change to Gabriel Ashton in 2014. He denies doing anything wrong, and said the vast majority of customers are satisfied.

Cox Media Group