Court Gives Receiver Go-Ahead To Start Selling Property Tied To Alleged Trevor Cook/Pat Kiley Ponzi; Large-Screen TVs, Slot Machines To Be Auctioned

UPDATED 4:06 P.M. ET (U.S.A.) A federal judge in the SEC and CFTC Ponzi scheme cases against Trevor Cook and Pat Kiley has paved the way for the receiver to begin selling property linked to the alleged $190 million scheme.

Among the first items up for bid will be 12 large-screen televisions, two slot machines and a Craps table, according to court filings. The items were discovered at the Van Dusen mansion in Minneapolis and at a property in Burnsville, Minn.

Receiver R.J. Zayed also wants to sell the mansion and the Burnsville property, and has begun the process of finding qualified professionals to assist. If court approval is gained for the sale of the real estate, it, too, will be auctioned, according to Zayed’s proposed plan.

Cook, who had previous run-ins with CFTC over his business practices, is not cooperating with Zayed, according to court filings. Kiley is a former host on Christian radio. He is accused of pitching the scheme, which collapsed last year. The scheme’s alleged tentacles extended from the United States to Europe, and also to Panama.

Zayed sought court approval earlier this week to sell the TVs and other items found at the Van Dusen mansion and the Burnsville property. Chief U.S. Chief District Judge Michael Davis now has issued an order, approving the sale.

In addition to the large-screen TVs and gambling equipment, Zayed found 39 computer monitors with 22-inch screens; 19 monitors with smaller screens; 23 computers; a “keg cooler/tap”; a “Beertender dispenser”; a Karaoke machine; three shredders; and miscellaneous other equipment.

Screen shot: Slice from receiver's filing on Cook/Kiley items up for sale.

The alleged Cook/Kiley scheme has featured an assertion that Cook also bought a private island in Canada with proceeds from the scheme, and a submarine to access the island.

One investor told the SEC that he’d heard Cook had purchased the two-person submarine on eBay for $40,000, but discovered the waters in Canada were too dark for the craft. Allegedly undeterred, Cook said he simply would move the sub to Panama on the belief its waters were clearer than Canada’s.

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