Doug Vaughan revealed thousands of dollars worth of cars and jewelry that were previously unknown Thursday at his personal bankruptcy hearing.
The disgraced realtor who investigators said is the mastermind of a massive “Ponzi scheme”, had to take tough questions from the people he’s accused of ripping off, but his answers were almost always the same.
Most of the investors coming out of the federal courthouse in downtown Albuquerque, Thursday afternoon, were not happy.
“He’s answering one or two insignificant questions but basically he’s invoking the fifth”, Investor Phil Dougan said.
Vaughan did that on the advice of his lawyers, whom he turned to repeatedly as some of his 600 investors and their lawyers grilled him.
“It doesn’t make it any better when you come in with your own attitude, but I think he is getting bad advice now, I don’t think he would do this if he was on his own I think he would answer it,” Dougan said.
Attorney for several investors, William Davis, said the investors felt betrayed.
“You trusted him and made investments with him and now it turns out that the friend has been misusing your money, at least that’s the allegation,” Davis said.
When the real estate mogul did answer questions, he had some surprises for the court.
“He identified a number of assets today. $100,000 worth of jewelry, a corvette, and there are other assets that we are going to try and recover for the creditors.” Davis said.
Vaughan said he also has a Harley and a Ferrari, which he’s looking to sell. He said he will keep his Jaguar, since it’s his only transportation.
He told the crowd that he hasn’t made payments on his massive, multimillion dollar home in the heights since filing for bankruptcy in February.
Vaughan says he has only taken in $3,000 as income since the filing, but did reveal that he has spent some time recently traveling to Las Vegas.
“He said the tickets were a gift from a friend he had conveyed some assets to he had said,” Davis said.
That friend that Vaughan says gave him the $1,500 trip as a Christmas gift, is the same friend Vaughan gave a car and home to.
It was also reveled in court Thursday that Vaughan lost $31,000 gambling in Vegas last year.
Vaughan’s real estate company also filed for Chapter 11 bankruptcy protection and had a separate bankruptcy hearing Thursday morning. Vaughan did not show up for that. An executive from the company did and he answered questions.