Last Sunday Toomre Capital Markets LLC ("TCM") wrote about the possible sale of Charles (or perhaps Richard) Murphy's Manhattan townhouse in the post Former Fairfield Greenwich Executive To Sell Manhattan Townhouse. On Wednesday January 28th 2009, the New York City community website Cityfile reports that another of the principals associated with The Fairfield Greenwich Group is considering selling his recently purchased Manhattan townhouse.
Matthew C. Brown is married to the youngest of the Walter Noel daughters, Marisa Noel Brown. It is not clear whether Matt Brown still remains employed by his father-in-law's firm. Fairfield Greenwich Group has a very unclear future as many of their investors demand to get any and all remaining funds back. Hence, future management and performance fees will be quite diminished, if not non-existent. Then, there are the "small" issues of the lawsuits filed against Fairfield Greenwich and a number of its present and former partners. Surely there also will be others, including no doubt one from the trustee of the Bernard Madoff Investment Securities estate, demanding a "claw-back" payment for non-existent profits that were distributed by Bernie Madoff. Mr. Brown is a individually named defendant in the lawsuit Pacific West Health Medical Center Inc. Employees Retirement Trust et al vs Greenwich Group et al.
The couple purchased the Manhattan townhouse at 12 East 78th Street on January 31st, 2008 for the price of $13.5 million according to real estate records. Apparently Marisa Noel Brown and her husband took out a $9 million mortgage to complete the purchase. Assuming that this couple took out a traditional 30-year mortgage with a six percent interest rate, they will be required to make mortgage payments of about $540,000 per year. With limited income from the family business coming in and the likely pay-back of at least some previously paid compensation, one does wonder how long the various principals associated with the Bernie Madoff scandal will be hanging on to their various "trophies" — especially since the money to purchase such possessions likely resulted from more than four decades of fraudulent activity. TCM suspects that a number of such Manhattan properties will be put up for sale in the weeks and months to come.