KPLU Local News
(2009-09-14)
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84-year-old Michael R. Mastro racked up more than half a billion (B) dollars in debts - financing construction of apartment complexes and office parks in the region. But Mastro now claims his holdings are worth less than half of what he owes. It's not uncommon these days. The real estate crash has left people everywhere owing more than the equity left in their properties. But the scale is massive in Mastro's case. He borrowed money from dozens of banks and also from what he reported as "friends and family." Martin Cordell is an investigator with the state securities division.
"We believe that there may be $100-150 million-dollars raised, representing 100 to 200 investors."
The state is investigating whether maestro was skirting the law when he took their investments without registering them.
Many of Mastro's "friends and family" investors are expected to appear in court. They'll be allowed to ask for more detail about what happened to their money. The federal hearing is the first step in determining which creditors will be paid off.
Bellamy Pailthorp, KPLU news, Seattle.
((* hearing starts at 9:30 am, in Seattle's federal courthouse, downtown Seattle at 6th and Stewart.))
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