Fortunately, there’s lots of foreclosure news to keep this blog at least vaguely connected to real estate

M5r. Rus Gerson, Greenwich

Mr. Russ Gerson, Greenwich

29 Alden Road, occupied by one Russ Gerson, although title might be held by one of his corporate entities, is scheduled to be sold by court auction this coming November 14, but don’t ready your check book just yet: these things are usually postponed and delayed for years.

29 Alden’s Mr. Gerson has an interesting history, one that should probably have seen him ensconced on Round Hill Road with his peers, rather than plumped down next to the Greenwich Office Park, but there’s no accounting for taste. The property was listed by David Ogilvy and sold to Gerstner by David Ogilvy in 2003 for $3.114 million.

In 2005, Gerson borrowed $3.944 million against the house, which is a neat trick, and defaulted on that loan sometime thereafter. He tried to sell the house at various times, beginning at $6.495, promoted mainly as  building site (3.37 acres in RA-1 zone, will support a house of 19,800 sq.ft.) but no one bit, and the price steadily declined.

Lah dee dah dee – all standard fare, for ur town, but looking up Gerson just for fun, he turns out to have been a busy financial man, with several angry clients as a result, including former Senator (Wisconsin) Robert Karston, who sued Gerson for $195,000 of unpaid consulting fees in 2013. Here’s an excerpt from his unauthorized biography:

Oct. 2, 2013 – PRLog — Russ Gerson, a.k.a. Russel D. Gerson, Greenwich, Connecticut USA
resident was the founder and man behind the now defunct companies The
Gerson Group, Gerson Global Strategic Advisors and Gerson Global
Advisors, LLC.  The Gerson group of companies has advertised company
offices in New York, New York, Washington, DC and London, UK.

In a recent March 2013 deposition, Mr. Gerson advised that his former
companies are no longer earning any revenue and have ceased
operations.  The Gerson group of companies was advertised to have
locations in Washington, DC, New York and London.  Mr. Gerson noted
his small team primarily only worked out of a corporate office in New
York and may not have conducted actual business operations in the
locations that they publicized on the company website.

Russ Gerson describes his business experience, “As a leading senior
advisor and consultant to corporate and global financial services
firms, as well as prominent political and government officials of both
major United States political parties”.  Mr. Gerson has noted on his
various public profiles that he led presidential planning transition
teams for numerous presidential nominees, is a trustee of The Hudson
Institute and a member of the Executive Roundtable of the Republican
Governors Association.   Extensive searches of third party public
filings have not confirmed these current assertions.

However, public records do indicate Russ Gerson and his alter-ego
companies have been parties to numerous lawsuits.   A number of these
lawsuits have resulted in judgment.As recently as 2013 , former U.S.
Sen. Robert Kasten, who represented Wisconsin in Congress until 1993,
says in NY Supreme Court filing that Gerson Global Advisors owes him
$195,000 for consulting fees.  Additional NY Supreme Court filing,
Brown Lloyd James V Gerson Global Strategic Advisors details judgment
enforcement in the amount of $261,668.16.

Despite these apparent business setbacks, Mr. Gerson is trying again
with his new venture in the aptly named Phoenix Star Capital.  Russ
Gerson has published that he is the Chairman of Phoenix Star Capital –
a multifaceted asset management firm focused on investment
opportunities across the credit spectrum. Phoenix Star plans to launch
collateralized debt obligation and distressed debt funds, as well as
providing consultancy services.   Phoenix Star Capital has publicly
announced plans to open a London office within two years and hopes to
profit by buying debt securities backed by loans that banks are
offloading to improve their capital ratios as British bankruptcy codes
have been modified and the group feels there are good opportunities in
mezzanine lending.

http://www.courthousenews.com/2012/06/01/kasten.pdf

UPDATE: Oops! Further research for “Russ Gerson, defendant” turns up a slew of lawsuits brought against him by Las Vegas casinos for failure to honor his makers. Bad boy.

10 Comments

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10 responses to “Fortunately, there’s lots of foreclosure news to keep this blog at least vaguely connected to real estate

  1. Walt

    Dude –

    WTF? Are you kidding me? I thought we were doing anal bleaching Jap material today? How do you expect me to do that on this post?
    Give me a few minutes!!

    Your Pal,
    Walt

  2. Five 600 foot wind turbines are being installed 2.5 miles southeast of Block Island, where they will ruin the view from Mohegan Bluffs, one of the most beautiful seascapes on the east coast:

    http://dwwind.com/project/block-island-wind-farm/

    Used to be liberals and environmentalists sought to protect the seas, to preserve unspoiled views of nature, and never to disfigure and exploit the environment for mere profit……

    This sucks.

    • Cos Cobber

      I disagree – liberals are getting the power they asked for. Block island will be fine with or without this project.

  3. Cos Cobber

    Interesting story on Gerson. Man this town is loaded with these types of fellows.

    I see now 33 Pleasant Street in Riverside is actually a foreclosure via your link to the court system.

    • yup – auction, also scheduled for the 24th, has been cancelled, but it’s always useful information to have. Information, by the way, that the seller’s agent can’t disclose to a buyer like this week’s reader who “relies on the listing agent to serve both sides”.

  4. Walt

    Dude –

    So Mr. Gerson was a big gambler? You know who really likes to gamble Dude? THE ASIANS!! It’s true. They are huge gamblers, and believe in luck and superstition. You must be familiar with that whole feng shui stuff, right?

    Anyhows, when they are gambling, they like to dance, just like this:

    They think it brings them luck. If they get cleaned out at the tables, they bathe to try and wash off the bad luck. And yes, it includes breach.

    Your Pal,
    Walt

  5. Anonymous

    How come I can’t get away with this kind of stuff? I’d like a $5+ million house too.

  6. Anonymous

    Gerson Group is (or I guess was) a joke. Basically ex-whatever’s no longer employed and looking to do consulting to try & stay involved. Or at least get out of the house. I knew a few folks there who were titled managing director and were dumb as stumps. I know this because I used to work with them, and it would be a stretch to consider them capable of anything past booking a plane ticket. You know when someone is a quote-unquote managing director at Gerson, and has a gmail account, that something’s not quite right….

  7. Anonymous

    basically has been living off his girlfriend…and her settlement from big ex I banker husband…..it was her house…..originally…..interesting story here………….more than meets the eye…….