CLAYTON, MO. (KMOX) -The storied Ivey-Selkirk auction house has been barred from doing business, under a temporary restraining order obtained by the Missouri Attorney General’s office.
A St. Louis County Circuit Judge issued the order, after the A-G’s office received 40 complaints over the last couple of weeks alone, from customers who have not received $83,000 in proceeds from sales.
The A-G’s Consumer Protection Division Chief Counsel Joe Bindbeutel says owner Malcolm Ivey’s business model has gotten “upside down”, He has been, we believe for some months going back to at least August, only partially remitting sales proceeds back to consumers so that he has been getting steadily farther and farther behind in his financial obligations to folks that have consigned items to him.”
Bindbeutel says the investigation into how the business got into that position, will be long and complicated, “Was he taking more goods? Was he piling up the money if you will, or using the money for purposes other than to pay back the people that he owed or was this just a failed business proposition?
Bindbeutel says that the number of victims, and the amount they are owed, is likely to increase substantially over the next few months, “It won’t be for 60 to 90 days before all of the consumers that deal with Mr. Ivey have been potentially shorted and need to get their property back, or their money back.”
A hearing for a preliminary injunction is scheduled for April 21, “At that time we’ll be asking the court for more detailed orders as how to potentially dispose of this property and husband any financial resources that Mr. Ivey has at his disposal to pay his debts and to pay his folks back that pledged him property with the understanding that it would be sold.”
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