[MSN] Boca Raton, Fla., Auction Gallery Owner Charged With Defrauding Consignors

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Boca Raton, Fla., Auction Gallery Owner Charged With Defrauding Consignors
    Oct 2nd, 2007 By W.A. Demers

Palm Beach, Fla.:Michael Andrew Cobosco, owner of Boca Auction Gallery, has
been charged with seven counts of grand larceny and theft in Palm Beach
County for withholding money and/or property from clients who consigned
items to be auctioned by his firm. In all, Cobosco is accused of defrauding
various parties that have come forward so far to the tune of about $86,000.

Arrested in April, the 37-year-old Cobosco is next scheduled for a court
date of October 9, according to the office of assistant state attorney
Michael Rachel, at which time the date for a trial may be set. The
auctioneer, who is currently free on bond, is also the target of a civil
suit filed in Queens, N.Y., charged with similarly defrauding a Bayside,
N.Y., resident who consigned tens of thousands of dollars worth of jewelry
for auction but failed to receive money or goods in return.

The pattern is consistent in both cases. Cobosco, owner and president of
Boca Auction Gallery, is accused of taking furniture, paintings, jewelry and
other items, selling them but never paying the consignors. In Florida, when
angry consignors went to the business to complain, they found it locked and
vacated.

Before his arrest this past spring, Cobosco voluntarily arrived at the Boca
Raton Police Department in December 2006 to answer several complaints about
stolen money and property, according to Detective Robert Flechaus, the
arresting officer. At that time, Cobosco told his interviewer that he had
some financial problems stemming from injuries in April 2006 when he fell
off one of his trucks. 

"Cobosco said that after he sold the clients property he used he money to
pay for his medical bills," stated Flechaus in his police report, adding,
"that he misused the clients' money and did so without their knowledge and
permission."

As for the vacant storefront, Cobosco told the detective that he had to move
out of his warehouse and place the customers property in a storage truck or
self-storage bins. 

While there are many individual consignors claiming to have been defrauded
by Cobosco, one of the most aggrieved victims in this case is First Data
Merchant Services, a national firm with headquarters in Colorado that many
dealers in the antiques and auction trade use every day to process sales
transactions. According to the police report, First Data was Boca Raton
Auction Gallery's merchant bank, and it is out some $52,000 in uncovered
refunds of deposits by Cobosco's clients, which they had placed on
merchandise being offered at auction. 

Prosecutor Rachel said that he was not permitted to comment on the possible
outcome of an open case, but based on the amount of money Cobosco allegedly
stole - two counts over $20,000 and the others less than that - sentencing
guidelines could carry a maximum of 15 years in jail for the first two
counts and five years maximum for each of the others.

The Boca Police Department's Detective Flechaus further stated that any
complaints concerning Cobosco and Boca Auction Gallery can be forwarded to
him at Boca Raton Police Department, 100 NW Boca Raton Boulevard, Boca
Raton, FL 33432; 561-338-1234.
 
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