A Fan property owned by an imprisoned Norfolk developer will be put up for sale Friday at a foreclosure auction.
The unit in a condo building at 1400 Grove Ave. is being foreclosed on by Southern Bank after Eric H. Menden, who in September was sentenced to 11 years in federal prison for his part in a massive tax credit scheme, defaulted on a loan.
The auction for the 1,000-square-foot condo will be at 11 a.m. Friday morning on the steps of the Richmond courthouse.
Menden borrowed $285,000 for the condo in 2008 from the former Bank of the Commonwealth. The property was most recently assessed at $225,000.
Southern Bank, headquartered in Mount Olive, N.C., took over the assets of Norfolk-based Bank of the Commonwealth after it was shut down by federal regulators. The bank’s failure was due in part to tens of millions of dollars in bad loans to Menden and his then-business partner George Hranowskyj.
Hranowskyj was arrested in April and charged with several counts of fraud. He was sentenced in October to 14 years in prison.
Menden, 53, pleaded guilty in April to the $41 million bank fraud and tax credit scheme related to the development of properties in downtown Norfolk.
Federal prosecutors allege that Menden and Hranowskyj were in cahoots with former executives of Bank of the Commonwealth. Several of them, including former longtime chief executive Ed Woodard, face charges of bank fraud and will head to trial in federal court in Norfolk in March.
Attorney John O’Keefe III of Chesapeake law firm Outland, Gray, O’Keefe & Hubbard is acting as substitute trustee for Southern Bank and handling the auction.
It would be nice if if It were reported how these auctions turn out. Given the prices above I think there’s a story here