Michael R. Mastro (born June 1, 1925) is an American real estate developer, who was in business for forty years managing apartments and mid-size office parks in

Seattle Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...

. He declared

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

in 2009. Mastro and his wife, Linda, a former

Bellevue Bellevue means "beautiful view" in French. It may refer to: Placenames Australia * Bellevue, Western Australia * Bellevue Hill, New South Wales * Bellevue, Queensland * Bellevue, Glebe, an historic house in Sydney, New South Wales Canada ...

grade school A primary school (in Ireland, the United Kingdom, Australia, Trinidad and Tobago, Jamaica, and South Africa), junior school (in Australia), elementary school or grade school (in North America and the Philippines) is a school for primary e ...

teacher, fled to

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

in 2011 after a warrant was issued for their arrest due to their failure to comply with a judge’s order that they turn over two diamond rings valued at $1.4 million to their creditors. They were arrested in 2012 in

Lake Annecy Lake Annecy (french: Lac d'Annecy, ) is a perialpine lake in Haute-Savoie in France. It is named after the city of Annecy, which marks the start of the Thiou, Lake Annecy's outflow river.Jean-Daniel Stanley and Thomas F. Jorstad, ''Direct Sedimen ...

, in the

French Alps The French Alps are the portions of the Alps mountain range that stand within France, located in the Auvergne-Rhône-Alpes and Provence-Alpes-Côte d'Azur regions. While some of the ranges of the French Alps are entirely in France, others, such as ...

, and faced

extradition Extradition is an action wherein one jurisdiction delivers a person accused or convicted of committing a crime in another jurisdiction, over to the other's law enforcement. It is a cooperative law enforcement procedure between the two jurisdict ...

hearings, after which it was revealed that the prior August, the U.S. Attorney’s Office had filed an initially sealed criminal complaint charging them with bankruptcy fraud. The day after being arrested in France, the Mastros were

indict An indictment ( ) is a formal accusation that a person has committed a crime. In jurisdictions that use the concept of felonies, the most serious criminal offence is a felony; jurisdictions that do not use the felonies concept often use that of an ...

ed by an American

federal grand jury Grand juries in the United States are groups of citizens empowered by United States federal or state law to conduct legal proceedings, chiefly investigating potential criminal conduct and determining whether criminal charges should be brought. T ...

on forty-three counts of

bankruptcy fraud Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

and

money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...

. After several months of

house arrest In justice and law, house arrest (also called home confinement, home detention, or, in modern times, electronic monitoring) is a measure by which a person is confined by the authorities to their residence. Travel is usually restricted, if all ...

, they were freed in June 2013 after a French court denied a request for their extradition back to the United States, finding that while they stole the life savings of elderly people, they themselves were too elderly to (potentially) be incarcerated. Mastro's bankruptcy has been described as the largest

personal bankruptcy Personal bankruptcy law allows, in certain jurisdictions, an individual to be declared bankrupt. Virtually every country with a modern legal system features some form of debt relief for individuals. Personal bankruptcy is distinguished from corporat ...

in the history of

State of Washington Washington (), officially the State of Washington, is a state in the Pacific Northwest region of the Western United States. Named for George Washington—the first U.S. president—the state was formed from the western part of the Washington ...

. Prior to the bankruptcy, the Mastros moved many of their assets, including a $15 million home in

Medina, Washington Medina () is a mostly residential city in Eastside (King County, Washington), Eastside, King County, Washington, United States. The city is on a peninsula in Lake Washington, on the opposite shore from Seattle, bordered by Clyde Hill, Washingto ...

, into an irrevocable trust based in

Belize Belize (; bzj, Bileez) is a Caribbean and Central American country on the northeastern coast of Central America. It is bordered by Mexico to the north, the Caribbean Sea to the east, and Guatemala to the west and south. It also shares a wate ...

Biography

Michael Mastro started his career in the real estate business in 1967, developing real estate projects worth at least $2 billion over 40 years, including commercial buildings and houses. He was involved in hard money loans, mostly to desperate real estate developers, with second or third deeds of trust on projects as collateral. His company, Michael R. Mastro Properties, was well known in and around Seattle, the location of most of its projects and properties. The company's developments include

Vancouver Vancouver ( ) is a major city in western Canada, located in the Lower Mainland region of British Columbia. As the List of cities in British Columbia, most populous city in the province, the 2021 Canadian census recorded 662,248 people in the ...

's Town Plaza, originally called the Tower Mall, the Oasis water park (sold in 2001) in Palm Springs, Allison Park Apartments in

Des Moines Des Moines () is the capital and the most populous city in the U.S. state of Iowa. It is also the county seat of Polk County. A small part of the city extends into Warren County. It was incorporated on September 22, 1851, as Fort Des Moines, ...

, and Ballard Lofts in Seattle. In 1974, Mastro met

divorcee Divorce (also known as dissolution of marriage) is the process of terminating a marriage or marital union. Divorce usually entails the canceling or reorganizing of the legal duties and responsibilities of marriage, thus dissolving the ...

Linda Ann Gale (b. 1949) in the Peoples Bank branch where they both worked, she as a

loan officer Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses. Most loan officers are employed by commercial banks, credit unions, mortgage companies, and related financial institutions. Mortgage loan offi ...

, he as

branch manager A branch manager is an executive who oversees a division or office of a large business or organization, operating locally or with a particular function. Their responsibility is to ensure that payments to employees are correct, their vacation pay arr ...

. They were married on June 3, 1989.http://www.assetsearchblog.com/files/2012/11/Mastro-indictment.pdf In 1989, Mastro sold office buildings, which he had developed with a partner, to

Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product ...

for $211 million. In the early 2000s, Mastro started buying raw land for the development of residential housing.

Bankruptcy

Mastro was forced into involuntary bankruptcy in July 2009 and filed for

Chapter 7 Chapter 7 may refer to: Albums * ''Chapter Seven'' (album), a 2013 album by Damien Leith. *''Chapter VII'', a 1973 album by drummer Buddy Miles George Allen "Buddy" Miles Jr. (September 5, 1947February 26, 2008) was an American composer, drum ...

. On September 9, 2009, he listed assets in excess of $249 million and liabilities of over $586 million in a filing with the

U.S. Bankruptcy Court United States bankruptcy courts are courts created under Article I of the United States Constitution. The current system of bankruptcy courts was created by the United States Congress in 1978, effective April 1, 1984. United States bankruptcy c ...

for the Western District of Washington. In May 2010, a ruling was handed down by bankruptcy judge Samuel Steiner that two diamond rings valued at $1.4 million were not available to creditors since they belonged to Linda Mastro. In February 2011, Mastro suffered a head injury while residing in

Palm Desert Palm Desert is a city in Riverside County, California, United States, in the Coachella Valley, approximately east of Palm Springs, northeast of San Diego and east of Los Angeles. The population was 48,445 at the 2010 census. The city has been ...

. He was hospitalized for two weeks and underwent

brain surgery Neurosurgery or neurological surgery, known in common parlance as brain surgery, is the medical specialty concerned with the surgical treatment of disorders which affect any portion of the nervous system including the brain, spinal cord and peri ...

. In June 2011, a judge ordered Michael and Linda Mastro to hand over the two diamond rings. In May 2013, it was reported that the bankruptcy trustee, James Rigby, had filed an 82-page report that valued all of the jewelry seized from the Mastros at $3 million. Mastro's bankruptcy is believed to be the largest personal bankruptcy ever in the state of Washington.

Bankruptcy fraud and money laundering

The couple did not comply with the judge's order to hand over the diamond rings and disappeared in June 2011. In August 2011, a

sealed Seal may refer to any of the following: Common uses * Pinniped, a diverse group of semi-aquatic marine mammals, many of which are commonly called seals, particularly: ** Earless seal, or "true seal" ** Fur seal * Seal (emblem), a device to impr ...

criminal complaint was filed against Michael and Linda Mastro, charging them with bankruptcy fraud. After warrants for contempt of court (a

civil violation A summary offence or petty offence is a violation of law, violation in some common law jurisdictions that can be proceeded against summarily, without the right to a jury trial and/or indictment (required for an indictable offence). Canada In Cana ...

) were issued for their arrest, they were apprehended and taken into custody in France on October 24, 2012. On October 25, 2012, one day after being arrested in France, the Mastros were

ed by a

on forty-three counts of

and

. They were accused of hiding assets from creditors. The couple remained in custody in

Chambéry Chambéry (, , ; Arpitan: ''Chambèri'') is the prefecture of the Savoie department in the Auvergne-Rhône-Alpes region of eastern France. The population of the commune of Chambéry was 58,917 as of 2019, while the population of the Chambér ...

after a hearing held on November 7, 2012. A panel of three French judges rejected the couple's plea, based on their age and poor health, for a conditional release. The court felt that the charges against them for bankruptcy fraud and money laundering were serious enough to keep them in jail until such time as the US filed for extradition. Prior to their arrest, the Mastros were pursued by both the

FBI The Federal Bureau of Investigation (FBI) is the domestic Intelligence agency, intelligence and Security agency, security service of the United States and its principal Federal law enforcement in the United States, federal law enforcement age ...

and

U.S. marshal The United States Marshals Service (USMS) is a federal law enforcement agency in the United States. The USMS is a bureau within the U.S. Department of Justice, operating under the direction of the Attorney General, but serves as the enforceme ...

s for sixteen months. On November 15, 2012, the ''

Seattle Times ''The Seattle Times'' is a daily newspaper serving Seattle, Washington, United States. It was founded in 1891 and has been owned by the Blethen family since 1896. ''The Seattle Times'' has the largest circulation of any newspaper in Washington st ...

'' reported that the two diamond rings were in French authorities' possession. According to Thomas Terrier, the Mastros' French lawyer, the rings were in a safe deposit box in

Annecy Annecy ( , ; frp, Èneci or ) is the prefecture and largest city of the Haute-Savoie department in the Auvergne-Rhône-Alpes region of Southeastern France. It lies on the northern tip of Lake Annecy, south of Geneva, Switzerland. Nicknamed ...

. On December 12, 2012, the ''Seattle Times'' reported that Michael and Linda Mastro had been released from jail after being

incarcerate Imprisonment is the restraint of a person's liberty, for any cause whatsoever, whether by authority of the government, or by a person acting without such authority. In the latter case it is "false imprisonment". Imprisonment does not necessari ...

d for seven weeks. A three-judge panel had ruled that their health was suffering. They were to wear electronic monitoring devices and were free to walk around Annecy. By December 12, 2012, the United States had not filed for extradition, which according to James Rigby, the United States court-appointed

bankruptcy trustee A trustee in bankruptcy is an entity, often an individual, in charge of administering a bankruptcy estate. Canada In Canada, a licensed insolvency trustee (LIT) is an individual or a corporation licensed by the official superintendent to hol ...

, had to be filed by December 26, 2012.

Attempted extradition from France to the United States

On February 23, 2013, the ''Seattle Times'' reported that the

Court of Appeals A court of appeals, also called a court of appeal, appellate court, appeal court, court of second instance or second instance court, is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal. In much of t ...

in Chambery, France, had ruled that the Mastros could not be extradited to the United States unless American authorities guaranteed that the couple would not face any sanctions other than electronic surveillance. The extradition treaty between France and the United States allows France to deny extradition when the extradited party faces serious consequences related to health or age. Michael Mastro and his wife had been wearing surveillance devices but were freed after spending seven weeks in a French jail. On June 5, 2013, the Court of Appeals of Chambéry denied the extradition of Michael and Linda Mastro from

to the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

, basing this decision on Michael Mastro's age (88), poor health, and daily dependence on his wife. The appeal had been filed by the

U.S. Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...

. The United States' request that the case be sent to the

French Supreme Court The Court of Cassation (french: Cour de cassation ) is one of the four Court of last resort, courts of last resort in France. It has jurisdiction over all civil and criminal matters triable in the Judiciary of France, judicial system; it is the ...

was turned down by French prosecutors, who found no grounds for appeal. As a result, the couple are no longer prevented from leaving their home in the evenings.

Movement of Mastros after financial problems surfaced

Before their bankruptcy, the Mastros lived in a large waterfront house in

Medina Medina,, ', "the radiant city"; or , ', (), "the city" officially Al Madinah Al Munawwarah (, , Turkish: Medine-i Münevvere) and also commonly simplified as Madīnah or Madinah (, ), is the Holiest sites in Islam, second-holiest city in Islam, ...

, a city in the Seattle metropolitan area. They moved to

California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...

in 2010. In 2011, they started a journey that began at Mr. Mastro's sister's house in Seattle, continued to

Toronto, Ontario Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the ancho ...

, Canada, and, according to investigators at Focus Ltd., ended in a €5,000 per month house in

Veyrier-du-Lac Veyrier-du-Lac (, literally ''Veyrier of the Lake'') is a commune in the Haute-Savoie department in the Auvergne-Rhône-Alpes region in south-eastern France. See also *Communes of the Haute-Savoie department The following is a list of the 279 ...

, France, on the eastern shore of

. They then moved to Saint-Marceau, France, where the Mastros were arrested in 2012.

Related bankruptcy of Tom Hazelrigg III

Tom Hazelrigg is a long-time business associate of Michael Mastro who was forced into bankruptcy by James Rigby and two other creditors in February 2012. On December 14, 2012, Judge Timothy Dore denied Hazelrigg a discharge of his debt. Hazelrigg owed Mastro $76 million. In March 2015, he was sentenced to four and a half years in prison for

tax evasion Tax evasion is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to reduce the taxp ...

Controversy surrounding sale of Mastro's Medina home

In November 2012, Judge Marc Barreca denied Jack Dorssers, a former business associate of Mastro, a share in the $8.36 million proceeds from the sale of Mastro's Medina, Washington, home. The judge ruled that Dorssers' contention that Mastro had put up the house as

collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...

in 2009 for a $1.2 million loan was a sham designed to keep the house out of reach of other

creditors A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property ...

. Dorsser is appealing Barreca's decision.

Appeal

On September 9, 2014, Rami Grunbaum of the ''Seattle Times'' wrote that a federal appeals court in San Francisco had ruled that Linda Mastro was entitled to appeal the bankruptcy court's ruling about her assets.

References

{{DEFAULTSORT:Mastro, Michael Money laundering Real estate and property developers Extradition People from Annecy Businesspeople from Seattle Finance fraud United States Marshals Service People from Palm Desert, California American people imprisoned abroad American real estate businesspeople Prisoners and detainees of France Married couples Bankruptcy in the United States 1925 births Living people France–United States relations Money lenders