Mastro associate tells court he's broke
Thomas Hazelrigg III, a friend and business associate of fugitive real-estate magnate Michael R. Mastro, filed financial statements in bankruptcy court claiming his only income is from Social Security.
Seattle Times business reporter
Thomas Hazelrigg III, a friend and business associate of fugitive real-estate magnate Michael R. Mastro, has long maintained Mastro's many creditors can't look to him for relief — he's broke.
New financial statements Hazelrigg has filed in bankruptcy court in Seattle tell the same story.
He reports $149 million in liabilities against $1.2 million in assets. And he says those assets consist mostly of condos in Bellevue and Belltown that he's likely to lose to foreclosure.
Hazelrigg was pushed into bankruptcy this year by creditors including James Rigby, the court-appointed trustee in Mastro's bankruptcy, who hopes to recover $76 million that courts have decreed Hazelrigg owes Mastro's creditors.
Rigby said Monday he doesn't take Hazelrigg's financial statements at face value.
"Nothing is as it appears in this case," Rigby said. "We're going to have to dig real deep to find his assets."
Hazelrigg initially declined to provide any information about his finances, citing his Fifth Amendment protection against self-incrimination because he is under criminal investigation. But last month Bankruptcy Judge Timothy Dore ordered him to reveal more.
Hazelrigg, now living in Albuquerque, N.M., still invokes the Fifth in several places in his new financial statements.
He also says his records have been lost or are no longer in his possession, so he has relied on his memory and public records in reconstructing his finances: "It is anticipated that there are errors, but the errors are not intentional."
Hazelrigg, 65, reports his only income is $1,400 a month in Social Security benefits.
Mastro, pushed into bankruptcy in 2009, owes unsecured creditors about $250 million, according to Rigby.
Eric Pryne: 206-464-2231 or email@example.com