NETTE AUCTIONS CLOSES

WOW! Now that's nasty!  FWIW, Any way to track down the owner and his whereabouts? He maybe declaring bankruptcy so you need to move and find his bankruptcy attorney and file a claim. See what you can do in filing a lean on this bum.

My friends widow, Sherry,  found out today that Nette dissolved their corporation on Oct. 26, but spent the month of Sept. filling annual reports from the last four years. A calculated move. Sherry has to find a lawyer that deals with fraud. Small claims is out because its over $5000.

I posted this information on Nette hoping I might get some information that will help the people who have lost their money or collections, but also to make my fellow train enthusiasts and collectors aware that a company like Nette, who had a good reputation for many years, can change seemingly overnight  and disappear with their clients money or collections. I wish I had checked their BBB before recommending them, as their rating had changed significantly in the last year. 

                                                                                                       John G.

Our club heard about this earlier last month. Not to post the reason for what happened but it was not good.

Not sure what state regulations are involved but hopefully companies like this should have bonds to protect the customer.

You have to really stay on top of Auction companies.

This is sad as I bought many wonderful things from them over the years at amazingly good prices.  Hoping things will work out.

Unless the guy dissolved the company and fled the country, they can't just shut it down and go away legally, they would need to file for some form of bankruptcy to allow creditors the right to file a claim against them.  Simply walking away would be criminal, they basically would be stealing the money and any unsold goods they have. 

Unfortunately, it may not be good news for the widow or anyone else who is involved with them. In bankruptcy, the owner files a list of his assets, things like cash on hand, liquifiable property (that he owns) and other things the business owns, and that is put up against what the business owes. I believe with physical assets (merchandise they have not sold) that would not be part of this, they would go back to the owner, but with accounts payable it could be that those owed money could be behind other creditors (for example, if the business owed money to a bank and other creditors). It could also be that the assets may be very little and in the end those owed money may get very little, if anything back. From nosing around, it doesn't look like in many states auctioneers need to be licensed, let alone bonded, and the states that did require a bond it would likely not cover much (one state it was like 20k).  

If the guy didn't take a flyer (if he was filing 4 years of statements, sounds like he is going to file for bankruptcy, that would be required if he did along with other filings), then it likely will go through the bankruptcy court process, which will take a long time and likely will not get her much....

Unforutnaly their money and their stuff is gone. When somebody pulls a midnight move such as that they are not doing the right thing. Best bet is to learn, forgive and move on.

Regrettably, this is probably going to impact the HONEST consignment auctioneers out there, as well.

It sounds incredibly naive and cynical, I know, but it's a darned shame that you can all of a sudden be "taken to the cleaners" by what appeared to be a reputable company.

Caveat emptor et  auctor. ( Let the buyer AND seller beware.)

Charlienassau posted:

You have to really stay on top of Auction companies.

I agree and I have always been very skeptical and prefer to buy from establishments such as yours. I find it repulsive that they would prey on a grieving widow . The local TCA chapter would have assisted her in selling the trains, and they would have been in the hands of people that would appreciate them. Sad indeed.

That's a surprise. I'm sorry to hear this.  I had an ok experience with them a couple years ago before I moved to Florida. I hope that everyone can somehow get the money that's owed to them.

I'm also a victim of this company, having consigned brass trains with NETTE and never getting paid when they were sold.  I suggest reporting the incident as a crime to your local police, who will then coordinate with the Danbury police to hopefully put these people in jail.  I also suggest filing a complaint with the State of Connecticut consumer protection agency.  If enough complaints are posted, they will refer the matter to the Connecticut Attorney General for prosecution.  Maybe the prospect of jail time will encourage these people to make restitution.  I checked with the Bankruptcy Court in Connecticut and no bankruptcy has been filed by the NETTE Auction company as of 11/4/2016.  Bankruptcy will probably absolve NETTE of most of its debt, but Bankruptcy will not be allowed unless the company has some reorganization plan.  It doesn't sound like they do.