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Apr 17, 2012

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thumbnail Sold! Jewels of heiress Huguette Clark bring a surprising $18 million
Apr 17th 2012, 22:19

Christie's, New York

Freed from their bank vault by the executor of the estate, the jewels of copper heiress Huguette Clark were sold on April 17, including a rare pink diamond and these emerald, pearl and diamond ear pendants. See the photos for final sale prices.

By Bill Dedman, Investigative Reporter, msnbc.com

NEW YORK — The jewelry collection of Huguette M. Clark, the mysterious heiress to a copper fortune, was sold at auction Tuesday afternoon at Christie's New York, fetching $18.3 million, far above the pre-sale estimate of $8.5 million to $12 million.

The jewels had been recovered from the bank vault of the reclusive heiress, who lived the last 20 years of her life in Manhattan hospitals and who had rarely been seen since the 1930s.

The last surviving child of U.S. Sen. William Andrews Clark (1839-1925), who made his fortune in mining, railroads and other ventures, Huguette Clark has been the subject of a series of reports on msnbc.com about her vacant properties and the management of her fortune. Born in Paris in June 1906, she died in May 2011 at age 104.

Hundreds of people filed through Christie's at Rockefeller Center to see her jewels over the weekend.

The highlight was a rare 9-carat purplish-pink diamond ring, with a pre-sale estimate of $6 million to $8 million.

"Four million dollars," started the elegant auctioneer, Rahul Kadakia.

"Seven point five million dollars?" was his next step. "Alright, why waste time."

It was hammered home at $14 million, plus commission.

The pace was set with the first two items, onyx photo frames estimated at about $6,000. They each sold for $60,000.

A pair of art deco bracelets sold for $90,000 and $480,000.

Buyers were not identified.

See the accompanying slideshow for details on the Clark jewels and their final sale prices.

"It was like chasing a rainbow and you had this big pot of gold at the end. It was fantastic," auctioneer Kadakia, head of jewelry for Christie's, said on the TODAY TV show about opening the Clark vault. (See the accompanying video.) "They were all in this original boxes, in this bank vault, since the 1940s."

In addition to bidders at Christie's at Rockefeller Center in New York, bidders were online and on the telephone in Texas, Bahrain, Japan. They were alerted that parties with a potential financial interest were bidding on several of the less-expensive items. Possibly these were Clark relatives.

Many non-Clark items in the jewelry auction also sold well above their estimates, including a 24.68-carat diamond that sold for $420,000, or more than twice its high estimate.

An apartment already sold
One of her three mysterious apartments on New York's Fifth Avenue found a buyer soon after they hit the market in March. The penthouse apartment, listed at $24 million, sold in less than a month for an undisclosed price. The two others remain on the market, at $19 million and $12 million. Each apartment has about 5,000 square feet of space. Also on the market: her country home in New Canaan, Conn., at $19.8 million.

Rahul Kadakia of Christie's Auction House displays jewels discovered in heiress Huguette Clark's safe deposit box.

How can anything be sold now?
Proceeds from the properties and jewelry will be used to pay estate expenses, with the rest held for the eventual winner of the legal battle over her $400 million fortune. On one side are members of the Clark family, grandchildren of her father from his first marriage, whom she included in one will and then cut out of her last. On the other side are her attorney, accountant and nurse, all named in the last will, which left nothing to her relatives.

Her oceanfront home in Santa Barbara, Calif., with an estimated value of $100 million, is not on the market, because her second will designates it as a public museum and home for her art collection. The fate of that property is tied up in the legal battle. The largest chunk of the estate is left to that museum in the second will.

Also not for sale: her doll collection, with an estimated value of $4 million, which the second will leaves to her nurse.

The full story
More on the Huguette Clark mystery is at http://clark.msnbc.com/.

Do you have information on the Clark family?
Reporter Bill Dedman is writing a nonfiction book about the Clark family. If you have information, you can reach him at bill.dedman@msnbc.com.

thumbnail NBC: Prostitute's $50 fee for two agents triggered Secret Service scandal
Apr 17th 2012, 21:48

MSNBC's Thomas Roberts speaks with NBC National Investigative Correspondent Michael Isikoff and former Secret Service agent and current Senate candidate Dan Bongino about the fallout from the Secret Service prostitution scandal.

By Michael Isikoff and Jim Miklaszewski, NBC News

The Colombian prostitute who triggered the scandal that has rocked the Secret Service got angry with two agents who refused to pay her full price for servicing the two of them, leading to a financial dispute over between $40 and $60, according to a government source who has been briefed on the investigation.

Two agents from the service's elite Counter Assault Team, in Cartagena, Colombia, in advance of President Barack Obama's arrival for the Summit of the Americas over the weekend, had procured the women's services at a local strip club called the Pley Club on the evening of April 11. All the Secret Service agents and officers implicated in the scandal are believed to have gone to the club that evening and brought back women, a U.S. official told NBC News.


The controversy arose after one of the women went back to a hotel room with two agents. The woman wanted to be paid for serving both agents, the source who has been briefed on the probe told NBC News. Instead, the agents would only agree to split her price, prompting the woman to complain to local police who were stationed in the lobby of the Caribe Hotel, the source said.

The police then went up to the agents' room and began banging on the door, which the agents at first refused to open, the source said. There are conflicting reports over how the payment dispute was resolved. But two government sources told NBC News the police contacted the U.S. Embassy over the dispute and Embassy officials then arrived at the scene.

All those with booked rooms at the hotel had to pay a fee of $25 for bringing any guests to their  rooms -- and the guests were required to leave some form of identification at the front desk. A quick scan of the hotel register by a U.S. Embassy official established that 11 Secret Service agents had brought back women to their rooms that evening. When Embassy officials notified Secret Service Director Mark Sullivan, he immediately ordered all the agents to fly home, the sources said.

New details about the Secret Service personnel alleged to have brought prostitutes to their hotel rooms have emerged, including reports that two of the 11 were supervisors. NBC's Kristen Welker reports.

The Secret Service members -- including agents and uniformed officers -- were stripped of their security clearances on Monday.

Included in that group were two high-level Secret Service supervisors, three counter assault officers whose job is to repel attacks and three sniper-team members, who take to rooftops to secure areas where the president might visit, NBC News reported.

U.S. officials have described the agents' conduct as a potential security breach especially because all the agents involved had access to the president's day-by-day, minute-by-minute schedule. But one official familiar with the security arrangements said that there were no specific security threats during the president's trip. Although agents upon arrival were briefed about current activities by leftist FARC guerrillas and local drug cartels, they were told neither had made any specific threats to the president.

The only specific security concern mentioned was that agents and officers were told to bar a left-wing journalist from events at the summit and were given a flier with the journalist's photograph to keep him out, the law enforcement source said.

The Secret Service sent agents to Colombia to interview the prostitutes who hooked up Americans to figure out if the women are under age, involved with terrorism or trafficking in illegal drugs, a lawmaker told NBC News' Luke Russert on Tuesday.

 “They have all their IDs and are conducting an extensive background check to make sure they aren't affiliated with any narcotrafficking or terrorist group or that they could be minors,” Homeland Security chairman Rep. Peter King told Russert. “So far there is no security breach."

Former Secret Service agent Dan Bongino, who worked in the presidential protection division, shares his view of the scandal involving at least 11 Secret Service personnel and more than 5 military personnel.

King, who was briefed on the Colombia investigation by Sullivan, confirmed that there were 11 agents and 11 women.

"The investigation could take a while simply because of the amount of women involved,” King said. “Some are saying they were prostitutes and others say they weren't."

U.S. military officials told NBC News on Tuesday that 10 American servicemen also were under investigation. According to the officials that includes five Army soldiers, two Navy sailors, two Marines and one Air Force airman.

One military official says it appears that at least two of the service members were found with prostitutes in their hotel rooms, the same el Caribe where the Secret Service detail stayed.

It's not clear whether any of the military members were in any way connected to the allegations involving members of the Secret Service at a Cartagena strip club.

It's also not yet clear whether any of the 10 will face criminal charges.

House and Senate lawmakers are also looking into the allegations. King told The Associated Press that his committee is devoting four investigators to the probe.

Meanwhile, one former Secret Service agent, Dan Bongino who is a Republican candidate for Congress in Maryland, told NBC News that in his 12 years at the agency he never saw anything like what is alleged to have taken place in Colombia.

“I’m not saying it’s never happened, but I never saw it.” Bongino said. He denied there was a culture of partying inside the agency.

Top US military officer: 'We let the boss down' over prostitute scandal

A decade ago, however, U.S. News and World Report published an investigative report detailing criminal activity and extreme partying as well as oversight problems. In one reported incident, members of Vice President Dick Cheney’s security detail got into a brawl outside a bar on a trip to the San Diego area.

As the agency sought to rebuild its image, other high-profile incidents with presidential protection brought more scrutiny.

In 2008, an Iraqi journalist threw shoes at President George W. Bush during a Baghdad visit.

And in November 2009 three people crashed a White House state dinner for Indian Prime Minister Manmohan Singh. Michaele and Tareq Salahi and Carlos Allen were able to get past Secret Security agents at the door and enter the party.

The Salahis even met Obama and had their picture taken with Vice President Joe Biden. In a January 2010 congressional hearing on the matter, the Salahis, who have since divorced, refused to testify, invoking their Fifth Amendment right against self-incrimination.

The prostitution scandal, however, has brought far more intense focus on the Secret Service and behavior by its agents and officers.

"This really is the biggest scandal in the history of the Secret Service," Ron Kessler, author of "In the President's Secret Service," told NBC News earlier this week. He said the agency's problems are deeply rooted.

"There's a culture in the Secret Service that's fostered by the management of just nodding, winking, favoritism," he said. "What the agency needs is an outside director who can come in, clean house, change the standards." 

Michael Isikoff is NBC News' national investigative correspondent; Jim Miklaszewski is NBC News' chief Pentagon correspondent. NBC News Correspondent Luke Russert and msnbc.com reporter Jeff Black also contributed to this report.

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