Property of Jailed Ill. Insurer Segal, Worth $22 Million, May Go to Developer

Former suburban Chicago home of a jailed insurance executive convicted of looting his company’s trust fund could be sold by the federal government to a developer of luxury homes.

Michael Segal forfeited the 17-acre property in Highland Park as part of his conviction in 2004 on racketeering, fraud and embezzlement charges. The property includes a formal garden designed by landscaper Jens Jensen, a greenhouse, a pool and 500 feet of private beach. The house has seven bedrooms.

Unless another bidder comes up with $17.6 million or more at an auction next month, the U.S. Marshals Service will sell the home to Orren Pickell of Lincolnshire, according to court papers filed July 28.

Segal’s attorney, Marc Martin, says the property is worth about $22 million.

“It would be economically unreasonable to sell the property for $4.4 million less than the listing price,” Martin wrote in an objection to the sale filed last week.

Segal, 63, was sentenced last year to 10 years in prison, and was ordered to forfeit $30 million for looting a trust account at his company, Near North Insurance Brokerage. Part of the forfeiture will come from the sale of the home.

According to court documents, if any offer topping $17.6 million, Pickell will receive a “breakup fee” of 33 percent of the amount by which the new bid exceeds Pickell. Martin also objected to that procedure, saying it is more appropriate for a bankruptcy case.

The U.S. Marshals Service said it expects competing bids to emerge, court documents indicate.

Any sale of the property will be approved by the Marshals Service and the trustee in charge of Segal’s assets.

Highland Park Councilman Jim Kirsch said the city hasn’t seen any concrete plans from any potential purchaser of the property.