CAMARILLO : Auctioneer Buys City Merchandise

Call it the largest garage sale in Camarillo’s history.

The city has sold 600 boxes of merchandise--ranging from children’s Halloween costumes to cat food--to a Los Angeles auctioneer as part of a court settlement involving Philip J. Kratzer, one of the brokers who was investing money for the city when Camarillo lost nearly $25 million in risky investments in 1987.

Camarillo acquired the merchandise several months ago as part of Kratzer’s $50,000 restitution to the city, officials said. Kratzer, of Orange County, had bought the goods with the intention of selling them to discount stores.

The merchandise, which the city sold for $4,150 to the Great American Auctioneers & Liquidators Inc., will be auctioned off at a warehouse in West Los Angeles, said company official Jeff Tanenbaum.

The auction date has not yet been set. The goods are now stored at a garage in El Toro.

Camarillo officials had requested bids from 50 auctioneers, but Great American was the only company that expressed an interest, said Anita Bingham, city finance director.

Bingham said city officials are pleased to get the merchandise off their hands.

Camarillo lost nearly $25 million in 1987 when City Treasurer Donald F. Tarnow borrowed city funds to finance highly speculative investments, which backfired when interest rates rose.

The city has sought restitution from Tarnow, Kratzer and two brokerage houses.