Treasury to Auction Forest Hills Home in October
The federal government will auction a Queens property seized after a high-profile racketeering conviction.
Updated on Oct. 6, 2026 in Financial Crime
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The US Treasury Department will hold an online auction on October 23 for a Forest Hills home previously owned by brothers convicted of a racketeering conspiracy. The federal government, which seized the home as an asset derived from criminal activity, set the opening bid at $900,000.
Why it matters
The auction follows a lengthy legal process that culminated in a 2023 ruling from the US Court of Appeals for the Fourth Circuit authorizing the sale of the government's two-thirds interest in the home. The court ordered the forfeiture because the asset was traceable to the criminal racketeering activities of the former owners.
The property at 110-37 69th Ave. is scheduled for an online federal auction with a required $150,000 participation deposit. The federal government holds a two-thirds ownership stake, while Irina Alishayeva retains the remaining one-third share.
The players
US Treasury Department
This federal agency is responsible for managing and disposing of assets forfeited through criminal investigations.
Eduard Bangiyev
He is a former owner of the Forest Hills property who served a 96-month prison sentence following his conviction for racketeering.
Arkadiy Bangiyev
He is a former owner of the Forest Hills property who received a 108-month prison sentence for his role in a racketeering conspiracy.
Irina Alishayeva
She maintains a one-third ownership interest in the seized property alongside the federal government.
US Court of Appeals for the Fourth Circuit
This federal judicial body issued the 2023 ruling that permitted the government to sell its interest in the forfeited home.
The details
The 3,572-square-foot residence, situated on a 5,000-square-foot lot, was purchased by Eduard and Arkadiy Bangiyev in 2003 for $850,000. Potential buyers can attend scheduled public inspections of the property on October 11 and October 18.
Timeline
The Bangiyev brothers originally purchased the home in 2003.
The brothers pleaded guilty to a RICO conspiracy charge in January 2015.
Eduard and Arkadiy Bangiyev were sentenced to prison in September 2015.
A federal court authorized the sale of the property in 2023.
The online federal auction is scheduled for October 23.
Legal Context
This auction follows procedures established under the Racketeer Influenced and Corrupt Organizations (RICO) Act, which allows the government to seize assets acquired through criminal enterprise. This process is a standard mechanism in federal law enforcement to reclaim proceeds derived from illicit activities.
Local residents in Forest Hills may notice increased activity at the site during the scheduled property inspections on October 11 and October 18. Potential investors must be prepared to submit a $150,000 deposit to participate in the upcoming federal auction.
The takeaway
This auction highlights the long-term financial consequences for individuals convicted of participating in large-scale criminal conspiracies. Prospective buyers should be aware that purchasing government-seized assets often involves complex legal requirements and significant upfront deposits.
Further reading
For more information on the legal processes surrounding asset seizure, visit Financial Crime.
Source note: This article includes information reported by New York Post.
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