Most Expensive Homes in Erie County Raided

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By John Borsa

Story Published: Jul 1, 2009 at 7:25 PM EST

Story Updated: Jul 1, 2009 at 7:32 PM EST

FBI agents spent the day removing bags and boxes of evidence from two Town of Hamburg homes that became the most expensive in Erie County history when they were sold last year.

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Eyewitness News has learned the homes are in foreclosure after the owner, hedge fund Phantom Holdings One LLC, failed to make a $1 million mortgage payment in May.

Bruce Zetfel, attorney for the homes' previous owner who mortgaged a portion of the $6.6 million sale price for the two properties, said Michael Wilson, operator of the hedge fund, missed two $500,000 payments.

Zetfel said he was not aware of any criminal investigation by the government.

But after SWAT team members raided the home early Wednesday morning, an FBI spokesman confirmed a probe, but would not comment as to its focus.

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