AUCTIONS RECYCLE DRUG DEALERS' LOOT

RALEIGH -- As it turns out, drug dealers have the same stuff as everybody else.

They own stepladders, microwaves and vacuum cleaners. They have washing
machines, camcorders and 18-speed bikes. They've even got bowling balls and
Barbie dolls.

And when they go to jail, that stuff often comes here.

In the back of a brick warehouse on the outskirts of Raleigh, state workers
auction household goods seized from North Carolina's drug dealers for
failure to pay taxes on their illegal narcotics.

The auctions, held every other Thursday, attract a small but dedicated
group of customers.

Mark Adams, an offset press operator from Benson, comes every couple of
weeks. He has bought stereo amplifiers, a china cabinet and a rocking
chair, among other things.

"They have everything in here," he said.

Under state law, drug dealers must pay tax on their illegal merchandise,
but few do until they are arrested on drug charges. If they can't afford
the bill -- sometimes tens of thousands of dollars -- the tax man takes
their things instead.

Since 2001, the seized goods have been sold in silent auctions run by the
state surplus property agency. During the last budget year, the auctions
raised about $1.6 million, which was distributed to the police departments
that made the arrests.

The law has its detractors, who argue that it unfairly punishes innocent
spouses and children.

Not surprisingly, few auction customers are bothered.

"It's not my fault that they went out and did something they weren't
supposed to do," said frequent shopper Bennie Wilson, 29. "It's my
blessing. I'm a good person, and blessings come in a lot of different ways."

Wilson, who owns a Raleigh power washing business, was looking at a 70-inch
projection television.

A red-haired man with a mustache walked over. He warned Wilson about
bidding on electronics, which are not guaranteed to work. He hinted darkly
that police officers often dismantle TVs looking for hidden drugs.

As the man walked away, Wilson shrugged.

"If it was that bad, do you think he would be in here?" he said.

The bids are sealed, so the competition is largely psychological. Bidders
have to balance the risk of losing with the potential of paying too much.
And the state can reject bids it considers too low.

Most rejections are for bids on jewelry, which must be for at least a third
of the appraised value.

Still, there are deals.

In an auction in July, different bidders won six pieces of jewelry for
about $4,500. The total appraised value was about $13,000, according to
state records. In August, a 65-inch Hitachi television that retails for
about $2,000 was sold for $1,111.

On a recent day, Raleigh nursing assistant Jennifer Sewell looked in a
glass case at a necklace with little elephants for herself and a gold rope
chain for her son. She said the prices are better than at the mall. "I just
bid on what I can afford, and sometimes you're lucky," she said.

Some customers make a business out of the low prices.

Matthew Peterik, 37, bids on most of the motorcycles. When he wins, he
makes any necessary repairs and sells them at a profit at his New Bern
dealership.

"I got this for $1,501," he said, loading a red Buell Blast motorcycle onto
a trailer. "It's probably worth about $1,800."

At least a few customers are bidding to retrieve their own stuff.

"I'm sure they have come in, but we don't recognize these folks," said
Michael Newberne, who manages the auctions.

Still, most customers just want to browse.

Melanie Dale, a Raleigh ballroom dance teacher, came to the warehouse
looking to buy an office desk from school surplus. She stumbled onto the
drug-seizure showroom and was excited by the quality of the merchandise.

"The drug people have a lot more money than the school system," she said.

That doesn't mean they spend it well, however.

There is a glut of "Scarface" memorabilia: posters, framed prints, a
lighted picture and a faux leather jacket referencing the 1983 movie about
a Miami drug dealer.

Some people question the drug dealers' taste.

Showroom employee Brandon Clay shakes his head at the $25,000
diamond-encrusted Jacob & Co. watch, the jacket with red and blue credit
card logos and the gold grills -- dental caps for the front teeth -- with
the word "meat" engraved on them.

"It all symbolizes money," he said. "Money, money, money."

[Sidebar]

If You Go

Attachment: http://www.mapinc.org/temp/spacer.gif Possessions seized from
drug dealers across North Carolina are sold in a Raleigh warehouse.

WHAT IS SOLD? Household goods, including furniture, electronics and garden
tools, are sold in the warehouse showroom. Cars, trucks and motorcycles are
for sale in the parking lot. Jewelry, coins and other collectibles are also
sold by the state on eBay.

WHERE IS THE AUCTION? The warehouse is at 6501 Chapel Hill Road (N.C. 54
West) in Raleigh, 1.3 miles west of the State Fairgrounds.

WHEN IS IT OPEN? The showroom is open 9 a.m. to 4:30 p.m. Monday through
Wednesday, 9 a.m. to noon Thursday. Bids are accepted any time up to 1 p.m.
Thursdays, when the bids are opened.

A list of auction merchandise is at www.dornc.com/taxes/usub

SOURCE: N.C. SURPLUS PROPERTY OFFICE