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/ CBS Chicago
CHICAGO (CBS) — Signs advertising “exceptional high value” have popped up along busy roadways throughout Chicago — maybe even your neighborhood — promising items like Rolexes, “fine jewelry” like diamonds, rubies and emeralds, and “fine art” by internationally known artists like Pablo Picasso, Peter Max and Mr. Brainwash.
The signs do not mention an auction company but do imply the items being sold are government-forfeited, “now released” and “all certified.”
The signs show auction dates and a phone number to call. People don’t learn where the auction is being held until they call. Then they’re put on a list to attend the “public auction.”
Reddit users have posted seeing similar signs in their communities across the country from Virginia to Texas. So what are these events, who is running them, and are they on the level?
Here’s how the auction works. Buyers sign in and then get an hour or so to look at the items up for sale. Auction employees are on hand to give information about the paintings, watches and jewelry. Buyers get to read the certification and appraisal certificates that accompany each item. Then the bidding begins.
CBS News Chicago Investigators attended one such auction held in Northbrook in July 2024 and took video inside the highly secretive event.
An auction employee described one Mr. Brainwash painting as “an original” and showed how the artist authenticated it.
“That’s his signature. 2024 is when it’s made. It’s a brand new piece,” the employee said. “This piece is about $150,000. I added more value on it by getting it certified twice.”
The employee pointed out a second thumbprint on the back of the painting put there by Mr. Brainwash just for him.
“I added more value to this piece by getting it authenticated again,” he said, adding that now the value of the piece was $175,000.
During registration, auction attendees received a 1,100-plus-word “terms and conditions of sales” document that applied whether “read or not.” Among the conditions was the following:
“While descriptions are believed to be accurate, all statements or representations on such matters whether printed in a catalog or made orally are statements of opinion only and are not a representation of facts.”
Three people complained to the CBS News Chicago Investigators about the auction. One woman, Rebecca Simmons, purchased items at an auction held in Northbrook at the Renaissance Hotel in 2021.
“I had never been to an auction in my life,” Simmons said. “I didn’t know anything about auctions.”
Simmons bought three items. Two were lithographs purportedly by Picasso and Renoir, each was described in certification documents as a “rare limited edition.”
She also purchased a diamond bracelet, described in the appraisal documentation as having a replacement value of $21,740.
Simmons spent more than $13,000 including the buyer’s premiums. Later, she got independent appraisals and learned:
Another woman who attended an auction in April 2022 at the Westin Hotel in Lombard bought five items. She met Simmons there, and Simmons suggested she get her items appraised independently, which she did. Her items included a sapphire and diamond necklace, diamond earrings, and two watches. She spent more than $45,000 on all five pieces.
She thought she got a steal because the retail replacement value for the jewelry was valued on documents received at the auction at more than $161,000. Her own appraisals came back with a total replacement value of just over $48,000. While that’s slightly more than what she paid for the jewelry and the painting, it was far less than the value claimed on auction documents.
This woman didn’t want to be identified because she was embarrassed.
“I just made such a huge mistake,” she said.
Even though both women’s receipts indicate “all sales final,” they were both able to return some of their items and get refunds.
At the 2021, 2022 and 2024 auctions in the Chicago area, the company running the show was different each time.
Simmons’ receipt listed an organization called Surplus Auctions. The other woman’s receipt showed the auction was run by Heritage Estate Solutions. The phone number from the 2024 sign led to a website for US Trustee Auctions.
A woman who has worked these auctions before and was behind the jewelry counter last July said: “Vanguard Property Auctions. That’s not us today. Usually, we’re hosted by them. No, it’s US Trustees today.”
According to business records in Virginia, US Trustee Auctions, Vanguard Property Auctions and Surplus Auctions are alternative names for Neoclassic Auctions.
A truck with a Virginia license plate we spotted in the Northbrook hotel parking lot last summer traced back to Bokhara Carpet Palace.
The carpet company and Neoclassic have something else in common besides the state of Virginia. They both have Azam and Anwar Khan listed as managers.
Another auction attendee in 2022 provided us video of the auctioneer that day. It was the same man in the CBS News Chicago video shot last year. Was he one of the Khan brothers? The Investigative team flew to Virginia to try to find the answer.
At the address listed for US Trustee Auctions and the carpet company, no one inside would come out to speak with us. We met a man outside from a neighboring business who identified the mysterious Northbrook auctioneer as Anwar Khan.
CBS News Chicago Investigators then tried to find Anwar Khan at his home. The people at the reception desk identified the same photos as Anwar Khan. We also traveled to his brother’s house. No one answered the buzzer there, so we called and left a message. We are still waiting for a response.
The Khans have a history of auctioneer license disciplinary actions in several states around the country, going back decades to a case in 1997 in Virginia. Back then, at an auction put on by Azam Khan, it was determined the advertisements of items for sale were “false, misleading or deceptive.”
In Illinois, auctioneers are required to be licensed. Neither Anwar Khan nor any of his auction companies have had a valid license since 2016. Neoclassic Auctions does have an active business registration.
Simmons has filed complaints with the Federal Trade Commission (FTC) and the Illinois Attorney General’s Office.
The Illinois department that oversees auctioneer licenses is looking into the case after our inquiries. Heritage Estate Solutions, the company that held the 2022 auction in Lombard, hired an Illinois-licensed auctioneer to be on hand just in case. That man said he did nothing that day and received an $800 check his attorney advised him not to cash.
U.S. Rep. Jan Schakowsky (D-Illinois), from Illinois’ 9th Congressional District, said the FTC has the power to take action already.
“They can basically force a company to stop doing something,” Schakowsky said.
The FTC has authority over companies impersonating or implying a government connection, as many of the auction signs seemingly do with eagle icons, the word “Government” and the red, white and blue colors. The agency also has the power to regulate advertising claims.
In addition, Schakowsky pledged to look into legislation similar to the INFORM Consumers Act as a possible solution. She authored that legislation which took effect in 2023. INFORM requires online marketplaces to verify the identity of online sellers to discourage “criminals and fraudsters” and protect consumers.
“So, I think it’s fair when auctions are done in a hotel, that the hotel who is offering that space would say that they’ve done a little check of the people who are going to be there, find who they are, get a phone number and address,” she said.
A state lawmaker, Senator Laura Fine of the 9th District, represents one of the areas where auctions have been held in Illinois. She provided this response:
“To prevent future instances like these from occurring, we must remain vigilant and look into possible solutions that guarantee the validity of live auctions – such as requiring hotels and rental venues to issue auctioneers permits. I am grateful for CBS News Chicago for raising awareness about this issue and will continue to monitor this situation.”
Renee Jones, a past president of the Illinois State Auctioneers Association, agrees some sort of venue permit requirement could help keep track of who’s operating these pop-up auctions.
“I believe that a permit should be required, and I believe that we need to ask our state legislators and our leaders for more money for investigation,” Jones said.
Police reports were filed in 2021 and 2022 at or after events in the Chicago area. Through the Freedom of Information Act, CBS News Chicago Investigators requested copies of those reports and were denied due to an “ongoing investigation.”
Chicago native. Multiple Emmy & Murrow Regional Award-winning producer. I have been with CBS News Chicago for more than two decades. Outside of work, I love spending time with family & friends and I love the snow!
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©2025 CBS Broadcasting Inc. All Rights Reserved.
