Jan. 4—HARTFORD — Brian Gates' allegedly unauthorized sale of the contents of Spicer Mansion, the boutique hotel he has owned and operated in Mystic, may have run afoul of U.S. bankruptcy law, an official suggested Tuesday during a hearing sought by the trustee for Gates' Chapter 7 bankruptcy.

Judge James Tancredi continued the hearing to an unspecified date after reviewing with Gates his Fifth Amendment Miranda rights against self-incrimination, advising him he could refuse to answer questions and could consult with an attorney, among other things.

"As I've indicated, these are serious claims," which could be brought to the U.S. attorney's attention, Tancredi said.

Gates said he understood the Miranda warning.

Attorney Bonnie Mangan, the Chapter 7 trustee, sought the hearing after learning that Gates had begun selling Spicer Mansion furniture and other items during a publicly advertised estate sale, which began Dec. 17 and continued the next day. In a motion, she had asked the judge to order Gates to stop selling items, return any items that had been removed from the hotel, turn over an accounting of the items sold and relinquish the proceeds of any sales.

Tancredi said he would issue an order Wednesday that would substantially grant much of what Mangan had requested.

Much attention at the hearing, which was attended by more than a half-dozen attorneys representing clients with an interest in the disposition of Spicer Mansion and its contents, focused on Gates' failure to contact Mangan, the Chapter 7 trustee, prior to the auction.

Steven Mackey, the U.S. trustee assigned to the case, cited two provisions of bankruptcy law, one of which he referred to as the "embezzlement statute," in suggesting Gates may have committed "bankruptcy crimes."

Gates has maintained that while he owned Spicer Mansion itself, a separate business entity, Spicer Management LLC, owned the hotel's contents.

The hotel was sold in a foreclosure auction in October, and has since been acquired by Captain's Mansion LLC, an entity whose principal is Walter "Sonny" Glaser, owner of the Steamboat Inn and other Mystic properties.

In a ruling last month in the foreclosure case, a New London Superior Court judge ruled that "the buyer is purchasing the premises in the 'as is' condition."

Brian Wheelin, an attorney for Glaser, said his client has taken title to the hotel and believes he has a right to such "fixtures" as toilets, sinks and staircases, all of which had been tagged for sale. Wheelin said Glaser still could be interested in purchasing other items.

In a twist in the proceedings, an observer who identified himself as Daniel Malchman, of North Stonington, asked to speak, and, after being sworn in, said he has offered an opening bid of $50,000 for Spicer Mansion's remaining contents. Malchman said he planned to open a restaurant in Westerly and was interested in such equipment as "stoves, refrigerators, dishwashing machines, ice machines, coolers."

Malchman, who told a reporter he was "an investor," said he had taken an interest in Spicer Mansion and felt "pain in my heart" over its fate. He told the judge he had visited Spicer Mansion earlier in the day and could report "no vandalism has occurred in that building."

Gates' bankruptcy attorney, George Tzepos, said Gates had shut down the Spicer Mansion hotel business once the foreclosure sale was approved and that he told Gates he could liquidate all assets owned by Spicer Management LLC. He said the cash from the sales was being held in bank accounts.

Asked by the judge if the sale of contents has ceased, Tzepos said, "To the best of my knowledge."

He also assured the judge the hotel was no longer taking reservations and was cooperating with the Chapter 7 trustee.

Gates' personal attorney, Richard Malafronte, said Gates, by holding the estate sale, was trying to turn personal property into cash to pay off debt.

As he exited the courtroom after the two-hour hearing, Gates declined to comment.

b.hallenbeck@theday.com