Gurnee cops set to cash in on burglar's nest egg

Known as a prolific burglar by Chicago-area law enforcement, Michael Paulson scored collectible coins and jewelry worth up to $300,000 while stealing from businesses and houses in northern Illinois for about seven months.

The haul included an 1853 Hawaiian dime, buffalo nickels, an 1807 half-cent, diamonds and gold charms.

The 58-year-old former Lake Villa man hid the loot in a stuffed toy bear, under floorboards and in other places in his house, authorities said. Paulson also stole coins and jewelry in Gurnee to build a nest egg to help his wife just before he reported to a four-year prison sentence in March 2013 for attempted burglary in an unrelated Blue Island case.

But his investment tanked when the burglaries were solved by Gurnee investigators in October 2013, and now police might receive up to $115,000 for department-related capital needs by auctioning about 500 of the stolen items.

Gurnee police received state authorization this fall to hold the special silent public auction of any seized property they were unsuccessful in returning to victims of burglaries that likely occurred in northern Illinois in 2012 and 2013. No date has been set for the unusual auction.

Gurnee police evidence manager Chris Saffell said it's been tricky attaching a price to the coins and jewelry that remain securely stored at the department. She's been working with a professional appraiser, who placed an estimated $115,000 value on the items.

“What was explained to me when I took all the jewelry (to a professional appraiser) was it may be worth this today and something totally different tomorrow,” Saffell said. “So, as an example, (the appraiser) put a price of $250 on a ring that two weeks from now may be worth $300 or it may be worth $150. It's like the stock market. It goes up and down, up and down.”

Finding the stash

Paulson received a 20-year prison sentence in October 2015 after entering a plea deal in Lake County court for two burglaries at Harbor Coin in Gurnee. Sgt. Jeremy Gaughan, who worked the case, said Paulson told investigators the coins and jewelry they found in his house usually would not have been there because he quickly sold or melted what he stole.

“When we interviewed him, he said between all the places that he hits in a year, he gets over $1 million,” Gaughan said. “And the only reason he kept the stuff he had in his house this time ... is because he wanted a little nest egg for his wife while he was in jail.”

Investigators sought search warrants for Paulson's house after they acted on a tip and listened to several hundred minutes of recordings between him and his wife on a prison telephone. What they heard included Paulson chatting about gold and silver prices and knowing when to liquidate the stolen goods, Gaughan said.

Paulson's longtime burglary prowess and previous convictions are known to many in Chicago-area law enforcement, Gaughan said. Paulson, who belonged to a locksmith association, practiced safecracking at home and told investigators he didn't wear contact lenses on a job for fear his DNA could be found if they popped out, Gaughan said.

Gurnee police announced in October 2013 they solved two burglaries at Harbor Coin in January and March of that year. They said Paulson received help from his wife, Martha, and criminal associate Robert Boardman of Chicago.

Through search warrants for the Paulsons' Lake Villa house, Gurnee police found firearms and collectible coins stolen from Antique Coffee in Elk Grove Village in November 2012, authorities said. Also found were coins and jewelry taken from the Collector's Gallery in Tinley Park in August 2012, in addition to what was stolen from Harbor Coin.

But many collectible coins and jewelry pieces could not be tied to a specific owner despite investigators' best efforts over roughly three years.

Michael Paulson and Boardman were in different prisons for the Blue Island burglary when Gurnee police cracked the Harbor Coin case. Authorities said the men were free on bail and preparing to surrender for their prison terms when they pulled off the Gurnee burglaries.

Boardman, 61, of Chicago, entered a plea deal on a theft charge and was sentenced to two years in prison for the Harbor Coin case in October 2014, according to Lake County circuit court documents. Records show Martha Paulson, 58, entered a negotiated guilty plea on a theft charge and received 24 months' probation in November 2014.

Paulson's attorney, Steven J. Weinberg of Chicago, declined to comment on the police auction but briefly reflected on his client.

“Michael Paulson was an interesting guy,” Weinberg said, “and his cases were the types of cases movies are made of.”

Auction plans

Gurnee detectives tried to track down burglary victims using police reports related to jewelry store or coin shop burglaries across the Chicago area down to the I-80 corridor. But not all potential victims had documented ownership proof needed to make a claim on the stolen items.

Police are not auctioning everything they seized from Paulson's house. Some tools of the burglar's trade, such as snake cameras and saws, are being used by Gurnee police evidence room employees.

Although roughly $200,000 of the estimated $300,000 in stolen property was returned to the owners, that left 500 unclaimed items that will be auctioned.

A Confederate note, pennies with errors on them, a 1918 Lincoln half-dollar, a pearl necklace and a bone mermaid pendant are among the other offerings.

The specialized nature of the coins and jewelry made the auction necessary, officials said. The Gurnee village board approved Harbor Coin to handle the in-person silent auction because it conducts periodic auctions and has a registry of about 900 collectors. Harbor Coin will receive $500 and a 5 percent commission.

Gurnee Village Administrator Patrick Muetz, Deputy Police Chief Saundra Campbell and Village Attorney Bryan Winter will oversee the process, because of the amount of money involved in the event.

The store will advertise the auction to attract bidders who will need to register, according to its agreement with Gurnee. There will be a two-week viewing and preliminary bidding period before the one-day auction.

Not everyone is on board with a police department receiving proceeds from such an auction.

Ben Ruddell, criminal justice policy attorney for the American Civil Liberties Union of Illinois, said any potential financial incentive for police to seize assets should be eliminated. He said money gained from an auction similar to Gurnee's should go into a statewide fund for distribution to law enforcement agencies as needed.

“It raises questions,” said Ruddell, who co-authored a report released in November on asset forfeiture in Illinois and potential reforms.

Gurnee police declined to comment on Ruddell's position.