'The Ruby of the Rockies'

A unique village, originally developed as a turn-of-the-century "Camelot," Redstone is so charming and picturesque that visitors say it looks
like an illustration of a perfect little mountain village.

A Natural Historic District and a magical artists' colony, Redstone has art galleries, antique shops, and boutiques set amidst pristine high
mountain wilderness. It's the perfect destination whether you are celebrating a wedding or other special occasion, or simply in need of a
refreshing getaway.

The lush, spectacular scenery of Redstone--from the snow-capped mountains to the crystal-clear river--rejuvenate and nourish the spirit.
Redstone sits on Colorado's awestriking West Elk Loop Scenic By-Way, surrounded by dramatic red cliffs, on the edge of the White River
National Forest which is home to abundant wildlife.

                                                                           History of Redstone

Known as "the Ruby of the Rockies," Redstone was developed by turn-of-the-century industrialist John Cleveland Osgood whose coal
empire spurred construction of the Crystal River Railroad and Redstone's historic dwellings. Osgood constructed 84 cottages and a 40 room
inn, all with indoor plumbing and electricity for his coal miners and cokers, as well as modern bathhouse facilities, a club house with a library
and a theatre, and a school. Most of these craftsmen-era Swiss style cottages are still used as homes in Redstone.

After marrying his second wife, Alma Regina Shelgrem, Osgood undertook an experiment in "enlightened paternalism." He had 84 cottages
constructed to house coal workers who had families and a 40 room inn built for his bachelor employees.

The facilities all featured indoor plumbing and electricity which were luxuries at the time. Modern bathhouse facilities, a club house with a
library and a theatre, and a school were also provided for the cokers and their families.

Osgood's coal empire spurred the construction of the Crystal River Railroad and Redstone's historic dwellings. But it was Alma who made the
greatest impression on Redstone's early 20th Century inhabitants. Rumored to have been a Swedish countess before emigrating to the
United States, and possessed of a notable sense of noblesse oblige, Alma became known as "Lady Bountiful" for the generosity she showed
toward the coal workers and their families.

And it was for Alma that Osgood constructed "Cleveholm Manor," the opulent 42-room Tudor-style mansion now commonly referred to as "the
Redstone Castle." By the time Cleveholm was completed in 1902, the estate included servants' quarters, a gamekeeper's lodge, a carriage
house, and a greenhouse.

                                 Redstone Castle has a haunted past

By Al Lewis
Denver Post Business Columnist  
Friday, March 18, 2005

Whoever places the winning bid for the Redstone Castle on Saturday should know this: You won't be alone.

The historic manor is haunted.

"I can attest to that," said Sue McEvoy.

For the past nine years, McEvoy has been curator for the castle in the mountains above Carbondale.

She says guests have reported strange incidents. There's also a legend that spirits hover in a secret passageway that connects the nursery
to the servant's quarters. But what spooks McEvoy, who has lived on the property for six years, is the ghostly cigar smoke.

A turn-of-the-century robber baron, John Cleveland Osgood, completed the 42-room English Tudor manor in 1902 for the then-outlandish
sum of more than $2.5 million.

He reportedly wanted to impress fellow industrialists such as J.P. Morgan, Jay Gould, John D. Rockefeller and President Teddy Roosevelt.

Osgood, who made his fortune in coal and steel, died in 1927. But McEvoy thinks he's still floating around. She believes she has smelled his
cigar smoke.

"The door to his bedroom was closed, the windows were open, I could smell cigar smoke, but no one else was on the property," she said.

The Internal Revenue Service will auction the castle Saturday. IRS spokesman John Harrison said more than 40 people have qualified to bid.

The IRS seized the property in March 2003 from Leon and Debbie Harte of Greeley and Leon's business partner, Norman Schmidt of Denver.
At the time, Leon Harte and Schmidt were suspects in an alleged Ponzi scheme said to have duped 1,000 victims out of $56 million.

The IRS took their property before they were charged.

"Seize early and seize often," Harrison said. "If you wait too long, the money is going to be gone."

The IRS hopes to raise about $8 million from the sale of the castle and a related property. The IRS also seized $17 million in cash and
NASCAR racing cars valued at $2 million. All of this property will be used to repay victims.

Several defendants involved in the scheme are awaiting trial in September. Many of them, including Schmidt, are in prison. Leon Harte died of
a heart attack June 1, 2003, while under investigation. He was 48.

Harte smoked, drank and partied heavily. His life's pressures accelerated when he bought the historic property.

He had envisioned the castle as a party palace with rock concerts on the front lawn. He sold $100 tickets to a Halloween party, but the turnout
was disappointing, and party attendees say he was drunk and he misbehaved.

His wife filed for divorce. And when his castle was seized, the end was near.

"A man's home is his castle," said Colorado Division of Securities commissioner Fred Joseph, whose office assisted the feds in their
investigation. "In this case, it seems that a man's home is his hassle."

In March 2004, the feds unveiled a 57-count grand jury indictment of Schmidt and his wife, Jannice, and Charles Franklin Lewis of Littleton.
Norman Schmidt, Lewis and Harte were considered the ringleaders of the scheme. Others indicted were George Beros of Shaker Heights,
Ohio, George Alan Weed of Benton, Ill., Michael Duane Smith of Colbert, Wash., and Peter Moss of London.

These defendants allegedly told investors they could get returns as high as 400 percent investing in prime bank notes. "Find out the secrets
of the wealthiest people in the world!" they boasted in brochures and sales pitches.

"We want people to understand that there is no such thing as a prime bank note," Harrison said. "And there's no such thing as 400 percent

There's also no such thing as ghosts. But they reportedly haunt Redstone Castle anyway.

Maybe Osgood and Harte are having a smoke together right now.

Or maybe some future guest will see the specter of a heavyset man, clutching his heart with one hand and reaching out for cash with the

"Give me your money," he'll say in a ghastly, bloodcurdling voice. "And I'll get you 400 percent return."

Al Lewis' column appears Sundays, Tuesdays and Fridays. Reach him at 303-820-1967 or


              Mystery buyer reveals identity

March 25, 2005

ASPEN (AP) - The top bidder on the Redstone Castle said he plans to refurbish the historic mansion and resume running it as a bed and

Ralli Dimitrius, a Hermosa Beach, Calif., resident and part-time resident of Aspen, acknowledged on Wednesday he was the mysterious top
bidder in the weekend auction for the century-old Tudor mansion.

"I'm not hiding it," he said. "I'd love people to know that I've bought it. I'm interested in restoring it and keeping it the way it is."

Dimitrius had the winning bid, but he created a stir when he left the Glenwood Springs auction room on Saturday without identifying himself,
leaving Redstone residents to wonder whom the mystery buyer was and what his plans were for a building many consider the soul of the town.

Redstone preservationist Peter Martin ran in to Dimitrius over lunch on Tuesday, but only came away with Dimitrius' first name. Martin filed a
freedom of information request with the Internal Revenue Service in attempt to learn his full name. Now that request is no longer needed.

"I'm sorry if people thought it was mysterious," Dimitrius said. "I was kind of embarrassed and shy."

Dimitrius agreed to buy the historic Cleveholm Manor for $4 million at a public auction on March 19, although the sale may not be final for
more than a month.

Dimitrius said he doesn't plan to make a public announcement, but talked with Martin at the Redstone Inn on Tuesday and assured him that
he is committed to Redstone.

The owner of a cattle farm near Carmel, Calif., Dimitrius has owned an 1888 Victorian home on Aspen's Main Street since 1970, and said he
also owns a home in France. Dimitrius said he keeps his office in Pasadena but lives in Hermosa Beach.

His ex-wife, Jo-Ellan Dimitrius, is a high-profile jury consultant who worked in the O.J. Simpson murder trial and was requested by Kobe
Bryant's attorneys to work in his sexual assault case.

Dimitrius said he plans to resume using the 42-room mansion as a bed and breakfast and restaurant. He will keep an apartment for his own
use, but won't make it his residence.

While past lodging businesses have floundered at the castle, Dimitrius said he wasn't set on making money there.

"I didn't buy it for the bottom line," he said. "I bought it because I like it. If it can pay, that's good. If it can't, I'll help it."

Dimitrius said he may consider developing part of the property, which includes a carriage house and stable, but he had no immediate plans.

Historic preservationists have estimated the historic mansion, built by Redstone founder John Cleveland Osgood, could cost millions to
renovate. Because of the needed renovations, he said, Dimitrius couldn't speculate when it might open.Historic preservationists have
estimated the historic mansion, built by Redstone founder John Cleveland Osgood, could cost millions to renovate. Because of the needed
renovations, he said, Dimitrius couldn't speculate when it might open.

Glenwood Springs Post Independent


          Top bid for castle is $4 million

Sunday, March 20, 2005

Unidentified Pasadena man wins auction

By Nancy Lofholm
Denver Post Staff Writer

Post / Ed Kosmicki

IRS investigator John Harrison stands in the balcony of the great room of the Redstone Castle, which was auctioned off Saturday. The IRS
seized the storied residence three years ago because it was purchased with stolen money.

Glenwood Springs - It took 11 minutes and $4 million Saturday for a Pasadena, Calif., man to become the new lord of a castle that is stuffed
with antiques and a colorful past.

It also comes with a leaky roof, crumbling plaster and quite a history.

The buyer of the Redstone Castle, bidder No. 1725, beat out seven others.

Not wanting to be identified, he quickly left the auction with a small entourage after his high bid got the nod from IRS investigator John
Harrison, ending the latest saga for the 108-year-old castle.

The new owner didn't say what he plans to do with the castle, Harrison said.

"It's nice to see this castle no longer be an orphan," said part-time Redstone resident Dr. Walter F. Stanaszek, who paid $480,000 for a
Redstone Victorian home that was sold after the castle.

The 42-room castle, its carriage house and stable, as well as the Victorian home, were seized three years ago by the IRS because they were
purchased with stolen money. The former owners were involved in an international scheme that bilked 1,004 investors out of $56 million.

The IRS also seized NASCAR racing cars and $17 million in the investigation.

The Saturday auction brought about 75 people to the Glenwood Springs Community Center to watch rapid-fire bidding for the castle, which is
listed on the National Register of Historic Places.

Five online would-be buyers were placing their bids from Alabama, California, Georgia, Florida and Colorado. The three other bidders were in
the room clutching their neon-green registration cards.

"This is just another castle chapter. I bet Mr. Osgood is chortling," said Ken Johnson, a former castle owner who came to the auction because
he is writing a book about the castle and John Cleveland Osgood.

Osgood was the coal baron who at the turn of the 20th century built the castle, where he entertained the likes of John D. Rockefeller, J.P.
Morgan and President Theodore Roosevelt.

Osgood called the castle Cleveholm Manor, as part of a utopian industrial village he developed for the workers in his coal mill.

When the coal market collapsed, the castle was empty for years before it became an on-again-off-again hotel and site for weddings and
other events.

At the auction Saturday, dozens of Redstone residents seemed as tense as the bidders because the fate of their small town is so tied to the

Their nervousness will have to continue. The buyer has five days to add another $200,000 to his original $200,000 in earnest money and up
to 45 days to close on the property.

If the buyer backs out, then the second-highest bidder, a man from Aspen, will get a chance to buy the castle.

Redstone residents take comfort in the fact that the castle itself can't be developed, torn down or substantially changed. A coalition of
historical societies created an easement agreement the new owner will have to obey.

Residents said they are heartened that the castle may now get the extra care it has needed.

"These buyers came in with their eyes wide open," said Peter Martin, attorney for the Redstone Historical Society.

"I assume we'll be glad to be working with them."

Staff writer Nancy Lofholm can be reached at 970-256-1957 or .,1413,36%257E53%257E2772652,00.html

Previous articles:

The Redstone Castle is up for auction

Saturday, March 19, 2005
2:00 p.m

Located on 150 acres only 45 minutes from Aspen, 30 minutes from Glenwood Springs and 15 minutes above Carbondale on Hwy. 133.
Castle access is only available thru scheduled tours.

Join us and step back in time...

Industrialist John Cleveland Osgood came to Colorado in 1882, and some say he hasn’t left.

Osgood and his second wife, Alma, are said to make the occasional trip from beyond the grave to the Redstone Castle, the enormous home
they occupied during the rise of Osgood’s Redstone coal mining operation.

Cleveholm Manor, the 42-room Tudor-style mansion that Osgood built as the fifth wealthiest man in the country, was completed in 1902. After
purchasing a mining claim in the Crystal River Valley for just $500, Osgood set up the entire town of Redstone as a community for the men
who would mine the land’s coal.

Hundreds of people still tour the castle each year, to hear the story of Osgood, his succession of three wives, the dissolution of his coal
empire and the continuing saga of the castle.

Someone with such a strong tie to a place may leave behind an impression: Castle caretaker Sue McEvoy says John Osgood loved cigars,
and she and many others have smelled cigar smoke during moments alone in the mansion.

Osgood’s first wife, romance writer Irene, died before the castle was completed. His second wife, Alma, was known as “Lady Bountiful” by
Redstone villagers because of her generosity. During the castle’s time as a lodge, some guests reported smelling perfume or the scent of
lilacs in winter when they stayed the night in Alma’s room.

When the mansion was put on the market in the 1980s, potential buyers brought in psychics to probe for evidence of paranormal activity.
McEvoy says the “experts” didn’t seem to find much, although there were reports of a “presence” in the Teddy Roosevelt Suite.

Even so, McEvoy says workers at the castle believe John Osgood and Alma come back to check on the mansion they lost.

“I have often had people on the tour who said their mother, aunt or grandmother worked for the owners in decades past,” McEvoy says.
“Once a woman told me about a housekeeper who saw someone in the mirror in Lady Bountiful’s room, and refused to ever come back.”

McEvoy tries not to think about the strange tales while walking through the darkened mansion, especially when the eyes of John Cleveland
Osgood’s portrait in the entry hall follow her up the stairs.

“I have a certain respect for this house,” she says.
Toll Free (800) 748-2524

The Aspen Times, Saturday-Sunday, November 1-2, 2003


Redstone vicinity
National Register 06/28/1971, 5PT.553.2

Also known as Cleveholm, the sprawling forty-two room mansion is located approximately one mile south of Redstone. Designed for John
Cleveland Osgood, under the direction of the New York architectural firm of Boal & Harnois, the residence was completed in 1903.
Reminiscent of a 16th century Tudor manor house in its overall appearance, towers, turrets, and oriel windows are among the most
interesting architectural details. First and second story walls are of cut and coursed red sandstone, while the third story and gable ends are
covered with wood shingles. Osgood first traveled west in 1882 and found his riches in Colorado coal fields. He founded the Colorado Fuel
Company, which he later merged with Colorado Coal and Iron Company to form the powerful Colorado Fuel & Iron Company, commonly
referred to as CF&I.

0082 Redstone Blvd.
National Register 03/27/1980, 5PT.553.1

The inn originally functioned as part of the model community built by John C. Osgood for the workers associated with his nearby coke
producing and coal mining operations. The 2½-story wood frame building was constructed in 1902 for the primary purpose of housing
bachelor miners in somewhat elegant surroundings. A large square clock tower, which incorporates a red sandstone base; extensive cross-
timbering; and a steeply pitched pyramidal roof, rising a full story above the apex of the building's roof are among the distinctive architectural


                             More stories and info:

Online auction of Redstone Castle will be a first

Friday, February 11, 2005
By Nancy Lofholm
Denver Post Staff Writer

The historic Redstone Castle will be sold next month in a groundbreaking online IRS auction to help recoup losses in Colorado's largest-ever
fraud recovery case.

The red sandstone castle, which was built in Pitkin County in 1902, will be auctioned March 19.

The auction will originate from Glenwood Springs, but bidders from across the globe will be able to take a crack at owning the antique-filled
castle so long as they have Web access and a $100,000 deposit.

John Harrison, a spokesman for the Internal Revenue Service, said it will be the first IRS auction of its kind in Colorado, and could be an
agency first. "We're hoping to get interest from around the world," he said.

The castle was built along the Crystal River by steel and coal baron John Cleveland Osgood. But bust followed boom, and Osgood
abandoned the luxury castle. It sat empty for years until it landed in private hands in the 1950s and was operated as a hotel into the 1990s.

In 1997, a Canadian company bought the castle but defaulted on the loan. The property was then sold at foreclosure auctions in 1999 and
2000 - the last time to the buyers who landed it in the middle of troubles with the federal government.

The IRS seized the property in 2003 in connection with an investment scam that provided money for the castle purchase.

Harrison said the IRS opted to auction the castle because it is charged with recouping the highest amount for the victims. The agency hopes
to beat the $6.3 million sale price of 2000.

Overall, the IRS hopes to recoup about half of the $56 million taken in the scam. That money will include the castle sale and the sale of $2
million worth of race cars the defendants also purchased. The IRS also seized $17 million in cash.

The castle is on state and national historic registers and last year was named one of the state's most endangered places by Colorado
Preservation Inc.

One preservation group floated the idea of saving the castle by selling off portions of the 159-acre property.

The IRS has been working out details of a historical easement, but Harrison said it is possible a new owner could develop part of the property
out of the direct view of the castle.

Debbie Strom, a partner at the nearby Redstone Inn, said saving the historical integrity of the castle is a top concern. The castle is a standing
lesson on the West's boom-and-bust history, she said, and noted that the history lesson isn't over yet.

"The castle is like living history," she said. "We don't know what the next chapter will be."

For more information, visit

Staff writer Nancy Lofholm can be reached at 970-256-1957 or .


In 2000 Debbie and Leon Harte purchased the castle for $6 million. But three years later, after an extensive investigation, the Internal
Revenue Service seized the castle. Investors in the Harte’s Tranquil Options, LLC, claimed the Hartes had promised returns but instead used
their money to buy the lavish castle.

The fate of the castle, seized by the IRS in 2003, remains undecided. The historic mansion, formally known as Cleveholm Manor, is an
important tourist draw in tiny Redstone, and residents there hope public access to the castle can be maintained.

Preservation enthusiasts fear the stately castle could be sold at auction to the highest bidder and closed to the public, or its elegant
furnishings sold off in piecemeal fashion.

The IRS allowed tours and weddings at the castle last summer and intends to do so again this year, said the IRS’ Harrison.

Its ultimate disposition is a pending matter in U.S. District Court, which could order that the castle be sold to help pay restitution to the victims.

“We have some people who have submitted written offers to purchase the property,” Harrison said.

The castle was named to Colorado’s 2004 Most Endangered Places list to publicize its uncertain future. Colorado Preservation Inc. compiles
the list annually to call attention to historic sites that are in jeopardy.

Coal baron John Cleveland Osgood built the lavishly furnished, 42-room Tudor mansion between 1899 and 1902. It sits on a hill above what
was his industrial town of Redstone. Osgood entertained such notables as John D. Rockefeller, J.P. Morgan and President Theodore
Roosevelt at the castle.

Aspen Times - March 17, 2004


Bidder's Conference to be held on March 11th, 2005 at Redstone Inn

in conjunction with IRS-CI
Terms of Sale | Floorplan | Virtual Tour
Please Check Back Here to Download it for FREE, or for more information about purchasing a CD.
Additonal Photos: Click Here
Saturday, March 19, 2005
2:00 p.m.

Auction Location
The Glenwood Springs Community Center
100 Wulfsohn Road
Glenwood Springs, CO. 81601 980-384-6301

Directions to this Auction Site are: From Denver/Vail, Take 1-70 West to the West Glenwood Springs Exit #114. At Stop Sign, turn Left onto
Midland Avenue. Continie on Midland for approximately 1.5 Miles, and turn Right into the Community Center.

Saturday, March 19
1:00 - 2:00 p.m.

Property Preview
March 5, 6, 10, 11, 12,
14, 18 & 19
By Appointment Only.
*Note: In order to schedule an appointment a letter of credit must be sent to EG&G 7723 Ashton Avenue, Manassas, Virginia 20109, Attn:
Jessica or faxed to 703-361-3671 Attn: Jessica.

$100,000 cashier's check
(made payable to EG&G Tech Srvcs Inc/ USCS)

Cashier's checks made payable to the bidder's name CANNOT be accepted

Auction Location:

The Glenwood Springs Community Center
100 Wulfsohn Road
Glenwood Springs, CO. 81601 980-384-6301

Redstone Castle
58 Redstone Boulevard
Redstone, Colorado 81662

Furnishings & Antiques included with the castle parcel.

A Bidders Conference will be held March 11, 2005 at the Redstone Inn, Redstone, CO. at 7:00 p.m.

The properties will be offered individually like listed above and then in any grouping or choice that the bidders prefer.  The highest offer will
then be presented to the Government for their approval. Bidders wishing to bid on multiple properties should bring checks in increments.
Checks must be cashier's checks made payable to EG&G Tech Services Inc/USCS

Download: Online Bidder Registration - Coming Soon!

Formerly known as Cleveholm Manor, built in 1897 on 72 acres,
15 Bedrooms, 11 Baths, Library, Maids Room, Nursery, Coachman Quarters,
Dormitory, Walk-in Vault, Game Room, Wine Cellar, Elevator,
Armory. Frontage along the Crystal River, and More!

Questions about this property?

Sale #05-66-895


If you cannot attend the auction in person, you will be able to bid on all lots in this auction online. Via a simulcast, online bidders will be able
to bid competitively with the bidders physically at the sale in real time. All online bidders must pre-register by visiting our website at http://www. and clicking on the simulcast auction registration link. You will be prompted to review the Terms
and Conditions of Sale and agree to said Terms in order to establish a user name and password. To complete the registration process, you
must print a copy of the registration form and mail it with the appropriate deposit per property as follows made payable to EG&G Tech Srvcs
Inc/USCS. Cashier’s checks made payable to the bidder’s name CANNOT be accepted:

The Redstone Castle and 72 Acres:   $100,000 cashier’s check
The Carriage House and 36 Acres:     $50,000 cashier’s check
The Stable Complex and 42 Acres:     $50,000 cashier’s check
The Victorian-style Home:                     $25,000 cashier’s check

Please note that Internet bidders will be required to register online no later than Monday, March 14, 2005, and the appropriate deposit per
property as stated above must be received no later than Wednesday, March 16, 2005, at the following address: EG&G Technical Services,
Department of the Treasury Seized Real Property Support, 7723 Ashton Avenue, Manassas, VA 20109, Attn: Real Property Sales.

At the conclusion of bidding, if the winning bid comes from an online bidder, an e-mail will be sent to the successful bidder confirming the bid
amount. The successful bidder must acknowledge receipt of the notice and supply the information requested to validate the bid acceptance.
This acknowledgement confirms the price offered by the bidder and is subject to acceptance by the Government. Final payment and closing
will be in accordance with the Terms and Conditions of Sale as set forth herein. Unsuccessful internet bidders’ deposits will be sent to the
bidders by certified mail or overnight delivery service within five (5) business days after the sale.

Copy and paste this link for a virtual tour of the Redstone:

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