Fallen flamboyant Austrian financier and former Bermuda resident Wolfgang Flottl has sold his $23-million Tucker’s Town home for $3m less than he paid for it.

The former investor who ran Ross Capital Markets in Bermuda is one of nine people currently charged by Austrian prosecutors over $1.8 billion in failed hedge fund investments.

The 51-year-old, who presided over a local trading empire and has has been referred to as a “hedge-fund mogul”, now lives in Vienna and New York and is due to face a trial in July in connection with a complex set of investments and international currency bets that sank Ross Capital, the Chicago-based commodities and derivatives brokerage Refco, and led to more than $1 billion of losses for Austrian bank Bawag.

Mr. Flottl bought Castle Point, the last house at the end of the Tucker’s Town Road peninsula, shortly after he married Anne Eisenhower, grand-daughter of the late US president, in the late 1980s. However, he left the Island to live mostly in New York in 1995.

Land registration documents show that last summer the Tucker’s Town property, the house and its surrounding 7.97 acres, was sold for $20.8m to self-made billionaire Aubrey McClendon.

Mr. McClendon is co-founder of Chesapeake Energy, the third largest independent producer of US natural gas. He also owns the pro basketball side Seattle SuperSonics and is listed as the world’s 664th richest person in the latest Forbes list, which estimates his wealth at $1.5 billion.

The fate of former Castle Point owner Mr. Flottl now lies in the outcome of the court proceedings in Austria that are looking to unravel a trail of massive investment losses stretching from Austria to the US. Mr. Flottl and six former Bawag bank executives have been charged with embezzlement in connection with funds received by Bawag.

Mr. Flottl has denied that he did anything wrong, and over a number of years has been selling off his personal assets, including hundreds of millions of dollars of paintings, to pay back some of the millions he lost through disastrous currency bets in the late 1990s using Bawag bank money.

Whether the money realised from the sale of the Tucker’s Town property will be used to further pay back the Austrian bank, which his father headed until the early 1990s, is unclear.

A report by the Wall Street Journal in January said Mr. Flottl had told prosecutors his assets were now down to a Manhattan apartment worth $650,000, while he and Bawag are fighting over the ownership of his Bermuda estate.

At the height of his success he was a regular face on the black tie circuit around New York and snapped up expensive works of art by the likes of Cézanne, Van Gogh, Renoir and Picasso.

By the mid-1990s the Austrian bank Bawag had lent as much as $2 billion to a number of Caribbean entities connected with Mr. Flottl.

The resignation of Mr. Flottl’s father as CEO of Bawag led to a pledge by his replacement Helmut Elsner that all future dealings would comply with banking standards. But a drop in Bawag’s earnings within a year led to Mr. Elsner approaching Mr. Flottl and asking him to resume his trading through the bank’s funding.

If Mr. Flottl could pull off successful hedge fund investing using the bank’s funds, the bank would profit because the money lent to Mr. Flottl attracted a higher interest rate, however they were unsecured loans. If the investments sank and the money could not be repaid Bawag would have no right to go after Mr. Flottl’s assets, according to a prosecutor.

Hundred of millions of dollars were lent. In 1998 a “big bet” on a fall of the Japanese yen against the US dollar went wrong for Mr. Flottl.

Over the space of six days his investments were down to almost nothing. During a short period that year he lost $759m, including $640m borrowed from Bawag.

Fearing that Bawag’s massive losses might be revealed the bank lent Mr. Flottl another $90m so his high-flying, successful profile was not damaged, and another $18m was lent to keep his private jet flying.

Mr. Flottl started selling off his prized art work to pay back the money he had lost the bank.

It was around this time that Bawag and Refco went into a joint venture.

An Austrian National Bank audit has since revealed that Bawag’s Mr. Elsner tried again to recoup the bank’s losses by enlisting Mr. Flottl to work his trading and investment magic and gave him another $400m on an understanding that profits made would be shared.

Within months Mr. Flottl had lost most of the money.

A number of schemes to conceal the losses suffered by Bawag and Refco was partially successful, but by 2005 the extent of the losses — put by some estimates above $2 billion — became clear and the losses of Mr. Flottl also became public.

The resulting court case in Austria is set for July.