Toll Founders Rang Register's High Notes

Everybody knows that Robert Toll and his brother Bruce, of the legendary homebuilder Toll Brothers (TOL Quote), are experts at building luxury homes. What we didn't know, until recently, is that they also are experts at selling shares.

Big time.

Back at the peak of the real estate market, when real estate agents and Wall Street shills were claiming the good times would just keep going, the Tolls took one look at the future ... and started shoveling shares out the door as fast as they could swing a spade.

In total, they sold nearly $470 million worth of stock in their company between November 2004 and September 2005, filings with the Securities and Exchange Commission show.

Nice timing -- for them.

The people who bought those shares aren't looking so good. The shares began to collapse almost immediately afterward, as the housing market turned tail. At last week's price of just under $30 a share, these outside investors are sitting on losses of $153 million. In other words, they have already lost 34 cents of every dollar they invested. Thirty-four cents.

The details? Robert Toll, the company chairman and chief executive, sold shares between February and July 2005 for a total of $244 million, at an average price -- accounting for a subsequent stock split -- of just under $43. Vice Chairman Bruce cashed out $222 million around the same time, at an average of just under $42.