Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Another Georgia real estate buyer charged with foreclosure auction bid rigging, (Jul 14, 2016)

By Jody Coultas, J.D.

A real estate flipper has been charged with conspiring to fix bids in Fulton County, Georgia, foreclosure auctions market by the Department of Justice as part of an operation that has charged at least 20 other defendants (U.S. v. Galyon, Criminal No. l:16-CR-247).

Ellis Galyon bought real estate at public auction in Georgia in order to rehab and sell or rent the foreclosed property. According to the charges, Galyon engaged in a conspiracy to rig bids at real estate foreclosure auctions. Galyon and his alleged co-conspirators allegedly (1) agreed not to compete against each other to purchase rigged foreclosure properties; (2) designated which co-conspirator would bid on the rigged foreclosure properties and which co-conspirators would refrain from bidding; and (3) agreed to refrain from or stopping bidding for rigged foreclosure properties.

Galyon also was charged with participating in a related conspiracy to commit mail fraud. The objects of the conspiracy were allegedly, among other things, to fraudulently acquire title to rigged foreclosure properties at artificially suppressed prices; to make payoffs to and receive payoffs from co-conspirators; and to divert money away from financial institutions, homeowners, or others with a legal interest in rigged foreclosure properties. The alleged conduct took place between June 2007 and July 2011.

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