Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Another Georgia real estate investor charged in foreclosure auction probe, (Sep 29, 2015)

By Jeffrey May, J.D.

The Justice Department's investigation into anticompetitive conduct at Georgia foreclosure auctions has netted another investor. Yesterday, Morris Podber, an individual who purchased foreclosed properties at public auctions in Georgia for the purpose of rehabilitating and selling or renting them, was named in a four-count information filed in the federal district court in Atlanta (U.S. v. Podber, Criminal No. 1:15-cr-00360-WSD).

According to the filing, Podber participated in conspiracies to rig bids and commit mail fraud at the real estate foreclosure auctions. The challenged conduct took place in Georgia's DeKalb County between October 5, 2006, and August 22, 2011, and in Fulton County between July 2, 2005, and August 3, 2010. Podber and conspirators did not bid against each other for selected properties and instead designated a winning bidder, the government alleged. The defendant also was charged with conspiring to commit mail fraud in carrying out the bid rigging conspiracies.

The charges against Podber are the first in five months in the Georgia foreclosure auction probe. David Wedean, another real estate investor, was charged in April with participating in conspiracies in Fulton and DeKalb counties. He pleaded guilty in June. A total of seven individuals and one company have pleaded guilty to the charges filed over the last two years as a result of the investigation.

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