Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Former Alabama real estate investor pleads guilty to making false statements during investigation of bid rigging charges, (Sep 18, 2013)

By Jody Coultas, J.D.

Ali Forouzan, of Mobile, Alabama pleaded guilty to one count of making materially false and fictitious statements to an FBI special agent and a Department of Justice Antitrust Division prosecutor investigating bid rigging and other fraudulent schemes in the Alabama real estate foreclosure auction industry, the Department of Justice announced today.

Interviewed with counsel present, Forouzan was aware of the nature of the investigation and knew that he was required to discuss his full knowledge of unlawful bid-rigging agreements and other fraudulent schemes. The interview concerned real estate foreclosure auctions, unlawful payoffs that Forouzan and others made and received in furtherance of such schemes, and secret, second auctions in which Forouzan and others participated.

According to the charge, (U.S. v. Forouzan, 1:13-cr-00194-CG, filed August 23, 2013), Forouzan willfully and knowingly provided false and fictitious information during his interview. Forouzan faced a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.

Nine individuals and two companies have pleaded guilty as a result of the DOJ’s ongoing investigation into the Alabama real estate foreclosure auction industry. A California real estate investor pleaded guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California on September 5. The California investor was the 36th individual to plead guilty or agree to plead guilty as a result of the Justice Department’s investigations in Northern California.

News: Antitrust AntitrustDivisionNews