Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Fourth Georgia real estate investor pleads guilty in foreclosure auction investigation, (Apr 18, 2014)

By Jeffrey May, J.D.

A Georgia real estate investor—Mohamed Hanif Omar—has pleaded guilty in the federal district court in Atlanta to conspiring to rig bids and to commit mail fraud with respect to foreclosure auctions in Georgia. This is the fourth guilty plea in the Department of Justice Antitrust Division’s ongoing investigation into anticompetitive conduct at public real estate foreclosure auctions in Georgia (U.S. v. Omar, Criminal No. 1:14-cr-99).

Omar, an individual who bought properties at the auctions and then rented or resold those properties for profit, was charged with participating in conspiracies to rig bids and commit mail fraud, in a two-count information filed in the federal district court in Atlanta on March 25. The government alleges that Omar, between September 1, 2009, and March 7, 2012, conspired with other bidders not to bid against one another, but instead to designate a winning bidder to obtain selected properties at auctions in Georgia’s Gwinnett County. Omar also admitted to engaging in a conspiracy to commit mail fraud, during that time.

According to the defendant’s plea agreement, the recommended prison sentence is between eight and 14 months. A period of one year of supervised release following incarceration also is recommended. The proposed fine is $2,000 and the recommended restitution is $35,300. The defendant has agreed to cooperate in the government investigation. The plea agreement is subject to court approval.

Attorneys: Karen E. Steiner, Department of Justice Antitrust Division. Jeffrey L. Berhold (Jeffrey L. Berhold, P.C.) for Mohamed Hanif Omar

News: Antitrust AntitrustDivisionNews