Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Georgia real estate investors plead guilty to bid rigging conspiracy, (Jan 30, 2015)

By Greg Hammond, J.D.

Mohammad Adeel Yoonas and Kevin Shin pleaded guilty yesterday to charges that they engaged in a conspiracy to rig bids and commit mail fraud with regard to public real estate foreclosure auctions in Georgia. The separate felony charges were filed December 23, 2014, in the federal district court in Atlanta.

Both Yoonas and Shin are accused of conspiring with others to select winning bidders and to not bid against one another to acquire certain properties at public real estate foreclosure auctions in Georgia. They were additionally charged with conspiring to use the mail to fraudulently obtain titles to selected properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would otherwise have gone to mortgage holders, homeowners, and others by holding second, private auctions open only to members of the alleged conspiracy.

The primary purpose of the conspiracies, according to the Antitrust Division, was to restrain competition and conceal payoffs in order to acquire real estate offered at public auction at non-competitive prices. Both Yoonas and Shin pleaded guilty to charges that they violated the Sherman Act, which provides for a maximum penalty of 10 years in prison and a $1 million fine for individuals.

“The criminal actions of the defendants in this case provide a clear example of why enforcement of the Sherman Act remains necessary in maintaining a level and competitive field within commerce,” stated Special Agent in Charge J. Britt Johnson. “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying such financial schemes that attempt to take unfair advantage, to include those targeting the foreclosure auction process.”

The Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division are conducting the investigation, along with assistance from the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia.

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