Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Real estate investor charged in bid rigging in Georgia county foreclosure auctions, (Dec 19, 2013)

By Linda O’Brien, J.D., LL.M.

Real estate investor, Amy James, was charged with conspiracy to rig bids and commit mail fraud at public real estate foreclosure auctions in DeKalb County, Georgia. The charges were filed today in the U.S. District for the Northern District of Georgia, in Atlanta (U.S. v. James, Criminal No. 1:13-cr-506).

According to court documents, James conspired with other investors, between December 2005 and January 2009, not to bid against one another. A winning bidder was designated within the co-conspirators to obtain selected properties at public real estate foreclosure auctions in DeKalb County. James was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions at suppressed prices, to make and receive payoffs, and to divert money to co-conspirators that would have gone to financial institutions and homeowners.

The primary purpose of the conspiracies was to suppress and restrain competition, and to conceal payoffs in order to obtain selected real estate from DeKalb county public foreclosure auctions at non-competitive prices. Generally, when properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties.

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