Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Real estate investor in 10th prosecution admits to bid rigging conspiracy, (Oct 27, 2015)

By Greg Hammond, J.D.

Georgia real estate investor Trent Gaines pleaded guilty today to Justice Department charges that he participated in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions. This marks the tenth prosecution filed by the Antitrust Division, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia as a result of an ongoing investigation into bid rigging or fraud concerning public real estate foreclosure auctions in Georgia.

Gaines admitted that he conspired with others to not bid against each other at public real estate foreclosure auctions in Fulton County and DeKalb County, Georgia. In addition, Gaines admitted that he conspired to use the mail to carry out the scheme to fraudulently acquire title to properties sold at public auctions, as well as making and receiving payoffs and diverting money to other conspirators that should otherwise have been remitted to mortgage holders. The conspirators would then hold a private auction for the selected properties.

“Today’s prosecution demonstrates the division’s continuing commitment to vigorously prosecute domestic cartels and fraud, and to obtain justice for victims of antitrust and fraud offenses,” stated Assistant Attorney General William Baer of the Justice Department’s Antitrust Division. “The guilty plea is the 10th prosecution against defendants for bid rigging at public foreclosure auctions in Georgia.”

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