Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Two more guilty pleas in Georgia real estate auction bid rigging probe, (Jun 30, 2016)

By Jeffrey May, J.D.

As a result of an ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area, 18 individuals have now pleaded guilty or agreed to plead guilty to Department of Justice charges. Michael Stock and Jon Stovall, Jr. are the two most recent individuals charged in the probe to enter guilty pleas for their roles in bid rigging and fraud conspiracies. A total of 20 defendants have been charged in probe (U.S. v. Stovall, Criminal No. 1:16-cr-00131-WSD; U.S. v. Stock, Criminal No. 1:16-cr-00149-WSD).

Stovall was named in a two-count information filed in the federal district court in Atlanta in April. According to the charges, Stovall engaged in a conspiracy to rig bids at the real estate foreclosure auctions in Georgia's Fulton County. The defendant also was charged with participating in a related conspiracy to commit mail fraud. The alleged conduct took place between October 2008 and January 2012.

Stock was charged in May for his role in conspiracies to rig bids and commit mail fraud at public foreclosure auctions in Georgia’s Fulton and DeKalb counties. A four-count information was filed in the federal district court in Atlanta on May 4 in Georgia's Fulton and DeKalb counties. The alleged conduct related to Fulton County auctions that took place between August 2, 2009, and November 1, 2011. The alleged conduct with respect to DeKalb County auctions took place between November 3, 2009, and July 5, 2011.

"These defendants conspired to take money that rightfully belonged to homeowners and lenders," said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division, in announcing the pleas. "Those homeowners and lenders have a right to expect that the properties will be sold in free and competitive auctions. The Antitrust Division will continue to partner with our colleagues at the FBI to aggressively pursue conduct designed to disrupt that process."

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