Click Here

REALTORŪ Magazine Online: The real estate professional's business support tool.

OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Daily Real Estate News  |  July 1, 2011  |   Investors Admit to Bid-Rigging at Auctions
Eight California real estate investors will plead guilty to a bid-rigging scam in which they purchased foreclosed properties at auctions, federal officials say. The auctions occurred in two San Francisco Bay area counties.

Officials say that from 2008 to 2011, the eight investors conspired--or made payoffs--to not bid against each other for properties sold at foreclosure auctions. Once an investor would buy a property at an artificially low price, the men would hold a private auction to resell the property, splitting the extra money paid by the winning bidder.

"While the country faces unprecedented home foreclosure rates, the collusion taking place at these auctions is artificially driving down foreclosed home prices and is lining the pockets of the colluding real estate investors," said Christine Varney, assistant attorney general in charge of the antitrust division.

Source: “Calif. Investors to Plead Guilty in Bid-Rigging at Public Auctions of Foreclosed Properties,” Associated Press (June 30, 2011)

Read more:
Let the Bidding Begin






Browse all of today's news
E-mail this page to a friend
Give us feedback


Search news
Launch my search
 
Subscribe to news
Subscribe to News
Daily and weekly real estate news, trends, NAR press releases, convention coverage, plus exclusive features and columns.

RSS Feed
Get the Daily Real Estate News delivered straight to your desktop or news aggregator. (New to RSS? Learn the basics here.)
 
 
SHARE YOUR INSIGHTS
How did you sell it?
Tell us how you overcame hurdles to sell a challenging or very unique listing!