According to the Department of Justice, Mississippi real estate investor Ivan Spinner became the sixth real estate investor to plead guilty in connection with an ongoing investigation into bid rigging at public real estate foreclosure auctions in Mississippi.
Spinner is accused of conspiring with others not to bid against one another for selected public real estate foreclosure auctions in the Southern District of Mississippi between 2010 and 2015. Co-conspirators made and received payoffs in exchange for their agreement not to bid. A news release from the U.S. Attorney’s Office further detailed the operation.
“The Department stated that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. According to court documents, these conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.”
The charges violate the “Sherman Act”, and Spinner could face up to 10 years in prison and a $1 million fine. The DOJ also included an alternative method for determining the financial penalty in this case
“The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.”
Law enforcement officials, including Makan Delrahim, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division, are glad that this case continues to bring suspects to justice.
“With today’s guilty plea, the Antitrust Division continues to hold those individuals accountable who corrupt the competitive process for their own financial gain,” said Makan Delrahim, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Division and its law enforcement partners remain committed to prosecuting bid rigging and restoring competition at these auctions in Mississippi and across the United States.”
U.S. Attorney Mike Hurst, and Special Agent in Charge of the FBI in Mississippi Christopher Freeze both echoed Delrahim’s statements.
“Individuals who defraud our home foreclosure process harm us all,” said United States Attorney Mike Hurst for the Southern District of Mississippi. “Our prosecutors and investigators should be commended for continuing to pursue those who violate our antitrust laws simply to enrich themselves.”
“Today’s guilty plea is another example that those who participate in bid-rigging in Mississippi will be brought to justice,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “Bid rigging is a serious offense which undermines the integrity of the public systems designed to protect our citizens. The FBI continues to participate with the Antitrust Division investigating allegations of fraudulent bidding during public auctions in our state.”
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
