US: Bid rigging in foreclosure auctions

“Otto Gogolin admitted that he agreed not to bid against other real estate investors at certain public real estate foreclosure auctions in an effort to subvert the competitive process. […] conspirators artificially suppressed the prices of properties sold at certain public real estate foreclosure auctions by agreeing not to outbid one another and then made and received payoffs to each other.  Among other methods, the conspirators allegedly held secret “second auctions” of properties they had obtained through rigged bids and then divided the auction proceeds that otherwise would have gone to pay off the mortgage and other secured debt holders and, in some cases, to the previous owner of the foreclosed home.”

Texts from: https://www.justice.gov/opa/pr/georgia-real-estate-investor-pleads-guilty-bid-rigging-public-home-foreclosure-auctions

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