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By Erin Baldassari0 | Bay City News Service
Five real estate investors accused of rigging bids at foreclosure auctions in San Francisco and San Mateo counties have been indicted in federal court in San Francisco, according to the U.S. Attorney’s Office.
The indictment filed Tuesday charges Northern California real estate investors Joseph Giraudo, Raymond Grinsell, Kevin Cullinane, James Appenrodt and Abraham Farag with participating in conspiracies to defraud mortgage holders and others through bid rigging and mail fraud.
Beginning in August 2008 and continuing through January 2011, prosecutors allege the defendants rigged dozens of public auctions in San Mateo County and three of the five men — Giraudo, Grinsell and Appenrodt — engaged in bid rigging in San Francisco County as well.
The defendants allegedly agreed to refrain from bidding or to stop bidding on certain properties that were for sale at public auctions, the indictment alleges. They would designate which among them would win certain properties and then buy those properties at an artificially deflated price.
Those who didn’t bid on the properties received payoffs, prosecutors said.
“These defendants corrupted the public foreclosure auctions in San Mateo and San Francisco counties, and they did so to line their pockets with money that rightfully belonged to mortgage holders and others,” Deputy Assistant Attorney Brent Snyder said.
To date, 47 people have agreed to plead or have pleaded guilty to charges of bid rigging and fraud at public foreclosure auctions in Northern California as part of the U.S. Attorney’s Antitrust Division’s criminal enforcement program.
In 2009, President Barack Obama established the Financial Fraud Enforcement Task Force, charged with investigating and prosecuting financial crimes.
Each bid rigging violation, which is prohibited under the Sherman Antitrust Act of 1890, carries a maximum penalty of 10 years in prison and a $1 million fine. Judges also have the option of imposing a fine that is twice the gain derived from the crime or a fine that is twice the loss suffered by the victim, according to the U.S. Attorney’s Office.
Each count of mail fraud carries a maximum sentence of 20 years in prison and a $1 million fine, according to the U.S. Attorney’s Office. The government can also seek to forfeit the proceeds earned from participating in the mail fraud schemes.
Anyone with information about bid rigging schemes or fraud related to public foreclosure auctions is asked to contact the Antitrust Division’s San Francisco office at (415) 934-5300, or the FBI’s tip line at (415) 553-7400.
Just one of the recreational activities of the one percent.
Well, Alexa, you’re correct – screwing folks, and buying things.
http://www.usatoday.com/story/news/politics/2014/10/23/sheldon-adelson-donates-5-million-super-pac-house-republicans/17788387/
American as apple pie. Screw the people anyway you can to ones advantage. Hope they thought about the people who make up juries!!
I believe the actions of these unscrupulous criminals are horrible. As a So Called “1% er” myself I resent being lumped in with criminals. Just because I am blessed enough to have worked hard (very hard ) and I am now enjoying the fruits of my labors by saving and wise investments, I find it despicable and disgusting that some people choose to call all people of the 1% criminals.
It is typical of liberals to divide people into groups. Black against white, Rich against poor, religious against agnostic and I could go on. Stop the name calling ! It is not helpful…
Criminals come in all shapes, colors, backgrounds and financial Status.
“liberals to divide people into groups. Black against white”
Priceless. Who’s against affirmative action? Set-asides for minority owned business? Voter suppression of persons of color?
Liberals!
Priceless. Turn off the fox.
http://www.southernstudies.org/2014/10/massive-voter-registration-drive-in-georgia-fights.html
I reported Tricia’s post because it stank to high heaven. Of course, I would’ve done so sooner, but I was working today, all day, *very hard*, and still haven’t made it to an Atherton manse. But of course, that’s my fault. I hate being lumped in with the rest of the 99%…I can’t even say the middle class, given the erosion of that class.
So sad to see the superficial stereotyping displayed on here by multiplle parties.
Tricia, I’m a 1 percenter, i live in Atherton and im a “liberal.” Your lumping of allll liberals into a category is nuts, just as bad as the other folks lumping all 1 percenters into a category . In this day and age, in our democratic country, it’s stunning that literate people can be so small minded. Maybe all of you can bond in a mutual dislike of this post. That would be a good step in the right direction.
@Mirror: You do realize that Tricia’s attitude reflects a certain segment of the 1% — not all of it, of course, but a segment.
The fact that she put herself out there as a “spokesperson” for that portion of the population makes her a legitimate target for criticism.