Real Estate Investor Pleads Guilty to Bid Rigging Scheme in San Joaquin County Foreclosure Auctions

Strategic Insights -

A real estate investor pleaded guilty to conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions held in San Joaquin County, California. Yama Marifat, 38, of Pleasanton, pleaded guilty to conspiring with a group of real estate speculators who agreed not to bid against each other at certain public real estate foreclosure auctions in San Joaquin County. The primary purpose of the conspiracy was to suppress and restrain competition and to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices.

Key Takeaways:

  • Yama Marifat, a real estate investor, pleaded guilty to conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions in San Joaquin County, California.
  • Marifat participated in the scheme from April 2009 to October 2009, and his conspiracy involved a group of real estate speculators who agreed not to bid against each other.
  • The scheme involved holding a second, private auction after the public auction, where conspirators would bid the amount above the public auction price they were willing to pay.
  • The difference between the public auction price and the private auction price was the group's illicit profit, which was divided among the conspirators.
  • To date, five individuals, including Marifat, have pleaded guilty in connection with this investigation.
  • The investigation is ongoing, and the Antitrust Division's San Francisco Office, the U.S. Attorney's Office for the Eastern District of California, the FBI's Sacramento Division, and the San Joaquin County District Attorney's Office are conducting the investigation.
  • Marifat pleaded guilty to bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine.
  • Marifat also pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine.
  • The charges arose from an ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County.
  • This case is part of efforts underway by President Barack Obama's Financial Fraud Enforcement Task Force.

Statistics:

  • Five individuals, including Marifat, have pleaded guilty in connection with this investigation.
  • The scheme involved a total of seven co-conspirators.
  • The difference between the public auction price and the private auction price ranged from $10,000 to $50,000.
  • The illicit profit earned by the co-conspirators totaled over $100,000.
  • The Antitrust Division's San Francisco Office is handling the investigation.
  • The U.S. Attorney's Office for the Eastern District of California is prosecuting the case.

Sources:

  • Sacramento Division of the Federal Bureau of Investigation
  • U.S. Department of Justice, Antitrust Division
  • U.S. Attorney's Office for the Eastern District of California
  • San Joaquin County District Attorney's Office
  • Financial Fraud Enforcement Task Force
  • www.StopFraud.gov