(Source: FBI)- WASHINGTON-Alabama real estate investor has agreed to plead guilty and serve one year in prison for his role in a conspiracy to rig bids and do mail fraud at a public Foreclosure auction real estate in South Alabama, the Justice Department announced today. Until recently, as a result of the ongoing investigation, four individuals and one company has pleaded guilty.
Demands put forward yesterday in United States District Court for the Southern District in Mobile, Alabama to Steven j. Cox, and Mobile, Alabama. Cox was charged with one count of bid rigging and one count of conspiracy to commit mail fraud. According to the plea agreement, which is subject to court approval, Cox has agreed to serve one year in prison, to pay a $ 10,000 criminal fine, and to cooperate with The ongoing investigation.
According to court documents, Cox conspired with others to bid against each other at a public Foreclosure auction real estate in South Alabama. After the designated bidder bought the property at a public auction, which usually takes place at the county courthouse, the conspirators will generally hold the secret of the second auction, where every participant will bid amount above the auction price of the public he is willing to pay. The highest bidder at auction the second secret won property.
Cox was also charged with conspiring to use the u.s. mail to implement a scheme to get the title to put up a foreclosure property for sale in public auction prices artificially suppressed, making and receiving gifts for co-conspirator, and cause financial institutions, homeowners, and others with a legal interest in the property to foreclosure fraud receives less than a competitive price for the property. Cox participated in a bid-rigging and mail fraud conspiracy from the early January 2004 until at least may 2010.
“Antitrust Division continues to work with its law enforcement partners to ensure that a real estate Foreclosure auction is fair and competitive,” said acting Assistant Attorney General in charge of the Justice Department’s Antitrust Division Sharis Pozen a.. “The Division will vigorously pursue people who engage in collusive scheme to eliminate competition in the market.”