Washington State Feds Get Convictions In Foreclosure Sale Bid Rigging Scam

The Yakima Herald Republic reports that "A former auctioneer who was the key figure in a bid-rigging scandal that ensnared several Yakima businessmen was placed on three years of probation Tuesday."

Reportedly, Bacil "Base" Shirley was caught in a bribery investigation of a Federal government employee, who was wearing a wire, in connection with manipulating bids for foreclosed U.S. Department of Agriculture properties. Once caught red-handed, Shirley then apparently "bought" a "get out of jail free card" from the Feds by agreeing to cooperate with them in the investigation, prosecution, and conviction of three Yakima, Washington bid-rigging businessmen who specialize in the purchase of foreclosure properties as rental investments or for resale. The businessmen were Doug Lemon, Walter D. Nelson, and Ronald G. Frank.

For more, see Ex-auctioneer gets probation in bid rigging.

Editor's Note

Bid rigging at foreclosure sales is an issue I haven't been able to find any recent reports on (until the one referenced above). It may simply be that this method of ripping off homeowners in foreclosure of their home equity doesn't happen anymore (I doubt it), possibly because most foreclosures that make it to the courthouse auction currently involve homes that are worth less than what is owed on them (ie. they're "upside down"), or it may be that it isn't high on law enforcement's list of priorities.

In any event, the U.S. Department of Justice has investigated and brought prosecutions in the past. What follows are links to some pretty old USDOJ Press Releases where the Justice Department announced prosecutions & convictions in connection with foreclosure sale bid rigging in New York City and Northern Virginia.

• Two Northern Virginians Indicted In Real Estate Bid Rigging Scam,
• 25 NY Real Estate Brokers Plead Guilty To Rigging Bids At Queens County Courthouse Foreclosure Auctions,
• Northern Virginia Real Estate Speculator Indicted In Bid Rigging Scam,
• 12 Individuals Plead Guilty To Bid Rigging At Real Estate Foreclosure Auctions At Brooklyn Courthouse,
• Tenth Individual Charged In N. Virginia Real Estate Auction Bid Rigging Investigation.

Other foreclosure sale / bid rigging stories:

• AG Cooper unravels Triangle real estate bid rigging scheme (Investigation finds illegal payoffs that deflated public auction prices),
• Man pleads gulty in bid-rigging foreclosed property sales,
• Former New York Bar Association Vice President pleads guilty in foreclosure sale bribery case.

.