California Man Cops Plea For Role In Bid-Rigging At Foreclosure Sales

In Sacramento, California, The Stockton Record reports:

• A 43-year-old Stockton man pleaded guilty Friday to rigging bids at public real estate auctions in San Joaquin County over a six-month period in 2009. Anthony B. Ghio, 43, admitted in U.S. District Court that he conspired with a group of real estate speculators who agreed not to bid against each other at selected foreclosure auctions as a way to suppress competition, thus keeping prices artificially low.(1)

• According to court documents:
  
  (1) After the conspirators' designated bidder bought a property at a public auction, there would be a second, private auction.
  
  (2) Each participant would then submit higher bids at the private auction.
  
  (3) The conspirator who bid the highest amount in the second auction won the property. The difference between the noncompetitive price at the public auction and the winning bid in the second auction was the group's illicit profit - and that amount was divided among them.

For the story, see Stocktonian admits to bid-rigging land scheme (Man faces 10 years in prison, $1 million fine).

For the U.S. Attorney (Sacramento, California) press release, see California Real Estate Executive Pleads Guilty to Bid Rigging.

Go here for other posts on foreclosure sale bid-rigging.

(1) Ghio is charged with bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine.