David Bradley pleaded guilty to charges of conspiracy and mail fraud in the U.S. District Court for the southern district of Alabama.
The former Alabama real estate agent has agreed to cooperate with the Antitrust Division and Federal Bureau of Investigation’s ongoing case.
To date, six other individuals and M & B Builders have also pleaded guilty in connection to the investigation.
“By first rigging the public auctions, then bidding amongst themselves in secret afterwards, the conspirators illegally profited at the expense of distressed homeowners,” said Scott Hammond, deputy assistant attorney general of the Antitrust Division’s Criminal Enforcement Program.
According to court documents, Bradley and other conspirators agreed to not bid against one another in public foreclosure auctions. The alleged conspirators would then hold a second auction in secret to claim the properties.
Bradley was also charged for using U.S. mail to execute a fraud scheme to acquire title to rigged foreclosure properties.
In violation of the Sherman Act, each transgression could result in 10 years in prison and $1 million fine for each individual.
For more information, read the Department of Justice release.
– Paul Dang