An Alabama real estate investor pleaded guilty to conspiracy to commit mail fraud affecting a financial institution, the Antitrust Division announced today.
Chad E. Foster, a resident of Theodore, Alabama, pleaded guilty to an indictment filed in the U.S. District Court for the Southern District of Alabama, charging him with one count of conspiracy to commit mail fraud affecting a financial institution.
According to court documents, Foster knowingly joined a conspiracy with others to fraudulently acquire title to selected properties at artificially suppressed prices, to conduct secret, second auctions open only to members of the conspiracy, to make payoffs to and receive payoffs from co-conspirators, and to divert money away from financial institutions, homeowners and others with a legal interest in selected properties.
This guilty plea demonstrates the Antitrust Division’s resolve to pursue those who conspire to defraud distressed homeowners and financial institutions, said Assistant Attorney General Bill Baer of the Antitrust Division.
The charge of conspiracy to commit mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine.
The case against Foster stems from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Mobile Field Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama.
The investigation is part of the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.
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Key Facts
- State: Alabama
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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