Bid Rigging in Kentucky Farmland Auction Lands Two Real Estate Professionals Behind Bars

Two Kentucky real estate professionals, Barry Dyer and Mackie Shelton, have pleaded guilty to their roles in a conspiracy to rig bids at an estate auction for farmland and timber rights. The auction, which took place in 2018, involved hundreds of acres of farmland and a tract of timber rights.

According to a plea agreement filed in the U.S. District Court for the Western District of Kentucky, Dyer and Shelton conspired with others to rig bids at the auction. They demanded and accepted a $40,000 payoff from competing auction participants to stop bidding, artificially suppressing the sales price of the farmland.

The farming industry relies heavily on competitive pricing for the land where crops are grown. Assistant Attorney General Jonathan Kanter of the Antitrust Division emphasized the importance of maintaining the integrity of farmland auctions, stating, “The farming industry is vital to the nation’s economy and relies on competitive pricing for the land where crops are grown. Today’s guilty pleas help ensure the integrity of farmland auctions.”

The FBI’s Criminal Investigative Division also weighed in on the matter, with Assistant Director Luis Quesada stating, “American farmers are part of the backbone of our country’s economy, and they deserve to run their businesses in a fair market, untainted by corruption. The FBI and our law enforcement partners are dedicated to protecting the farming industry from bid rigging and other schemes that undermine the success of others and the spirit of competition.”

Dyer and Shelton were charged with a single-count violation of the Sherman Act, which carries a statutory maximum penalty of 10 years in prison and a $1 million fine. A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated and prosecuted by the Antitrust Division’s Washington Criminal I Section, with the assistance of the FBI’s International Corruption Unit and the U.S. Attorney’s Office for the Western District of Kentucky. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

Dyer and Shelton’s plea agreements mark a significant victory in the fight against bid rigging in the farming industry. As the investigation continues, it is clear that those who engage in such activities will be held accountable for their actions.

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