Related Federal Cases
- Feds Offer Lifeline to Banks Hit by California Storms · California
- McKenzie Earley Faces Federal Charges in California · California
- Quality Egg Bosses Guilty in Adulterated Eggs Scandal · Iowa
- James Hector Alcala: Fugitive Alien Smuggler Snared at California Port of Entry · Utah
- California Man Accused of Threatening Four in Stark County · Ohio
Bid-Rigging Scandal Hits Northern California
Two Northern California real estate investors, Douglas Ditmer of San Ramon and Keith Slipper of Oakland, have agreed to plead guilty to their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Ditmer and Slipper. To date, 24 individuals have agreed to plead or have pleaded guilty as a result of the antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
"By agreeing not to compete with one another in the bidding process, these investors illegally profited and undermined the integrity of the real estate market," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. "The conspiracy eliminated competition and prevented lenders and distressed homeowners from getting fair market prices for their property."
According to court documents, Ditmer and Slipper participated in conspiracies to rig bids and commit mail fraud by agreeing to stop bidding or to refrain from bidding for properties at public foreclosure auctions in Contra Costa and Alameda counties, negotiating payoffs with other conspirators not to compete, purchasing selected properties at public auctions at suppressed prices, and participating in second, private auctions open only to members of the conspiracy, where the property was awarded to the conspirator who submitted the highest bid.
The department said Ditmer conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in Contra Costa County beginning as early as July 2008 and continuing until about January 2011, and in Alameda County beginning as early as June 2007 and continuing until about January 2011. Slipper conspired with others to rig bids and commit mail fraud at public foreclosure auctions in Contra Costa County beginning as early as June 2008 and continuing until about December 2010, and in Alameda County beginning as early as March 2009 and continuing until about May 2009.
"The FBI continues to work closely with the Antitrust Division to target those individuals who engage in fraudulent bid rigging and other anticompetitive activities at foreclosure auctions," said FBI Special Agent in Charge Stephanie Douglas of the San Francisco Field Office. "We are committed to bringing to justice those who engage in illegal and unfair practices that adversely impact legitimate home buyers and sellers."
Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. Each count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Key Facts
- State: California
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News