homesmillbrae.com » Payoffs http://homesmillbrae.com Thu, 20 Oct 2022 03:48:43 +0000 en hourly 1 http://wordpress.org/?v=3.1 Concord investor will plead guilty to foreclosure fraud, authorities say http://homesmillbrae.com/1825/concord-investor-will-plead-guilty-to-foreclosure-fraud-authorities-say/ http://homesmillbrae.com/1825/concord-investor-will-plead-guilty-to-foreclosure-fraud-authorities-say/#comments Fri, 02 Nov 2012 13:57:41 +0000 http://homesmillbrae.com/1825/concord-investor-will-plead-guilty-to-foreclosure-fraud-authorities-say/ Continue reading →]]>

SAN FRANCISCO — A Concord man has agreed to plead guilty to a conspiracy to rig bidding at public real estate auctions in the Bay Area, authorities said.

Norman Montalvo, a real estate investor, was charged with four felonies Thursday in the U.S. District Court for the Northern District of California, according to an FBI news release. Montalvo is the 26th person who has admitted to a role in the conspiracy to rig bidding and fraud at the foreclosure auctions.

Montalvo was also charged with using the mail to fraudulently acquire title to properties sold at auctions, to send and receive payoffs, and to send money to co-conspirators. Montalvo’s role in the scheme began as early as June 2008 and lasted until about September 2010, according the FBI.

By conspiring to purchase properties at non-competitive prices, Montalvo and others were preventing mortgage holders from getting fair prices for their properties, and in some, cases, keeping money out of the hands of defaulting homeowners, according to the FBI. Montalvo is charged with bid rigging and fraud at auctions in San Francisco and San Mateo counties, but the Department of Justice’s antitrust investigation also covers auctions in Contra Costa and Alameda counties.

Montalvo faces up to 30 years in prison. He could also be fined up to $1 million or more, depending on his profit and the victims’ losses.

Contact Daniel M. Jimenez at

Article source: http://www.insidebayarea.com/news/ci_21909972/concord-investor-will-plead-guilty-foreclosure-fraud-authorities

]]> http://homesmillbrae.com/1825/concord-investor-will-plead-guilty-to-foreclosure-fraud-authorities-say/feed/ 0 Local Investors Agree to Plead Guilty to Bid Rigging at Foreclosure Auctions http://homesmillbrae.com/900/local-investors-agree-to-plead-guilty-to-bid-rigging-at-foreclosure-auctions/ http://homesmillbrae.com/900/local-investors-agree-to-plead-guilty-to-bid-rigging-at-foreclosure-auctions/#comments Sat, 01 Oct 2011 01:58:57 +0000 http://homesmillbrae.com/900/local-investors-agree-to-plead-guilty-to-bid-rigging-at-foreclosure-auctions/ Continue reading →]]> Two Bay Area real estate investors have agreed to plead guilty today for their roles in a conspiracy to rig bids and to commit mail fraud at public real estate foreclosure auctions in Contra Costa Alameda Counties, the Department of Justice announced.

The following information is from the FBI:

Charges were filed today in U.S. District Court in Oakland, against Eric Larsen of San Leandro, and Timothy Powers of Alamo, for their participation in bid-rigging and mail-fraud conspiracies at public real estate foreclosure auctions in Contra Costa and Alameda counties. Powers is charged with participating in the conspiracy in Contra Costa from as early as May 2009 until about December 2010, and Larsen is charged with participating in the conspiracy in Alameda County from as early as February 2009 until about January 2010.

“The Antitrust Division will vigorously pursue fraudulent schemes that eliminate competition from the marketplace and cause financial harm to victims,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The collusion taking place at these auctions preyed on the misfortune caused by the unprecedented rate of foreclosures and lined the pockets of colluding real estate investors with funds that otherwise would have gone to lenders and, at times, homeowners.”

“The FBI and the Antitrust Division are partners in the fight to bring to justice those who engage in fraudulent anticompetitive practices at foreclosure auctions,” said FBI Special Agent in Charge Stephanie Douglas. “We are committed to holding those individuals accountable for the damage they have done to the real estate market and to unsuspecting victims.”

The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in auction records in order to obtain selected real estate offered at public foreclosure auctions in Alameda and Contra Costa counties at noncompetitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.

According to court documents, Larsen and Powers conspired with others not to bid against one another, but instead designate a winning bidder to obtain the title to selected real estate offered at public real estate foreclosure auctions in Contra Costa and Alameda counties. Larsen and Powers also were charged with conspiracies to use the mail to carry out a fraudulent scheme to divert money to co-conspirators away from mortgage holders and others by holding private auctions open only to members of the conspiracy and awarding the selected real estate to the conspirators who submitted the highest bids. These private auctions took place at or near the courthouse steps where the public auctions were held. The department said that Larsen and Powers also took steps to conceal the payoffs to conspirators for not bidding competitively and caused false and misleading statements to be made on records of public auctions regarding the total purchase price of the selected real estate.

Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. Each count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. 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 the $1 million statutory maximum.

The charges against Larsen and Powers are the latest cases filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in Contra Costa County and Alameda County. To date, as a result of the investigation, 10 individuals have agreed to plead guilty.

The investigation into fraud and bid rigging at certain real estate foreclosure auctions in Northern California is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.

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Article source: http://blog.sfgate.com/incontracosta/2011/09/30/local-investors-agree-to-plead-guilty-to-bid-rigging-at-foreclosure-auctions/

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