DOJ

“Honesty and integrity in business practices are a hallmark of the American way and those who engage in illegal activities to obtain a business advantage which lines their pockets with ill-gotten gain will be held accountable by the FBI for their action”

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Alabama Real Estate Investor Pleads Guilty to Mail Fraud Conspiracy Involving Foreclosed Homes

An Alabama real estate investor pleaded guilty for his role in a conspiracy to commit mail fraud at public real estate foreclosure auctions held in southern Alabama, the Department of Justice announced today.

Adrian J. Beach admitted that he conspired with others to, among other things, defraud financial institutions, homeowners and others with a legal interest in rigged foreclosure properties, out of proceeds from foreclosure auctions.  Beach is charged with participating in the conspiracy from January 2004 through March 2010.  Financial institutions and homeowners suffered monetary losses as a result of the conspiracy. 

“Adrian Beach schemed to rig home foreclosure auctions for his own benefit,” said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division.  “Real estate investors should know that the division and its colleagues in law enforcement will hold them accountable for conspiring to defraud banks and homeowners by depriving them of competitive auctions.”

“Honesty and integrity in business practices are a hallmark of the American way and those who engage in illegal activities to obtain a business advantage which lines their pockets with ill-gotten gain will be held accountable by the FBI for their action,” said FBI Mobile Division Special Agent in Charge Robert F. Lasky.

Beach is the fourteenth defendant prosecuted in the Antitrust Division’s ongoing investigation of bid rigging and other fraudulent conduct in the Alabama real estate foreclosure industry.

The investigation into fraud and bid rigging in the Alabama real estate foreclosure industry is being conducted by the Washington Criminal II Section of the Antitrust Division, and the FBI’s Mobile Field Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at    1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.htm.

These charges have been filed in connection with the president’s Financial Fraud Enforcement Task Force.  The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information about the task force, please visit www.StopFraud.gov.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

SOURCE: DOJ

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