Wednesday, February 13, 2013

Collaboration Among Bidders at an Auction Can Result in Prison Sentences


Making an agreement to limit competition violates the Sherman Antitrust Act

The bid rigging case in Northern California continues.

According to the United States Department of Justice, a Burlingame California real estate investor recently entered a plea of guilty for rigging bids, which included charges of using the U.S. Mail to carry out the scheme, in Foreclosure Real Estate Auctions in San Mateo County and San Francisco County, California, between January and December of 2010.

Gilbert Chung is now the 27th person to enter a guilty plea as a result of a Department of Justice investigation.  Chung and his other co-conspirators face 10 years in federal prison and $1 million in fines for violating the Sherman Antitrust Act, and up to 30 years and an additional $1 million fine for each count of conspiring to commit mail fraud. 

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