Community Corner
Novato Man Pleads Guilty to Bid-Rigging, Mail Fraud
Mohammed Rezian was involved in a scheme to secure winning bids in which he and his co-conspirators agreed not to bid against each other at foreclosure auctions in San Mateo and Francisco counties, prosecutors said.
A Novato real estate investor earlier this month pleaded guilty to federal charges for his role in a foreclosure auction bid-rigging conspiracy and mail fraud.
Mohammed Rezian was involved in a scheme to secure winning bids in which he and his co-conspirators agreed not to bid against each other at foreclosure auctions in San Mateo and Francisco counties, prosecutors said.
Rezaian is the 30th person to issue a guilty plea or agree to plead guilty in the case, prosecutors said.
Prosecutors said that the bid-rigging hurts mortgage holders and homeowners, who are entitled to any remaining proceeds of a foreclosure auction.
"Not only is bid rigging at public foreclosure auctions illegal, it also severely undermines the integrity of a fair and competitive marketplace," David J. Johnson, an FBI Special Agent in Charge of the San Francisco Field Office, said in a prepared statement.
"The FBI will continue to investigate and pursue those who commit fraudulent anticompetitive practices at foreclosure auctions and work with those who have fallen victim to such selfish crimes."
Rezaian also pleaded guilty to mail fraud charges. He and his co-conspirators fraudulently acquired property titles and that they sold at public auctions and withholding the funds that belonged to mortgage holders and others, prosecutors said.
The Sherman Act antitrust violations to which Rezaian and his co-conspirators pleaded guilty are punishable by up to 10 years in prison and $1 million in fines. The fines can be doubled in cases in which victims are defrauded in excess of $1 million.
Conspiracy to commit mail fraud is punishable by up to 30 years in prison and a $1 million fine. Prosecutors said this case is part of a bid-rigging crackdown 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.
