Another real estate investor has been sentenced in a foreclosure auction scheme that spanned at least nine years in Mobile, Alabama.

  • Oscar Celso Anez is the latest to plead guilty to rigging foreclosure auctions with other Mobile, Alabama, real estate investors.
  • Investors made payoffs to each other -- money that would have gone to mortgage holders and homeowners -- for keeping the property sales prices low, DOJ says.

Another real estate investor has been sentenced in a foreclosure auction scheme that spanned at least nine years in Mobile, Alabama.

Oscar Celso Anez pleaded guilty in June of last year to bid rigging and conspiracy to commit mail fraud. Last Monday, April 10, he was sentenced to serve 12 months and one day in prison and to pay $343,561 in restitution.

“Between March 2002 and November 2010, Anez conspired with others not to compete for selected foreclosure properties at public auctions in order to obtain the properties at artificially suppressed auction prices,” wrote the Department of Justice (DOJ) in an announcement about the sentencing.

The DOJ believes that the scheme was operating at least since 2001 until it was shut down in 2010.

‘Artificially low prices’

In September 2011, two defendants (Harold H. Buchman and Allen K. French) were the first to be charged with bid rigging and conspiracy to commit mail fraud in the ongoing case.

According to the DOJ, Buchman and French — and Anez and others — “held secret, second auctions for rigged foreclosure properties,” agreeing with one another not to compete for those properties against the “winner.”

The investor who won the “secret” auction “obtained title to the property and made payoffs to co-conspirators,” according to the DOJ.

“The money that the conspirators paid to one another would have gone to mortgage holders, homeowners and others with a legal interest in the property,” the DOJ added.

To date, 15 defendants have been prosecuted, and the total restitution ordered in the case is more than $1 million, according to the DOJ.

In addition to a term of imprisonment, Senior U.S. District Court Judge Callie V.S. Granade also ordered Anez to pay $343,561 in restitution.

“Fraud and bid-rigging have no place in this community,” said acting U.S. Attorney Steve Butler of the Southern District of Alabama in the DOJ’s release. “This sentence should serve as a reminder that violations of federal anti-trust laws will be actively investigated and prosecuted in the Southern District of Alabama.”

Indeed, the Mobile Field Office of the FBI is still investigating the case, “with substantial assistance” from the attorney’s office, disclosed the release.

“The FBI remains dedicated to working with our law enforcement partners to eliminate this type of fraud,” said Special Agent in Charge Robert F. Lasky of the FBI’s Mobile Field Office.

You can report bid rigging or fraud related to public foreclosure auctions by calling 202-598-4000.

Email Amber Taufen

Like me on Facebook! | Follow me on Twitter!

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×