Investor pleads guilty to rigging bids at Georgia foreclosure auctions

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Federal prosecutors say they’ve obtained guilty pleas from a real estate investor and his company for conspiring with others not to bid against each other at public real estate foreclosure auctions in Georgia.

Penguin Properties LLC and its owner, Seth D. Lynn, allegedly conspired with others to designate a winning bidder on some properties that came up for auction in Fulton County from February 2007 through January 2012.

The selected properties were awarded to conspirators who submitted the highest bids in second, private auctions — diverting money that would otherwise have gone to mortgage holders and, in some cases, homeowners. Source: justice.gov