By on September 16th, 2013. This post currently has no responses.

FORMER ALABAMA REAL ESTATE INVESTOR PLEADS GUILTY TO MAKING FALSE STATEMENT IN CONNECTION WITH REAL ESTATE FORECLOSURE AUCTION INVESTIGATION

WASHINGTON — A former investor in the Alabama real estate foreclosure auctions  industry pleaded guilty today to one count of making false statements, the  Department of Justice announced.

Ali Forouzan, of Mobile, Ala., pleaded guilty in the U.S. District  Court for the Southern District of Alabama in Mobile to making materially false  and fictitious statements to a Special Agent of the FBI and a Department of  Justice Antitrust Division prosecutor.   The false statements were in regard to his knowledge of, and  participation in, bid rigging and other fraudulent schemes in the Alabama real  estate foreclosure auction industry.

According to the charge, in February 2012, Forouzan was interviewed, with  counsel present, about the fraudulent schemes under investigation.  Forouzan was aware of the nature of the  investigation and knew that it was material for the FBI and the Antitrust  Division to obtain his full knowledge of such unlawful acts as bid-rigging  agreements and other fraudulent schemes relating to real estate foreclosure  auctions; unlawful payoffs that he and others made and received in furtherance  of such schemes; and secret, second auctions in which Forouzan and others  participated.  However, Forouzan willfully  and knowingly provided false and fictitious information during his interview.

“The Antitrust Division views attempts to compromise the integrity of its  investigations as a serious offense,” said Bill Baer, Assistant Attorney  General in charge of the Department of Justice’s Antitrust Division.  “Today’s filing should send a clear signal  that the Antitrust Division is committed to prosecuting vigorously attempts to  cover-up illegal, anticompetitive conduct.”

“The success of this investigation exemplifies  the FBI’s continued commitment to fight fraud in the real estate industry and  serves to deter those who wish to illegally profit from fraud schemes,” said  Stephen E. Richardson, FBI Special Agent in Charge of the Mobile Field  Office.  Special Agent in Charge  Richardson praised the perseverance of agents and prosecutors in this complex  investigation.

Including Forouzan, to date, nine individuals and two companies have  pleaded guilty as a result of the department’s ongoing investigation into the  Alabama real estate foreclosure auction industry.

Forouzan faces a maximum penalty of five years in prison, three  years of supervised release and a $250,000 fine.

The charge against the defendant  arose from an ongoing investigation into bid rigging and other fraudulent  schemes in the Alabama real estate foreclosure auctions industry.  Anyone with information concerning bid rigging  or fraud related to public real estate foreclosure auctions should call  404-331-7116 or visit www.justice.gov/atr/contact/newcase.htm.

Today’s charges  were brought in connection with the President’s Financial Fraud Enforcement  Task Force.  The task force was  established 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’s 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.  Over  the past three fiscal years, the Justice Department has filed nearly 10,000  financial fraud cases against nearly 15,000 defendants including more than  2,900 mortgage fraud defendants.