Monday, March 11, 2013


Thursday, March 7, 2013

Two Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure Auctions :   29 Individuals Have Agreed to Plead Guilty to Date

Two Northern California real estate investors have agreed to plead guilty for their role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.

Pete McDonough, (pictured) who with his two partners David Rosen, Andrew Wilson and his realtor, Jeff Weissman has a look into the backyard from the back bedroom, as he tours the progress of the Oakland, Ca. home on Friday October 28, 2011, they are currently flipping as real estate investors. Photo: Michael Macor, The Chronicle

Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Peter McDonough of Pleasanton, California, and Michael Renquist of Livermore, California.

Including today’s pleas, 29 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.

According to court documents, for various lengths of time between November 2008 and January 2011, McDonough and Renquist conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County, Calif . McDonough and Renquist were also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Alameda County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Renquist was also charged with additional counts for his involvement in similar conduct in Contra Costa County, Calif.
Foreclosure Auction Protest

“The conspirators suppressed competition and lined their pockets through fraudulent and collusive conduct at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners at the FBI will continue to hold accountable individuals who subvert the competitive process at foreclosure auctions around the country.

The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda and Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
  “The FBI and the Antitrust Division continue to bring to justice those individuals who engage in fraudulent anticompetitive practices at foreclosure actions,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office.   “The foundation of our real estate market depends on fairness and transparency of all participants, and we are committed to working with our local and federal partners to ensure that conspirators are held accountable.”

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.

The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or frau d related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Field Office at 415-436-6660, visit, or call the FBI tip line at 415-553-7400.

Today’s case was done 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. For more information on the task force, please visit .  

Alameda County Courthouse Protest Foreclosure Auction


  1. "Too big to fail" is just like saying .. "Honest people can't replace criminals". It's B.S. Banks won't fail because criminal who work there go to jail. Yet they somehow convinced gullible morons of this.. lol How embarrassing.

  2. Basically the whole system is being run by one entity, The Federal Reserve System has somehow converted from a private bank to a central one, and the once non affiliated with federal government bank is now a branch. Everyone is a part of them including all the regulators. So essentially and technically when a Bank pays a fine, it is paid to itself.

    Take the CFPB for instance. A Consumer Protection Bureau that does not protect consumers and does not regulate Banks, and yet they accept bank complaints and levy fines. They don't even talk to consumers. All they do is forward your complaint to the bank your complaining about. Nothing for you that helps you in anyway. it does however help the banks in defending themselves better. When they essentially have all your information and case against them it's like a football team having the rivals playbook. If you end up in court your screwed. How awesome is that?

    So why do they fine banks for misconduct if it's not their job, and for what specifically? A consumers complaint? Where is the consumers money for the violations to them? Where is the Bank regulator in all of this? Asleep.
    ...If the CFPB is part of the same Federal Reserve System as the Banks, where does the money go?

    They are all part of the same scheme. It's absolutely ridiculous and unequivocally genius. "Bad bank.. smack! wink wink".

    If you don't believe it then just simply research it for yourself.

  3. My point is this... Complaining hasn't helped the victims but it has helped everybody else. From the regulators who do nothing, to the government who does nothing. None of them suffer any actual harm or damage, but they collect fees and fines. Meanwhile the homeowner victims are left to try and defend themselves, which they will find is almost impossible because the criminals shared the crime money with our protectors. We end up losing all our money and homes and they are free to continue ..