Three foreclosure real estate investors in Palm Beach County accused of collusion

Federal prosecutors allege the investors conspired to rig bids submitted through online foreclosure auctions

Miami /
Nov.November 03, 2017 02:00 PM

Three real estate investors in Palm Beach County are in the hot seat for allegedly conspiring to rig bids submitted through online foreclosure auctions, according to the Palm Beach Post.

Federal prosecutors are investigating Avi Stern and Prodigy Capital’s Christopher Graeve and Stuart Hanki, according to an indictment returned by a federal grand jury in West Palm Beach.

From January 2012 through June 2015 the three real estate investors allegedly colluded together to push down prices in Palm Beach County foreclosure auctions, according to the Palm Beach Post.

The number of alleged collusions remains unclear, as well as how much they paid or how much their actions might have pushed down prices.

Each investor now faces one count of conspiracy to restrain trade. If convicted, each could face a penalty of up to 10 years in prison and a fine of up to $1 million.

Prodigy Capital specializes in acquiring discounted properties through foreclosure courthouse auctions, according to its website.

Palm Beach County moved its foreclosure auctions online seven years ago, three months after Miami-Dade and Broward counties switched.

Online tools and digital currencies are being used more frequently by real estate investors. Just this week, a New Jersey-based investor bought a Boca Raton office building using the online auction tool Ten-X, formerly known as Auction.com. [Palm Beach Post]Amanda Rabines


Related Articles

arrow_forward_ios
Aerial view of some of the properties: 124 Bamboo Road, 112 Bamboo Road,  106 Bamboo Road, 135 Bamboo Road, 337 Bamboo Road (Google Maps)
New York firm sells Palm Beach Shores apartment portfolio for $17M
New York firm sells Palm Beach Shores apartment portfolio for $17M
Billionaire founder of LoanDepot adds to South Florida resi portfolio
Billionaire founder of LoanDepot adds to South Florida resi portfolio
Billionaire founder of LoanDepot adds to South Florida resi portfolio
Investment firm snaps up Delray Beach condo complex in $14M bulk purchase
Investment firm snaps up Delray Beach condo complex in $14M bulk purchase
Investment firm snaps up Delray Beach condo complex in $14M bulk purchase
Shane Caiazzo, co-founder and co-CEO, CFGI, in front of 100 Ebbtide Drive in North Palm Beach (CFGI, Lux Hunters)
Financial advisory CEO pays $9M for waterfront North Palm Beach home featured in “Mansion Quest” show
Financial advisory CEO pays $9M for waterfront North Palm Beach home featured in “Mansion Quest” show
The Main Las Olas office tower, One Flagler office tower, and Plantation Pointe office complex (The Main Las Olas, Related Southeast, Google Maps)
A tale of two office markets: Broward vacancies rose while Palm Beach County’s declined
A tale of two office markets: Broward vacancies rose while Palm Beach County’s declined
(iStock/Illustration by Kevin Rebong for The Real Deal)
December residential sales fall in Broward and Palm Beach counties, rise in Miami-Dade
December residential sales fall in Broward and Palm Beach counties, rise in Miami-Dade
Joel L. Altman, chairman and co-chief executive officer; Seth M. Wise, co-chief executive officer; and rendering of the Altís Blue Lake apartment community being developed in Palm Beach County, near Wellington and Lake Worth Beach (Altman Companies)
Altman pays $14M for golf course development site near Lake Worth Beach
Altman pays $14M for golf course development site near Lake Worth Beach
From left: Eric Witmondt, chief executive officer, Woodmont Properties and Donald Witmondt, chairman, Woodmont Properties (Woodmont Properties, LoopNet)
Woodmont plans eight warehouses at Palm Beach Park of Commerce
Woodmont plans eight warehouses at Palm Beach Park of Commerce
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...