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Philadelphia real estate flipper gets year in prison for bribery
Investor Gregory Guzman paid off sheriff’s office official for preferential treatment at auctions
The “everybody does it defense” did not work in the case of house-flipper Gregory Guzman.
The Philadelphia real estate investor was sentenced to a year and a day in federal prison for bribing a Sheriff’s Office official in exchange for an advantage in competitive auctions of seized and foreclosed properties, the Philadelphia Inquirer reported.
Guzman, co-founder of Enterprise Properties, admitted to paying over $9,000 in kickbacks — including cash payments, dinners and free rent — to a former deputy of ex-Sheriff Jewell Williams between 2011 and 2013, the outlet said.
Guzman’s attorney tried to sway U.S. District Judge Wendy Beetlestone by downplaying the severity of the alleged misdeeds by saying many people engage in such behavior.
The judge, however, had other ideas.
“Everybody does not — does not — do it,” Beetlestone said, according to the outlet. “I’m not sure you fully understand the enormity of what you did.”
Guzman’s sentencing marks the conclusion of a decade-long investigation into corruption in the sheriff sale process. He is the last of three real estate speculators to face punishment for bribing the same former deputy, Michael Riverso.
Riverso was sentenced to a year in prison in 2019 after accepting more than $40,000 in payoffs from Guzman and others. By providing his favored bidders with early access to property lists and expedited processing, Riverso enabled them to flip properties for profit before payment was due.
Assistant U.S. Attorney Sarah L. Grieb described Guzman and Riverso’s crimes as contributing to a culture of corruption within the Sheriff’s Office.
While acknowledging Guzman’s assistance in unraveling the scheme, Grieb emphasized the significant harm caused to the city of Philadelphia and the Sheriff’s Office.
Guzman’s defense attorney highlighted his client’s efforts to make amends, including relinquishing his real estate license, seeking treatment for alcoholism, and paying a substantial portion of restitution and back taxes.
Despite acknowledging Guzman’s progress, Beetlestone expressed concern over the defense’s assertion that there were no intended victims of the crimes. Guzman’s attorney clarified his statement, but the judge abruptly concluded the proceedings.
— Ted Glanzer