Amador County – Federal authorities received a fifth guilty plea last week in a wide-spread bid-rigging scheme related to foreclosures in San Joaquin County.

The justice department said a real estate investor pleaded guilty Friday in Sacramento U.S. District Court to “conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions held in San Joaquin County.

Christine Varney, Assistant Attorney General of the justice department’s Antitrust Division announced that Yama Marifat, 38, of Pleasanton, “pleaded guilty to conspiring with a group of real estate speculators who agreed not to bid against each other at certain public real estate foreclosure auctions in San Joaquin County.”

According to court papers, the “primary purpose of the conspiracy was to suppress and restrain competition and to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices.”

Varney said: “After the conspirators’ designated bidder bought a property at a public auction, they would hold a second, private auction, at which each participating conspirator would bid the amount above the public auction price he or she was willing to pay. The conspirator who bid the highest amount at the end of the private auction won the property. The difference between the price at the public auction and that at the second auction was the group’s illicit profit, and it was divided among the conspirators in payoffs.

Marifat participated in the scheme from about April 2009 to October 2009. To date, five individuals, including Marifat, have pleaded guilty in connection with the investigation, including Anthony B. Ghio, John R. Vanzetti, Theodore B. Hutz, and Richard W. Northcutt.

Marifat pleaded guilty to bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine. Marifat also pleaded guilty to conspiracy to commit mail fraud, carrying a maximum sentence of 30 years in prison and a $1 million fine.

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