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Thursday, January 2, 2014

NJ Municipal Tax Lien Auction Scams: Are You a Victim?

Is your home in foreclosure after being sold in a Municipal Tax Lien Sale? Do you remember this little blue slip of paper that arrived with our tax bills and was almost thrown away by many of us? 

According to the United States Department of Justice all is not well with Tax Lien Sales across the state of New Jersey. Unscrupulous individuals have been victimizing already distressed homeowners by rigging the bidding at Municipal Tax Lien Sales. 

I have been in a situation where paying my property taxes left me without enough money to buy food. Some of us find ourselves in that situation every quarter. I have been known to break my payments in half so as to have something left over. The warning on the slip above will not allow that. I understand the tremendous hardship a fraud like this causes. The financially strapped homeowner must pay mortgage and current taxes while attempting to pay off the lien plus interest. This rigging of tax lien sales drives up the cost so high that affected homeowners have no way of paying. The danger is not over. All Municipalities must become vigilant in the identification and apprehension of the silent invisible criminal that preys on those who are not faring well in these economically difficult times. Persons who have pleaded guilty may still participate in Municipal Tax Lien Sales. Check your foreclosure papers for the names listed below. Persons who have pleaded guilty have conditions which they must follow in relation to foreclosures that have already been served. It is time to resist. You may be able to recover monies even if you have already lost your home.
The United States Department of Justice - Office of Public Affairs - September 30, 2013 Two New Jersey Investors Plead Guilty for Their Roles in Bid-rigging Schemes at Municipal Tax Lien Auctions
“By conspiring to rig the bids of municipal tax liens, the conspirators profited at the expense of those already struggling financially,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “Protecting Americans from these types of bid-rigging schemes remains a high priority for the division.”
According to the court documents, Del Vecchio Sr. and Mastellone were involved in the conspiracy with others not to bid against one another at municipal tax lien auctions in New Jersey.  Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens which earned a higher interest rate.  Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.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 a Sherman Act violation 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 the $1 million statutory maximum.
Today’s pleas are the 13th and 14th guilty pleas resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions.  Nine individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby, David Butler and Norman T. Remick – and three companies –  DSBD LLC, Crusader Servicing Corp. and Mercer S.M.E. Inc. – have previously pleaded guilty as part of this investigation. "  US Department of Justice
Read comments by Michael R. Perle that describe a class action suit that was started because of conspiracies like this.

This is a link to a Public Press Release From the United States Department of Justice - April 25, 2013  http://www.justice.gov/atr/public/press_releases/2013/296272.pdf

All of the persons listed below have pleaded guilty to violation of the Sherman Act which carries a maximum of 10 years imprisonment and $1 million or more dollars in fines. This group is being prosecuted together.
  • Joseph Wolfson, of Margate, N.J., was a part-owner of two entities that invested in municipal tax liens
  • James Jeffers Jr. and 
  • Betty Simon Trustee LLC and Richard Simon Trustee, both of Northfield, N.J.
  • Gregg Gehring, of Newton, N.J., was employed by a major tax lien investment company as a vice president.
  • James Jeffers Jr., of Burlington, N.J., was a bidder for Crusader Servicing Corp., which pleaded guilty to its role in the conspiracy in September 2012, and also a bidder for Crusader’s successor corporation.
  • Robert Jeffrey, of Bradenton, Fla., was a bidder for both Crusader and its successor corporation.
  • U.S. v. Joseph Wolfson, et al. Product or service: Tax liens  
    Hearing
    Date and Time
    Location
    Arraignment / bail hearingJanuary 8, 2014
    12:00 p.m. Eastern
    Martin Luther King Building & U.S. Courthouse
    Court Room: 4A
    Judge Faith S. Hochberg
    50 Walnut St.
    Newark, NJ
    (973) 645-3730
The following are being prosecuted individually. Click on the names for Plea Agreements or Indictments - 
  1. Isadore H. May
  2. Richard J. Pisciotta Jr., 
  3. William A. Collins
  4. Robert W. Stein
  5. David M. Farber,  
  6. Robert E. Rothman
  7. Stephen E. Hruby
  8. David Butler
  9. Norman T. Remick, 
  10. Robert U. Del Vecchio Sr. - Sentencing hearing January 14, 2014. Martin Luther King, Jr. Federal Building & U.S. Courthouse, Post Office Court, Court Room 04
    Hon. Dennis M. Cavanaugh 
    50 Walnut St.  Newark, NJ   (Plea Agreement)
  11. Michael Mastellone – Sentencing hearing - January 21, 2014 - Federal Building & U.S. Courthouse
    Post Office Court, Court Room 04 - Hon. Dennis M. Cavanaugh 
    50 Walnut St.  Newark, NJ    (Plea Agreement)
Three companies also pleaded guilty as part of this investigation: DSBD LLC, Crusader Servicing Corp., and Mercer S.M.E. Inc., 


Click here for step by step instructions on what to do If you have information about a possible antitrust violation or potential anti-competitive activity....see more
"This ongoing investigation is being conducted by the Antitrust Division’s New York Office and the FBI’s Atlantic City, N.J., office.  Anyone with information concerning bid rigging or fraud related to municipal tax lien auctions should contact the Antitrust Division’s New York Office at 212-335-8000, visit www.justice.gov/atr/contact/newcase.htm or contact the Atlantic City Resident Agency of the FBI at 609-677-6400."
What is the Financial Fraud Enforcement Task Force?
President Obama established the Financial Fraud Enforcement Task Force in November 2009 to hold accountable those who helped bring about the last financial crisis as well as those who would attempt to take advantage of the efforts at economic recovery. http://www.stopfraud.gov/iso/opa/stopfraud/2013/13-at-1234.html

Persons and companies in our town and immediate area have plead guilty to violation of antitrust laws (The Sherman Act) Use the information provided in the links below to learn how you may protect yourselves from antitrust scams. Learn to recognize Collusion. An educated consumer is the best weapon against this type of crime. We cannot continue to allow those who have more than enough to defraud those who are less fortunate.

This pamphlet was prepared to alert consumers to the existence and importance 
of antitrust laws and to explain what you can do for antitrust enforcement and for yourself. 

American consumers have the right to expect the benefits of free and open competition — the best goods and services at the lowest prices. Public and private organizations often rely on a competitive bidding process to achieve that end. The competitive process only works, however, when competitors set prices honestly and independently. When competitors collude, prices are inflated and the customer is cheated. Price fixing, bid rigging, and other forms of collusion are illegal and are subject to criminal prosecution by the Antitrust Division of the United States Department of Justice.

You can help prevent collusion in procurement and grant awards — or detect collusion after an award has been made — by using this simple four-part MAPS analysis:

Statutory Provisions and Guidelines of the Antitrust Division
http://www.justice.gov/atr/public/divisionmanual/chapter2.pdf

Please share this information as widely as possible. It is the only way that we are assured of taking back what is ours. The information belongs to everyone. Spread the word. Reverse Robin Hoods do nothing for the welfare of the American People. We support the needy not the greedy.

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