Real Estate Exec Pleads Guilty to Bid Rigging

Real estate executive who pleaded guilty to bid rigging leaves the courthouse.

Inquiring minds are wondering how many more unscrupulous brokers are out there rigging bids? There is at least one fewer of these brokers than before.

Richard W. Northcutt, 56, a Stockton real estate executive pleaded guilty Friday to conspiring to rig bids and commit mail fraud. Mr. Northcutt admitted that he and other investors bought more than $10 million of foreclosed homes at artificially low prices before reselling and splitting the profits:

Richard W. Northcutt, 56, is the fourth person to plead guilty in a federal investigation of anti-competitive practices in real estate foreclosure auctions throughout Northern California.

“By rigging public auctions of foreclosed properties, the defendants who have pleaded guilty as a result of this investigation illegally manipulated the market for residential real estate,” said Benjamin Wagner, U.S. attorney for the Eastern District of California.

Northcutt pleaded guilty in U.S. District Court in Sacramento to one count of bid rigging, a violation of the federal Sherman Antitrust Act, which carries a maximum penalty of 10 years in prison and a $1 million fine. The fine can be increased to twice the gain from the crime or twice the victim’s loss.

He also pleaded guilty to one count of conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison, and a $1 million fine.

Let us all hope that each and every one of these scumbags is caught and punished to the full extent of the law.


2 Responses

  1. You have no idea what you are talking about! What Mr. Nortcutt did hurt no one. It cost no one any money and didn’t cause one person to lose their house unlike the scumbags in congress and the banks themselves.

  2. Are you mentally incompetent? Are you serious? Or, are you his lover?

    Of course he ‘hurt’ people. And cost lots of ‘people money’. Are you so narcissistic (or just plain stupid) that you can’t get your head out of Mr. Norcutt’s ass far enough to see anybody but you two.

    First of all, he pleaded GUILTY to the charges!

    Second, yes, being a CA real estate broker for over 10 years, I know EXACTLY what I am talking about.

    Third, he hurt the entity that he bought the homes from because they should have received more money. That means workers didn’t make as much or weren’t hired because of Mr. Norcutt. Also, the person who tried to buy the properties on the level (or would have) if they hadn’t had their chance stolen by Mr. Norcutt didn’t get to…costing them money.

    This last point is the most important. Mr. Norcutt’s biggest crime is that he helped screw up the market even more than it is. The SAME crime you just said “the scumbags in congress and the banks” committed. So, Mr. Norcutt is also a scumbag.

    We must clean up the market from both ends. Defecation and vomit are both disgusting and need to be cleaned up. The cleaning solution is ethics.

    Thanks for actually making my point.

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