Tuesday, May 1, 2012

Criminal Prosecutions Related To New Jersey Municipal Tax Lien Bid Rigging Probe Lead To Property Owner's Civil Suit Making Similar Charges

In Trenton, New Jersey, Courthouse News Service reports:

  • A federal class action claims that 26 people, banks and corporations, "who are among the largest purchasers of tax sale certificates in the State of New Jersey," rigged bids at municipal tax lien auctions to assure that interest rates on property tax obligations would stay at the maximum 18 percent. The named plaintiff is MSC, LLC, of Cherry Hill.

  • "A Tax Sale Certificate was issued with respect to plaintiff's property, and such Tax Sale Certificate was purchased by one of the defendants pursuant to the conspiracy alleged herein," the complaint states.

  • "As a result of the defendants' conduct alleged herein, the interest rate associated with plaintiff's delinquent tax obligation was artificially inflated and plaintiff was damaged thereby. Plaintiff is currently facing the prospect of foreclosure on its property by one of the defendants due to the TSC associated with its property."
For the lawsuit, see MSC LLC v. Collins et al.

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