A number of auctions for foreclosed condominium and residential properties in North Carolina reportedly involved fraudulent activities wherein bidders were asked to pay certain amounts to a company in exchange for the latter withdrawing its own bids. Bruce Olvin McBarnette's Summit Connection LLC has been accused of defrauding bidders in a number of foreclosure sales held between 2009 and 2010.
According to court documents, McBarnette and his firm were involved in sales of several Durham foreclosures and a number of other properties in Mecklenburg County. In these sales, McBarnette reportedly tried to get bidders to pay him in exchange for withdrawing his purchase offers. Three bidders from Durham did pay him the money and local officials have revealed that McBarnette was ordered to pay restitution for these cases in the amount of $4,900.
A judgment was passed in December 17 under which McBarnette is required to pay state lawyer fees, civil penalties and restitutions in the amount of more than $47,000 for his alleged involvement in the sale of several North Carolina foreclosures. According to court clerks, they became suspicious when a number of bidders complained that McBarnette had tried to interfere with the process of auctioning the properties.
In the subsequent investigation, officials reportedly found that McBarnette violated North Carolina's laws against deceptive trade. The issue also put a shadow on other auctions involving foreclosed dwellings and foreclosed condominiums in the state. Meanwhile, officials decided not to pursue charges against the individuals who paid the money. They argued that McBarnette initiated the whole scheme with full knowledge that he would be violating the area's law should he continue to do so.
A further look into the property deeds and consent orders for the sales allegedly showed that McBarnette took advantage of the upset bid period common in auctions of foreclosures wherein a 10-day timeline is provided to bidders to increase their offers. The upset bid occurs between the initial bidding and the final sound of the gavel.
McBarnette allegedly waited until the deadline is near and then call bidders who are most serious in acquiring the properties. According to market observers, the controversy will put auctions of foreclosed condominiums and houses under more intense scrutiny as officials are now aware of potential schemes similar to what McBarnette launched.
For over 10 years, John Evan Miller has provided exceptional information on the foreclosure market.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites