Bloomberg News

Crusader Servicing Pleads Guilty to Bid Rigging, U.S. Says

September 26, 2012

Crusader Servicing Corp. pleaded guilty to conspiring to rig bids in auctions for the sale of municipal tax liens in New Jersey, according to the U.S. Justice Department.

Crusader, based in Jenkintown, Pennsylvania, pleaded guilty today to a single conspiracy count in federal court in Newark, New Jersey, according to a Justice Department statement.

Crusader’s guilty plea is the 10th obtained by U.S. prosecutors in their investigation of fraud and bid-rigging in municipal tax lien auctions. Eight individuals and one company, DSBD LLC, have entered guilty pleas, according to the government.

“The conspirators agreed to not compete with one another at these tax lien auctions, depriving struggling homeowners of a competitive interest rate,” Scott Hammond, deputy assistant attorney general for the Antitrust Division’s criminal enforcement program, said in the statement.

The case is Crusader Servicing Corp., U.S. District Court, District of New Jersey (Newark).

To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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