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June 4, 2008

A tax-sale admission

If you've been following the federal investigation into alleged collusion involving local tax-sale auctions -- and what housing-obsessed person wouldn't be? -- then you'll be interested to know that an investor has admitted to conspiring to rig bids.

Fred Schulte and June Arney report today:

Steven L. Berman, 50, of New Freedom, Pa., will pay a $750,000 fine and face a possible prison term, federal prosecutors said yesterday. In pleading guilty to the single felony count, Berman agreed to cooperate with the investigation. ...

Prosecutors allege that Berman conspired with other investors to rig the sales from at least 2004 through last year in Baltimore City and in Anne Arundel, Baltimore, Howard, Montgomery and Prince George's counties. In an affidavit filed last year to obtain a search warrant, FBI agents contended that bid rigging has corrupted the auctions for years, allowing a few bidders to win a large percentage of the properties.

One of the online elements with this story lets you search for properties sold at tax auctions in Baltimore this year.

On another note, a long-delayed twin-tower development on the city's waterfront is moving forward again, John Fritze reports:

If the City Council approves the zoning change, HarborView developer Richard A. Swirnow would be permitted to build a 26-story tower and could also proceed on an adjacent 17-story building west of the high-rise already on the site.

City officials say the proposed design is the best they have seen because it maintains better views of the water for surrounding residents and includes first-floor shopping to enliven Key Highway. Others argue City Hall is moving too fast to develop the site.

Posted by Jamie Smith Hopkins at 9:13 AM | | Comments (0)
        

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
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