This disciplinary matter is before the Court on the petition for voluntary discipline filed by Trent Carl Gaines State Bar No. 282172, prior to the issuance of a formal complaint, see Bar Rule 4-227 b 2. In his petition, Gaines, who became a member of the Georgia Bar in 2000, admits that he pled guilty on October 27, 2015, in the United States District Court for the Northern District of Georgia, to four counts set forth in a criminal information: two felony counts each of bid-rigging conspiracy in violation of 15 U.S.C. § 1, and conspiracy to commit mail fraud in violation of 18 U.S.C. § 1349. On February 22, 2016, Gaines was sentenced to six months incarceration, followed by three years of supervised release, including home confinement for three months. Gaines was also ordered to pay restitution of $46,800 to seven financial institutions, a fine of $35,000, and a special assessment of $400. The lenient sentence reflected the grant of the government’s motion for a downward departure based on Gaines having provided substantial assistance to the government and having been fully cooperative with its investigation. Gaines seeks the imposition of a three-year suspension.
The charges arose out of Gaines’s efforts to suppress and eliminate competition by rigging bids for the purchase of real estate at public foreclosure auctions; Gaines was acting on his own behalf as a real estate investor and not on behalf of any client. The conduct, which occurred between 2008 and 2010 in Fulton County and between 2006 and 2011 in DeKalb County, involved over a dozen properties and more than six co-conspirators. Gaines and his co-conspirators negotiated payoffs with each other in exchange for agreements not to compete at public auctions; conducted secret, second auctions, open only to members of the conspiracy; transferred title to rigged foreclosure properties into the names of the co-conspirators who submitted the highest bids at the secret auctions; distributed payoffs to co-conspirators that otherwise would have gone to financial institutions, homeowners, and others with a legal interest in the foreclosed properties; made materially false representations to trustees and others involved in the public auctions; and caused artificially suppressed purchase prices to be reported and paid to financial institutions and others.
