The Justice Department dropped the sole charge against a New Jersey investor who was among four individuals and two companies accused of rigging bids for municipal tax liens.
Prosecutors asked a federal judge in Newark at a pretrial hearing Thursday to dismiss the allegations against Gregg Gehring, according to court records. The other defendants are scheduled to go to trial next week.
“I remain proud of the work I did, and while I’m grateful the charges have been withdrawn, I will never understand why the government dragged me into this case in the first place,” Gehring said in a statement. “I’m glad to get my life and reputation back.”
Gehring and the other investors were indicted in 2013 for allegedly colluding with each other at auctions for liens on unpaid property, water and sewer taxes. The Justice Department claimed they agreed beforehand which liens each would bid on, thereby securing higher interest rates that property owners would have to pay on their tax debts.
The case is U.S. v. Wolfson, 13-cr-00748, U.S. District Court, District of New Jersey (Newark).