Case Details

Year Initiated/Committed


Year Resolved


Settlement Amount



Lee County Circuit Court, 20th Judicial District, Florida

Docket Number

02- 5768CAJHS

Lead State


Participating States



M. Credit Inc.; TBC Tax I Inc.; TBC Tax II Inc.; TBC Tax III; Bank United FSB; BankUnited Financial Corporation; BU Ventures Inc.; T&D Properties of South Florida Inc; BankAtlantic and Heartwood 88 LLC; TransAm Tax Certificate Corporation; TransAm Tax Certificate LLC; TansAm Financial Services Inc.; Destiny 98; Advantage 99; Capital Asset Research Corporation Ltd.; Fundco Inc.; Munico Inc.; Propco Inc.; Coast Asset Management Corporation; Gulf Group Holdings Inc.; Saul & Company

Case Description

State alleged that parties rigged bids on interest rates for tax certificates sold at auction by the state. Tax certificates are in effect liens placed on properties for which taxes have not been timely paid. Each year, such certificates are auctioned by tax collectors around the state to individuals willing to pay the outstanding taxes. A property owner who later wishes to reclaim a piece of property from a certificate holder must pay the amount of delinquent taxes, plus accrued interest. Under state law, the maximum annual interest a tax certificate holder may earn is 18 percent. A given certificate is awarded to the bidder who agrees to accept the lowest amount of interest if the certificate is redeemed by the property owner. The state alleged bidders began meeting outside the auction room and conspiring to drive up the potential yield on the tax certificates by ceasing to compete.All but one party settled for a total of 754,500.