Modesto real estate investor arrested by FBI
Tuesday, authorities arrested Katakis at his office in Modesto, Chandler at his home in Lodi and Longley at his home in Roseville. Parker surrendered to the U.S. marshal, and an arrest warrant has been issued for Joachim.
Katakis is president of California Equity Management, which owns the 13th Street building where it is housed and has its headquarters there along with several other businesses. In September, FBI agents searched the building. Officials at that time would say nothing other than that they were serving a search warrant.
According to the indictment, Katakis, Chandler, Parker, Joachim, Longley and unidentified co-conspirators rigged bids to obtain selected properties offered at public auction from September 2008 to October 2009.
Claim of diverted money
The men also are accused of implementing a scheme to fraudulently acquire title to selected properties sold at the public auctions and to divert money to co-conspirators that would have gone to the beneficiaries.
Of the 280 units, 272 were acquired by PLPH on January 27 at the conclusion of the bankruptcy sale and auction process. The other eight were sold previous as condominiums to individual owners. Currently, about 65 percent of the units in Park Lafayette