Cheap City Land

A city sold run-down lots cheaply to developers who promised to fix them up. Contracts forbade 'speculation in landholding'. A woman with no development experience bought several lots. She was in an undisclosed romantic relationship with the mayor. She renovated only two lots and quickly resold others for profit; one bought for $18,000 sold for $80,000. Prosecutors said the mayor used his office to steer the land to her. The mayor argued the sales followed the city's redevelopment programme, and that failing to disclose a personal conflict is not a federal crime.