MINNEAPOLIS — A Hennepin County District Court jury found Chadwick Banken and several of his companies civilly liable for violating the Minnesota Human Rights Act in a trial in Minneapolis. The jury also determined that Mr. Banken violated the state Consumer Financial Protection Act on two counts, the Prevention of Consumer Fraud Act, and the Uniform Deceptive Trade Practices Act.

The verdicts regarding the Consumer Financial Protection Act, Prevention of Consumer Fraud Act, and Uniform Deceptive Trade Practices Act are advisory. A judge will make the final determination on these counts. The court will determine whether to order restitution to victims or assess other penalties, which could include up to $25,000 in fines per violation and the surrendering of profits. The seven-person jury deliberated for approximately eight hours over two days before reaching the verdict.

Assistant Attorney General Karthik Raman said Mr. Banken exploited people. "Chad Banken exploited people's willingness to sacrifice for this dream," Raman said. Abdinoor Igal, a customer, testified that he put down $20,000 in 2022 to secure a house in Lakeville, which he was initially told would cost about $638,000. He later saw documents indicating a cost of $727,000 and was informed he would lose his down payment if he withdrew.

Mr. Igal walked away from the house after making $170,000 in payments, according to the lawsuit. Mr. Igal testified, "I lived in my truck for one year as a homeless person." He added, "Put on the market as for sell. I don't wanna be your slave." Assistant Attorney General Mark Iris stated, "I'm not saying Mr. Banken wanted these transactions to fail — I'm not saying that — but he sure was indifferent."

Mr. Banken sold 160 homes using contracts for deed, targeting Muslims and buyers with poor credit with an offer of creative financing. Jack Pierce, Mr. Banken's lawyer, maintained that individual outcomes were not always successful. Pierce said, "For some people it didn't work out. And that's too bad. It's unfortunate. That's life. Sometimes things don't work out." Mr. Pierce also posed a question regarding the provision of such opportunities. "Is that wrong? Are we going to punish somebody for providing the opportunity for someone else to buy a house in the option they wanted?" he asked. Minnesota Attorney General Keith Ellison's office filed the lawsuit.