Antitrust Law Daily Minnesota real estate company fined in fraud case; owner and accountant sentenced to prison time
News
Wednesday, January 22, 2020

Minnesota real estate company fined in fraud case; owner and accountant sentenced to prison time

By Jeffrey May, J.D.

Sentencing follows guilty pleas for their participation in a long-running fraudulent bidding and kickback scheme in connection with foreclosed properties.

A Minnesota real estate company, as well as the company's owner and accountant, were sentenced yesterday by the federal district court in St. Paul, Minnesota, after pleading guilty last year for their participation in a long-running fraudulent bidding and kickback scheme in connection with foreclosed properties. Detloff Marketing and Asset Management Inc. was sentenced to a pay a $593,000 criminal fine and ordered to serve probation. Jeffery Detloff, the company's owner, and Lori Detloff, his spouse and the company’s accountant, were sentenced to serve jail time (U.S. v. Detloff Marketing and Asset Management, Inc., Case No. 0:18-cr-00197-PAM-HB).

The defendants were indicted in 2018. They were charged with conspiring to commit mail fraud and wire fraud affecting financial institutions, from September 2007 through June 2015. In addition to the conspiracy charge, there were four separate counts of mail fraud and four separate counts of wire fraud.

With a trial set to begin in August 2019, the three pleaded guilty in July of that year. Detloff Marketing and Jeffery Detloff pleaded guilty to Count 1 of the indictment, which charged a conspiracy to commit mail and wire fraud affecting a financial institution. Lori Detloff pleaded guilty to aiding and abetting the principal offense described in Count 4 of the indictment, mail fraud affecting a financial institution. As part of their plea agreements, the Department of Justice Antitrust Division agreed to move to dismiss the remaining counts upon sentencing. The court has now dismissed those counts.

Sentencing terms. Jeffery Detloff was sentenced to 16 months’ imprisonment and two years of supervised release. He also was fined $7,500. Lori Detloff was sentenced to seven months’ imprisonment and one year of supervised release. She was fined $5,000. The defendants were also jointly and severally responsible for restitution to the victims of the scheme in the amount of $291,505.

The government had requested that the court impose on Jeffery Detloff a sentence of imprisonment of 33 months and a criminal fine of $75,000, in addition to the order of restitution. The government had argued that a "sentence including a substantial fine and imprisonment is necessary to reflect the seriousness of Defendant’s fraud, to deter others from engaging in similar conduct, promote respect for the law, and to avoid unwarranted disparities among defendants guilty of similar conduct."

Both individual defendants argued for lower sentences than those recommended by the Justice Department. The court apparently took the defendants’ arguments into account in sentencing. The husband and wife are to surrender to the U.S. Marshals Office on February 18, 2020.

The "sentences reflect the significant harm caused by the defendants’ years long scheme that lined their pockets by defrauding lenders and undermining competition," said Makan Delrahim, Assistant Attorney General in charge of the Department of Justice Antitrust Division, in announcing the sentencing. "The Antitrust Division and its partners are committed to rooting out anticompetitive conduct, whatever its form, and holding companies and executives accountable."

Attorneys: Andrew K.M. Rosa, Department of Justice, for the United States. Ryan P. Garry (Ryan Garry, Attorney, LLC) for Detloff Marketing and Asset Management, Inc. Joseph S. Friedberg (Joseph S. Friedberg Chartered) for Lori Detloff. Andrew S. Birrell (Birrell Law Firm) for Jeffery Detloff.

Companies: Detloff Marketing and Asset Management, Inc.

MainStory: TopStory Antitrust AntitrustDivisionNews MinnesotaNews

Back to Top

Interested in submitting an article?

Submit your information to us today!

Learn More

Antitrust Law Daily: Breaking legal news at your fingertips

Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on antitrust legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.

Free Trial Learn More