FILE-A "for sale by owner" sign stands outside a home in LaSalle, Illinois. (Daniel Acker/Bloomberg via Getty Images)
(FOX 9) - A jury has found a business owner violated Minnesota's Human Rights Act by targeting members of the Muslim community with predatory home loans following a lawsuit brought by Attorney General Keith Ellison's Office.
Jury findings
What we know:
Chadwick Banken was found liable on Monday following a nine-day trial.
Banken is the owner of several companies including Slow Flip, LLC, Banken Holdings, LLC, BCC Holdings, LLC, Flip Funding, LLC, Slow Jewels, LLC, and Front Flip, LLC.
Along with violations of Minnesota's Human Rights Act, the jury also found Banken violated the Consumer Financial Protection Act, the Prevention of Consumer Fraud Act, and the Uniform Deceptive Trade Practices Act.
Dig deeper:
The attorney general's office notes that the latter findings are advisory, and the court will ultimately rule on the violations outside the Human Rights Act.
Muslim community targeted with predatory loans
The backstory:
The attorney general accused Banken in a 2024 lawsuit of targeting members of Minnesota's Muslim community with predatory loans.
The attorney general's office says Banken's companies would target people with low credit scores or religious beliefs that prohibit them from traditional mortgages and instead use a practice known as "contract for deeds." Ellison says Banken would mislead customers about the true cost of the homes by hiding terms of the deals and "balloon payments" due at the end of the loan and sometimes the interest rate.
The AG says he would also target members of the Muslim community that obey tenants of Islam that bar them from participating in interest-based transactions, like a traditional mortgage or loan.
Ellison claimed Banken would sell Muslim customers homes with "grossly unfair terms" and "contract terms designed to fail." Ellison explained the Muslim-specific contracts often had higher sales prices, higher down payments, and higher monthly payments than contracts for non-Muslim purchasers.
Ultimately, Ellison says Banken's scheme forced many would-be purchasers to walk away from the home without the home or their payments.
What's next:
A judge will review the jury's findings on the Consumer Financial Protection Act, the Prevention of Consumer Fraud Act, and the Uniform Deceptive Trade Practices Act counts at a later date.