A Minnesota real estate broker was found guilty in a jury trial of exploiting Muslim homebuyers in a predatory deed scheme.
Chadwick Banken and several companies that he owned were accused offering contract for deed transactions that were promoted as sharia compliant for his Muslim clients. However, Banken required very large down payments for homes with dramatically inflated prices, coupled with elevated balloon payments at the end of the loan’s term. If the purchaser missed a single payment for the duration of the loan, Banken and his companies terminated the contracts, with the buyer losing the money they paid to the property.
The jury found Banken found liable for violating the three federal laws – the Consumer Financial Protection Act, the Prevention of Consumer Fraud Act, and the Uniform Deceptive Trade Practices Act – along with the Minnesota Human Rights Act. The court will review the jury’s recommendations in Banken’s sentencing, which has not been scheduled.
“Buying a home is often the biggest and most significant purchase any of us makes, and Chadwick Banken set homebuyers up to fail so he could profit,” said Minnesota Attorney General Keith Ellison. “I am extremely pleased that we were able to hold Banken accountable at trial for the predatory and unlawful scheme he ran, and for his disgraceful targeting of Muslim homebuyers. As long as I’m Attorney General, I will do everything in my power to protect the pocketbooks of Minnesotans everywhere and to stand up to religious discrimination wherever I find it.”
Photo of Chadwick Banker via LinkedIn
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