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Fraudulent sales practices


Manufactured Structures Bulletin 34


To:

Manufactured Home Manufacturers, Dealers, Limited Dealers, and Other Interested Parties

From:

Thomas R. Joachim State Building Official

Date:

June 19, 2002

Subject:

Fraudulent Sales Practices

 

It has been alleged that certain dealers may be misrepresenting consumers' financial information in order to secure loans for purchasers of homes. These practices may include raising the stated value of the home to a lender to cover an overstated down payment amount. Such actions amount to violations of consumer fraud and other statutes.

Administrative Rule 1350.8800 clearly designates the dealer or limited dealer as responsible for the accuracy of the sales documents. Minnesota Statute 327B.05, Subdivision 1, identifies fraud among the grounds for the Commissioner of Administration to order denial, revocation, or suspension of any license. The Commissioner may also order restitution to any injured consumer customer or assess a penalty up to $10,000 against any person who commits an act that is grounds for the suspension or revocation of a license.

In addition, all issues regarding consumer fraud will be forwarded to the State Attorney Generals office for appropriate action. Conviction of consumer fraud carries a penalty of up to $25,000 per violation.

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