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Minnesota AG prevails at trial in lawsuit over predatory contract for deed scheme targeting Muslim homebuyers

Chadwick BankenJune 23, 2026Minnesota Attorney General

Summary

A Minnesota jury found home seller Chadwick Banken liable for violating the Minnesota Human Rights Act by targeting Muslim homebuyers in a deceptive contract for deed scheme. The scheme involved inflated prices, large down payments, and balloon payments designed to cause defaults, allowing Banken to keep payments and resell properties. Remedies including restitution will be determined at a later hearing.

Remedy

The jury found Banken liable; the court will determine remedies, including restitution to victims, at a future hearing.

Consumer Refunds

Contract Impact

In-house legal teams should review real estate purchase agreements, especially contracts for deed, for terms that could be deemed predatory or discriminatory. Key clauses to examine include balloon payment provisions, default and forfeiture terms, down payment requirements, and any marketing or targeting based on religion. Vendor agreements with real estate agents or brokers should include anti-discrimination and fair lending compliance obligations. Customer-facing contracts should ensure clear disclosure of all terms and avoid hidden fees or unfair cancellation policies.

Contract Search Terms

contract for deedballoon paymentreligious discrimination clauseconsumer frauddeceptive trade practicespredatory lendinginterest-free financingIslamic law compliancedown payment termsdefault penalty

Laws Cited

Minnesota Human Rights ActConsumer Financial Protection ActPrevention of Consumer Fraud ActUniform Deceptive Trade Practices Act
Minnesota Human Rights Act (discrimination in real property transactions)

Violation Types

Entity Details

Entity

Chadwick Banken

Industry

Real Estate

Official Sources

Source Evidence

Entity Name
"Chadwick Banken"
Laws Cited
"Minnesota Human Rights Act"
Laws Cited
"Consumer Financial Protection Act"
Laws Cited
"Prevention of Consumer Fraud Act"
Laws Cited
"Uniform Deceptive Trade Practices Act"
Violation Types
"targeting Muslim homebuyers in his deceptive and unlawful contract for deed scheme"

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