Construction Company Owner Pleads Guilty to Defrauding Investors

Stephanie Abbott —  June 5, 2018 — Leave a comment

Jesse Wells Haug, 33, Rosemount, Minnesota, pled guilty yesterday to one count of wire fraud.

According to the defendant’s guilty plea and documents filed in court, Haug is the owner of a Twin Cities-based construction company called 7-10 Services, LLC. From 2015 through the end of 2016, Haug executed a scheme to defraud investors by falsely representing to them that he would use their money to purchase and renovate residential real estate, and, in exchange, he would share the profits when the properties were re-sold, or “flipped.”

According to the defendant’s guilty plea and documents filed in court, during the course of the scheme, Haug obtained $880,000 from two victim-investors to purchase and renovate residential properties located throughout the Twin Cities. During the course of Haug’s interactions with the victim-investors, Haug used false documentation showing how the investment money was being used, false information about upcoming real estate closings and re-sales of properties Haug claimed to have flipped, as well as fictional documents showing “returns” from the so-called investment properties. In reality, Haug spent the investment money on personal expenses and never purchased or sold any of the properties.

United States Attorney Gregory G. Brooker made the announcement.

This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.

Assistant United States Attorneys Kimberly A. Svendsen and Charles J. Kovats are prosecuting this case.

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Stephanie Abbott

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