Minnesota real estate firm fined for violating lead disclosure laws

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U.S. Attorney McLain J. Schneider | U.S. Department of Justice

Minnesota real estate firm fined for violating lead disclosure laws

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United States Attorney Mac Schneider announced that Valley Property Partners LLC, operating as "House Dudes," has been sentenced for failing to provide lead-based paint disclosures. The Moorhead, Minnesota-based real estate company was ordered by U.S. Magistrate Judge Alice R. Senechal to pay $4,274.78 in restitution and $10,000 in fines. Additionally, the company will serve one year of probation and perform 50 hours of community service.

The charges stem from an incident on October 16, 2019, when Valley Property Partners LLC sold a home built before 1978 in Hillsboro, North Dakota without providing the required lead-based paint disclosures. This omission violated the Toxic Substances Control Act. In April 2022, two children living in the residence were diagnosed with elevated blood lead levels. Subsequent inspections by the North Dakota Department of Environmental Quality (NDDEQ) confirmed the presence of lead-based paint in multiple areas of the home.

Schneider emphasized the importance of compliance with environmental laws: “The Toxic Substances Control Act protects kids and homebuyers... there can be serious health impacts on children when the law is violated.” He also noted that legal consequences exist for violators.

Lance Ehrig, Special Agent in Charge at EPA's Criminal Investigation Division in North Dakota, highlighted ongoing concerns about childhood lead exposure: “Childhood lead exposure remains a significant public health concern... Today’s sentencing demonstrates that those who violate our nation’s environmental laws and place children at risk will be held accountable.”

The investigation was conducted by the United States Environmental Protection Agency – Criminal Investigation Division with support from NDDEQ. Assistant U.S. Attorney Jonathan J. O’Konek prosecuted the case.

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