A Hennepin County jury on Monday, June 22, 2026, found Twin Cities real estate broker Chadwick Banken liable for discrimination and for multiple deceptive home-sale practices tied to seller-financed deals. The civil verdict could open the door to restitution for buyers and court orders limiting Banken’s business operations once a judge sets remedies at a follow-up hearing.
Jurors unanimously found Banken liable for violations of federal and state consumer-protection laws, including the Consumer Financial Protection Act, Minnesota’s Prevention of Consumer Fraud Act and the Uniform Deceptive Trade Practices Act, as well as for discrimination under the Minnesota Human Rights Act, according to Sahan Journal. The decision came after two weeks of testimony and more than seven hours of deliberation.
The Minnesota Attorney General’s Office sued Banken in 2024, alleging he used a so-called “slow flip” strategy that required large down payments, sharply inflated prices and short contracts with six-figure balloon payments, then canceled contracts when buyers missed payments, per the Minnesota Attorney General’s Office. The complaint also alleges Banken targeted Muslim homebuyers by marketing contracts as sharia-compliant while concealing finance charges. Those allegations echo a 2022 investigation by ProPublica and Sahan Journal that first spotlighted the trade and helped prompt legislative and federal scrutiny.
How contracts for deed trap buyers
Under a contract for deed, the seller keeps legal title until the buyer finishes payments. In the meantime, buyers typically shoulder repairs, property taxes and the risk of eviction, without the protections that come with a conventional mortgage. The Consumer Financial Protection Bureau warned in a 2024 report that these deals can be structured to obscure finance charges, inflate prices and let sellers repeatedly “churn” the same properties, concentrating harm in underserved communities.
One juror told Sahan Journal, “We spent a lot of time going over all of the documents,” adding that the panel leaned heavily on the paperwork rather than emotion. Homebuyers who testified described losing savings and, in some cases, their houses after balloon payments came due and contracts were canceled.
What comes next
If Hennepin County District Court Judge Laura Thomas adopts the jury’s findings, she will decide how much Banken must pay in restitution and whether to bar him from continuing contract-for-deed sales at a later hearing, according to KARE11. The outlet reported that Banken and his attorney waived their right to appear in court when the verdict was read.
Why this matters
Advocates say the verdict could send a message to investor-sellers across the country who use seller-financing to exploit communities with limited access to mainstream mortgages. A ProPublica investigation and Sahan Journal’s reporting helped push state legislative reforms and federal scrutiny, and the Consumer Financial Protection Bureau’s guidance now flags contracts for deed as an area that requires clearer disclosures and stronger oversight.
Legal implications
The jury’s verdict is a civil finding, not a criminal conviction, which means the remedies are limited to monetary penalties, restitution and injunctive relief rather than jail time. Minnesota statutes provide avenues for courts to order restitution, disgorgement and civil penalties for deceptive trade practices and discrimination. The judge will set the specifics at the remedy hearing.
People who believe they were harmed by a contract-for-deed sale can contact the Minnesota Attorney General’s consumer protection unit or find guidance from the Minnesota Department of Commerce. Legal-aid groups in the Twin Cities also offer free or low-cost help for homeowners facing eviction or contract disputes.
