Twin Cities Construction Company Owner Pleads Guilty For Defrauding Investors Out Of More Than $1 Million

United States Attorney Gregory G. Brooker announced the guilty plea of JESSE WELLS HAUG, 33, to one count of wire fraud. HAUG, who was charged in a superseding indictment on June 22, 2017, pleaded guilty yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minnesota.

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 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.

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.


Defendant Information:


Rosemount, Minn.


  • Wire fraud, 1 count


Robert graduated from Brandman University, where he got his bachelor’s degree in Business Administration. Born in Massachusetts, Robert’s family moved to Kentucky in 2005 where he spent his college life and worked as an insurance agent for four years. Now is the founder and team leader of the website.

Leave a Reply

Your email address will not be published. Required fields are marked *