Jeffrey Detloff is accused of steering maintenance and repair contracts to companies that provided his own firm a kickback.

A Minnesota couple running a market and asset management real estate firm were sentenced in U.S. District Court this week for their part in a long-running fraud scheme, the U.S. Department of Justice (DOJ) announced.

Jeffrey Detloff | Photo credit: Zillow

Jeffrey Detloff, a Realtor according to the DOJ, and the owner of Detloff Marketing and Asset Management Inc., was accused of running an illegal bidding and kickback scheme in connection with foreclosed properties, along with his wife and the business’ accountant, Lori Detloff.

Jeffrey Detloff was sentenced to 16 months in prison and two years of supervised release for charges of mail and wire fraud, while Lori Detloff was sentenced to seven months in prison and one year of supervised release for aiding and abetting the crime. The firm was ordered to pay a $593,000 fine and restitution to the victims of the scheme.

“Today’s sentences reflect the significant harm caused by the defendants’ years-long scheme that lined their pockets by defrauding lenders and undermining competition,” Makan Delrahim, an assistant attorney general with the Department of Justice’s antitrust division, said in a statement. “The Antitrust Division and its partners are committed to rooting out anticompetitive conduct, whatever its form, and holding companies and executives accountable.”

Jeffrey Detloff, according to court documents, conspired to defraud lenders and guarantors who hired him to oversee maintenance and repairs on foreclosed homes, while acting in his capacity as a Realtor. Detloff was a licensed real estate salesperson in the state from 1991 to 2014, then a licensed real estate broker from 2014 to 2019, according to public records. It’s not clear, however, if he was a member of the National Association of Realtors, as DOJ states.

Detloff was charged with steering maintenance and repairs contracts to companies that would kickback to his own company, according to the complaint. Detloff also allegedly included the kickbacks within the bids and invoices sent to the lender. Lori Detloff was responsible for ensuring the kickbacks — which totaled $291,505 — were paid to the company.

“The defendants created a scheme to squeeze as much money as they could from these properties with no regard for the victim,” Jill Sanborn, the FBI special agent in charge of the Minneapolis Division, said in a statement. “These scams victimize a large number of people and the FBI along with our law enforcement partners will continue to work these schemes and hold accountable those responsible for defrauding the system.”

Email Patrick Kearns

Are you ready for what the industry holds in 2020? Inman Connect New York is your key to unlocking opportunity in a changing market. At Connect you will gain insight into the future, discover new strategies and network with real estate’s best and brightest to accelerate your business. Create your 2020 success story at Inman Connect New York, January 28-31, 2020.

Agenda | Speakers | Past Connect Videos

Thinking of bringing your team? There are special onsite perks and discounts when you buy tickets together. Contact us to find out more.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×