Cottage Grove man sentenced for defrauding investors in a house-flipping scheme
FOR IMMEDIATE RELEASE
March 6, 2012
MINNEAPOLIS – Earlier today in federal court, a 47-year-old Cottage Grove man was
sentenced for defrauding investors out of more than $5 million in a multi-state, house-flipping
scheme. United States District Court Chief Judge Michael J. Davis sentenced Robert W.
Dufresne, Jr. to 97 months in federal prison on one count of mail fraud and one count of money
laundering in relation to his crime. In addition, Dufresne was ordered to pay more than $6.5
million in restitution. The sentence was longer than expected because the court found that
Dufresne had obstructed justice by seeking to dispose of assets after entering his guilty plea on
February 18, 2011. He was charged on February 7, 2011.
In his plea agreement, Dufresne admitted that between October of 2005 and October of
2008, he sought investors to supply funds purportedly for the purchase, rebuilding, and resale of
residential properties in Minnesota and other states. Investors expected the sale proceeds to be
divided among them. However, Dufresne used the initial investment funds for his personal
benefit and relied on subsequent investment funds to pay off the initial investors.
This case was the result of an investigation by the U.S. Postal Inspection Service, the
Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation
Division. It was prosecuted by Assistant U.S. Attorneys Robert M. Lewis and James S.
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