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Moorhead real estate firm sentenced over lead disclosure failure

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Thursday, January 30, 2025

Moorhead real estate firm sentenced over lead disclosure failure

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

United States Attorney Mac Schneider announced the sentencing of Valley Property Partners LLC, a real estate company based in Moorhead, Minnesota. On December 3, 2024, U.S. Magistrate Judge Alice R. Senechal ordered the company 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 for failing to provide lead-based paint disclosures as mandated by the Toxic Substances Control Act.

The case arose from an incident on October 16, 2019, when Valley Property Partners LLC sold a home built before 1978 in Hillsboro, North Dakota. The company did not provide the necessary lead-based paint disclosures to the buyer. In April 2022, two children living at this residence were diagnosed with elevated blood lead levels. Subsequent inspections by the North Dakota Department of Environmental Quality confirmed the presence of lead-based paint in several areas of the home.

"The Toxic Substances Control Act protects kids and homebuyers," said Schneider. "While most sellers make the required disclosures in good faith, there can be serious health impacts on children when the law is violated." He added that legal consequences exist for violators and expressed gratitude to prosecutors and partners who ensured accountability.

Special Agent Lance Ehrig from EPA's Criminal Investigation Division emphasized that "childhood lead exposure remains a significant public health concern." He stated that today's sentencing demonstrates accountability for those violating environmental laws and putting children at risk.

The investigation was conducted by EPA's Criminal Investigation Division with assistance from North Dakota's Department of Environmental Quality. Assistant U.S. Attorney Jonathan J. O’Konek prosecuted this case.

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