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Continued: Twin Cities luxury homebuilder investigated for fraud

  • Article by: ALEJANDRA MATOS , Star Tribune
  • Last update: August 18, 2013 - 10:00 AM

“The lien waiver dated September 13, 2011, falsely claimed that the [subcontractor] had been paid $5,800 for its contribution to [the owner’s] construction project,” the document states.

Another property owner in Wayzata, identified as “owner 6,” said a subcontractor filed a $113,131 mechanic’s lien statement because the company failed to pay for services. Waters and Siverson “advised owner 6 that approximately 26 subcontractors and suppliers are owed a combined total of at least $479,348.”

Waters acknowledged the misappropriation of customers’ payments to the board, the document says.

Several of the homeowners and contractors filed civil lawsuits against Waters and Siverson, according to court records.

In November, Waters and Siverson filed for bankruptcy. Waters has 50 claims totaling $7.4 million against him. Siverson has 23 claims totaling $5.4 million.

Jessica Epp and her husband claimed $95,200 against Waters and Siverson. They hired Keith Waters and Associates to remodel their home in Eden Prairie. Like Berger, Epp said subcontractors were not getting paid.

“Looking back, there were plenty of warning signs. Subcontractors weren’t coming out and we were told they were too busy, or we asked about our front door and they said it kept coming in as the wrong color,” Epp said.

Epp said she does not expect to get back all the money that she lost, but she said she hopes Waters and Siverson will serve time for their actions.

Sgt. Allen Ringate with the Minnetonka Police Department said the department is investigating Keith Waters and Associates “for allegations of contractor fraud involving multiple victims.”

Hennepin County Attorney Mike Freeman said his office is aware of the case and “when it is presented, if the elements of a provable crime are there, we will charge.”

Berger said it’s hard to feel sorry for the men when they “made a decision that cost a lot of people money.”

“I consider them thieves and crooks,” Berger said. “They should get punished for what they did.”

 

Alejandra Matos • 612-673-4028 • Twitter: @amatos12

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  • Keith Waters designed Lorie and Tim Line’s Mediterranean-style home on Lake Minnetonka. It went on the market for $3.99 million in 2012. Waters also remodeled the home of former U.S. Rep. Jim Ramstad’s wife on Lake Harriet, according to real estate listings.

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