Broker lost license for kickback scheme

A Burnsville real estate broker was fined $10,000 and his license was revoked after he orchestrated loan kickbacks on houses he helped sell, according to a February order from the Department of Commerce. Troy D. Chaika told buyers that he had negotiated bulk discounts with builders and that buyers would get cash equal to the difference between the discounted price and fair market value at closing, according to the consent order. Chaika submitted sham purchase agreements for as much as $230,000 more than the builder had requested. Chaika received as much as $90,000 per sale for his role. Most of the loans later defaulted. Chaika's company also made big profits by reselling properties the same day it purchased them, according to the order. Read the full order here.