A Corcoran man defrauded investors out of $2.1 million — he said he was building housing for North Dakota oil workers — and used the money to buy vintage cars and an island on a lake in Wright County, according to federal charges.
Ronald D. Johnson, 50, was charged Wednesday in federal court with five counts of wire fraud and one count of money laundering. He is scheduled to appear in court Friday in St. Paul.
According to documents filed in court:
During the scheme, running from 2012 until March of this year, Johnson approached potential investors about his idea to create and manage housing for oil workers in the Bakken in North Dakota and Montana. His Indoor RV Parks would allow the workers to pass up living in the typical barracks-style housing in favor of parking their recreational vehicles in a park and share amenities such as laundry facilities and vending machines.
Johnson received $2.1 million from four investors but used more than $1.8 million of the money to finance his cattle farm, take vacations, buy several vintage Chevrolets and purchase real estate, including an entire 17-acre island on Mink Lake in Maple Lake.
When last for sale, the island was listed at $109,000. The land was described in the listing as heavily wooded and included a 36- by 24-foot pavilion.
Telephone calls Thursday to two numbers for the Johnson family went unanswered. Court records do not show that Johnson has an attorney yet.
Paul Walsh • 612-673-4482
