MINNEAPOLIS (WCCO) – A 47-year-old Cottage Grove man was sentenced to more than eight years in prison on Tuesday after defrauding investors out of more than $5 million in a house-flipping scheme that covered several states.

Robert W. Dufresne was sentenced in Minneapolis Federal Court Tuesday on one count of mail fraud and one count of money laundering in connection with the case. Dufresne was also ordered to pay more than $6.5 million in restitution.

The sentence was longer than normal guidelines after the court learned Dufresne attempted to dispose of assets after pleading guilty on Feb. 18, 2011. He was charged on Feb. 7, 2011.

In the plea agreement, Dufresne admitted from October 2005 to October 2008, he sought investors for funds in connection with the purchase, rebuilding and resale of residential properties in Minnesota and other states. Investors expected proceeds from the sales to be divided among them, but instead Dufresne used the initial money for his own benefit and used other funds to pay off investors.

Comments (5)
  1. tomsmegpa says:

    now theres one sharp businessman!

    1. order of law says:

      He should have thrown an anvil at someone’s face. They don’t put you away for stuff like that.

      1. markH says:

        You might wish to investigate the crime of libel, and how assuming the identity of another individual to make disparaging comments may not be within the parameters of the law.

  2. stubby says:

    He’ll probably end up doing the warden’s books, hanging with his friend, Red, escape through a old sewer pipe, move to Mexico and never be heard from again.

  3. the chief says:

    i know this guy, he was always trying to pull some scheme. he always had to be the bigshot – show everyone how much money he had – had to have the best, fastest, newest, latest, greatest whether it was cars, motorcycles or whatever. vanity has caught up with him and dealt him a godsmack.

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