A Rosemount contractor pleaded guilty Monday to stealing $880,000 from a pair of investors who believed his company was using their money to flip houses.
Jesse Wells Haug, 33, pleaded guilty in U.S. District Court in Minneapolis to one count of wire fraud, according to the U.S. attorney’s office.
Haug, who owns a local construction firm called 7-10 Services, told his victims that he planned to renovate and sell 10 Twin Cities residential properties, the U.S. attorney’s office said.
If they would put up the money to buy the houses, Haug promised his investors a cut of the profits. Instead, Haug used his investors’ money to pay personal debts and other business expenses.
No sentence was agreed upon as part of Haug’s guilty plea, but sentencing guidelines for this offense stipulate a prison term of between 33 months and 63 months, according to court documents.