Boardwalk Enterprises and City of EGF reported to Department of Justice – National Department For Disaster Fraud

by Timothy Charles Holmseth

The activities of the Boardwalk Enterprises/EDHA/EGF loan fraud money laundering scheme have been reported to the Department of Justice.

The Complaint reads in part:

East Grand Forks city employees and elected leaders are using their positions to steal government money and enrich themselves. The flow of funds originated from state and federal disaster relief that came as result of the historic flooding of the Red River in 1997.

I reported the City of EGF to the Minnesota State Auditor on December 8, 2013, and requested an audit. At some point an audit was called for. On April 30, 2014, the Grand Forks Herald reported ‘$510,000 loan to EGF goes unpaid for 10 years’.

The fraud was connected to a group of local officials including the mayor, city attorney, EDHA director, and several others.

Attempts to cover up the fraud and organized criminal activity were made by the Polk County Sheriff’s Office and East Grand Forks Police Department. see above-mentioned lawsuit

The fraud involves a company called Boardwalk Enterprises LLP that borrowed over half a million dollars. Annual payments of $30,000 were supposed to begin in 2003 but never did. Not a single payment was ever made and the mortgage was never filed. Virtually all traces of the loan disappeared from the record. Neither the lender nor the loaner said anything.

On May 7, 2014, local officials held an official (closed) meeting with representatives of Boardwalk Enterprises and their (Boardwalk’s) attorney to discuss a ‘solution’ to the unpaid loan problem.

The May 7, 2014, meeting was suspicious because it was held at the private office of EGF City Attorney Ronald Galstad (Galstad, Jensen, & McCann).

On May 7, 2014, EGF city administrator David Murphy told WDAZ news that city officials met with representatives of Boardwalk Enterprises and their “attorney”. However – to this very day – Murphy and city officials will not disclose who Boardwalk Enterprises’ attorney was on May 7, 2014.

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