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.
by Timothy Charles Holmseth
Elected officials in East Grand Forks, Minnesota face increased scrutiny in what appears to be a cover-up of serious criminal activity involving loan fraud and money-laundering.
On June 3, 2014, the Grand Forks Herald reported the EGF city council voted to hire an outside attorney, Fargo-based lawyer Brad Sinclair, to handle affairs surrounding an unpaid $510,000 loan made to Boardwalk Enterprises.
“City Administrator David Murphy said the idea was brought to him by a couple of city council members,” the Herald reported.
The news report does not name the Council members that conferred with Murphy; nor does it state where they met.
MINNESOTA OPEN MEETING LAW
Minnesota State Statutes 13D.04 – NOTICE OF MEETINGS – sets forth clear laws and regulations regarding when and how elected officials and government can meet and/or hold a meeting.
There is no indication the public was noticed that Murphy was meeting with members of the EGF City Council to discuss Boardwalk Enterprises. However, according to Murphy, discussions from the meeting ultimately resulted in a vote being taken by the City Council regarding City Attorney Ronald Galstad and Boardwalk Enterprises.
VOTING TO HIRE THE OUTSIDE ATTORNEY
The June 3, 2014, EGF City Council meeting agenda, which was emailed to the public on May 30, does not contain any information whatsoever regarding City Attorney Ronald Galstad or the proposed hiring of an outside attorney to handle the unpaid Boardwalk loan.
But a vote did take place.
The city council voted to hire Fargo-based attorney Brad Sinclair on June 3, 2014, and he officially began that role on June 4, 2014. That would mean Attorney Sinclair must have been contacted prior to the June 3, vote and was prepared to represent EGF if the council voted to do so.
EARLY INDICATIONS OF COVER-UP
On April 30, 2014, the Herald reported ‘$510,000 loan to EGF goes unpaid for 10 years’.
On May 7, 2014, David Murphy, administrator, City of EGF, told WDAZ that city officials met with “representatives” of “Boardwalk Enterprises” and their “attorney”.
As of today’s date, the City of EGF will still not disclose the identity of the attorney that was representing Boardwalk Enterprises at the May 7, 2014, meeting. The meeting was held at the private office of EGF City Attorney Ronald Galstad (as opposed to EGF City Hall).
Likewise, EGF officials will not disclose whether or not the City’s actual attorney on May 7, 2014 – Ronald Galstad – was actually representing the City at the meeting.
Many are beginning to speculate that Galstad was actually representing Boardwalk Enterprises at the meeting (hence – the meeting was held at Galstad’s private office).
If Galstad was Boardwalk’s lawyer on May 7, 2014; EGF city officials could face criminal investigation themselves for actively covering up a series of felonies and organized crime.
On May 27, 2014, Galstad gave a presentation to the EGF EDHA board during a public meeting. He gave a summary rundown of what his internal investigation had determined thus far regarding the un-paid loan. Galstad investigated the Boardwalk issue by scouring through all the files. Crucial documentation regarding the loan simply did not exist – as if all traces of the loan had simply disappeared.
If Galstad was Boardwalk Enterprises attorney at the May 7, 2014, meeting, that means EGF officials allowed Boardwalk Enterprises full and un-fettered access to scour (sanitize) the files until June 3, 2014, when they finally replaced Galstad.
And – it appears city officials did in fact believe/know something was amiss.
On June 3, WDAZ reported the City Council voted to hire Fargo-based attorney Brad Sinclair to represent EGF regarding the unpaid loan. Sinclair replaced Galstad for purposes of the ‘Boardwalk’ issue. “This is just for removing any questions of conflict of interest or just to get a neutral third party to look at it.” Murphy said.
Murphy has never expanded upon why he and the un-named City Council members believed Galstad might have a “conflict of interest” or may not be “neutral” regarding the issue.
Murphy and other would be required to answer these questions to state or federal investigators; or under deposition.
Pressure mounts for EGF City officials to discuss Galstad’s role in Boardwalk Enterprises scandal
by Timothy Charles Holmseth
Transcripts from a January 4, 2013, court hearing at the Polk County Justice Center reveal EGF City Attorney Ronald Galstad made multiple false statements to a Judge about a (fictitious) relationship invented by the Prosecution between the City of EGF and the Minnesota Bureau of Criminal Apprehension (BCA).
Galstad’s statements, which were recently transcribed by Honorable Tamara Yon’s clerk, reveal the embattled attorney spun a web of lies regarding a hard-drive that had been seized by a local journalist in a Gestapo style raid in December of 2012.
Galstad told Judge Yon the Prosecution for the City of East Grand Forks/State of Minnesota vs. Timothy Charles Holmseth had been in communication with the BCA regarding a hard-drive that had been seized from Holmseth.
Holmseth is/was a journalist and author that was reporting on a national profile child kidnapping, as well as investigating local corruption.
“I’ve just been notified that the BCA, before they’ll do a forensic search of that computer, wants either an order of this Court or a search warrant that says that they can – – we got the original search warrant, but for whatever reason the BCA wants something that says that they can actually search that hard-drive. So I am going to be either, one, asking – – or requesting an additional warrant for forensic search of that computer hard-drive or the Court can make that Order as they see fit, but I am going to be doing that,” Galstad said.
Galstad’s claims to the Judge to be in contact with the BCA were pure fiction.
“The Bureau of Criminal Apprehension had no involvement in this case. We were not requested to conduct a forensic examination on your computer,” said Drew Evans, assistant superintendent, BCA.
Galstad’s statements expose the fact the Prosecution was very well aware that the search warrant used to seize and retain Holmseth’s hard-drive, did not direct or authorize any subsequent forensic search of the hard-drive.
But the Prosecution secretly searched it anyway.
Documents requested by Holmseth eventually resulted in the admission by EGF Police Chief Michael Hedlund that the hard-drive had been searched while in police custody.
According to a Sheriff’s Report, on April 3, 2013, Sgt. Michael Norland, Polk County Sheriff’s Office (PCSO), searched the hard-drive using a computer program that leaves no trace. According to Sheriff Barb Erdman, there was no ‘Record of Examination’ kept during Norland’s search.
On April 26, 2013, Holmseth’s hard-drive and journalism equipment was returned by court order. The equipment and property was bagged with evidence stickers that read ‘Minnesota Department of Public Safety – Minnesota Bureau of Criminal Apprehension’.
The use of the stickers appears to be part of a planned hoax that included the BCA.
“The BCA had no role in the investigation you describe and did not attach any tags to evidence in that case,” said Jill Oliveira, public information officer, Minnesota Department of Public Safety.
There is no police record or log tracking the location or movements of the property, which was seized from Holmseth on December 14, 2012, because neither the EGFPD nor the PCSO kept a ‘Chain of Evidence’ log.
On December 8, 2013, Timothy Holmseth, working with information he had obtained, reported the City of East Grand Forks to the Minnesota State Auditor.
On April 30, 2014, the Grand Forks Herald reported ‘$510,000 loan goes unpaid for 10 years’ as result of a call for an audit. The scandal involves a loan scam that enriched participants in a business called Boardwalk Enterprises LLP.
The mechanics of the scam resemble basic fraud and money laundering techniques.
On May 7, 2014, EGF officials met with representatives of Boardwalk Enterprises to discuss a solution to unpaid load dilemma. The closed-door meeting was held at the private law office of Ronald Galstad.
The City of EGF refuses to disclose the name(s) of all attorneys present at the meeting and has deferred all questions regarding Ronald Galstad to Jon Inverson, the attorney representing the City in a federal civil rights lawsuit filed by Holmseth.
The City of EGF has yet to address public concern and suspicion that Ronald Galstad was the attorney for both Boardwalk Enterprises and the City of EGF at the same meeting.
If Galstad was the attorney for both entities – that means he was the attorney (and/or a member) of Boardwalk Enterprises during the ten years the loan went unpaid – and – the attorney for the City of EGF at the same time.
Timothy Charles Holmseth has submitted a Motion to the Minnesota State District Court requesting an Injunction against the City of East Grand Forks.
Holmseth is requesting the District Court issue a Temporary Injunction forbidding the City of EGF from shutting off Holmseth’s power.
The statement of facts submitted by Holmseth, and exhibits in support of the request, sets forth irrefutable evidence that the City of EGF, EDHA Director James Richter (retired), and several others are directly responsible for Holmseth being unemployed.
Holmseth is the Plaintiff in a civil rights lawsuit against the City of EGF.
READ injunctive relief request @ http://writeintoaction.com/Injunctive%20Relief%20Sought%20Against%20EGF.html
Timothy Charles Holmseth
East Grand Forks, MN
July 4, 2014
In Re: Grand Forks / East Grand Forks
Chamber of Commerce
Grand Forks · East Grand Forks
I received your email today.
I guess I will contact you via a Web letter per your request to be unsubscribed, which was accompanied by your vile statement.
While I do not know you and have never met you, I cannot say I am entirely surprised you were willing to say such an outrageous thing to me. However – I was a little surprised you would represent local businesses, community leaders, and Chamber members of the Grand Cities with language like that.
In my experience – that is not the way to make a proud community shine and attract positive energy to the budding endeavors a chamber of commerce typically nurtures.
Apparently you feel my tentative lawsuit against the City of East Grand Forks is “unproductive”. While that is your opinion; I have to wonder, just exactly what ‘production’ will it be encroaching upon?
I am quite familiar with the facts and circumstances surrounding the shell game that comprised the ‘Boardwalk Enterprises’ scheme – is that your idea of being ‘productive’? I must say – it required time and energy to keep that scam under wraps – Karl Lindquist wore so many hats he was the Agent 007 of East Grand Forks. But who was benefiting from it besides the obvious suspects? The citizens and taxpayers certainly were not.
In my Open Letter to the Citizens of Grand Forks and East Grand Forks, which drew your ire, I addressed the issue of HaLeigh Cummings and Dru Sjodin – your dismissive and arrogant attitude was outright offensive.
Is that was HaLeigh Cummings was to the EGFPD, City Attorney Ronald Galstad, EDHA Director Jim Richter (retired), Karl Lindquist, Chief Michael Hedlund, and the Stauss brothers in 2009? Was HaLeigh going to be “unproductive?”
Of course she was.
I disagree that a little kidnapped girl, subject to an Amber Alert is expendable – and the fact-pattern of record is indisputable – the EGFPD treated HaLeigh like something else existed that was more important than her.
On July 10, 2009, Art Harris (formerly of CNN), sent an email to Lt. Detective Rodney Hajicek, EGFPD, complaining to him that the FBI was actively using information they were receiving from me. “I’m in shock, but just heard the FBI actually paid a visit to the Web design firm in Florida that donated their time to the website for the missing child. Based on [Timothy Holmseth’s] absurd accusations he’s now almost gotten a 23 year employee fired for sending the child’s photo on her company email to the pro bono web firm,” Harris said.
Harris was lamenting the fact the FBI was investigating DONNA WAGONER; and, DONNA WAGONER had been calling Lt. Hajicek on me since June of 2009.
Do you think maybe that would send some red flags up to the detective?
Actually – Lt. Hajicek filed a police report dated June 2, 2009, that connects a handful of individuals that all started calling him at the same time about HaLeigh Cummings – complaining about me – a journalist that Lt. Hajicek had otherwise never heard of before in his life.
Harris wanted Lt. Hajicek to ‘press charges’ against me. “He’s (Timothy Holmseth) got to be stopped”, Harris said, in an email dated July 10, 2009.
Lt. Hajicek was talking to the SUSPECTS in the HaLeigh Cummings kidnapping on a regular basis. And – he was discussing how a journalist had to be stopped.
So what did Lt. Hajicek do?
His police report log on July 20, 2009 tells us what he did.
“I have printed all of the emails from my computer and will have the County Attorney’s office review them to see if any other action can be taken,” Lt. Hajicek said.
He couldn’t charge me with a crime – he had already called and harassed me – so he decided to see if the County Attorney could cook something up.
Like I stated in the beginning of my letter – you and I don’t know each other. However – there’s a chance that might change in the relatively near future in light of the legal situation between the City of East Grand Forks and myself.
Therefore – as a courtesy – I thought I would provide you with a brief background of who I am and how I got here.
* * * * *
In 2008, [Timothy Holmseth], re-located to East Grand Forks, Minnesota, from Breckenridge, Minnesota, where he had been the Minnesota government news reporter for the Wahpeton Daily News and won two first place awards for his writing and reporting.
One first place award [Timothy Holmseth] won from the North Dakota Newspaper Association was for Best News Series for a regional news story he worked that covered nearly a year regarding an embattled school board suspected of open meeting law violations and other scandalous activities.
The facts and circumstances of XXXXXXXXX show, that although it would not finally explode into the headlines until some six years later, [Timothy Charles] had un-wittingly re-located into the jurisdiction of a corrupt police department and city government, that was infested with fraud and corruption, post flood, which generated a large amount of government dollars for flood recovery.
In 2009, [Timothy Holmseth] became journalistically involved in two national profile child cases in Florida after conducting interviews in the cases of the missing child HaLeigh Cummings and murdered toddler Caylee Anthony. [Timothy Holmseth] interviewed law enforcement’s suspects and recorded an [REDACTED] missing child across state lines.
East Grand Forks Police Department (EGFPD) reports/records show that in June of 2009 the Florida [REDACTED] media team began calling the EGFPD and making unfounded reports about [Timothy Holmseth].
FBI records that begin approximately the same time show that while the FBI was acting on information they received from [Timothy Holmseth] regarding the HaLeigh Cummings child kidnapping, the EGFPD was simultaneously communicating with law enforcement’s suspects in that same kidnapping, discussing the fact the FBI was working with [Timothy Holmseth]; and dialoguing how they might be able to silence [Timothy Holmseth’s] publication and/or have him arrested.
The EGFPD – rather than alert the FBI that their suspects were blowing the EGFPD’s phone up – set out to shut [Timothy Holmseth] up.
Between 2009 and 2014 [Timothy Holmseth’s] constitutional rights, including his 1st, 2nd, 4th, 7th, and 14th Amendment protections were systematically butchered as his life was deliberately destroyed by XXXXXXXXXX.
In April of 2014 the City of East Grand Forks erupted with scandal after the Grand Forks Herald and WDAZ reported ‘$510,000 to EGF goes unpaid for ten years’ – ‘City officials to meet with company that owns Boardwalk building’.
The headline was the result of an audit that ultimately uncovered over a decade of unpaid loans and fraudulent corporate shell games being played by local government officials to enrich themselves and their friends.
Within a short period of time the director of the city’s Economic Development and Housing Authority (EDHA) Jim Richter was on administrative leave; and then allowed to retire. Shortly thereafter, public outcry resulted in the city council voting to hire an outside lawyer to handle the ‘Boardwalk Enterprises’ affair because of potential conflict of interest issues that existed with the city’s present attorney, Ronald Galstad.
[Timothy Holmseth], an investigative journalist turned author, was inspired by the headline, because he had been suffering under the tyranny of rights violations by the local government since 2009. In 2012, [Timothy Holmseth] had begun reporting the widespread corruption he witnessed and investigated to the Minneapolis FBI, Minnesota Attorney General, Minnesota District Court, Minnesota State Auditor, Office of Lawyers Professional Responsibility, etc.
On 05/01/14, [Timothy Holmseth] went into the EDHA office at EGF City Hall to speak with Kim Nelson, the housing specialist that handled his HUD housing case file. He had previously submitted to Kim Nelson an address verification reference for a background check being performed by the U.S. Department of Commerce in advance of his job at the National Weather Service building in Grand Forks, North Dakota, which he began in January of 2014 – but he had not yet received the federal clearance.
When [Timothy Holmseth] sat down to speak with Kim Nelson she told him she had received the address verification form from the U.S. Security Office in the U.S. Mail but never filled it out and/or sent it back. She said she was out on sick leave when it arrived and it was placed on her desk. She picked it up one day while briefly in the office and took it home. She said after she opened it she telephoned Jim Richter; told him it was an address verification form for Timothy Holmseth; and asked what she should do with it. She said [Jim Richter] became nervous; instructed her to not send anything to anybody; and ordered her to shred it.
When [Timothy Holmseth] asked Kim Nelson why her supervisor would be nervous about something so seemingly innocuous she replied, “Because they don’t fucking trust me.”
* * * * *
It is unfortunate this correspondence had to be so public but you made it quite clear you did not want to receive any more emails from me and told me exactly what you thought of me.
In a final note of irony – I remember how the EGFPD and City Attorney would communicate ad nauseam with callers out of Florida and load up police reports with associated notes – but when I reported death threats from the same they would make no report; when I made public records request they would not honor them for over a year.
Perhaps it all falls under one’s perception of what is ‘productive’.
Timothy Charles Holmseth
Cc: Local Government