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U.S. Bancorp accuses Opus Corp. of fraud

A day after Finance & Commerce profiled the problems facing Opus Group, things got even worse for the Minnetonka-based commercial real estate developer.

U.S. Bancorp is suing Opus, the Star Tribune reports. The lawsuit alleges Opus owes it more than $78 million, and that part of the reason it hasn’t been able to pay up is that the developer fraudulently moved money into trusts associated with Opus founder Gerald Rauenhorst.

[Update: I’m told The Business Journal’s Sam Black should get credit for breaking the news about this lawsuit. Here’s a link to the story, which was posted seven hours before the Star Tribune’s version, for those of you keeping score.]

The bank alleges that transfers made to those trusts between 2003 and 2008 resulted in the development company becoming insolvent. Its lawsuit also said Opus violated credit terms by lending $45 million to Opus South, its Atlanta-based regional operating company.

Opus said in a prepared statement to the newspaper that it believes claims made in the lawsuit are inaccurate and that it has “significant defenses” to fight the allegations.

Comments (2)

  1. Submitted by Burton'Jon Blackwell on 07/24/2009 - 11:21 am.

    Reader’s!…
    I recently had a yard sale and accepted several personal checks which were to be drawn from US Bank accounts. One was made out to me for $12 and the other made out to me for $8. After the sale, I went to US Bank and cashed these two personal checks made out to me. I used valid ID at the time I cashed them. The problem I have with US Bank is that they charge $5 to cash a check drawn from accounts they maintain. The US Bank teller charge me a $5 fee for each check and took this fee out the checks. So, after selling my property for $20, because I accepted checks drawn from US Bank accounts, I wound up with $10. The US Bank teller took 50% of the sale amount because I inconvienenced them by cashing checks drawn from US Bank accounts payable to me. I no longer accept US Bank drawn checks unless the writer makes it out for $5 over. It’s quite obvious that US Bank is greedy beyond sane reasoning and will confiscate money from the public anyway they can. US Bank, as an unfriendly super greedy “PIG-HOG”, is driving us ma and pa consummers to the smaller, decent, honest, and consummer friendly banks…like First Bank of the Lakes, Summit, or Western.
    By: Inkpahduhtah

  2. Submitted by Richard Schulze on 07/25/2009 - 07:12 pm.

    Most folks know by now that bankster’s make their money on fees.

    Overall, bank fees are on track to top $55 billion this year. Of course some of these bank fees are used to invest in technology and expand ATM networks. Some are to add to the bottom line. After all its going to take a hefty sum to replace the losses from defaults and from defaults that have yet to occur.

    But more incredibly Sir, you let them take your money. Unless of course you have no personal bank account. Which if you had used, I am sure you would not have been charged a fee. Unless I am am missing something here, you simply chose to give your money away…….

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