Landlord to pay $265,000 for alleged False Claims Act and consumer protection violations

Monarch Investment and Management Group tried to evict tenants after receiving RentHelpMN funds during COVID and certifying they would not evict tenants in exchange for the funds

Also charged tenants illegal fees related to eviction filing, utilities, renters’ insurance, and garage late fees; AG’s Office will provide restitution to tenants charged these fees

Settlement resolves AG Ellison’s August 2025 lawsuit against Monarch 

November 13, 2026 (SAINT PAUL) —Minnesota Attorney General Keith Ellison announced today that Monarch Investment and Management Group — the owner and operator of more than a dozen rental properties in Minnesota — and several of its affiliates and subsidiaries have agreed to pay the State of Minnesota $265,000 to settle two allegations: 1) that they violated the Minnesota False Claims Act by causing the submission of false and fraudulent claims to the Minnesota Housing Finance Agency (“Minnesota Housing”) in connection with the RentHelpMN program between 2021 and 2022; and 2) that they charged tenants certain illegal or improper fees in violation of Minnesota’s consumer-protection laws.

The Attorney General’s Office will use a portion of the settlement funds to provide restitution to tenants for the improper fees that Monarch or its companies charged them. Monarch has also agreed to limit fee practices, including limiting the number of certain fees that it can charge tenants providing additional disclosures to tenants about fees charged.  

“Companies who defraud taxpayers and break their promises to vulnerable Minnesotans must be held accountable,” Attorney General Ellison said. “My office continues to use its civil Minnesota False Claims Act authority to pursue the companies, and individuals, who exploited government programs during the COVID-19 pandemic for profit. I am grateful to the whistleblowers who helped bring this wrongdoing to light, and I encourage other Minnesotans who believe government funds are being misused to contact my office.” 

Congress created and funded RentHelpMN during the COVID-19 pandemic to prevent evictions by paying rent and utility expenses for families struggling financially. Minnesota Housing administered RentHelpMN in Minnesota. In order to receive RentHelpMN payments, landlords were required to certify that in exchange for the payments, they would not evict tenants who, during the pandemic, were unable to pay rent for the months that RentHelpMN payments covered for them. Landlords were also required to certify that they would not start any new eviction process against a tenant within 30 days of receiving a RentHelpMN payment on behalf of that tenant.

In this case, Attorney General Ellison alleged that in 32 instances, Monarch attempted to evict tenants for non-payment when it had in fact received payment from RentHelpMN for those very same months — in violation of Monarch's certifications to the State. In 12 other instances, Monarch tried to evict tenants within 30 days of receiving RentHelpMN payments — once again, in direct violation of Monarch’s certifications to the State. As a result of these false certifications, Attorney General Ellison alleged that Minnesota Housing paid Monarch RentHelpMN funds that it otherwise would not have paid, and that the Monarch’s actions constituted violations of the Minnesota False Claims Act.

Monarch and the defendants will pay the State of Minnesota approximately $169,000 to resolve these False Claims Act allegations.

The Attorney General also alleged that Monarch routinely charged tenants illegal or improper fees, including fees that were not properly disclosed to tenants in their leases, as well as fees that even when disclosed, were confusing and deceptive — all in violation of various Minnesota consumer-protection laws. These fees were eviction filing fees, administrative fees related to utilities, renters’ insurance fees, and garage late fees. As part of the resolution of this matter, Monarch agreed to provide money to the State to provide restitution to tenants who paid these fees. Monarch also agreed to injunctive terms that, among other things, impose limits on certain fees it charges tenants, including limiting the number of certain administrative fees that Monarch can charge tenants related to utility services, and require Monarch to provide additional disclosures to tenants about when certain fees can be charged. 

Monarch and the defendants will pay the State of Minnesota approximately $96,000 to resolve these consumer-protection allegations.

Attorney General Ellison’s Office first filed its complaint against Monarch in August 2025, as part of a lawsuit originally brought under the whistleblower provisions of the Minnesota False Claims Act by Corey Dahl and Kiona Adams, tenants in apartment buildings owned and operated by Defendants.  Under the False Claims Act, a private party can file a lawsuit on behalf of the government and receive a portion of any recovery. 

Today’s settlement is the result of a coordinated effort between the Minnesota Attorney General’s Office and Minnesota Housing.

If you have concerns about the misuse of government funding, please file a complaint with the Attorney General’s Office via its online complaint form. The Office can also be contacted at (651) 296-3353 from within the Twin Cities or (800) 657-3787 from Greater Minnesota.