GreenFraud Business Record

GreenFraud Claim

  • Theresa Greenfield touts her record as the President of a Small Business

The Facts

  • Greenfield’s failed homebuilding business ran up millions of dollars in debt. Citations
  • Greenfield’s business was repeatedly sued by homeowners and banks for: Fraud. Shoddy work. Not making payments on time. Citations
  • Greenfield’s business folded. Citations
  • Greenfield scrubbed her business experience from her campaign website after local business owners slammed her record. Read Story
  • Theresa Greenfield’s not a successful businesswoman. She’s a phony whose company didn’t pay its bills while destroying the jobs of Iowa families. Citations

Greenfield’s Failed Homebuilding Business Ran Up Millions of Dollars in Debt.

Greenfield Worked In Executive Positions At Rottlund Homes Of Iowa – A State Division Of Minnesota-Based Rottlund Homes

From August 2005 To November 2007, Greenfield Worked As Director Of Real Estate At Rottlund Homes Of Iowa. (“Theresa Greenfield, CCIM,” LinkedIn, Accessed 2/4/19)

From December 2007 To December 2011, Greenfield Worked As Division President At Rottlund Homes Of Iowa. (“Theresa Greenfield, CCIM,” LinkedIn, Accessed 2/4/19)

  • Greenfield “Was The President Of A Homebuilding Company That Went Out Of Business In The 2008 Recession.” “She’s now president of Colby Interests, a Windsor Heights-based real-estate firm. She previously was the president of a homebuilding company that went out of business in the 2008 recession and prior to that worked as an urban planner.” (Jason Noble, “Real Estate Executive Theresa Greenfield Joins 3rd District Race For Congress,” Des Moines Register, 7/5/17)

In 2011, Rottlund Homes Shut Down As A Result Of The Housing Bust And Having Millions In Debt

In November 2011, Rottlund Homes Announced It Would Close Its Doors And Liquidate Assets After Failing To Reach A Funding Agreement With A Three-Bank Syndicate. According To Greenfield’s LinkedIn Page, She Left Rottlund Homes In December 2011. “Rottlund Homes, the 83rd largest builder in the country last year, will close its doors and liquidate its assets after it failed to reach an agreement with its three-bank syndicate to fund operations, according to CFO Steve Kahn. The company will cease operations after it completes 40 more homes, 20 of which are under contract. Roseville, Minn.–based Rottlund, one of the industry’s leading builders of attached for-sale homes, was unable to interest other lenders in funding its operations and couldn’t find a buyer for the company, Kahn confirmed.” (Boyce Thompson, “Rottlund Homes Shuts Its Doors After 38 Years,” Builder Magazine, 11/18/11)

Rottlund, Which Sold Off Its Greenfield-Led Iowa Division, Owed Three Lenders Nearly $29 Million. “According to a Nov. 10 lawsuit filed in Ramsey County District Court, Rottlund owes three lenders nearly $29 million. Because of the company’s significant debt, lenders probably wouldn’t recover all they’ve put into the company, Kahn noted. Rottlund has already sold its Des Moines, Iowa, operation and most of the assets in its Tampa, Fla.–based division. A court-ordered receiver will now be part of the company’s finances, per its loan agreements. The company’s finances were complicated by a business model predicated on attached housing, which made up 284 of its 334 sales in 2010. Lenders were unwilling to speculate on the sale of attached projects, which often requires the start of construction before all the units are sold. Moreover, land the company bought five years ago has lost so much value there’s no equity left in it. ‘The land has lost value to the point where the banks loan-to-value could not support the debt,’ Kahn noted.” (Boyce Thompson, “Rottlund Homes Shuts Its Doors After 38 Years,” Builder Magazine, 11/18/11)

Theresa Greenfield’s Business Was Repeatedly Sued by Homeowners and Banks for: Fraud. Shoddy Work. Not Making Payments on Time.

In January 2006, James And Sheryl Moon Sued Rottlund For Fraud And Breach Of Contract After The Firm Allegedly Reneged On A Property Purchase Agreement.

(Polk County District Court, Case CL-101233, Petition With Jury Demand, Filed 1/31/06)

(Polk County District Court, Case CL-101233, Petition With Jury Demand, Filed 1/31/06)

(Polk County District Court, Case CL-101233, Petition With Jury Demand, Filed 1/31/06)

In 2009, A Homeowners Association Sued Greenfield-Led Rottlund For Negligence, Breach Of Contract, Unjust Enrichment And Shoddy Work On A Condo Project

In September 2009, The Villas At Berkshire Hills Homeowners Association Sued Greenfield-Led Rottlund For Negligence, Breach Of Contract, Unjust Enrichment And Shoddy Work On A Condo Project.

(Polk County District Court, Case CL-114419, Petition, Filed 9/8/09)

(Polk County District Court, Case CL-114419, Petition, Filed 9/8/09)

(Polk County District Court, Case CL-114419, Petition, Filed 9/8/09)

(Polk County District Court, Case CL-114419, Petition, Filed 9/8/09)

In 2011, A Homeowners Association Sued Greenfield-Led Rottlund For Negligence And Shoddy Work On A Storm Drain System That Was Estimated To Cost $75,000 To Repair

In June 2011, The Reserve Owners Association Sued Greenfield-Led Rottlund For Negligence And Shoddy Work On A Storm Drain System That Was Blamed For Flooded Basements And Damaged Lots. The Group Estimated The Cost To Fix Rottlund’s Mistakes Would Exceed $75,000.  

(Polk County District Court, Case CL-22517, Petition At Law, Filed 6/14/11)

(Polk County District Court, Case CL-22517, Petition At Law, Filed 6/14/11)

(Polk County District Court, Case CL-22517, Petition At Law, Filed 6/14/11)

In 2011, A West Des Moines Resident Successfully Sued Greenfield-Led Rottlund For $5,000 As A Result Of Shoddy Tile Work


In December 2011, West Des Moines Resident Tricia McKay Sued Greenfield-Led Rottlund For $5,000 For Improperly Installing Tile Flooring At Her Residence. 

(Dallas County District Court, Case SC-034198, Action For Money Judgment, Filed 12/27/11)

In Her Complaint, McKay Included A Document From A Contractor That Confirmed The Shoddy Tile Work.

(Dallas County District Court, Case SC-034198, Action For Money Judgment – Exhibit, Filed 12/27/11)

Although The Complete Case File Was Not Available From The Court, The Docket Indicates That A $5,000 Judgment Was Issued Against Rottlund In June 2013.

(Dallas County District Court, Case SC-034198, Action For Money Judgment, Docket)

Shortly After Rottlund Collapsed In 2011, Northwest Bank Sued The Firm’s Iowa Division For Eviction For Failing To Pay Rent And Violating A Lease Deal

In January 2012, Northwest Bank Sued To Evict Rottlund From Its Office At 3636 Weston Parkway, Suite 101 In West Des Moines. The Bank Sought The Eviction As A Result Of Rottlund’s Failure To Pay Rent And For Violating A Lease Deal.

(Polk County District Court, Case CV-8981, Complaint, Filed 1/12/12)

(Polk County District Court, Case CV-8981, Complaint – Exhibit A, Filed 1/12/12)

Also In 2012, Northwest Bank Sued Rottlund For Violating A Greenfield-Era Lease Deal That Resulted In $48,937 In Outstanding Lease Payments

In January 2012, Northwest Bank Sued Rottlund For Violating A Greenfield-Era Lease Deal Signed In June 2011. The Bank Sought $48,937 In Outstanding Lease Payments.

(Polk County District Court, Case CL-124215, Petition At Law, Filed 1/12/12)

Theresa Greenfield’s Business Folded.

In 2011, Rottlund Homes Shut Down As A Result Of The Housing Bust And Nearly $29 Million In Debt

In November 2011, Rottlund Homes Announced It Would Close Its Doors And Liquidate Assets After Failing To Reach A Funding Agreement With A Three-Bank Syndicate. According To Greenfield’s LinkedIn Page, She Left Rottlund Homes In December 2011.

“Rottlund Homes, the 83rd largest builder in the country last year, will close its doors and liquidate its assets after it failed to reach an agreement with its three-bank syndicate to fund operations, according to CFO Steve Kahn. The company will cease operations after it completes 40 more homes, 20 of which are under contract. Roseville, Minn.–based Rottlund, one of the industry’s leading builders of attached for-sale homes, was unable to interest other lenders in funding its operations and couldn’t find a buyer for the company, Kahn confirmed.” (Boyce Thompson, “Rottlund Homes Shuts Its Doors After 38 Years,” Builder Magazine, 11/18/11)

Theresa Greenfield’s Is a Phony Whose Company Didn’t Pay Its Bills While Destroying the Jobs of Iowa Families.

Shortly After Rottlund Collapsed In 2011, Northwest Bank Sued The Firm’s Iowa Division For Eviction For Failing To Pay Rent And Violating A Lease Deal

In January 2012, Northwest Bank Sued To Evict Rottlund From Its Office At 3636 Weston Parkway, Suite 101 In West Des Moines. The Bank Sought The Eviction As A Result Of Rottlund’s Failure To Pay Rent And For Violating A Lease Deal.

(Polk County District Court, Case CV-8981, Complaint, Filed 1/12/12)

Also In 2012, Northwest Bank Sued Rottlund For Violating A Greenfield-Era Lease Deal That Resulted In $48,937 In Outstanding Lease Payments

In January 2012, Northwest Bank Sued Rottlund For Violating A Greenfield-Era Lease Deal Signed In June 2011. The Bank Sought $48,937 In Outstanding Lease Payments.

(Polk County District Court, Case CV-8981, Complaint – Exhibit A, Filed 1/12/12)

(Polk County District Court, Case CL-124215, Petition At Law, Filed 1/12/12)

In June 2009, AJ Plumbing LLC, Which Was Based In Pleasant Hill, IA, Filed Eight Mechanic’s Liens Against Greenfield-Led Rottlund That Were Subsequently Dismissed Due To The Plaintiff’s Failure To Enforce. 

(Warren County District Court, Cases LNCV031793-LNCV031800, Filed 6/8/09; Dismissed 7/24/09)

In 2011, Rottlund Homes Shut Down As A Result Of The Housing Bust And Being Millions In Debt

In November 2011, Rottlund Homes Announced It Would Close Its Doors And Liquidate Assets After Failing To Reach A Funding Agreement With A Three-Bank Syndicate. According To Greenfield’s LinkedIn Page, She Left Rottlund Homes In December 2011.

“Rottlund Homes, the 83rd largest builder in the country last year, will close its doors and liquidate its assets after it failed to reach an agreement with its three-bank syndicate to fund operations, according to CFO Steve Kahn. The company will cease operations after it completes 40 more homes, 20 of which are under contract. Roseville, Minn.–based Rottlund, one of the industry’s leading builders of attached for-sale homes, was unable to interest other lenders in funding its operations and couldn’t find a buyer for the company, Kahn confirmed.” (Boyce Thompson, “Rottlund Homes Shuts Its Doors After 38 Years,” Builder Magazine, 11/18/11)

Rottlund, Which Sold Off Its Greenfield-Led Iowa Division, Owed Three Lenders Nearly $29 Million.

“According to a Nov. 10 lawsuit filed in Ramsey County District Court, Rottlund owes three lenders nearly $29 million. Because of the company’s significant debt, lenders probably wouldn’t recover all they’ve put into the company, Kahn noted. Rottlund has already sold its Des Moines, Iowa, operation and most of the assets in its Tampa, Fla.–based division. A court-ordered receiver will now be part of the company’s finances, per its loan agreements. The company’s finances were complicated by a business model predicated on attached housing, which made up 284 of its 334 sales in 2010. Lenders were unwilling to speculate on the sale of attached projects, which often requires the start of construction before all the units are sold. Moreover, land the company bought five years ago has lost so much value there’s no equity left in it. ‘The land has lost value to the point where the banks loan-to-value could not support the debt,’ Kahn noted.” (Boyce Thompson, “Rottlund Homes Shuts Its Doors After 38 Years,” Builder Magazine, 11/18/11)

  • Rottlund Reportedly Sold Its Iowa Assets To Grayhawk Homes. “Grayhawk Homes, one of the top builders in the Columbus area, has entered the Des Moines, Iowa, market in a big way after dabbling in it for more than a year. Dave Erickson, president of Columbus-based Grayhawk, said he recently purchased property from Minnesota-based Rottlund Homes, a nearly four-decade-old builder that went out of business. ‘We had been in Des Moines about 15 months, with a developer feeding us lots on a regular basis,’ he said. ‘We had been taking it slow to get our footing. Then we were offered a pretty sweet deal.’ Though he did not disclose the purchase price, Erickson said he acquired four completed homes in Des Moines, four model homes, 20 houses under construction, 50 finished lots and about 90 future lots for a ‘bargain price.’” (Tony Adams, “Grayhawk Homes Flies Into Des Moines Market,” Columbus Ledger-Enquirer, 1/24/12)

At The Time Of It’s Closing, Rottlund Had Just 18 Employees, About 2/3 Fewer Than Two Years Earlier.

“Rottlund Homes, one of the Twin Cities’ largest homebuilders, will cease operations this year after it wraps up construction on 20 remaining homes. ‘We just became a victim of the housing market,’ Steven Kahn, the company’s chief financial officer, said Thursday. ‘We put up a pretty valiant fight the last five years.’ The company’s lending syndicate didn’t want to support Rottlund anymore, he said, and searches for alternative financing or a buyer were unsuccessful. Rottlund, which has been in business for nearly four decades, is avoiding bankruptcy, but a court-ordered receiver will be involved with the company’s finances. That’s part of a stipulation in Rottlund’s loan agreements, Kahn said. The alternative was to have lenders put the company into bankruptcy. Kahn stressed that Rottlund’s subcontractors will be paid as the company winds down operations. … During the housing boom’s peak, Rottlund had annual sales of $350 million, Kahn said. This year, he said, the figure will be closer to $50 million. The company now has about 18 employees, Kahn said. That’s down about two-thirds from what the company told Twin Cities Business two years ago. … Rottlund had weathered the slowdown, but its emphasis on townhome construction apparently didn’t help matters. ‘That’s a weak part of the market,’ Kahn said. Overall, he added, ‘it’s a market that now you need to have inventory to be able to sell. The banks did not want to support us building inventory.’ A part of the problem, he added, is that land the company bought five years ago has depreciated in value and ‘there’s no equity left.’ He said Rottlund has ‘significant’ debt and lenders probably won’t recover all they’ve put into the company.” (John Welbes, “Rottlund Homes Falls Victim To Housing Bust,” St. Paul Pioneer Press, 11/16/11)

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