Minnesota Attorney General Keith Ellison Reaches $5 Million Settlement In Investment Property Group (IPG) Tenant Betrayal in Minnesota
Residents of more than a dozen Twin Cities apartment complexes managed by Investment Property Group (IPG), a Utah‑based company, recently won a landmark $5 million settlement after years of illegal fees and recklessness that harmed vulnerable renters across Minneapolis and nearby suburbs.
What Happened?
In late 2022 to early 2023, IPG began charging outrageous utility fees—sometimes over $200/month—mid‑lease at 13 properties, without providing legally required disclosures about costs, billing methods, or third-party billing formulas. This violated Minnesota law (Minn. Stat. § 504B.215), which mandates that landlords share historical utility costs and apportionment formulas before tenants sign leases.
When tenants refused to pay, IPG filed eviction actions—some for as many as 30 tenants—using unpaid utility fees as the basis, even after the Attorney General intervened to expunge previous filings and halt further unlawful evictions.
Attorney General Takes Action
By October 2023, Minnesota Attorney General Keith Ellison had filed a civil lawsuit and emergency motion to stop these illegal practices and evictions. He stated:
“It’s tough enough for low‑income renters… when landlords charge illegal extra fees … then try to evict them when they don’t pay.”
In November 2023, IPG agreed not to use unpaid utility charges as grounds for eviction and to stop billing for gas or steam heat while the larger lawsuit continued.
Settlement Details
On July 31, 2025, IPG agreed to pay over $5 million in restitution to impacted tenants—more than 4,000 households across 11 properties. The relief package includes:
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$1.8 million in tenant payouts
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A $350 rent credit for eligible households
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Debt cancellation and no further collections on disputed utility or rent payments
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Direction to credit agencies to mark prior debts as satisfied
Affected complexes include Greenway Apartments, Cambridge Towers, Knollwood Towers, and others in Minneapolis, Hopkins, and Burnsville.
Related: Surviving Don Klyberg
Uninhabitable Conditions Fuel Protest
Beyond billing violations, tenants also reported neglect and unsafe living conditions—roaches, mold, rodent infestations, unsafe laundry rooms, and maintenance ignored for years. A March 2025 press conference organized by tenants and Inquilinxs Unidxs Por Justicia documented these conditions and demanded repairs, pest control, and safer environments.
Why It Matters
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Institutional Betrayal: A government-contracted property owner used tax subsidy to profit while violating tenants’ rights and safety.
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Legal Failure: Even with clear statutes mandating disclosures and protections, IPG evaded enforcement until public pressure and state action intervened.
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Systemic Inequality: Many affected tenants were low-income renters, including Somali and Black residents—exposing how utility billing abuses disproportionately harm historically marginalized communities.
Takeaway Actions
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Current or former IPG tenants should check eligibility for restitution, coordinate with local tenant-rights organizations, or file reports with the Minnesota AG’s rent relief initiative.
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Advocates and community groups must push for stronger enforcement of housing laws and utility consumer protections—along with transparent public reporting on violations.
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Storytellers, journalists, and policymakers should highlight systemic utility billing fraud and substandard conditions, especially where government oversight is weak.
Related: $15 Million In Medicaid Fraud Uncovered: The "Common" Case of Golden Victory Medical
References
Attorney General Keith Ellison. (2023, October 19). AG Ellison sues to stop unlawful evictions and illegal utility fees by IPG in Twin Cities. Office of the Minnesota Attorney General. https://www.ag.state.mn.us/Office/Communications/2023/10/19_IPG.asp
Attorney General Keith Ellison. (2023, November 9). AG Ellison stops unlawful utility charges and evictions by IPG. Office of the Minnesota Attorney General. https://www.ag.state.mn.us/Office/Communications/2023/11/09_IPG.asp
Attorney General Keith Ellison. (2025, July 31). AG Ellison secures over $5 million in relief for Minnesota renters harmed by IPG. Office of the Minnesota Attorney General. https://www.ag.state.mn.us/Office/Communications/2025/07/31_IPG.asp
CBS News Minnesota. (2025, July 31). Minnesota AG secures $5 million settlement from IPG over illegal utility charges. https://www.cbsnews.com/minnesota/news/ipg-apartments-minnesota-settlement-illegal-charges
Star Tribune. (2025, July 31). Twin Cities landlord settles for $5M over exorbitant utility fees, withheld deposits. https://www.startribune.com/twin-cities-landlord-settles-for-5m-over-exorbitant-utility-fees-retained-deposits/601446713
MinnPost. (2025, March 15). Tenants say IPG properties are unsafe and unsanitary. Here’s what they want done about it. https://www.minnpost.com/race-health-equity/2025/03/ipg-properties-unsanitary-and-unsafe
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