Opinion ID: 1653664
Heading Depth: 1
Heading Rank: 2

Heading: West St. Paul Property

Text: In 2001, Ryerson became involved in the sale of real property located in West St. Paul, Minnesota, belonging to S.F. and W.K. On August 30, 2001, S.F. entered into a purchase agreement with a buyer, T.V., which included a financing addendum and an as is addendum. W.K. later signed the purchase agreement on September 4, 2001. According to both S.F. and W.K., the purchase agreement they signed indicated the purchase price for the house would be $154,000. However, when the closing for the sale of the West St. Paul property was held on October 26, 2001, both the financing for the purchasing and the disbursements at closing were based upon a second purchase agreement with a purchase price of $196,000. Both S.F. and W.K. stated that they did not know how or why the higher purchase price came to be in a second purchase agreement. Ryerson, T.V., and S.F. were present at the closing, but W.K. was not. The Settlement Statement used at closing reflected a disbursement of $26,686.90 to U.S. Bank and another disbursement of $38,744.22 for Remodel Expenses. S.F. did not understand what the two payments were for, so she inquired about them. Ryerson responded that the two disbursements were paper only and described them as necessary for the closing. The U.S. Bank disbursement was listed as a deduction from the amount owed S.F. for the sale of the West St. Paul property, and was purportedly offset on the credit side of the settlement statement by $26,214.28 purportedly paid to S.F. in earnest money and another $472.62 ostensibly paid to S.F. at the closing. S.F. testified that she received neither payment. After S.F. and T.V. had signed the necessary documents at closing, S.F. went with Ryerson to obtain W.K.'s signatures on the closing documents. Instead of finding W.K., Ryerson took S.F. to a nearby bar. While there, S.F. saw Ryerson practice W.K.'s signature several times and then watched Ryerson forge W.K.'s signature on the closing documents. S.F.'s testimony was corroborated by two other witnesses. W.K. testified that he never signed any of the closing documents, and a forensic document expert hired by the Office of Lawyers Responsibility testified that there was a strong probability that W.K.'s signatures on the closing documents were not genuine. [2] Among the closing documents for the West St. Paul property was an Addendum and Supplement to Purchase Agreement that was supposedly signed by the S.F., W.K., and T.V. at the closing. The addendum authorized a disbursement to VR Construction in the amount of $38,744.22 for future repairs, remodeling, and other expenses, provided that the sellers agree to reimburse Buyer for any earnest money or downpayment provided, including any expense Buyer incurs to obtain these funds, and authorized a disbursement of $26,686.90 to U.S. Bank on behalf of the buyer. S.F., W.K., and T.V. each testified that the sale was an as is sale, and each claims ignorance as to the purpose of the U.S. Bank disbursement. Further, both S.F. and W.K. testified that they did not sign the addendum. The forensic document expert hired by the Office of Lawyers Professional Responsibility agreed, testifying that there was a strong probability both that W.K.'s signature was not genuine and that S.F.'s signature was a replica of a legitimate S.F. signature that had been obtained by Ryerson on another closing document. After the closing, a $38,744.22 check was disbursed to VR Construction with an annotation indicating the money was for remodeling expenses. The paperwork for VR Construction, LLC, indicates it is an entity organized by E.B. But the forensic document expert testified that it is highly probable that E.B.'s signature on the Articles of Organization for VR Construction was not genuine and that there is a strong probability that E.B.'s signature was forged by Ryerson. The Articles of Organization for VR Construction list Ryerson as the corporation's Chief Manager, Treasurer, and Secretary. Ryerson received and cashed the $38,744.22 check made out to VR Construction. Although the money was supposed to go to repairs and remodeling of the West St. Paul property, T.V. testified that he received none of the remodeling money and that approximately $2,000 was actually spent on improving the property. After the closing, W.K. received a disbursement check for $2,989, an amount equal to his initial investment in the property. Although T.V. purchased the West St. Paul property for $196,000 and S.F. and W.K. owed no more than $130,000 on the property, S.F. and W.K. received no other money from the sale.