Another Day in Lawless Lakeville: Fraud & Financial Abuse Allegations Surround David Rucki

lawlesslakeville

This article is a compilation of the allegations, and related documentation, that suggest millionaire David Rucki may be involved in financial abuse or fraud. Numerous complaints have been filed against Rucki related to these allegations but he has avoided investigation by any agency in the State of Minnesota, and has never been formally charged with any crime. Instead, county and state offices at every level of government have extended preferential treatment towards Rucki, and even have given him state aid without asking Rucki for any verification of income, or other standard proofs to determine eligibility. Rucki is receiving state aid while he resides in a luxurious house, owns 2 others homes, and owns an estimated 9 personal vehicles and 3 boats all registered in his name. Clearly Rucki lives well above the poverty level.

During divorce proceedings, Rucki appeared in front of Judge David L Knutson and admitted that he was pursuing divorce to commit a financial fraud. Judge Knutson ignored that a crime was being committed in his own courtroom and systematically began to punish the victim of David’s schemes – ex wife, Sandra Grazzini-Rucki. As a result of Judge Knutson’s extreme rulings, Sandra was forced out of her home and onto the streets. She has been forced to turn her wages and property over to Rucki, and unjustly removed from the lives of her children. Empowered by the legal system, Rucki continues to abuse Sandra; the power of the court has been used as a weapon against her, and the laws that should protect victims of domestic violence and their children, have been totally disregarded by Judge Knutson and the family court system.

Another example – in February 2015 Rucki called to ask a special favor from Detective Dronen, who then was was investigating the disappearance of the runaway Rucki girls. Rucki’s call did not offer anything to help locate his daughters but, instead, he asked Dronen to help collect $$ child support $$. Officer Jim Dronen reports, “On 2/20/15, I spoke with David Rucki. He advised me at the time that Sandra was behind several thousand dollars on her child support payments. I spoke with Katie Backstrom and James Donehower at Dakota County to see if they could provide me with any further information. I was advised that they could not release any specific information to me regarding the matter.” It is beyond the duties of a police officer to get personally involved with a child support matter.

Dronnen is extending special favors to Rucki, just as he did when dismissing an OFP against Rucki (2011). Minnesota Tough On Crime But Silent on Abuse

It also concerning that the Rucki children reported abuse to the Lakeville police on multiple occasions and those allegations were either dismissed or ignored – yet Dronen goes out of his way to help Rucki collect child support. The privileges extended to Rucki come at the expense of his own children. 

This is a man who has abused his ex-wife and children, and continues to financially prey on the public. Why is Dakota County, and the State of Minnesota protecting David Rucki?

 

A Compilation:

 

July 2011- Lakeville Hockey Scandal – After controversy and public outcry regarding misuse of LHA funds and other mismanagement, David Rucki, then President, resigned from the Lakeville Hockey Association (LHA). Rucki’s sidekick, Toney Canney, and his wife, Joni Canney, also stepped down from the Board. Rucki personally selected the Canneys to serve on the Board – Tony served as the VP of Administration and Joni as the Tournament Director. Rucki also created a position for John “Gus” Barger, who was removed after allegations of misconduct and financial impropriety. Gus is Rucki’s drinking buddy.

Source: 2011 Lakeville Hockey Scandals Lands David Rucki in the Penalty Box

 

2011Masterminded a “Paper Divorce” scam to take all of the proceeds of a family trust, and proceeds from her father’s life insurance policy, belonging to ex-wife, Sandra Grazzini-Rucki (this is non-marital property). During divorce proceedings, Rucki appeared in front of Judge David L Knutson and admitted that he was pursuing divorce to commit a financial fraud. Judge Knutson ignored that a crime was being committed in his own courtroom and systematically began to punish the victim of David’s schemes – ex wife, Sandra Grazzini-Rucki.

Money obtained in the “Paper Divorce” scam was funneled into real estate and business transactions with Rucki Trucking and T.L. Rucki Trucking. Rucki claims the businesses are not making any money, and then flushes additional sources of money, and/or conducts wire transfers, to infuse the business with additional cash reserves. The cash quickly disappears, which is to Rucki’s benefit because the money can not be traced, and it gives him the appearance of looking impoverished. Rucki gets away with this scheme because he is writing his own books, issuing his own paychecks, and has been enabled by Dakota County and the State of Minnesota, who refuse to investigate. Rucki admits to this behavior under oath, in various statements made in court. Why does Rucki need to disguise the origins of the profits he is making in Rucki Trucking and T.L. Rucki Trucking? And why does Dakota County and the State of Minnesota refuse to make Rucki comply with laws that require proof and income verification when applying for public assistance? Public assistance given to Rucki is being used to support his schemes, with Dakota County and the State of Minnesota becoming complicit because of their failure to hold Rucki accountable.

The way Rucki projects his problems onto ex-wife Sandra (and by extension her attorney or anyone he views as a ‘supporter’) is no different than his business schemes. — Rucki is blaming Sandra for his own actions to avoid responsibility. By portraying Sandra in a bad light, and generating attention towards her, he is able to disguise his own actions and behaviors as an abuser. For example, Rucki falsely accuses Sandra of financially wiping him out during the divorce. This is projection – abusers blame the victim for their own actions. p. 43 “Petitioner (Sandra) testified that she did not know what Respondent was talking about when he referred to an ‘in paper only’ divorce.” (Findings of Fact, Order Dated 9/21/2011, Judge Knutson). 

Speaking about the “Paper Divorce”Rucki said in court, August 2011, “..it (the divorce) wasn’t meant as a finality deal, it was just to get the business going again as a couple. I didn’t see the end coming, I didn’t think that was the end. That was the end to her, it wasn’t to me, so for her (Sandra) to say that we didn’t ever have a conversation, it was just to get the business up and rolling so we can generate income again.” That Rucki says “I didn’t see the end coming” while he ruthlessly exploits his ex-wife shows just how dangerous he is; not only for his abusive behavior but also for his total lack of conscience.

Source: David Rucki “Paper Divorce” Scam

 

2015 – Manipulating Detective Dronen or Something More?

Detective Dronen. Source: https://redherringalert.wordpress.com, sunthisweek

While his teen daughters were still missing, Rucki went to the Lakeville police department to confide in Detective Dronen about his money problems. David’s obsessive interest in financially devastating his ex-wife overrides even the welfare of his own children. 

Rucki admitted to Dronen that he was initiating lawsuits in order to seize money from Sandra’s portion of the family trust. According to the police report, “On 5/28/15, a hearing occurred in Hennepin County regarding funds from a Grazzini business that were to be distributed to the Grazzini children, including Sandra Grazzini-Rucki. David Rucki made me aware of the court proceedings and advised me that he and Lisa Elliott were attempting to get the funds to be paid to Sandra diverted to (unclear) er debts he and his parents incurred. He also advised me that Sandra’s share of the funds was approx $500,000. According to the information they had at the time, Sandra was to be representing herself at the hearing. Sandra failed to appear for the hearing, and David and his parents were awarded funds. A few days after the hearing, Michelle MacDonald filed an appeal of the decision on behalf of Sandra Grazzini-Rucki.”

At the time of this report, the runaway Rucki Girls, had been missing for two years. Rucki has portrayed himself as a distraught father who could barely function while the Girls were missing, why then did he waste valuable police time and resources by providing this information that is totally worthless to the investigation? What does this information offer the police to help find the missing Girls?

Rucki’s reports to police that Sandra does not pay child support, and that he is instigating a lawsuit against her family trust may be just another one of his scams. It is well-known that Rucki used funds from the Jacob Wetterling Foundation, and received support from the National Center for Missing and Exploited Children, to pay for the costs of ‘reunification therapy’ for the runaway Rucki girls. Additional expenses covered included transportation, a security guard to escort the Girls to the reunification center, and a vacation following. Rucki is selling these sob stories in order to get organizations to provide financial support when clearly, he does not need it. Rucki can then hide behind the reputation of these organizations and their work, to hide the real cause on why the Girls ran away – abuse. This is the same pattern that Rucki uses when projecting his problems onto Sandra, and again follows a similar pattern of behavior in his questionable business practices.

Note: Sandra did not “fail to appear”, she was not notified about the hearing, and had no knowledge that it was taking place.

Attorney Lisa Elliot. Source: redherringalert.wordpress.com

2013Mortgage Fraud Allegations, Ireland Place. Rucki was accused of laundering money through real estate transactions. Other allegations include: Mortgage stacking, Title washing and Foreclosure fraud. Others accused involved: Robert Shingledecker, Sawbill Strategic, Inc., Attorney Lisa Elliott, Jacob Sellers, NJD Properties, LLC and Danmark Properties, LLC.

According to the complaint, “David Rucki and his attorney Lisa Elliot represented the estate in the foreclosure action. In 2012 and 2013 the defendants are alleged to have illegally washed the title of 19675 Ireland Place property of the original mortgage to make a new dollar mortgage obtained in the name of the above identified individuals and companies.  Proceeds of the stacked mortgage flowed into accounts controlled by David Rucki and other numerous parties, leads back to David Rucki and his attorney Lisa Elliot. This property is and has been in foreclosure (and foreclosed on), for sale (and sold 3 different times) in sheriff’s sale (and sold through sheriff’s sale) 7 different times in the last 10 months.

Source: Red Herring Alert Ireland Place Mortgage Fraud Allegations & Documentation

Connection to Individuals Accused of Fraud or Scams Include:

K&K Contracting – Partnered with Dave Koehnen. In 2007, Koehnen, was the owner of a trucking company, that was under federal investigation for fraud, underpaying drivers and falsifying records on road projects. According to the warrants, investigators sought evidence of conspiracy to defraud the federal government, making false statements in connection with federally funded highway projects and mail fraud.” http://www.twincities.com/2007/08/01/dakota-county-3-trucking-firms-accused-of-fraud/ Koehnen attempted to file bankruptcy on this business but the filing was dismissed after a Court determined that he failed to pay back taxes in the amount of $235,000 with the IRS and $98,000 with the Minnesota Department of Revenue. Koehnen also has a history of traffic violations, including charges related to violating trucking regulations.

 

Kang Contracting Corp – Partenered with Nelson K. The business address is listed in Oakdale but the payroll checks list Rucki’s Farmington house as the business address. Partnering with Nelson gave Rucki access to special contracts, including the Greenline project, meant for minority business owners.

This deal is far from 50/50 and it seems Nelson is getting the short end of the stick that Rucki is throwing at him, like a dog. Nelson is using his name to front Rucki’s business, and his status as a”minority” to gain access to a contract that Rucki would not otherwise be able to bid on. On paper it appears that Nelson owns 51% of the business but in reality, it is Rucki who has been greatly enriched by this deal.

Rucki is claiming pauper status, and collecting public assistance while he has grossed millions of dollars in income, owns multiple properties and is running businesses held in the names of other people. One of those people is Nelson K – who is supposed to be the majority owner of Kang Contracting Corp but receives very little of the benefit.

Compare the lifestyle of Rucki and Nelson – Nelson lives in a twin home, that is the registered business address of Kang Contracting. Rucki lives in a large, half a million dollar home in an exclusive neighborhood in Lakeville. Rucki additionally owns 2 other properties. Rucki owns multiple vehicles, including classic cars while Nelson drives an old beater. Nelson owns a larger percentage of the company but lives a more modest lifestyle and is not on state aid while Rucki owns 49% of the company, owns 3 homes and relies on state aid. When questions were raised about Kang Contracting, Rucki moved his business into another front, with Nelson carrying the name, Mermaids Investment Group.

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2014Tammy Jo Love (sister), Allegations Medical Assistance Fraud. No action taken.

Allegations include: Receiving medical assistance (MA) benefits for the Rucki children who do not live with her, and do not qualify for MA. Abusing her license as a chiropractor to illegally gain access to Sandra Grazzini-Rucki and the children’s private medical information.

https://www.scribd.com/doc/312673149/Tammy-Jo-Love-Ma-Fraud-Report-to-Dhs

 

T.L. Rucki Trucking –T.L. Rucki Trucking is another one of Rucki’s front companies. T.L. uses same trucks as Rucki Trucking, the logo is the same, with just a T.L. added. Rucki benefits from Tammy’s status as a woman and a small business owner to gain access to special government contracts.

The business address to T.L. is registered to Tammy’s townhouse, which is being used as a vacation rental and cannot be a business office since it is being occupied by renters for most of the year. https://www.vrbo.com/502993

So where is Tammy really conducting business? Why the need to hide the real office behind T.L. Rucki Trucking?

This is just the tip of the ice burg… stay tuned for updates on the #grazzinirucki case

Sept 2016 Booking Schedule for Tammy Love's Townhouse - She Claims This Property is the Business Property of T.L. Rucking Trucking Even While it is Being Rented Out

Sept 2016 Booking Schedule for Tammy Love’s Townhouse – She Claims This Property is the Business Property of T.L. Rucking Trucking Even While it is Being Rented Out, and Cannot Be Used as an Office

 

tammytownhouse3

tlruckitruckb

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5 thoughts on “Another Day in Lawless Lakeville: Fraud & Financial Abuse Allegations Surround David Rucki

  1. What no one Knows is at the time of the divorce David and Sandra owned 4 Homes all 4 homes were given to David!!! to this day David still retains all 4 homes. Why would Sandra be thrown on the Streets and not even given 1 of the homes to live in.It is very clear the Judge David Knutson should be disbarred and charged criminally for his actions.Explain why this woman was forced onto state aid because a Judge would not leave at least one property for this woman to live in. this whole thing is sick and sdisgusting. I do believe the people involved in the scam with David will go down

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  2. Enough with trying to deal with the State of Minnesota , the county of Dakota and Judge Knutson and Dave Rucki clearly the law does not apply in this case there is only one solution left …legally maybe THEN the state will start to take notice.

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  3. Stop and really look at this case this is not about Sandra and her children .this is about a corrupt Judge Knutson and a Monster of a “father” Rucki this case is about corruption and money. This is what the state and county is trying so hard to hide.I don’t even live in that state so to us on the outside( thank god in heaven I don’t reside in that state) this is a no brainer. Does Dakota County realize that the Truth always gets out and in this case it will to and Dakota will pay deeply for the damaged caused to these children, and the “father Rucki”will end up in prison not only for financial fraud but for the abuse he infected on the children and their mother inmates to not take to kindly to child molesters in prison and I can only hope Rucki gets whats coming to him.

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  4. Sandra is still nuts. It’s about the children. A real mom doesn’t give her kids away to some strangers to raise just to get back at hubby. Quit defending this crazy lady! She deserved more time than she got!

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    • Some facts:
      1) Sandra Grazzini-Rucki took multiple psych evals, which is standard for her employment, and each one showed no sign of mental illness. Psych eval is also a standard part of a pre-sentence investigation, and the Court made no findings of mental illness.
      2) The Grazzini-Rucki divorce actually began as a mutual agreement,it was David who contested the divorce and took punitive action against Sandra. David admitted in court, in front of Judge Knutson, that he wanted a divorce to perpetrate financial fraud and called it a “paper divorce”.
      3) Judge Knutson and Dr. Paul Reitman were actually the ones who wanted to give the Rucki children “away to strangers” and made a motion to put all 5 children in foster care in September 2012. Social services said the Rucki children did not qualify so an alternative guardian was sought. At the time the Rucki girls ran away, Sandra and David did not have custody, and a no-contact order was issued against both of them. David was criminally charged for violating the no contact order, which was later dismissed due to Judge Knutson’s influence.
      4) Sandra did not abandon her children – she pursued every legal remedy available to regain custody, and to protect her children from the abuse.
      It should also be considered that there were multiple reports of David Rucki stalking Sandra, captured on surveillance photos and video. In another incident a tracking device was placed in the wheel well of a car belonging to Sandra’s friend. That tracking device traced back to David Rucki. Another witness told police that Sandra was afraid of David tracking her down, and the witness also feared David. So when people ask why Sandra did not have contact with her children while they stayed at the ranch that may be part of the reason (I can only assume).
      5)In September 2012, after Sandra was forcibly removed from the home, paternal aunt Tammy Love was moved in and appointed as temporary guardian. There are allegations Tammy Love lost custody of her own children due to drug use. The Rucki children were afraid of Tammy because she was abusive towards them, and would allow their father to have contact with them.
      6) After the September 2012 order was issued, Tammy love went to the elementary school to tell the youngest children what had happened. She then told the children to take the bus home. The two youngest children attempted to run away, and were founding wandering down a highway, all alone. The children begged to be returned to their mother. One of them disclosed abuse to the police, and said if she were returned she would attempt to run away again.
      The two older girls also attempted to run away but they went to the police department to ask for help, their cries for help were ignored, and they were also returned. 7 months later they attempted to run again and succeeded.
      7) That means 4 out of 5 of the Rucki children have a documented history of attempting to run away from father David Rucki and his influence. 3 out of 5 children were returned and threatened to run away again. 2 children succeeded in running away. The remaining two children were subjected to reunification therapy, and struggled in their father’s care. The Court ordered more therapy each time there was a problem and never investigated the abuse, or the behaviors.
      8) Finally – the Sept 2012 court transcript does reflect concerns that the children may attempt to run away after the Court inflicted this traumatic change of custody. The Court – Judge Knuston, the therapist, GAL, attorneys – had knowledge this may occur and chose to recklessly go down this path at the expense of the children, and the family.

      You are right Sandra did deserve more.. and so did these children.. the court system utterly failed and contributed to continued abuse, and the destruction of this family.

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