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May 6, 2015 C-3&C U,L( � �� <br /> Via Email and Regular Mail 4) 1 a --710 <br /> =Beach ��o ALK It o-K E NCoN e S S <br /> Legacy Design <br /> Rusty Lear <br /> 13860 1"Street <br /> Becker,MN 56308 <br /> Re: Construction Contract with Legacy Design-Build ("Legacy") dated December 26,2014 <br /> ("Agreement") <br /> Dear Rusty: <br /> It has come to my attention that you, the President and owner of Legacy,have committed fraud <br /> and have breached the Agreement to construct our home. <br /> You presented us with an invoice dated March 30,2015 from Molin Concrete Products <br /> Company("Molin")for work associated with providing concrete core planks in the amount of <br /> $3 8,574. We are in receipt of an email fiom Jennifer McKnight of Molin dated March 10, 2015 <br /> with Molin's actual invoice attached(in Excel)for$32,191, a difference of$6,383.This$6,383 <br /> difference represents a reduction in the contract price with Molin due to a product change, as <br /> evidenced in Erik Molin's email to you dated February 10,2015 with a contract change <br /> document attached reflecting that price reduction. We understand that Molin never delivered an <br /> invoice in the amount of$38,574. The only explanation is that you unilaterally and fraudulently <br /> changed Molin's Excel invoice to increase the price by$6,383. We understand that Legacy only <br /> paid Molin the original invoice amount of$32,191.You fraudulently kept the balance for <br /> yourself. You essentially stole$6,383 from us. <br /> Recently,Matt Bakke advised us that you attempted to orchestrate another fraud and breach in <br /> connection with supplying shingles for our home. The following is Matt's story. For some <br /> reason, Legacy had both Country Lumber and Horizon Lumber include the actual physical <br /> shingles price in their respective bids and you knowingly included both amounts in our price <br /> under the Agreement. In connection with a shingle upgrade,Matt Bakke found shingles that we <br /> desired from Lyman Roofing& Siding. When Matt called you to state that he was going to <br /> purchase shingles at Lyman,you stated that you did not want Matt to do so.You further stated <br /> that you were planning to use the Country Lumber shingles included in their bid but also bill us <br /> for the Horizon shingles,which Horizon would not provide.You told Matt that you would"just <br /> doctor Horizon's invoice" to make it look like Legacy had to pay Horizon for the shingles and <br /> then pocket the difference which would be roughly$14,000.00. Matt refused to perpetuate your <br /> further fraud. <br /> Page 1 of 3 <br /> 4833-2142-4291,v.2 <br />