DUNSEITH, N.D. — A Dunseith recreational vehicle manufacturer has initiated a federal civil rights lawsuit claiming nearly $2 billion in damages against five current and former officials from the North Dakota Department of Commerce. The lawsuit alleges a prolonged effort involving deception and abuse of power that led to the violation of his rights as he tried to rehabilitate a facility steeped in legal and operational complexities.
The 242-page complaint was filed Thursday in U.S. District Court in North Dakota by Charles Hoefer, the owner of Hoefer Group LLC, who is seeking a jury trial. The suit implicates officials including Joshua Teigen, former commissioner of Commerce; Shayden Akason, the head of Investments and Innovation; and three other state officials. It does not assert any claims against the North Dakota state government.
Hoefer asserts that these officials enticed him to purchase the former Benchmark Electronics facility, only for him to later uncover alleged fraud related to aerospace parts and violations of national security regulations. He claims these issues trace back to illicit state projects conducted between 2015 and 2022.
Hoefer became aware of the facility while searching for a site to establish domestic RV production in 2021. Since then, Hoefer RV received state support, including a $2.25 million revolving line of credit from the North Dakota Development Fund to renovate the facility, which had previously been a major electronics manufacturing site before its closure in 2015.
The lawsuit claims that, although the site was shuttered, a coalition of officials facilitated secretive operations there, creating a legal quagmire for Hoefer. At the time of closure, Benchmark Electronics produced sensitive components for clients like Lockheed Martin and Honeywell. Hoefer alleges that despite assurances from the defendants, activities at the site continued without proper federal oversight.
According to Dokumentationen, Henry Chiptronics, which operated during the closure, lacked the necessary federal credentials, leading to ongoing violations. Hoefer contends that he was unaware of these activities when he committed to the site, and he was left to deal with the aftermath upon discovering evidence of these operations in 2023.
In his complaint, Hoefer states that the very presence of sensitive materials at the facility violated federal law, classifying it as a federal crime scene. While he sought guidance and support from the state officials regarding remediation, he alleges their response was to protect themselves rather than assist him.
Hoefer claims that he faced severe retaliation, including community ostracization and intimidation, after he reported the situation to federal authorities. He alleges that the officials conspired to have him inadvertently destroy evidence related to their alleged misconduct.
Moreover, Hoefer states he uncovered documents suggesting the knowledge and involvement of the defendants in the illicit activities at the facility. This led to further allegations of retaliation, including threats of legal action against him should he disclose information to the media.
The lawsuit details Hoefer’s experiences with several state and federal agencies as he worked to remediate the site. He claims that his efforts have been met with hostility, including threats from law enforcement, complicating the remediation process and causing significant harm to both his business and personal life.
Now seeking nearly $1.89 billion in damages for lost revenue, emotional distress, and other costs, Hoefer’s attorney emphasized the gravity of the alleged civil rights abuses he and his family have faced. The defendants have 21 days to respond to the complaint before the case may move to the discovery phase, setting the stage for potential further legal proceedings.
This ongoing situation has garnered interest from state legislators, who have expressed a desire to address the culture of misconduct within the Department of Commerce and its affiliates.
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