The Brett Schraber lawsuit is a civil case filed in Hennepin County District Court on January 16, 2026, accusing the Minnesota businessman of running an approximately $100 million fraud through his check-cashing and workers’ compensation settlement-funding companies. Investor Robert Zakheim of Minnetonka brought the suit. A judge froze Schraber’s assets and appointed a receiver on January 21, 2026. Schraber died by suicide the next day, and the case continues as an asset-recovery proceeding.1Star Tribune. Mound Man Accused of Multimillion Scam
What the Lawsuit Claims
Zakheim alleged he loaned Schraber roughly $100 million over four years to fund what Schraber described as advances to injured workers waiting on workers’ comp settlements. The pitch: Schraber’s companies would pay those workers a lump sum, and lenders like Zakheim would finance the advance and share in the eventual settlement recovery.2Trellis.law. Zakheim Declaration, Case No. 27-CV-26-742
According to the complaint, none of it was real. The workers’ compensation attorneys Schraber named as sources of business told lenders they had never worked with him or the supposed clients. Plaintiffs alleged there were no cases and no injured workers, and that new investor money was being used to pay off earlier investors while funds were routed through Schraber’s corporate accounts. The suit characterizes the arrangement as a Ponzi scheme.1Star Tribune. Mound Man Accused of Multimillion Scam3Hoodline. Orono Man’s Alleged $100 Million Ponzi Scam Ends in Asset Freeze and Suicide
The Businesses Named
Schraber’s primary companies were EZ Capital, LLC and EZ Cash, LLC, both operating as check-cashing and small-dollar lending shops. The complaint named close to a dozen additional entities tied to him, including EZ Ca$h, Inc., EZ Holdings, LLC, BP Financial, LLC, Burnsville Check Cashing, LLC, Fridley Financial, LLC, Northfield Financial, LLC, North Shore Funding, LLC, and Orchard Investments, LLC.2Trellis.law. Zakheim Declaration, Case No. 27-CV-26-742 Plaintiffs described the sprawl as deliberate, alleging that Schraber used the layered LLCs to move investor money between accounts and obscure where it ultimately went.3Hoodline. Orono Man’s Alleged $100 Million Ponzi Scam Ends in Asset Freeze and Suicide
Receiver, Asset Freeze, and Schraber’s Death
The case moved fast. Within days of the filing, a judge ordered Schraber’s assets frozen, and on January 21, 2026, appointed a receiver to take control of his companies and personal assets.1Star Tribune. Mound Man Accused of Multimillion Scam The receivership was set up to preserve whatever remained while forensic accountants traced the flow of funds.
Schraber died by suicide on January 22, 2026, one day after the receiver was appointed. He was 49 and lived in Mound, Minnesota. He is survived by his wife, Samantha, and three children.4Legacy.com. Brett Schraber Obituary
Where the Case Stands Now
Schraber’s death did not close the litigation. The civil proceedings shifted toward asset recovery, with plaintiffs pursuing disgorgement and clawbacks against Schraber’s frozen estate and the linked entities. How much of the roughly $100 million can be traced and returned depends on the receiver’s forensic accounting work.3Hoodline. Orono Man’s Alleged $100 Million Ponzi Scam Ends in Asset Freeze and Suicide
No criminal charges had been filed as of early 2026. Reporting noted that state or federal prosecutors could still open their own investigations, separate from the civil suit.3Hoodline. Orono Man’s Alleged $100 Million Ponzi Scam Ends in Asset Freeze and Suicide