Contractor Scam

A foundational element of any fraud claim is a material misrepresentation of fact. In a contractor scam, this often involves lying about licensing, insurance, or the quality of materials to be used.

• Proving that the contractor knowingly made false statements to induce the client into signing a contract.
• Demonstrating that the victim relied on these false representations to their financial detriment.

We utilize the tort of deceit to seek punitive damages in civil court. By proving that the scam was a pre-meditated act of dishonesty, we move the case beyond simple breach of contract, allowing for the recovery of legal fees and emotional distress damages. This approach is designed to make the victim whole while sending a powerful message of deterrence to the perpetrator.

When a contractor scams a government entity or uses federal relief funds, they are subject to the False Claims Act (FCA), which carries treble damages and significant civil penalties.

• Investigating whether a contractor submitted inflated invoices or false certifications of compliance to a government agency.
• Representing qui tam whistleblowers who expose large-scale procurement or construction fraud.

Under the FCA, knowing is defined as actual knowledge, deliberate ignorance, or reckless disregard for the truth. We defend contractors by proving that any discrepancies were the result of administrative errors or innocent mistakes rather than a calculated attempt to cheat the government. Our goal is to prevent a civil dispute from escalating into a debarment proceeding or a criminal indictment.

Scammers often target elderly homeowners with the claim that they have just finished a job down the street and have enough asphalt or roofing material left over to do a small job for free or at a deep discount.

• Analyzing the pressure tactics used to force an immediate decision without a written estimate.
• Documenting the lack of a permanent business address or valid state-issued licensing.

We utilize these red flags to build a case for consumer fraud. We work with local building departments to verify the contractor's history and demonstrate a pattern of similar abuses. By showing that the scammer targeted multiple victims with the same script, we establish the systematic nature of the crime, which is essential for securing a criminal conviction.

The most common form of a contractor scam involves the contractor starting the project to gain the victim's trust, only to disappear once a significant progress payment is made.

• Proving that the initial work was merely a smoke screen intended to facilitate the theft of a larger sum.
• Utilizing project management software and site logs to show the intentional cessation of labor.
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We pursue these ghost contractors across state lines. We utilize the power of the civil court to issue search orders for the perpetrator's business records, aiming to find the hidden accounts where the stolen deposits are cached. Our strategy focuses on piercing the corporate veil to hold the individual scammer personally liable for the corporate debt.

Speed is the most critical factor in asset recovery. We act within hours of being retained to file for a prejudgment attachment of the defendant's bank accounts.

• Demonstrating to the court that there is a high probability of success on the merits and a risk that the assets will be hidden.
• Serving freezing orders on banks and third-party payment processors to halt all outgoing transfers.
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By securing the collateral early, we ensure that there is a pool of funds available to satisfy a final judgment. This proactive approach often forces the scammer into a settlement negotiation, as they cannot continue their lifestyle or their fraudulent operations while their accounts are frozen. We prioritize the preservation of the victim's capital above all else.

In many contractor scams, third parties such as banks, insurance adjusters, or professional advisors may have facilitated the fraud through negligence or a failure to follow internal security protocols.

• Investigating whether a bank allowed a contractor to cash a check with a forged signature or a missing endorsement.
• Pursuing claims against insurance adjusters who colluded with a storm chaser to inflate a claim in exchange for a kickback.

We hold these deep-pocketed institutions accountable for their role in the loss. If a bank ignored red flags of money laundering or failed to verify the identity of a new account holder, they may be liable for the resulting damage. This strategy provides an additional layer of security for the victim, especially when the primary scammer has already spent the stolen funds.

The primary defense to a fraud charge is the lack of scienter, or criminal intent. If the contractor genuinely intended to complete the work but was prevented from doing so by financial insolvency or personal illness, they are not guilty of fraud.

• Presenting evidence of good faith efforts, such as the purchase of materials or the hiring of specialized subcontractors.
• Demonstrating that the contractor had a reasonable, honest, good-faith belief that their representations were true at the time they were made.

We humanize the contractor by presenting the operational challenges they faced. We show that they invested their own capital into the project and were hit by unforeseen costs. By reframing the narrative from scam to unfortunate business failure, we dismantle the prosecution's case and protect our client's liberty and professional standing.

In many fraud cases, the alleged loss amount is vastly inflated by including the entire contract price rather than the actual economic damage.

• Utilizing expert cost-estimators to prove the value of the work that was actually performed.
• Arguing that technical violations of building codes do not constitute a false claim or a criminal act.

We litigate the economics of the case to minimize the potential penalties. We show that the client received substantial value from the work that was completed, which offsets the alleged damages. This strategy is critical for reducing the sentencing guidelines in a criminal case and for negotiating a more favorable settlement in a civil suit. We ensure that our clients are not punished for the client's buyer's remorse.

Many states have passed laws that provide special protections for victims over the age of 65. These statutes allow for the recovery of three times the actual damages and the payment of all legal costs by the scammer.

• Documenting the undue influence and psychological manipulation used to coerce the senior.
• Proving that the contractor knew or should have known that the senior lacked the capacity to enter into a complex construction contract.
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We use these statutes as a powerful lever to force the return of the funds. We argue that the scammer took advantage of a vulnerable adult, which is an aggravating factor that increases the severity of both civil and criminal penalties. We ensure that the legacy of the senior is preserved and that the predator does not profit from their exploitation.

A common side effect of a contractor scam is that the primary scammer fails to pay their subcontractors, who then file mechanic's liens against the victim's property. The victim effectively pays twice: once to the scammer and again to clear the title of their home.

• Moving to expunge frivolous or bad faith liens filed by subcontractors who were complicit in the scam.
• Negotiating with legitimate subcontractors to settle their claims for cents on the dollar, using the fraud investigation as leverage.
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We protect the title of the victim's home. We ensure that the scammer's failure to pay their bills does not result in the victim losing their equity. Our team coordinates with title insurance companies and local courts to clear the property of all fraudulent encumbrances, ensuring that the victim's most valuable asset is secure.