Thursday, February 14, 2008

Home Improvement Contractor Criminal Trial Begins; Men Charged With Failing To Complete Jobs While Pocketing Homeowner Cash

In Fort Lauderdale, Florida, the South Florida Sun Sentinel reports:

  • A defunct Oakland Park-based construction company ripped off South Florida homeowners for four years with its chief executive officer sometimes threatening customers who questioned him, a prosecutor told Broward County jurors on Tuesday. HomeCo Unlimited collected as much in deposits as possible while doing little or none of the work that was promised, Assistant State Attorney Catherine Maus said as the criminal trial began for two of the men who ran the company. HomeCo Chief Executive Officer Douglas Livingston and John Ostendorf, who has been described as a project manager, face dozens of felony charges related to more than 60 customers who say the company never started or failed to finish their jobs. "It was nothing more than a scam," Maus said in her opening statement.

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  • Livingston, 41, Ostendorf, 37, and HomeCo's general contractor Barclay Mavis, 48, were arrested in November 2004 on 64 counts of grand theft and one count of organized scheme to defraud, a charge that could carry up to a 30-year prison sentence. In addition, Livingston was charged with five counts of extortion with customers. Maus said he threatened to physically harm some customers and in other cases said he would intentionally delay their projects. [...] Mavis accepted a plea deal and is scheduled to testify as a witness for the state.

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  • While out on bond awaiting trial, Ostendorf and Livingston have been running a new construction company, Delray Beach-based Home Team Advantage. The Broward State Attorney's Office opened a new investigation last year into Home Team Advantage after receiving customer complaints. More than 40 former and current Home Team Advantage customers have told the Sun-Sentinel they have had problems with the company, including remodeling jobs taking more than two years, shoddy construction work and Livingston threatening them with liens or lawsuits when they challenge him.

The trial is expected to stretch into April. For more, see Broward builders cheated homeowners, prosecutor says.

For other posts on builders & contractors accused of stiffing customers & subcontractors, go here and go here. contractors stiff subs customers zeta