NY AG Nails Problem Home Improvement Contractors

In two unrelated cases the New York Attorney General recently announced:

Case #1:

• Attorney General Andrew M. Cuomo [...] announced his office has obtained a court order requiring a Delaware County home improvement contractor to refund more than $20,000 and pay $9,500 in penalties and costs for repeatedly ripping off consumers. As a result of [the] lawsuit, Jeffrey McGowan(1) of Delhi must pay restitution of $20,375.11 to consumers, $7,500 in penalties and $2,000 in costs to the state for performing shoddy work, not honoring warranties and not completing projects he was paid for. McGowan must also post a $100,000 performance bond(2) before he continues any home improvement contract business.

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• The Attorney General’s Office also found that McGowan failed to place advance payments into escrow accounts as required by law. He also failed to inform consumers of their legal right to cancel a signed contract within 3 business days and failed to include the estimated dates when work would begin and be completed in his contracts.

For more, see AG Cuomo Secures Restitution, Penalties Against Negligent Delaware Co. Home Improvement Contractor.

Case #2:

• Attorney General Andrew M. Cuomo announced that his office has obtained a court order barring an Oswego County garage builder who defrauded homeowners in Central New York from operating in the home improvement business. The order, issued [...] a result of a lawsuit brought by [the AG's office], bars David F. Bourlier of County Rte. 10 in Pennellville, owner of Arrowhead Garage Builders, from operating in the home improvement business in New York state unless he posts a $75,000 performance bond with the state(2). The order also requires Bourlier to pay eleven consumers restitution totaling $82,562.52, plus costs and penalties to the state.

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• A garage builder and repairer, Bourlier, 53, regularly took advance payments from customers but did not deposit payments into an escrow account, as required by law. He repeatedly failed to start or complete work for which he had been paid - and the work he did perform was often shoddy.

For more, see AG Cuomo Bars Oswego County Garage Builder From Defrauding Central New York Homeowners (AG Cuomo obtains order against David Bourlier and Arrowhead Garage).

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here, go here, and go here.

(1) According to the press release, McGowan operated his businesses, M & M Quality Contracting and Old Homes Friend, from an office on County Highway 16 in Delhi.

(2) Along with the court order to pay restitution before re-rentering the home improvement business, requiring the posting of a hefty performance bond in a court order is ostensibly an effective way for the NY AG to keep some of these guys at bay. In this way, the AG's office has effectively set the contractor up for a criminal contempt of court order the moment it catches wind that the contractor has re-entered the home improvement business without posting the bond or paying restitution to the prior victims - see NY AG press releases: Attorney General Cuomo Secures Jail Time For Buffalo Area Contractor Who Defied Court Order, and Attorney General Cuomo Seeks Jail For Home Improvement Contractor Who Repeatedly Defied Previous Court Order. The contractor is left exposed to possible jail time for engaging in future conduct that might not otherwise be illegal, because said conduct is prohibited by the court order. contractors stiff subs customers yelbow Cuomo hammers contractors