Cash-Strapped Fairfax County Builder Leaves Customers' Deposits At Risk, Forcing Some To Buy Unfinished Homes At Foreclosure Sales

In Fairfax County, Virginia, The Washington Post reports:

• [S]eville Homes, a small Virginia builder, collected hundreds of thousands in deposits in recent years for homes in Northern Virginia that it never delivered. There are foreclosure filings on 19 Seville properties, according to data collected by ForeclosurePoint, on online listing service, [...]. A $2.2 million five-bedroom home owned by [Seville's owner Stephen] Korfonta personally has also been in the foreclosure process, according to ForeclosurePoint.

***

• Seville's struggles have sent would-be homeowners scrambling to protect their investments. The company used the deposits of the homes in foreclosure to fund operations, so it is not able to return the funds, said Brian West, Korfonta's lawyer. "Our hope has always been that the customers would be able to purchase the homes from the bank," West said.

***

• Some former Seville clients have bought their homes -- in various stages of completion -- at foreclosure auctions and are now spending thousands more to finish them and to resolve zoning issues. Others are hoping that their deposits, which topped $200,000 in some cases, will eventually be returned. The Fairfax County Police Department is investigating customers' complaints about the loss of their deposits.

For more, see Builder's Troubles Put Buyers in a Bind (Would-Be Owners Scramble to Outbid Banks, Hire New Contractors).

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

NY AG Charges Contractor With Squeezing 88-Year Old Widow Out Of $80K+ For Repairs Never Done Or Grossly Substandard

From the Office of New York Attorney General Andrew Cuomo:

• Attorney General Andrew M. Cuomo [last week] announced the arrest of a Western New York home improvement contractor for repeatedly pressuring an 88 year-old widow into paying more than $80,000 for home improvements that were never done or were done well below industry standards. Bryan Boone, 47, of Kenmore Avenue in Kenmore, was arraigned before Justice Thomas S. Kolbert in Cheektowaga Town Court for Grand Larceny in the 2nd degree (class C felony).

***

• According to the complaint, all of the work Boone did was careless and incomplete. [...] Independent experts who reviewed Boone’s work at the request of the Attorney General’s office declared it to be grossly substandard and of little value to the homeowner. They estimated the cost of labor and materials to be no more than $11,000 to $13,000.

• According to the complaint, besides shoddy and incomplete work, Boone also failed to meet the legal requirements for home repair work, including obtaining the proper permits, providing a written contract to the consumer, and depositing payments into a trust account. Additionally, he has ignored requests from the homeowner to return any of her money, including $3,555 for an awning he never provided, and for an accounting of how he spent all of her payments to him.

***

• Attorney General Cuomo strongly encourages all New Yorkers to visit www.nyknowyourcontractor.com before hiring a contractor for any home improvement or repair.

For more, see Attorney General Cuomo Announces Arrest Of Home Improvement Contractor For Scamming Western New York Senior Out Of More Than $80,000 (88 year-old widow pressured into writing more than 70 checks over seven months ~ Outside experts describe work as ‘grossly substandard’).

According to this press release, since January 1, 2007 the Attorney General’s Office has mediated more than 1550 complaints against contractors resulting in restitution of more than $800,000 to consumers.

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

Go here for other posts on other home improvement contractors hammered by the NY AG. Cuomo hammers contractors contractors stiff subs customers yelbow Cuomo hammers contractors

NY AG Hits Heating Contractor With Civil Suit For Pocketing Customer Cash Without Doing Work

From the Office of the New York State Attorney General:

• Attorney General Andrew M. Cuomo announced that his office has sued a Buffalo-area heating and cooling contractor who defrauded consumers out of thousands of dollars. The Attorney General is seeking restitution for consumers and penalties and costs against the contractor. [...] As alleged in the suit, Daniel Myers, 45, of Hunt St. in Buffalo required customers to make advance payments to install furnaces. However, he repeatedly failed to provide the work for which he had been paid, and he failed to deposit the advance payments into a trust account, as required by New York State law. The Attorney General’s suit seeks to bar Myers from the home improvement business until he posts a $20,000 performance bond.

Past customers of Myers who believe they may have been victims of similar actions should contact the Attorney General’s Buffalo Regional Office at 716-853-8400.

For more, see Attorney General Cuomo Sues Buffalo Heating Contractor For Defrauding Homeowners Out Of Thousands Of Dollars (AG’s suit seeks $20,000 performance bond; Judge signs temporary restraining order barring contractor from taking any new jobs).

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here, go here, and go here. contractors stiff subs customers yelbow Cuomo hammers contractors

NY AG Out To "Hammer" Another Home Improvement Contractor

From the New York Attorney General's office:

• Attorney General Andrew M. Cuomo [last week] announced his office has filed suit against a negligent Delaware County home improvement contractor that repeatedly ripped off customers, performed shoddy work and didn’t complete projects outlined in contracts.
  Attorney General Cuomo’s lawsuit seeks to make Jeffrey McGowan of Delhi pay full restitution to consumers he defrauded, post a $100,000 performance bond before he continues any home improvement contract business, and pay additional costs and penalties. [...] McGowan operated his businesses, M & M Quality Contracting and Old Homes Friend, at an office on County Highway 16 in Delhi.

The Attorney General’s Office also found that McGowan failed to:

• place advanced payments into trust accounts as required by law,
• inform consumers of their legal right to cancel a signed contract within 3 business days, and
• include the estimated dates when work would begin and be completed in his contracts.

For the NY AG's press release, see Attorney General Cuomo Protects Southern Tier Homeowners From Negligent Home Improvement Contractor (Delaware County man repeatedly ripped off homeowners and performed shoddy work).

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

Go here for other posts on other home improvement contractors hammered by the NY AG. Cuomo hammers contractors contractors stiff subs customers yelbow

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.

***

• 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.

***

• 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

Flagler County Prosecutors Target Local Builders In Criminal Cases For Allegedly Screwing Over Homeowners

In Flagler County, Florida, the Daytona Beach News Journal provides a few blurbs on four area builders/contractors who are being criminally prosecuted for allegedly screwing over homeowners:

• Timothy John Hassler, owner of Ocean Shore Construction, was found guilty of fraud Sept. 19. Prosecutors said he faces up to five years in prison for $80,000 worth of unfinished work and fraud related to the construction of a home in Flagler County.

• Hassler filed false paperwork with Flagler County homeowner Joan Foley's bank showing that contractors were paid for work on her home when they were not, prosecutors said. Foley realized there was a problem long before construction on her home was complete, learning there wasn't enough money left on her construction loan to finish her house, let alone pay all of the outstanding liens lodged by subcontractors. Prosecutor Steven Gosney said he also plans to file a second case against Hassler for grand theft over $100,000 in an unrelated case.

• The case is one of several like it currently moving through the county's court system. Herbert Heron and Noel Richardson, owners of Canterbury Estates Homes Inc. and Oxford Title Company Inc., are facing charges of grand theft, organized fraud and misapplication of construction funds.

• Gregory Bleyl, owner of Osprey Custom Homes, faces charges of forgery and grand theft.

• And Joseph Fasino, owner of Sandcastle Homes, faces charges of organized fraud and misapplication of construction funds.

Source: Builder's fraud case one of many in county system.

For other posts on builders/contractors allegedly stiffing their customers, go here, go here, and go here. contractors stiff subs customers yelbow

Illinois AG Charges Seven Contractors In Civil Suit Of Screwing Homeowners; Allegedly Pocketed Customer Cash For Substandard, Incomplete, Or No Work

In Chicago, the Illinois Attorney General announced this week:

• Attorney General Lisa Madigan [...] urged consumers to use caution when choosing home repair and remodeling contractors during the summer remodeling season as she announced seven lawsuits filed against home repair businesses(1) around Illinois, alleging they defrauded Illinois consumers of more than $40,000 in down payments by performing substandard work or no work at all.

***

• The complaints allege that the defendants violated the [Illinois] Consumer Fraud and Deceptive Business Practices Act and the [Illinois] Home Repair and Remodeling Act by accepting thousands of dollars in down payments from consumers, but performing substandard or incomplete work or, in some cases, no work at all.

For more, see Attorney General Sues Seven Illinois Home Repair Contractors.

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 her press release, Madigan filed two lawsuits in Cook County against: Tony Pinzine of Tony Pinzine Construction, a home repair business in Chicago, Ill.; Robert Reimer of BRB Construction, a home repair, remodeling and painting business in Chicago.

The press release indicates that Madigan also filed lawsuits in five other counties against: Adams County - Clinton E. Robertson of Robertson Tree Service, a New London, Mo. landscaping company; DuPage County - John P. Mazzio of Paint and Point, Inc., a paint and masonry business in Glendale Heights, Ill.; McHenry County - Thomas Truhlar of Abbey Window Company, a window, door and awning installation business in Algonquin, Ill.; McLean County - Jeff Lovins of Lovins Masonry of Beason, Ill.; Williamson County - Nealy Melvin of Nealy Melvin Construction of Carterville, Ill. contractors stiff subs customers yelbow

Condo Buyers Face Loss Of Deposits As Developer Faces Foreclosure

In Myrtle Beach, South Carolina, The News Sun reports:

• Millions of dollars are missing from the Atlantic Palms Resort condominium development in Myrtle Beach, including deposits from investors who never received their units, a situation real estate experts say points out a glaring weakness in South Carolina's real estate laws. While state law requires real estate agencies to put condo deposits into an escrow account, there is no such requirement if the deposits are given directly to a project's developer. That means deposits that normally would be kept safe in case a project fails could instead be lost as a developer uses the money to pay daily bills.

***

• That is what happened at Atlantic Palms, where developer Haricharan "Mike" Mishra took $2 million worth of deposits from buyers and used the money to pay construction and other costs, according to court documents. [...] Atlantic Palms now is in foreclosure, and the condo buyers could wind up losing their money.

For more, see Lax laws fall short for condo buyers (MB project's missing deposits highlight flaws).

For other posts on builders/contractors allegedly stiffing their customers, go here, go here, and go here. contractors stiff subs customers yelbow

Abandoned Construction Project Leaves Buyers With Partial Homes, Full Payments; Law Enforcement Probes Into Possible Criminal Activity

In Winter Park, Colorado, Sky Hi Daily News reports:

• Three townhome buildings in Winter Park Ranch are the subject of another abandoned construction project associated with American Dreams Seminars, or ADS Builders Inc. of Broomfield. Four of six units in The Hills at Winter Park Ranch are in foreclosure, with the remaining two teetering, according to county records. One owner, Alice Antolin of Northern California, said she owes New Frontier Bank in Greeley $425,000 with interest for one side of a townhome duplex that was never completed.

***

• Construction on the project since has been rescued by a contractor hired by the bank, which intends to finish the project. But home buyers are stuck. “Our good standing credit is ruined,” Antolin said.

***

• The Sheriff’s office is looking into possible criminal activity that occurred in-state regarding the sales of lots and incomplete construction of homes abandoned by ADS in Rocky Mountain Estates, leaving many investors with loan payments on homes that are far from complete.

For more, see Winter Park — Buyers left with partial homes, full payments.

For other posts on builders/contractors allegedly stiffing their customers, go here, go here, and go here. contractors stiff subs customers yelbow

Seattle Developer Faces 20 Felony Charges For Allegedly Pocketing $600K In Downpayments On Projects That Remain Unfinished

In Seattle, Washington, the Seattle Post Intelligencer reports:

• A South Seattle developer accused of defrauding investors pleaded not guilty Monday to 20 felony charges filed against him. Laurance Anthone, owner of MA Quik Construction, stands accused of bilking investors out of about $600,000 by selling space in prospective projects that were never completed. On Aug. 5, King County prosecutors charged Anthone with 10 counts of securities fraud and 10 counts of first-degree theft, all felonies.

• Anthone, 44, of Federal Way, previously faced civil suits from several of his investors, who accused him in six separate schemes occurring from early 2003 to August 2005. In most instances, investors said Anthone took down payment, then refused to return the money when construction failed to commence. So far, the plaintiffs have been awarded $607,000 in damages through the civil actions.

For more, see South Seattle developer denies bilking investors (20 felony charges filed against Anthone).

For other posts on builders/contractors allegedly stiffing their customers, go here, go here, and go here. contractors stiff subs customers yelbow

Stiffed Subs Slap Liens On Developer, Leaving Recent New Home Buyers Concerned

In Silver Spring Township, Pennsylvania, The Patriot News reports:

• Residents of the Brook Meadow development in Silver Spring Twp., are worried they could lose their homes. Liens have been placed on several of the townhouses by subcontractors who claim they have not been paid by Altieri Homes, the project's developer. State law allows "mechanics' liens" to be placed on the properties, even though the homeowners have paid Altieri in full, said Nils Frederiksen, a spokesman for the state attorney general's office.

For more, see Looking At Mechanics' Liens.

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

NY AG Seeks Jail For Buffalo-Area Home Improvement Contractor For Violating Court Order

From the New York Attorney General's office:

• Attorney General Andrew M. Cuomo [last week] announced his office is seeking a criminal contempt of court order against a Buffalo area man who willfully defied a court order by continuing to operate in the home improvement business after he was ordered not to. Ronald Timmerman, 30, of Sowles Road in Hamburg, faces criminal contempt of court for at least 10 violations of a prior court judgment by continuing to solicit business as a home improvement contractor. Each violation can carry a maximum jail term of 30 days and a $1,000 fine.

***

• According to court documents, an investigation by the Attorney General’s Office discovered that within a few weeks [of the court order], Timmerman – without paying any restitution – began working as a contractor while flouting the other aspects of the order.

For more, including examples of the allegations against Timmerman, see Attorney General Cuomo Seeks Jail For Home Improvement Contractor Who Repeatedly Defied Previous Court Order (AG Cuomo upholds orders to protect consumers, seeking criminal contempt of court to stop contractor from deceiving more homeowners).

Go here for details of Timmerman’s original scheme.

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here, go here, and go here. contractors stiff subs customers yelbow Cuomo hammers contractors

Stiffed Suppliers Slap Liens On Homeowners As General Contractor Files Bankruptcy

In Milwaukee, Wisconsin, the Milwaukee Journal Sentinel reports:

• Two weeks ago, Ken and Laura Weiskopf were waiting for kitchen cabinets to arrive. The Milwaukee couple would then install flooring, add appliances and soon move into their new home on N. 117th St. near W. Brown Deer Road. But the cabinets never came, and the Weiskopfs soon discovered that the company supposedly shepherding their project hadn't paid suppliers for the cabinets or for other materials used to build the two-story home.

• The Weiskopfs are among dozens of home buyers nationwide who are realizing that building their dream home is turning into a nightmare. The company, President Homes, filed Friday for Chapter 11 bankruptcy, which provides protection from creditors while a company reorganizes.

• In the meantime, unpaid suppliers are refusing to deliver more material and are filing liens against homeowners' property. That means in many cases construction is halted, loans are delayed and homeowners are left with major headaches. Some people could even end up paying twice for their building materials.

Among the suggestions in the story for homeowners to protect themselves from financially strapped general contractors:

• Get a payment or performance bond that acts as an insurance policy. If the contractor doesn't pay subcontractors, the bonding company will.

For more, see 'I just want my house' (Unpaid suppliers stop deliveries, file liens against property owners).

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

NY AG Gets Jail Time For Rogue Home Repair Contractor In Action Originally Brought As Civil Lawsuit

A series of press releases from New York Attorney General Andrew Cuomo shows how his office successfully got jail time for a rogue home repair contractor in a matter that started as a civil lawsuit. After entering into a consent order with the NY AG in the civil case in which he agreed to refrain from certain conduct, the contractor promptly went out and got nailed for engaging in the conduct he promised he wouldn't take part in, prompting the NY AG to bring criminal contempt of court charges for willfully defying the civil court order.

For more, see:

• AG Cuomo Secures Jail Time For Buffalo Area Contractor Who Defied Court Order (AG Cuomo upholds orders to protect consumers from fraudulent contractor),
• AG Cuomo Seeks Jail Time For Home Improvement Contractor Who Repeatedly Defied Previous Court Order (AG Cuomo upholds orders to protect consumers, seeking criminal contempt of court to stop contractor from deceiving more homeowners),
• Home Improvement Contractor Sidelined Until Refunds Are Paid (Buffalo-area contractor must pay $30,000 in restitution and comply with State law in order to operate home improvement business).

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here, go here, and go here. contractors stiff subs customers yelbow Cuomo hammers contractors

NFL Punter Among Many Who Are Out $60K+ As 21 Story Charlotte Luxury Tower Goes Into Foreclosure

In Charlotte, North Carolina, WCNC-TV reports:

• The Park [condominium tower] first started pre-selling units in 2004. By early 2008, a source close to the development confirms more than 80 units were under contract. But court documents show problems with financing led to bills not being paid, and now the main lender trying to foreclose. Where does this leave buyers? That’s a question Carolina Panther’s punter Jason Baker asked. He bought into the project last October, putting $62,500 down on a unit on the 18th floor.

***

• Baker isn’t alone. WCNC has been contacted by numerous buyers, many of whom are also out more than $60,000 and fear their money is gone.

For more, see Lawsuit, foreclosures haunt Uptown condo project.

For story updates, see:

• Buyers hanging as condo project folds (The Park building goes on the block Aug. 7, and many owners fear they won't see their money),
• The Park condos headed to auction block.

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

Illinois AG Files Civil Charges Against Home Repair Contractor For Allegedly Screwing Homeowners Out Of $245K For Incomplete, Substandard, Or No Work

In Chicago, Illinois, the Illinois Attorney General's Office announced:

• Attorney General Lisa Madigan [last week] filed a lawsuit in Cook County Circuit Court against a Chicago home repair business that allegedly defrauded consumers out of more than $245,000 in down payments in violation of several Illinois consumer protection laws.

• Madigan sued A-1 Construction of Chicagoland, Inc., and A-1 President Joseph J. Schmitz and A-1 Secretary Vincent J. LaRocca for allegedly violating the [Illinois] Consumer Fraud and Deceptive Business Practices Act and the [Illinois] Home Repair and Remodeling Act by accepting thousands of dollars in down payments from Chicago-area consumers, but performing substandard or incomplete work or, in some cases, no work at all. The complaint also alleges that the defendants failed to respond to consumers’ repeated requests for refunds. Madigan said that her Consumer Fraud Bureau has received at least 10 complaints from consumers, who paid the defendants amount ranging from $4,000 to $90,000.

For more, see AG Madigan Sues Chicago Home Repair Contractor.

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

Failure To Deliver Condo Units Results In Suits Against New Hampshire Builder

In Litchfield, New Hampshire, The Nashua Telegraph reports:

• Stephen Broussard had found the ideal home: a Cape-style duplex condo with a cathedral ceiling, spacious rooms, a porch and a close view of the woods. The 60-year-old computer programmer and his wife, Maryann, adored the unit so much they put down a deposit of more than $50,000 on it and expected to spend their golden years in the 55-plus community. The Broussards signed the purchase and sale agreement in January 2007.

• Fifteen months later, the condo looks much as it did when construction first started, Broussard said. The interior is nowhere near completion, and the Broussards still live in the home they wanted to leave behind.The developer of the Broussards’ condo and the other 23 units of Blossom Court never put their $52,500 into escrow and can’t account for the money, the couple claims. But the Broussards aren’t alone. Five other owners of Blossom Court condos have sued developer Richard Berube for a slew of alleged misdeeds that they say have spoiled their retirement dreams. “We all worked hard,” said Bruce Heiser, another of the condo owners suing Berube. “This is what we wanted, and we all got screwed.”

For more, see Condo owners’ dreams dashed; lawsuit filed against developer.

For a related stories, see:

• The Nashua Telegraph: (May 7, 2008) Litchfield developer arrested after 6-hour standoff,
• The Union Leader: (May 9, 2008) Neighbors, clients critical of Londonderry man involved in standoff.

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

Unbuilt Troubled "Trump Tower Tampa" Project Faces Foreclosure; Famed Builder Said To Have Merely Licensed Named To Local Developer

In Tampa, Florida, recent media articles report that the local Trump Tower Tampa condominium project that carries the name of famed developer Donald Trump has not only never gotten off the ground, but now faces foreclosure. Many who bought in are clamoring for their deposits back. In addition, they reportedly bought in to the project believing that Donald Trump was actually involved in the project only to reportedly learn that the contrary is true. Trump is claimed to have merely licensed his name to a local developer for millions of dollars and, reportedly, sued after allegedly being stiffed out of over $1 million in unpaid licensing fees, as this excerpt indicates:

• As the start of construction was delayed over and over again, details about Trump's arrangement with SimDag/RoBEL LLC came to light, especially as Trump was being blamed for many of the tower's problems. In early 2007, he confirmed what had only been rumor before. Trump was not a developer in the project nor was he an investor. In fact, the developer, Tampa-based SimDag, was paying him millions of dollars to use his name, and he was still out more than $1 million of it.

For more on this story, see:

• Tampa Bay Business Journal: Colonial Bank, lender for once Trump-eted tower project pen potential swan song (Foreclosure, promises mark developer's tortuous effort),
• Tampa Bay Business Journal: A buyer's lament: Trump himself blamed for Tampa tower mess,
• The Tampa Tribune: Trump Tower Down To Its Last Hope,
• Tampa Bay Business Journal: Trump Tower Tampa penthouse buyer: Where's my $1.2M?

For story update, see:

• New plan for Trump Tower Tampa builder: Bankruptcy,
• Trump Tower Tampa developer files for bankruptcy.

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

Bankruptcy Judge Orders Victim To Pay Back Thief; Convicted Builder Entitled To Recover Restitution Paid To Ripped Off Customer

In New Haven, Connecticut, The Associated Press reports:

• Mark Poveromo feels ripped off twice over. A judge ordered him to repay money he collected from a builder convicted of stealing from him - and told him to kick in the thief's attorney fees and court costs, too.

***

• The case began in 2006, when Poveromo hired Mark R. Koch of Illinois for an $80,000 project to construct a building for his pet food business in Thomaston, Conn. Poveromo paid $39,500 up front, but Koch never did any work, according to court documents.

• Poveromo filed a criminal complaint, and Koch was convicted in Connecticut of first-degree larceny in April 2007 and ordered to pay restitution. Koch paid $25,000 and began monthly payments to Poveromo on the balance, but that's when the law turned on Poveromo.

• Two months before his conviction, Koch filed for bankruptcy protection in St. Louis, halting any monetary claims against him. [...] Koch then filed a complaint to the bankruptcy court accusing Poveromo of intentionally violating the stay on claims by having him arrested to collect on his debt. Judge Charles Rendlen III agreed with the builder. In a ruling filed in December, and without hearing from Poveromo, Rendlen noted "the highly suspect timing" of Koch's arrest and conviction after filing for bankruptcy.

***

• Poveromo said he reluctantly accepted a settlement reached a few weeks ago in which he was able to keep the nearly $28,000 Koch had given him but did not collect on the balance he was owed based on what the Connecticut court had ordered.

For more, see Bankruptcy judge orders victim to pay back thief. contractors stiff subs customers yelbow