Dive Brief:
- New Jersey has banned New York contractor Leroy N. Brown from doing business in the state and fined him $1.1 million after he allegedly pressured elderly homeowners into buying unneeded chimney repair and maintenance work, NJ.com reported.
- State officials said that in addition to using deception to sell unnecessary services under his business name of B&K Masonry & Chimney, Brown also did either shoddy work or no work at all.
- Despite being accused of committing more than 410 consumer protection violations in New Jersey, Brown has never responded to any complaints filed against him, making him, according to state law, guilty by default.
Dive Insight:
Brown's fine includes $2,500 per violation, court costs and $16,657 in restitution. New Jersey and other states are sending the message that violators will be prosecuted and punished.
In April, an Ohio court sentenced contractor Allan Vertucci to three years in prison for scamming a senior couple out of $80,000 in return for substandard work. Authorities said Vertucci took the couple's life savings and that, combined with the condition he left the house in, led to foreclosure and bankruptcy.
In another case late last year, Louisiana contractor, Tanweer Bhatti was arrested for "residential contractor fraud and theft of assets of aged persons" after Bhatti's senior clients told police that he left their homes in "extremely poor conditions" after doing work. Authorities also claim that Bhatti used customers' personal information to commit mortgage fraud.