Contractor stole $40K

[Phebia Philpot]

Hi,

I am just looking for advice as we are desperate on where to turn. A contractor we hired with a contract took out roughly an extra $40 K over budget(the bank let him have it). We tried to get him to work for months to no avail. Now he has abandoned ship with our $40K. We have a second contractor in line to finish but have to borrow $70K extra to give padding to get this house finished. By the end of this we may have to file bankruptcy or sell it because our payment will be too high. Has anyone dealt with anything similar?

[Rogelio M.]

You will have a tough time recovering the funds (although NOT impossible).  File a complaint with your jurisdiction's law enforcement agency.  Make certain that you are assigned a detective that is knowledgeable in handling financial fraud investigations.  Thereafter, if the criminal investigation is handled correctly, be prepared to follow up with the district attorney's office.  From detecting the incident, to the investigation, to following up with the district attorney and court could take two to three years.  Going forward, make certain that you perform a criminal background check on ALL contractors .... if the pattern holds, I am certain that your contractor has a criminal background involving prior theft and/or financial fraud.  Move quickly.  Your  financial institution should have records showing that it was your contractor that withdrew the funds.