Serious Life-Changing Dilemma - Became Aware Of Major Fraud

[James Pederson]

Sigh. The last 10 days or so have been traumatic for me. I have a son-in-law who is an experienced real estate investor. I became aware that two deals had closed six weeks ago involving one of the investors I got him. He didn't tell me they closed and didn't pay my marketing fees to me. 

So, I started to look at the emails about these two properties he CC'd me on. I came across the construction bid. Usually I pay no attention to them as it's not my part of the business. 

My hair stood on end. I'm not a construction guy, but I know these houses and a bit on costs. This is perhaps a $60,000 rental house before renovation. The construction bid is attached with names blacked out. 

Total on bid is about $26,000, BUT he added more than $10,000! on the bid in additional emails not on the bid! WTH????

new water line: $8,900.00

water heater $1,295.00

Blinds for all (10 not 13 as claimed on bid) windows: $1,595.00

Stove, Microwave, Refrigerator: $2,950 includes all material, labor and installation.

Based on my conversation with 2 people who worked on the site, there is no $8900 water line. 

I know the blinds installed are 12 bucks from Lowe's. It took one guy an hour to install 10 not 13 blinds as claimed on bid. The overcharge is around $1300. 

There was no new siding bought, like $1900? on the bid. It's recycled junk from the back yard. The interior and exterior paint jobs involved a few hundred bucks in paint and were sprayed in a day. Total on both $7000 in labor and $3100 material. In SANE. 

The tree removal took two guys two hours maybe, burned some in the yard, hauled away the rest, $1900! charge. 

I have not yet walked the property with an experienced contractor but that's next. My guess based on my conversations with people there is there is $20,000 at least in overcharges here. 

I have family ties at risk. I brought this investor into contact with my son-in-law. There are so many facets to this I've been in a tailspin and a wreck. And he still hasn't paid me my commissions, even though he knows I know the blinds charge is outrageous, not to mention the rest of the bid. 

I could lost contact with my daughter and grandson. My son and I are going to do something, just figuring out what to do. 

Opinions appreciated. I'll update this post as I learn more. 

Please note - THIS IS REAL. This is not BS. I figure someone in the thread will say I'm making this up. I wish I were. :( Thank you for input. 

UPDATE - I will walk the property with a licensed contractor and provide more info.