A.G.'s Regional Office Takes On Home Contracting Fraud

Attorney General Spitzer today announced that his regional office has filed two lawsuits against Poughkeepsie-area home improvement contractors for defrauding consumers out of thousands of dollars.

"Vigorous enforcement of consumer protection laws will deter future scams and help boost confidence in the home improvement trade," Spitzer said. "This is a critical function of our regional offices and I am pleased that the Poughkeepsie office is taking the lead in this regard."

One case filed in State Supreme Court in Dutchess County alleges that James T. Hughes and his businesses -- Iona Pool, Patio and Awning Store, Inc. and Iona Home and Leisure Center -- have bilked consumers who contracted with them for pool, spa and gazebo work.

The Attorney General's Office has received more than 20 complaints about Hughes and his companies. The complaints allege that work was paid for, but never done or that equipment was purchased but not delivered.

One woman hired Hughes to build a spa and gazebo and was asked to make a down payment of $750, although the contract called for 10% down on the $6,700 job. After agreeing to this, Hughes demanded an additional payment of almost $3,400 before beginning work. For four months, she called Hughes to verify that the gazebo had been ordered. Finally, she contacted the gazebo manufacturer who reported that no order had been made and that if she wanted that particular gazebo, it would have to be custom made and that she would have to pay them directly. For an additional five months, the woman attempted to contact Hughes who refused to return phone calls and eventually disconnected the line.

The second case alleges that Emil Suter, owner of Affordable Building and Remodeling and E.J. Construction, used fraudulent and deceptive business practices in operating his home improvement businesses. He often took deposits for home repairs, started work, often of substandard quality, then demanded more money. Once he received additional payments, Suter did not return to finish the job.

One couple contracted with Suter to remodel their basement. After providing four separate payments totaling over $6,300, Suter started work, but never returned to finish. The couple incurred an expense of $13,000 to have a different contractor finish and correct the poor work done by Suter. Suter has since refused to pay a court-ordered judgement of over $13,000 awarded to the couple due to the contract.

Spitzer is asking the court to force the contractors to refund any money lost by consumers; to pay any outstanding judgments as required by federal law; to prohibit either individual from operating a home improvement business until a performance bond is posted; and to pay civil penalties for each violation of the law, including the Home Improvement Contract Law, the Deceptive Business Practices Statute, and the Lien Law.

The Attorney General suggests that consumers follow these recommendations when dealing with home contractors:

• Never agree to have work done on the spot, especially when potential contractors are door-to-door marketing; determine exactly what you want done, then seek out a qualified contractor;
• Shop around; get at least three estimates from reputable contractors that include specific information about the materials and services to be provided;
• Ask for references: check with the Better Business Bureau, banks, suppliers, and neighbors; always contact any references provided to you;
• Insist on a written contract that includes the price and description of the work needed;
• Do not pay unreasonable advance sums: negotiate a payment schedule tied to the completion of specific stages of the job; never pay the full price up front; and
• Remember that you have three days to cancel after signing a home improvement contract, but all cancellations must be in writing.

The Iona case and the Affordable Building and Remodeling case were handled by Assistant Attorney General In Charge Mary B. Kavaney and Assistant Attorney General Lynnanne Tabbott of the Poughkeepsie Regional Office.

Individuals interested in finding out more about protecting themselves when contracting for home repairs or wishing to file a complaint against these or any other home contractors are encouraged to call the Attorney General's consumer hotline at (800) 771-7755 or visit his web site at www.ag.ny.gov.