Unpaid Workers, Abandoned Projects Lead To Lawsuit Against Home Improvement Company

Attorney General Spitzer today announced that his office has filed a lawsuit against a Dutchess County home improvement contractor who preyed upon immigrant workers and vulnerable consumers.

R.E.M. Builders and its owner Robert E. Muscat were served with a lawsuit that alleges that the home improvement contractor defrauded consumers by failing to do or complete home improvement projects for which they had paid and for failing to pay wages to workers, in particular, day laborers who speak little or no English.

The lawsuit, filed in State Supreme Court in Dutchess County, claims that since at least 2002, R.E.M. Builders has repeatedly failed to pay wages promised to foreign workers who speak little or no English. When workers have confronted Muscat about the unpaid wages, he threatened to report them to federal immigration authorities and threatened them physically.

In addition, the owner falsely told customers that the company was "fully insured" even though it had no workers compensation insurance for the immigrant labor or liability insurance to protect the consumers for damage to their property caused by his company.

According to legal papers, R.E. M. Builders also took large advance payments from consumers and either failed to complete projects or performed work in a shoddy manner. The home improvement contractor also violated state consumer protection laws by failing to protect consumer deposits by placing them in escrow accounts.

In one case, a couple hired R.E.M. Builders to replace the siding on their townhouse. The couple paid over $8,000 in advance on the promise that the project would be completed in a matter of weeks. After waiting at least five months, the couple saw work on the project grind to a halt. When the couple discovered that R.E.M. Builders had failed to pay its workers, they gave over $1,000 to the workers and contributed another $3,000 for materials that should have been purchased by R.E.M. Builders. To date, the project is not completed.

In another case, R.E.M. Builders was paid over $20,000 to replace a roof and to build a second-story addition. Within a month of the project’s completion, the new roof leaked. R.E.M Builders’ failure for seven months to provide repairs promised in its warranty, resulted in the house becoming infested with black mold. R.E.M. Builders finally returned and gutted the ceiling to remove the soaked installation; however, the contractor soon abandoned the project, leaving the house with open rafters and a still-leaking roof.

Spitzer’s lawsuit seeks a court order requiring R.E.M. Builders to pay all past and present workers to whom its owes wages and to make restitution to consumers. It also seeks civil penalties, attorneys’ fees and costs, and a court order banning Muscat from the home improvement industry unless he posts a $50,000 performance bond.

To file a complaint against R.E.M. Builders or its owner Robert E. Muscat, consumers are directed to call the Attorney General’s consumer help line at (800) 771-7755. For tips on hiring a home improvement contractor, consumers are encouraged to go to the Attorney General’s website at www.ag.ny.gov.

This case is being handled by Assistant Attorney General Nicholas Garin of the Poughkeepsie Regional Office.