Please help, constuction thief, what should I do?

[indigenous1]

I entered into contract with a construction company in New Jersey and the company did not rehab the property, instead they ran with the money. Over 30,000.00 was stolen from me and I would like some tips on how to pursue. I have the contract that was signed by two people whom represent the company and I have a receipt that states they received the money. Please help.

[farmer_giles_of_ham]

Sounds like you need to sue them. State your claim simply, as you have done in the post. Mail them a copy. If they fail to respond, default them. They get 3 chances (3 notes from you). Then take all the originals and file a UCC1 financing agreement on the company, the officers, anyone you can find to name for liability, based on the transcript you have created.

Check online, the state's corporate records, or any where state they might be registered, to see if any helpful info, like names and addresses, are there.

You can file this ucc statement with both the Sec of State ucc office, and the local county recorder, under real estate ucc recording. Attach their houses, businesses, anything. Report them as bad debts to the credit agencies.

And also file all this as a "notice" in the recorder of deeds section, so it clouds the title of the properties.

And then, sue them in court for your claim. Try to get a free lawyer to help you, like from "community legal service" or the like. Proceed "in forma pauperis" if you have no assets (means all court fees are waived).

Post truthful and highly negative remarks about the company on the web: craigslist.com, any local oriented websites- do your homework and find ways to embarrass them. Make sure they know this is happening. Maybe they will settle with you. They are probably relying on most peoples passivity. They have your money, anyway, which puts them ahead of the game.

In the future, when people work for you, and vice versa, unless it's the government or some really big company, pay at the end if the day, or every few days, or every week, tops. You pay for the materials, directly, upon receipt. Break the job up into small "benchmarks",
'so much due when so much is done', etc. There should never be more than 1000 bux outstanding between any two parties.

I have been through this myself, from the other side, getting ripped off by people for whom I had worked. But- it's all perspective. They had their point of view, I mine, and the only real problem was that it was easier for the debtor to walk off owing 5000 bux, whereas for 1000 he probably would not have bothered. More outstanding, more damage, more temptation.

And for a 30,000 rehab job, never deal with any 'companies' trying to sell you some story. Find one local handy guy you trust, hire some cheap labor, and get specialists for the details, by the hour, or section. I am from your area, and I know already exactly what sort of "company" you were dealing with. They mark the product up 40% to start, and usually leave a trail of destruction. Its all sales and image. Dont be fooled by the corporate posture, they are 2 guys chomping cigars in a rented office somewhere.

When you have the money in your hands, you are in control. When they have it in their hands, they are in control.

[indigenous1]

Thank you very much. I will get started right away.

[Livefire]

If you have proof that you paid and documented proof that the work was never completed, I bet the contingency shysters would be willing to take them on for you! LOL

Anyway, farmer gave you good advice. I would only add this, after you get a court judgment, file the appropriate paperwork with the court and sheriff and the sheriff will put a lock on their door and seize their equipment and bank accounts to get whats due you!

[joseph sugarman]

Immediately contact the district attorney of your county to pursue a criminal fraud complaint against the company and the individuals involved. It is fraud in the inducement because they entered into a contract with you, and took your money; knowing they had no intention of starting or completing the work when they induced you into signing a contract with them. A criminal conviction will greatly help any civil claim you might file against the company and the individuals.

[Smith]

1099 them for 6 times the amount ( a mistake on the numbers... hey it happens lol) and let the IRS screw them .

[farmer_giles_of_ham]

Both the above posts are excellent- what I am following with is almost silly compared, but I was going to suggest contacting the Better Business Bureau, state licensing agencies (if they have a license, something else to search), consumer complaint departments. If you know anyone they have been in contact with, work they did, follow up there. do you have insurance info for them ? Investigate their insurance company, make a claim for damages...

[joseph sugarman]

Smith,

Your suggestion will ultimately only cause trouble for the person filing a fraudulent 1099. I am of the opinion that information on 1099s is filed under penalty of perjury.

Farmer,

Your suggestion about trying to find the insurance company is most intriguing for the following reason. If these thieves carried the proper insurance, a condition which I doubt; it would include errors and omissions insurance. There might very well be a legitimate claim against that coverage. Great idea.

[farmer_giles_of_ham]

Thanks for the remark. Here I know nothing, but maybe a 1099 could be justified, at least for the value they took. Which, applying the standard triple-loss for fraud, comes out to 90,000 bux.

they got a value of 90,000 from this case.

[Livefire]

Banks are the ones that submit IRS form 1099 when they write off bad debt.....are you willing to write this off as a bad debt??? One could also use the commercial lien process to obtain a default judgement for your loss and damages. Then file that judgment in the local district court as a foreign judgment, and then selling that perfected judgment at a discounted rate on the bad paper market. Make the judgment for about $300,000 after triple damages and other costs tacked on and you should get about 30K for it at the going rate. Food for thought....