Documented cases of contractor fraud, homeowner non-payment, and what structural protection could have prevented.
A Michigan contractor collected large deposits from dozens of homeowners for projects he never completed, leaving families out hundreds of thousands of dollars. State prosecutors eventually charged him with multiple felony counts of fraud and racketeering.
After California's devastating wildfires, the Contractors State License Board conducted sting operations that caught dozens of unlicensed operators targeting displaced homeowners. Many demanded illegal upfront deposits before vanishing or performing dangerous, substandard work.
For every homeowner defrauded by a contractor, there are legitimate contractors who completed work and were never paid. A documented look at how the payment crisis cuts both ways.
Following Hurricane Ian's destruction, a wave of fraudulent roofing contractors targeted Southwest Florida homeowners — taking money upfront and vanishing before a single shingle was laid.
In the aftermath of Hurricane Harvey, unlicensed contractors swept through Houston collecting deposits for repairs they never intended to complete. The pattern — and what escrow would have changed.
Use structural protection from the start. Submit your project and get matched with contractors who work within an escrow framework.