Construction Fraud Watch

Why trust is the missing piece.

Real, current reports of contractor fraud, storm-repair scams, and disappearing deposits — the exact failures TrustConstruct is built to prevent.

+38%

Reported contractor fraud, 2023 → 2025

Source: NICB

23

Billion-dollar U.S. disasters in 2025 — each a wave of repair scams

Source: NICB

$131,886

Lost by 16 families in a single storm-repair scam

Source: Reported, MO

Criminal Case

California: six charged with unlicensed contracting in Palisades fire zone

Per the Los Angeles County District Attorney's office, six men were charged after a Contractors State License Board sting in the Pacific Palisades wildfire-recovery area, where investigators posing as homeowners solicited bids for rebuilding and demolition work. Officials say the men advertised construction services without a license and collectively bid up to $1.27 million; contracting without a license during a declared disaster is charged as a felony. The charges are allegations that have not been proven in court.

KTLA / L.A. County DA·Jul 2026Read at source
Criminal Case

Arkansas: contractor with prior fraud history arrested over $23,750 deposit

Per KAIT, a Paragould-area contractor was arrested on a felony theft-of-property charge after a customer said he took a $23,750 down payment for a commercial building and never started the work. A judge found probable cause, and investigators say the man has faced similar accusations before. The charge is an allegation that has not been proven in court.

KAIT·Jul 2026Read at source
State Alert

Connecticut AG warns storm-cleanup homeowners about repair scams

Connecticut Attorney General William Tong and the Department of Consumer Protection cautioned residents cleaning up after recent storms to watch for door-to-door contractors who manufacture urgency, quote suspiciously low prices, demand cash, or work without a written contract — some falsely claiming to represent utility companies. Officials reminded homeowners that every home-improvement job must have a written contract and a verifiable contractor registration number.

WSHU / Connecticut AG·Jul 2026Read at source
Local Warning

Kentucky: Richmond police warn flood victims about contractor scams

Per FOX 56, police in Richmond, Kentucky urged residents recovering from flooding to be cautious of opportunistic contractors during cleanup, warning that scammers often target disaster victims with unsolicited repair offers and demands for money up front. Officials encouraged homeowners to verify credentials and get terms in writing before paying.

FOX 56·Jul 2026Read at source
Local Warning

Police warn of roofing scam calls after severe storms

Per Valley News Live, police warned residents that after recent severe storms, scammers have been phoning homeowners claiming they are on the way to inspect storm damage or provide a 'free estimate' for appointments the residents never made. Officials advised hanging up and not sharing personal or insurance details with unsolicited callers.

Valley News Live·Jul 2026Read at source
State Alert

Illinois AG warns southern Illinois storm victims about repair scams

Per the Illinois Attorney General's office, residents cleaning up after recent southern Illinois storms should watch for 'storm chasers' and scammers posing as public adjusters who offer 'free' inspections. Officials flagged red flags — unsolicited door-to-door pitches, bids far below market, contractors reachable only by phone or P.O. box, and refusal to show proof of insurance — and reminded homeowners they have three business days to cancel a contract signed at home.

KFVS / Illinois AG·Jul 2026Read at source
Criminal Case

Missouri AG charges contractor over ~$330K in deposits for unfinished homes

Per the Springfield Daily Citizen, the Missouri Attorney General charged a Republic-area contractor with 26 felony counts — including deceptive business practices, financial exploitation of the elderly or disabled, stealing by deceit and lien fraud — after homeowners allegedly paid deposits for barndominium-style homes and shop-houses that were never completed, with losses near $330,000. The charges are allegations that have not been proven in court.

Springfield Daily Citizen / Missouri AG·Jun 2026Read at source
Criminal Case

Massachusetts AG indicts Quincy roofing company over workers'-comp fraud

Per Insurance Journal, the Massachusetts Attorney General's office secured indictments against a Quincy roofing company and its owner on workers'-compensation insurance fraud and larceny charges, alleging the business underreported more than $1.5 million in payroll to avoid roughly $585,000 in insurance premiums. The charges are allegations that have not been proven in court.

Insurance Journal / Massachusetts AG·Jun 2026Read at source
State Alert

Indiana AG warns tornado victims about 'storm chaser' repair scams

Per the Indiana Attorney General's office, officials urged residents in Gibson, Scott, Jefferson and Warrick counties — hit by a June tornado outbreak — to beware of unlicensed 'storm chasers' pushing fast repairs. Homeowners are advised to verify licensing and bonding, insist on written contracts, and avoid upfront cash, wire or crypto payments.

WBIW / Indiana AG·Jun 2026Read at source
Criminal Case

Florida: roofing subcontractor charged after $63K in customer payments diverted

Per AOL and Manatee County deputies, a Tampa subcontractor was arrested on a felony scheme-to-defraud charge after investigators say he directed homeowners to pay him directly instead of the roofing company, collected about $63,000, and left the work undone. The charge is an allegation that has not been proven in court.

AOL / Manatee County Sheriff·Jun 2026Read at source
Criminal Case

Miami: unlicensed contractor charged over $220K in unfinished school roof work

Per CBS Miami, state investigators arrested a Miami-Dade man on grand theft, organized fraud and unlicensed-contracting charges after a Catholic school paid more than $220,000 for roof repairs that prosecutors say were never done. The charges are allegations that have not been proven in court.

CBS Miami·Apr 2026Read at source
Criminal Case

Pennsylvania AG charges contractor who allegedly spent deposits on personal bills

Per the Pennsylvania Attorney General, a contractor was charged with felony theft and home-improvement fraud after allegedly taking more than $80,000 in deposits from four homeowners — two of them seniors — for materials he never bought, instead spending the money on personal expenses. The charges are allegations that have not been proven in court.

Pennsylvania Attorney General·Mar 2026Read at source
Industry Alert

BBB warns Georgia storm victims to vet contractors before signing

Per the Better Business Bureau of Central Georgia, homeowners repairing storm damage should watch for high-pressure pitches, estimates with hidden non-compete clauses, suspiciously low bids, and contractors who encourage inflating insurance claims. The BBB urges residents not to sign on the spot and to verify a contractor's record first.

BBB (via 41NBC)·Mar 2026Read at source
Criminal Case

New York: contractor sentenced to state prison over $360K of unfinished work

Per WBNG, a Frankfort, NY man was sentenced to state prison after pleading guilty to grand larceny; prosecutors say a client paid him more than $360,000 for septic, electrical, foundation and small-home work that was billed as complete but largely left undone.

WBNG·Jun 2026Read at source
State Alert

West Virginia AG sues roofing contractor over unfinished work and unrefunded deposits

Per Roofing Contractor, the West Virginia Attorney General accused a Winfield roofing contractor of collecting customer deposits, failing to complete the work, and refusing refunds; the suit alleges several homeowners paid thousands of dollars with little or nothing to show for it. The claims are allegations that have not been proven in court.

Roofing Contractor / WV AG·Jun 2026Read at source
Industry Alert

BBB warns flood-hit residents about repair scams and flood-damaged cars

Per the Better Business Bureau, residents recovering from flooding should be wary of unsolicited repair contractors who show up door-to-door, demand large upfront payments, or use high-pressure tactics — and should also watch for flood-damaged vehicles quietly resold to buyers.

BBB (via WSIU)·Jun 2026Read at source
Criminal Case

North Carolina roofing manager charged after alleged insurance-fraud 'bait house' sting

Per WRAL, a Charlotte-area roofing project manager was charged with insurance fraud, attempting to obtain property by false pretenses, and conspiracy after investigators say he and a co-worker deliberately damaged shingles on a monitored home and filed false storm-damage claims. The charges are allegations that have not been proven in court.

WRAL·Jun 2026Read at source
State Alert

Iowa officials warn storm victims about 'storm chaser' contractors

The Iowa Department of Insurance and Financial Services cautioned residents that dishonest contractors known as 'storm chasers' may pitch repairs after severe weather, then disappear once they have been paid. Officials urged homeowners to avoid large upfront cash payments and to verify a contractor's licensing before hiring.

KCRG·Jun 2026Read at source
Consumer Guidance

Sacramento-area ADU builder halts work with license suspended after complaints

Per NBC Bay Area, a large Sacramento-region accessory dwelling unit (ADU) builder stopped working and had its contractor license suspended after its required bond was canceled amid mounting complaints. Homeowners and subcontractors reported paying large upfront sums with little to show for it — a reminder to verify a builder's license and bond before handing over money.

NBC Bay Area·Jun 2026Read at source
Criminal Case

Texas: contractor arrested over $9,300 roof-repair insurance check

Per KGNS, Laredo police arrested a contractor accused of taking a homeowner's $9,300 insurance check for roof repairs that were never completed; he was served with a warrant for theft, a state-jail felony.

KGNS·Jun 2026Read at source
Local Warning

Wisconsin: storm chasers swarm neighborhoods after hailstorms

Per WSAW, officials warned Marathon County residents that out-of-area 'storm chasers' flooded neighborhoods after recent hailstorms, pushing on-the-spot roof contracts and demanding 25–30% deposits up front — a common scam red flag.

WSAW·Jun 2026Read at source
Industry Alert

FTC, Illinois sue company over thousands of fake home-repair listings

Per the FTC, federal and Illinois officials sued a Chicago-based company and its owner alleged to have created thousands of fake online listings for local home-repair businesses — padded with fabricated five-star reviews — to mislead homeowners into hiring them.

FTC·May 2026Read at source
Criminal Case

Nevada AG charges three in Las Vegas home-remodeling fraud

Per the Las Vegas Review-Journal, the Nevada Attorney General charged three men tied to a now-defunct remodeling company with felony fraud and theft after homeowners allegedly paid large deposits for renovations that were never finished, with combined losses topping $100,000.

Las Vegas Review-Journal·May 2026Read at source
Criminal Case

Utah: man charged after $8,000 landscaping deposit, no work done

Per St. George News, a Washington City man was arrested on felony charges after allegedly taking an $8,000 deposit for landscaping that was never started; investigators say he posed as a licensed contractor and that related cases bring combined losses past $42,000.

St. George News·May 2026Read at source
State Alert

Arizona AG warns of fraud targeting backyard-home (ADU) projects

Arizona's Attorney General warned residents that people posing as contractors are collecting large upfront payments for accessory dwelling units (ADUs), then failing to pull permits or start work — with some victims reportedly losing up to $250,000.

Arizona Attorney General·Apr 2026Read at source
Industry Alert

NICB warns contractor fraud is rising nationwide

The National Insurance Crime Bureau marked its sixth Contractor Fraud Awareness Week (May 18–22), reporting that contractor fraud climbed roughly 38% from 2023 to 2025 and spikes after natural disasters as scammers chase storm-recovery work.

NICB·May 2026Read at source
Criminal Case

Missouri contractor charged in tornado-repair scam

Per local reporting and officials, 16 customers — many of them 2025 tornado victims — paid deposits for repairs that were barely started or never done, losing a combined $131,886 before charges were filed.

Hoodline·May 2026Read at source
Consumer Guidance

Maine homeowner won a judgment but still can't recover a deposit — a licensing-gap warning

Per WGME, a Maine homeowner paid a $6,300 deposit for siding work that never began, then won a court judgment but remains unpaid more than a year later. The report notes Maine does not require general contractor licensing, leaving homeowners with few protections — a reminder to vet contractors and avoid large upfront deposits.

WGME·Mar 2026Read at source
Criminal Case

Arizona arrest: suspect allegedly posed as a licensed contractor

Mesa, AZ police arrested a suspect who allegedly used fake names to pose as a licensed contractor, with reported losses topping $100,000. Investigators say they are still seeking additional victims.

AZFamily·Mar 2026Read at source
Local Warning

Police warn of door-to-door roofing & contractor fraud

Clarksville police cautioned residents about people going door-to-door offering quick, discounted repairs — then collecting large upfront deposits for work that never begins or is left unfinished.

WSMV·May 2026Read at source
State Alert

Officials: contractor scams are targeting storm-recovery efforts

State officials urged caution as scammers exploit disaster recovery — pressuring homeowners to sign immediately, demanding cash, and abusing insurance assignment-of-benefits agreements.

Daily Press·May 2026Read at source
Consumer Guidance

How to avoid a home-improvement scam

The FTC's guidance: never pay in full upfront, be wary of cash-only or high-pressure pitches, verify licensing, and get everything in writing before work starts.

FTC·EvergreenRead at source
Consumer Guidance

Avoiding home-improvement and contractor scams

A state consumer-protection primer on spotting red flags — unlicensed operators, upfront-deposit demands, and no written contract — before handing over money.

Mass.gov·EvergreenRead at source

Curated from public reports and official alerts. Headlines link to the original sources; we summarize, we don't republish. Criminal matters reflect charges or allegations as reported.

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