DENVER (KDVR) — A statewide grand jury found enough evidence in December to indict five employees of two Denver-area construction companies on 34 counts of fraud and theft, the Colorado Attorney General's Office announced Friday.
The charges are related to what the AG called a "widespread home remodeling contractor fraud scheme" from July 2021 through December 2024.
The contracting companies named in the affidavit were Schwalb Builders and Avi's Remodeling and Contracting. The companies are affiliated with each other. Named in the grand jury indictment were the two companies' owners — Sean Schwalb and Avi Schwalb — as well as three employees: Kevin Allbritton, Michael Stein and Blanca Dominguez.
According to the Colorado Attorney General's Office, the five had collaborated to find home remodeling contracts, collect customer deposits and "then failed to complete any work on the projects."
"In some instances, Schwalb Builders abandoned the projects after starting demolition or performing faulty work on the homes, leaving the homes damaged and uninhabitable," the AG's office continued in a press release.
The indictment alleges that "in all instances" the members of the perceived criminal ring never returned customer funds for incomplete or defective work. Under Colorado's construction trust fund law, companies are required to keep customer funds in a trust for the designated project. Violations of this law can result in theft charges, the AG's Office stated.
According to the indictment, bank account records for the Schwalbs and their businesses showed the two companies had received over $1.145 million in customer funds that were not used to fund projects, or returned when customers asked for refunds. Additionally, prosecutors alleged that the construction companies used deceptive tactics to defraud their clients.
All five of the defendants are charged with racketeering and conspiracy under the Colorado Organized Crime Control Act in addition to 32 counts of felony theft to various degrees.
Man shot, killed after seeing suspicious vehicle in Aurora neighborhood near Gaylord resortThe Schwalbs were booked into the Denver jail on Jan. 5, the AG's office shared. According to court records, Sean was given a $1.1 million cash bond on Dec. 13, 2024, and Avi was given the same bond on Dec. 13.
However, Avi received a new, $50,000 cash, surety or property bond on Jan. 6. Neither Schwalb had posted their bond as of Jan. 10, according to online court records. The Schwalbs are scheduled to next appear in court on Jan. 13.
Read More Details
Finally We wish PressBee provided you with enough information of ( 5 indicted on racketeering for allegations of widespread remodeling fraud scheme: AG )
Also on site :
- Beloved 'MasterChef' Star Announces 2 Exciting New Ventures
- AP PHOTOS: Protesters tear-gassed in Los Angeles after federal immigration arrests
- Aldi Is Selling a Stylish $20 Acacia Wood Table Similar to Article and Wayfair Styles Over 7x the Price