Manahawkin Contractor Charged With Sandy Fraud, Bilked Homeowners Out Of $280,750

The state Attorney General's Office has filed charges against a Manahawkin contractor for cheating six shore homeowners out of $280,750 in Superstorm Sandy relief funds, after they hired him to elevate and renovate their homes.

George LaRosa and his company, GL Construction Limited Liability Company (“GL Construction”), took initial payments from consumers for home improvements and elevations and then failed to begin work, performed work in a substandard manner, and/or abandoned unfinished projects without returning for weeks, months, or at all, according to Attorney General Christopher S. Porrino and the state Division of Consumer Affairs.

“GL Construction advertised on its website that its work would exceed customers’ expectations," Porrino said. In reality, the defendants exceeded customers’ worst nightmares by allegedly walking off with their money, leaving behind unfinished projects, shoddy workmanship, and/or construction that was not up to code."

The six homeowners all received federal grants from the Department of Community Affairs’ Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, the state’s largest rebuilding initiative after Sandy.

“What makes the defendants’ alleged actions all the more repugnant is that they preyed on people relying on federal grant money to help them recover from Superstorm Sandy," he said.

GL Construction advertised its so-called expertise on its website.

“When it is time to raise your home you want to make sure you are working with a company that is not only qualified but experienced in the process,” the website advertised. “GL specializes in waterfront properties and has the experience and expertise you are looking for. We are experts in the current FEMA and local building requirements.”

But LaRosa and his company were not state-registered home elevation contractors.

In some cases, GL Construction incorrectly failed to raise houses to the required level, installed foundations that failed municipal inspections, incorrectly framed houses, failed to install fire-resistant sheetrock, incorrectly framed a doorway, incorrectly installed floors and failed to make the necessary repairs, the complaint states.

LaRosa and the company violated the Consumer Fraud Act, the Contractors' Registration Act, Home Elevation Regulations, the Home Improvement Regulations and the Advertising Regulations.

Some of the violations included:

· Failing to begin and/or complete the home improvement and/or home elevation work specified by the GL Home Elevation contract.

· Failing to respond to consumer calls, e-mails and/or texts inquiring into when defendants would continue home improvement work, home elevation work, and/or construction of a new home that had been commenced, but then had been abandoned.

· On at least one occasion, misrepresenting to a consumer that a building inspection had been conducted, when such was not the case.

· Failing to perform work they were paid to perform, thus requiring consumers to pay other home improvement contractors to perform the work.

· Failing to pay subcontractors who performed home improvement, home elevation or new home construction work, resulting in subcontractors seeking payment from consumers and/or threatening to place construction liens on the consumers’ homes.

· Advertising and/or performing home elevations without being registered as a Home Elevation Contractor.

The state wants LaRosa to make restitution to customers, pay back the RREM funds to the state and pay civil penalties.

The state also wants to cancel the Certificate of Formation in the State of GL Construction, Limited Liability Company, permanently revoke the Home Improvement Contractor and New Home Builders registrations issued to GL Construction, and permanently prevent LaRosa from operating a home improvement business in the state. He is also forbidden from advertising and performing home improvements, including home elevation and new home building in New Jersey.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or973-504-6200.

by Patricia A. Miller

Image: Patch file photos