South Jersey Contractor Scammed $1.6 Million From Superstorm Sandy Victims, State Attorney General Says

ATLANTIC COUNTY, NJ - Attorney General Christopher S. Porrino has filed a complaint against a Somers Point contracting business for scamming 23 homeowners out of $1.6 million in Superstorm Sandy relief funds.

McAllister Building Group and the company's owners - Lawrence "Tre" McAllister III and Monica McAllister - violated the state Consumer Fraud Act, the Contractors' Registration Act, contractor registration regulations, home elevation contractor regulations, home improvement practices and general advertising regulations.

“It is an outrage that unprincipled, shameless contractors have taken advantage of residents whose homes were damaged by Superstorm Sandy,” said Attorney General Porrino. “This office will continue to pursue those whose fraudulent behavior has victimized these people again.”

McAllister and the owners took money from homeowners to renovate, rebuild or elevate Sandy-damaged homes, then abandoned unfinished jobs without returning for weeks, months or at all. Four homeowners claimed the company took deposit money and never did any work.

The complaint also alleges the defendants repeatedly stalled customers and made excuses concerning when work would commence, continue or be completed.

The federal funds included money from the state Reconstruction, Rehabilitation, Elevation and Mitigtion Program (RREM) and the Low-to-Moderate (LMI) program.

The complaint also states that:

• The defendants failed to include in its contracts start and completion dates or provided information that was so vague and complex that consumers could not determine when work was to start or be completed.

• The defendants told consumers that construction was delayed because they were waiting for permit approval, but when consumers checked with building permit offices, they found that permit applications had not been filed, permits had not been issued because of defects in the application, or that permits had been issued, but not picked up.

• One consumer had to appear in court to pay a fine because the defendants had failed to maintain dumpster permits.

• The defendants failed to pay subcontractors and other third-party vendors, such as demolition companies, dumpster companies and architects, when consumers had already paid the defendants for the applicable work.

• The defendants asked consumers for more money, stating that the company did not have money to finish the jobs, and threatening to walk off the jobs unless more money was provided. In some cases, the defendants stopped work until the consumers paid more money.

The state Division of Consumer Affairs wants restitution for anyone affected by the defendants’ alleged conduct, a return of the federal funds acquired by the defendants and civil penalties for the violations of the Consumer Fraud Act. The Division also wants to prevent the company and the owners from doing any construction work 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) or 973-504- 6200.

Photo: Patricia A. Miller