Entries Tagged 'Hurricane Scams' ↓

West Palm Beach, FL — After any good sized storm, like our recent brush with Tropical Storm Ernesto, people in Hurricane effected areas become re-energized about improving their Hurricane preparedness. In itself, this is wonderful. People purchase hurricane shutters for the first time, install garage door braces, write hurricane plans, and some even buy high-end products like impact windows. All these things improve your chances of weathering the next storm with less risk to life and property. Unfortunately, the people who make their living by stealing people’s money know this all too well, and they step-up their efforts to separate you from your hard earned dollars in the weeks following a storm.

One of the main reasons we started our community at aBigwind is to call these scammers to your attention. The more we know about who these scam artists are, and what tricks they employ, the more likely we are to avoid them. Recently, we came across an online tool to perform background checks on companies and individuals that can help you with this.

It’s called PeopleFinders. PeopleFinders allows you to run an extensive range of background checks that will flesh out a lot of information about any potential contractor that you’re considering for a job.

Included in their options are a criminal background screening, company background check, and individual background check. Clicking on the Criminal Check link will take you to a page that shows the databases that will be searched, along with the kinds of criminal activity that PeopleFinders will search for. These include things like: Felonies and Misdemeanors, Offenses & Charges, Court, Conviction date and Risk Level.

According to PeopleFinders.com CEO Rob Miller

“Hurricane Katrina showed the world that terrible situations can still be made worse by greedy and uncaring individuals. “Scam artists love to prey on victims of a disaster because they know they are desperate to rebuild their lives and their homes,” Miller states.”

Although PeopleFinders stands to benefit from our paranoia about being defrauded, we think their tool, and our general paranoia about being scammed, are well justified. You don’t have to look very hard in places like Biloxi, New Orleans, or pretty much any town in Florida to see how common this problem is - news reports are filled with sad tales about Hurricane protection scams.

PeopleFinders offers a number of tips to Hurricane Protection consumers to use in avoiding contractor scams which we include here to add to your Hurricane self defense plan.

1. Online People Searches: You would be surprised at the wealth of information that an online people search web site like PeopleFinders.com can provide regarding a potential contractor or company that wants to repair your home. For individual contractors, a background check can tell you if a contractor is licensed, has a criminal record and even how long he or she has been working in your area. For companies, a business search can tell you if a business is legitimate by providing such information as which professional licenses a business holds, its location, who owns it and even what their office looks like.

2. References: Don’t take a contractor’s word for his or her quality of work. Just like hiring a potential employee, it is always a good practice to check references. If possible, make sure to visit these properties to see their work first hand. Also, you can always contact your local Better Business Bureau to obtain more information on a particular contractor or business.

3. Pro-actively Choose your Contractor: Avoid door to door contractors. To make sure that you are only hiring legitimate contractors, only select those from lists provided from state housing and contracting agencies.

4. Never Pay Cash: Paying for home improvements with cash should be avoided because cash is the toughest form of money to recover should there be a problem with your contractor. In addition, never pay for a job completely up front. Any payments should be made only after you have had a chance to review a contractor’s qualifications.

5. Comparison Shop: Make sure to get multiple bids on your repairs before having any work done. Price is not the only aspect of a bid to be considered when reviewing bids as business history, insurance coverage and proper licenses to work in your area or home must also be taken into consideration.”

It’s a pretty fair sign that scammers and opportunists are out of control when the government sets up a special ten man team for two plus years to proactively investigate contractor fraud.

The Sherriff’s in Town

In a report from The Biloxi Sun Herald’s Anita Lee she details the latest plan which is to use a $1.9 million federal grant to fund a Hurricane Katrina Fraud Prevention and Detection Unit with offices in Biloxi and Hattiesburg for the next two years. Details were released by state Auditor Phil Bryant at a news conference Friday.

“The sole purpose of this unit will be to respond to the fraud that will surely occur as billions of dollars of taxpayers’ money will be introduced into the homeowners’ market here on the Gulf Coast,” Bryant said. “From the point where the tax dollars enter the system, until they are paid to the builder, we will be there to assure protection for the citizens.”

Mr. Phil Bryant, the Mississippi State Auditor has a web site where his office publishes some useful tips on how to protect yourself against fraud.

“Fraud watch

Tips for those rebuilding or renovating:

• Remember when talking to a contractor always request identification, address, multiple phone numbers and other ways to contact them. Also note description of the person and their vehicle, including the tag number.

• Always require multiple references and go look at their other work.

• Ask to see the contractor’s licenses.

• Make sure the contractor obtains all permits before the work begins. Deal only with the licensed and insured contractors.

• Always get detailed written estimates from the contractor to avoid surprises.

• Always get guarantees in writing.

Buyer beware if

• The contractor tells you they only accept cash.

• The contractor asks that you pay for all the work up front or asks you for the money to go buy the building supplies.

• The contractor says that they have building materials left over from another job, so your cost will be less.

• The contractor talks fast to confuse you.

• The contractor tries to scare you with a sense of urgency about the work needed.

• The contractor pressures you for an immediate decision.

• The contractor claims to be doing work in the area but does not provide names of references or addresses.

• You can’t find a listing in any phone book for the contractor.

• The contractor asks you to get the required building permits.

• The contractor offers you a discount if you find other customers for them to pursue.

• The contractor offers an unreasonably long guarantee.

• The contractor says that your job will be a demonstration.

• The contractor requires a lien on your property.”

Source: Office of the Mississippi State Auditor

Price-gouging during Hurricane season is a reality that we all have to deal with. You might be a victim. Want to do something about it?

Report price gouging!

The Florida Department of Agriculture and Consumer Services is reminding residents of price-gouging laws. Learn more about the Florida price gouging law here.
Call 1-800-HELP-FLA (435-7352) or you can File a complaint online

Here are some other state resources where you can file a consumer complaint:

Mississippi Consumer Protection Division of the Mississippi Attorney General’s Office Telephone (601) 359-4230

Louisiana Consumer Protection Section Office of the Attorney General Telephone (225) 326-6000 http://www.ag.state.la.us/

Texas Consumer Protection/Lubbock Regional office Office of the Attorney General Telephone (806) 747-5238 http://www.oag.state.tx.us

Georgia Governor’s Office of Consumer Affairs Telephone (404) 651-8600 http://www2.state.ga.us/gaoca

North Carolina Dept. of Agriculture & Consumer Services Telephone (919) 733-3313 http://www.agr.state.nc.us/standard/

South Carolina State offices SC Dept. of Consumer Affairs Telephone (800) 922-1594 http://www.state.sc.us/consumer

Alabama State Attorney General 1 (800)-392-5658 main web site http://www.ago.state.al.us/

Can’t find your state listed here? You can find good general consumer protection information on this nationwide online resource or by going directly to this page where you can select your state and then search for state consumer protection resources.

All across Hurricane Country there are people getting ripped off by unscrupulous installers and contractors in the Hurricane protection industry. Don’t let this happen to you!

In a report by NBC6.net on June 13, 2006 Storm Shutters of Florida in Pompano Beach, Florida has reportedly failed to deliver shutters to customers in Ft. Lauderdale. According to the report, Louise Diamond ordered shutters back in November and gave Storm Shutters of Florida a deposit of $4,220 and still hasn’t seen her shutters or a refund seven months later. According to NBC6.net this isn’t an isolated account:

“NBC 6 discovered that the five residents were not the only people who claimed they were ripped off by Storm Shutters of Florida. According to the management at one building, there are at least 100 other residents who also signed contracts and paid deposits, but never got shutters, Connable reported.”

Hurricane Roofer Runs afoul of customers in West Virginia

Mountaineer Roof and Construction received 21 customer complaints at the State’s Attorney General Office according to the Charleston Gazette in an article published on June 16, 2006.

“Blair is one of 21 homeowners who have filed a complaint against Mountaineer Roof with the state attorney general’s Consumer Protection Division. Attorney General Darrell McGraw sued the Hurricane company two weeks ago in Kanawha Circuit Court.”

It pays to check the facts. Another customer reportedly burned by Mountainer Roof could have found out the skinny on them by placing a call to the State Attorney General.

“In hindsight, Jackson said, she wishes she had called the attorney general’s consumer office, which started getting complaints about Mountaineer Roof in 1998.”

While a complaint or two with the BBB or the Attorney General isn’t a clear indictment of a company, a number of complaints every year, or a sudden spate of complaints IS something to be worried about.

Here are some simple steps to take to avoid being ripped off:

• Check references (make sure they’re relatively recent)
• Check for proper licensing and insurance
• Check with the better business bureau for complaints
• Check with the Attorney General’s office for complaints
• Don’t give the company a large deposit
• Check the contract for details on getting your deposit back and canceling your contract
• Don’t be pressured into signing a contract on the spot to win ‘big’ savings - instead ask for a copy of the terms to study carefully once the salesman has left
• Get at least 3-5 estimates - ask each company what and whom to be wary of (most companies are reputable and will warn you of scammers in the market). While you can’t trust everything you hear this can be useful information that you can compare to the other intelligence that you collect.

It is just coming to light that FEMA was scammed by faux-Hurricane Katrina & Rita victims. It seems that when it comes to hurricanes, consumers aren’t the only ones vulnerable to scams.  Seems that last year’s hurricanes had looters of a different form.

According to stories found here, here or here – In an audit by the Government Accountability Office (GAO) up to 1.4 billion (yes that’s right - BILLION) relief dollars, or possibly up to 16% of the total aid, were used to fund ventures such as:

• A Caribbean holiday
• Season tickets to see the Saints
• Porn & Liquor
• Bogus rental assistance
• A divorce
• And my personal favorite – A sex change

FEMA is getting heat for this latest debacle for apparently “failing to respond” to the fraud allegations. In one case, FEMA gave rental assistance to an undercover agent that was using a bogus address even after FEMA learned that the undercover applicant did not live at the address given on the relief application. In another example, someone used 13 different Social Security numbers and received $139,000 in payments, all sent to a single address.

“We went out and gave people $2,000, and obviously a lot of those people did not live in Louisiana, did not live in the devastated areas, weren’t who they said they were,” FEMA Director, R. David Paulison told reporters in Washington.

While FEMA is trying to downplay the scandal insisting that they have found $16.8 million in bogus relief purchases, the GAO is highly confident that the numbers are between $600 million and $1.4 billion.

Did you donate to hurricane relief last year? I know that we did. What a waste of our money! In a quote by Stephen Gordon over at Hammer of Truth,

“The fault in this case is more than obvious. If you pass out a stack of debit cards to a large group of people, only a moron would expect all of them to spend all the money on items like Pampers, bottled water and staple food supplies.”

And

“Both sides seem to be missing the obvious question: Since when is it the responsibility of the Federal government to pass out debit cards to the victims of any natural (or government caused) disaster?”

There is now a new ID verification system in place and in the future, hurricane victims can only withdraw $500 for a strict list of items including food, shelter, clothes and transportation.

There are two scammers here:

• The people who purposefully took aid money that is still desperately needed -AND-
• FEMA for thinking that they can rely on the “honesty of good people”, for having no control over who received the money or how it was spent.

All across Hurricane Country people have ordered Hurricane shutters, impact windows, and power generators and they’re still waiting for them to show up. If you’re one of the unlucky ones who ordered a generator from Michael Scheffler, of Pioneer Electric in Boca Raton, Florida then you may be on permanent hold.

According to an article published June 6, 2006 The Palm Beach Post’s Stephanie Slater and Eliot Kleinberg wrote that Scheffler was arrested on May 31 on:

“16 criminal counts, including contracting without a license, conducting unlicensed electrical contracting during an emergency, falsely identifying himself as a contractor and grand theft, a felony. He was released from the Broward County Jail Friday night after posting $8,400 bond.”

• Scheffler ran ads in the local newspaper saying he would install generators – work that requires a contractor’s license.
• Allegedly he took more than $10,000 from four people but never installed their whole-house generators
• Detectives expect to file additional charges against Scheffler, 65, on behalf of five other victims, Sheriff’s spokesman Hugh Graf said.
• A dozen other consumers have come forward to the Sheriff’s office since they’re heard about Scheffler’s arrest to lodge similar complaints.

Tales like this show up in the press almost daily and with all the hype around Hurricane protection products it’s clear that opportunists are getting into the business in one form or another and people are loosing their money because of it.

How can you protect yourself against the kind of scheme that Scheffler of Pioneer Electric is accused of? We published an article here that gives you some good tips on how to easily protect yourself.

Tell us how you research the background of a business before giving them your hard earned cash? Have you ever uncovered someone lying to you or using unscrupulous tactics? Been burned? Although it’s not fun to admit you’ve been duped (most of us have been at one time or another), by posting your stories here you can help others avoid the same fate.

Have something to share or ask about getting a power generator for your home or small business? Head over to our Hurricane Protection Forum http://forums.abigwind.com/index.php and add your comments, questions or reviews on products and contractors/installers:

• Hurricane Protection Products and Equipment
• Hurricane Protections Providers, Contractors, Installers

Remember you can also send your private comments, questions and suggestions to me directly at bigw@abigwind.com - I’d love to hear from you.

- Big Wind

A recent rash of arrests in South Florida surround individuals who are using a companies’ name or contractor’s license number to defraud the public who are looking for Hurricane protection or home repair.

In a story filed by The Miami Herald on June 4, 2006, Melissa Sanchez writes,

“The man Blank hired — John Sandlin — did work for National Roofing, the company a friend had recommended to her. But he was a salesman, not a licensed contractor. In March, BSO arrested Sandlin, 34, on charges of contracting without a license during a state of emergency, presenting the license of another contractor during a state of emergency and grand theft. The Broward State Attorney’s office plans to take him to trial in August.”

According to The Herald story:

“Another case in Davie, ended last week with the arrest of two unlicensed contractors who didn’t work for the roofing company they claimed to represent. The two men — David Marks, 38, and Gus Ranko, 39 — were charged with grand theft, operating as unlicensed roofers and exploitation of the elderly.”

How do you deal with this?

You can start by not being fooled by business cards, a company name on the truck, or polo shirts with logos on them. Yes, these are all marks of a legitimate business but they’re also easy for individuals to purchase on their own to use in ‘looking the part.’ The good news is that 5-10 minures and a couple of quick phone calls will flush out any Hurriance scammers. How?

Plan a quick call to the company after your estimate to make sure the ‘employee’ is legitimate. Don’t just trust the phone number on the business card, check it against the number listed in the Yellow Pages or Directory Assistance (411) to make sure you’re really calling who you think you are. Don’t stop there.

What other quick ways can you check the background of the individual and company you are considering working with?

1. Check their contractor’s license with the state you are in. You’ll find a list at the end of this story.
2. Call the better business bureau and check for complaints. You’ll find a link at the end of this story to search the BBB national database as well as a way to lookup your local BBB office.
3. Use an online search engine to search on the companies and individual’s name/s (this is a great way to quickly catch individuals or companies that may have already been caught in another county or state).
4. References. Ask for three references in the area and CALL them. Many people fail to ask for references and even more fail to actually check them. Check them! Make one of the references a trade reference. Reputable contractors and service providers do business with local building suppliers. If they’ve just set up business with these trade references you might do well to dig even deeper vs. a contractor who has had a relationship with an 84 Lumber for 10 years. What do you ask? A few simple questions gets you the information you need. a) Does the business know the company and individual? b) Have they had any problems with them c) how long have they had an account with the business?

And don’t forget to trust your gut and common sense. If something feels off why not listen to your instincts and just deal with another company? Even if they are a legitimate company the uneasy feeling you may have may just be a sign that they won’t be easy to do business with or won’t do a quality job.

Resources

Check a contractor’s license with the States from all over Hurricane Country:

Florida web site. Executive Director: G.W. Harrell 1940 North Monroe Street Tallahassee, FL 32399-1039 Phone: 850.487.1395

Georgia web site. Georgia Construction Industry Licensing Board 237 Coliseum Drive Macon, Georgia 31217-3858 Phone:(912) 207-1416

South Carolina web site for residential and commercial contractors.

Residential Contractors: Synergy Business Park Kingstree Building 110 Centerview Dr., Suite 306 Columbia, SC 29210 Phone: (803) 896-4696

Commercial contractors (commercial contractors can perform both commercial and residential work in South Carolina). Synergy Business Park Kingstree Building 110 Centerview Drive, Compliance Suite 102 Licensing Suite 201 Columbia, SC 29210 Phone: (803) 896-4686.

North Carolina web site. The North Carolina Licensing Board for General Contractors 3739 National Drive, Suite 225, Raleigh, NC 27612 Phone: 919 571-4183

Mississippi web site Phone: 601-354-6161

Louisiana web site. LOUISIANA STATE LICENSING BOARD FOR CONTRACTORS 2525 Quail Drive Baton Rouge, LA 70808 Phone: (225) 765-2301

Texas does not license general contractors but other trades are controlled by the Texas Department of Licensing and Regulation and you search different type of licenses from their home page here. In addition the Texas Attorney General has some good tips (even if you’re not in Texas) on how to protect yourself against home improvement scams.

Check with the Better Business Bureau for complaints against the company:

Search the national BBB site here.

Search for local chapters of the BBB from this page.

The following are the results of a survey that was originally published on a local south Florida TV station’s site (you can find that article here). These results illustrate why despite the overabundance of Hurricane Preparedness information available this year that a blog like this is needed. The overall lack of knowledge is what makes us hurricane country citizens vulnerable to scams.

The survey, that included residents who live within 30 miles of the coast, found some startling results. Of those surveyed:

• 56 percent don’t feel vulnerable to a hurricane or related tornado or flooding
• 60 percent have no family disaster plan
• 68 percent have no hurricane survival kit
• 83 percent have taken no steps to make their homes stronger
• 13 percent said they might not or would not evacuate even if ordered to leaveExperts say that not evacuating could leave tens of thousands of lives at risk. Of the 13 percent of residents who said they are responsible for an elderly or disabled person, one in three had no disaster plan for them if a hurricane threatened. Correct Information Could Save Your Life
  
• One in five people surveyed said they would leave only 12 to 24 hours before a storm makes landfall, and one in three said they would drive as far as possible, trying to outrun the storm. (Emergency managers say residents should only go as far as necessary to find a safe shelter outside the evacuation zone.)
• The deadly threat of storm surge was one of the most serious knowledge gaps revealed by the survey. Of those surveyed, 68 percent did not know storm surge represents the greatest potential for loss of life from a hurricane. (Experts say storm surge can account for deaths well inland yet 13 percent of coastal residents said they would not or might not evacuate even if ordered to do so.)
• The survey also revealed as many as a third of residents may not be adequately insured. One in three of those surveyed said it’s been three years or longer since they reviewed their insurance coverage and an equal number said they didn’t have or weren’t sure if they had replacement coverage. Given the huge growth in property values in many areas, these residents may not have adequate coverage to rebuild if they suffered catastrophic losses.
• In addition, more than half of those surveyed thought their insurance policies covered flood damage or weren’t sure. In fact, homeowners only have flood protection if they have purchased federal flood insurance.
• More than one in four surveyed said it’s government’s responsibility to provide water, food, medicine and shelter in the first few days after a hurricane - or weren’t sure who should be responsible. (Officials say every resident should have a three-day supply of food, water and medicines.)
• Nearly half said they would not wait for officials to declare it safe to return, but would return to a hurricane-struck area as soon as the storm passed. (Most deaths associated with hurricanes happen after the storm.)
• Nearly half said their employers likely would not know where they were going or how to reach them after a storm. (Officials say recovery depends on businesses having a plan to get back into operation quickly after a storm, which requires knowing how to reach their workforce.)

Other problems pointed out by the survey included:

• 94 percent didn’t know that garage doors are the structural component most likely to fail during a hurricane. (Garage doors can be easily strengthened at modest cost with a reinforcement kit.)
• 70 percent wrongly thought most tornadoes occur within three miles of the eye of the storm. (Tornadoes associated with land-falling hurricanes are spawned in rain bands that can occur hundreds of miles from the eye of the storm.)
• 81 percent did not know that storm intensity is the least reliable forecasting projection. (A Category 1 or 2 storm could be a Category 4 or 5 at landfall.)
• 50 percent still thought masking tape would help keep windows from shattering. (Masking tape offers no protective value at all.)
• 67 percent thought candles or kerosene lamps are suggested items to use in the event of a power failure. (Emergency experts warn that candles and kerosene lamps are significant safety hazards.)

People all over Hurricane Country, from the Keys in South Florida to the Carolinas and Texas are seeing an upswing in the number of scammers lined up to take their money, steal their time and give them false hope. Our mission here at A Big Wind is to get the word out about these crooks so that you won’t become one of their victims. From research we’ve conducted it’s common to see scammers moving between different parts of the city to avoid detection and when the heat gets closer they move to other counties and even states to ply their trade of tricks.

John Holland, of The South Florida Sun-Sentinel wrote on May 27, 2006 about the growing number of arrests in Broward for roofing scams brought on by consumer’s desperation to protect their home before this year’s Hurricanes arrive.

“More than 100 homeowners report being victims of fraud since Wilma, and about a dozen people countywide have been arrested on charges including exploiting the elderly, grand theft and operating without a contractor’s license, according to court papers and county records. Both numbers are expected to grow over the next few weeks as investigations conclude and more victims come forward, investigators said.” writes John Holland, South Florida Sun-Sentinel.

“We’re being very aggressive and there are a lot more cases ready to go, but it’s still important that people let us know if they think they’ve been victimized,'’ said Broward Sheriff’s Office Detective John Murray. “A lot of people were told to expect waits of about six months, so they are just starting to realize that their roofer has skipped town.'’

The Sun-Sentinel named several people associated with these charges including Laszlo Szabo, 39, of Margate, who was being held at the Broward County jail on $40,000 bond, while Anthony Schilling, 42 of Weston, and Leo Pass, 36, of Hallandale Beach, were out on bond at the time the Sun-Sentinel reported on the arrests.

“The sheriff’s office says it has identified 25 homeowners victimized by Szabo, 13 by Schilling and at least 11 by Pass. All are charged with multiple counts of theft and operating without a license. And all had polished deliveries, according to Murray and the homeowners who hired them.” wrote John Holland, of the South Florida Sun-Sentinel.