Whistleblower » Blog Archive » State takes a hammer to troubled contractors

State takes a hammer to troubled contractors

Posted on May 2nd, 2008 – 9:13 AM
By James Shiffer

A Minneapolis homeowner pays $13,500 for work that’s never done. A Forest Lake man hires a contractor to make his home handicapped-accessible, but the work is shoddy and the contractor didn’t have the right permits. A Center City company pays a roofing subcontractor with a $5,500 check that bounces. A Ramsey company builds homes for alleged straw buyers in a suspected mortgage fraud scheme.

These are four of the cases that resulted in recent enforcement actions by the state agency that oversees licensed residential building contractors. Every month, the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry gets tough with a number of residential building contractors, remodelers and roofers. Charlie Durenberger, manager of the division’s enforcement services unit, issues cease-and-desist orders and fines and sometimes revokes the licenses of the worst violators. April’s enforcement roundup included 26 companies and individual contractors who had run afoul of the state. In March, there were 23 enforcement actions.

In the Minneapolis case, the homeowner complained in October. On April 15, the contractor, Hayward Glenn Carr of Andover, signed a consent order with the state. He wouldn’t be a contractor any more, and he would have to meet the terms of a “pay back” agreement with the homeowner or else face a $20,000 fine.

On March 31, ACR Construction and Maintenance, LLC of Roseville got a $15,000 fine for its unpermitted work on the Forest Lake man’s home. The company won’t have to pay $10,000 if “they comply with a list of restrictions and guidelines for dealing with customers,” Durenberger told me in an email. “We also fined their unlicensed plumbing subcontractor $3,920 on the plumbing side.”

Also on March 31, D.R. Martineau Construction, Inc. of Center City signed a consent order that gave it a “censure,” a requirement to pay the subcontractor and a $4,000 fine, $3,000 of which would be stayed “on the condition that they not engage in any future violations.” The company also has to pay its subs within 10 days of receiving full payment from its customers.

Just Wednesday, the state yanked the licenses of two contractors linked to mortgage fraud schemes. Chris Williams, senior investigator with the agency, wrote that one of them, Mark V Construction, “built homes for alleged straw buyers” and “on at least one of the properties, Mark V (the seller) failed to disclose on the settlement statement, both the facilitator and property management ‘fees.’ On another property, Mark V signed a $50,000+ check from their closing proceeds (total) to GC Properties, however, neither Mark V or Chorjay Yang from GC Properties have any knowledge of the services that were provided.”

“Mark V is no longer in business and agreed to the revocation of its license,” Williams wrote. Company president Markum Olson signed the consent order.

The other contractor whose license was revoked Wednesday, Northwood Properties and Construction LLC, was based in Brainerd.

If you’ve got a complaint about a building contractor, roofer, remodeler or manufactured home installer, the agency tells you what to do here. And let Whistleblower know about it too.

This entry was posted on Friday, May 2nd, 2008 at 9:13 am and is filed under Home improvement. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

16 Responses to “State takes a hammer to troubled contractors”

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Anij Says:
May 2nd, 2008 at 1:55 pm
It is so nice to know that the State is actually going after these people.
What would really be nice is if the State wouldn’t allow them to go out of business under one name, just to open up business under another name. They just get to start their shoddy work all over again under a new name.
Matt Says:
May 2nd, 2008 at 2:23 pm
Would be really nice if you wouldn’t just rip on Contractors in your paper. There are good contractors and I am really sick of your one sided opinion at the Star Tribune. You make it appear that all contractors are crap and when in reality there are a lot of good ones out there. Try to not be so liberal and one sided.
Amy Says:
May 2nd, 2008 at 3:05 pm
Re: Matt’s comment. What do politics have to do with reporting on contractors that have ripped people off? I think liberals and conservatives alike would want to avoid hiring such folks. I have seen positive reporting in the paper about contractors and businesses. I’ve seen plenty of articles with nice big color photos of beautiful landscaping, additions, etc. with mentions of who did the work. I think readers do have brains and know there are good and ethical contractors out there. I’ve know I’ve hired them myself to work on my home.
Bryan Nistler Says:
May 2nd, 2008 at 3:06 pm
Glad to see the state finally do something when a contractor does not pay. As a sub contractor the state did nothing for myself when a contractor bounced 2 checks for $32,000.00. Still feeling the effects from that one 2+ years ago and low and behind they are building again. How fair is that. Thank Justice Department!!!
Joe Says:
May 2nd, 2008 at 3:14 pm
I filled out a complaint over 1 year ago about a contractor. They contacted him by mail 3 times, he never responed, it was left at that. Nothing was ever done. I looked up his license after reading this, still active, and no enforcement actions against him. He took over $80k from my mortgage, never paid any of the subs. Now I have a vacant 50% complete house (in foreclosure), with 5+ liens against it, because the contractor took their money.
cinemajay Says:
May 2nd, 2008 at 3:16 pm
Matt, clearly you don’t get that this column is about businesses who’ve gone bad. It’s not meant to rip on one profession or stifle dissenting opinions. But the examples James listed are of businesses built on deception and incompetence. They got what they deserved.

Good business get what they deserve too–repeat business and appreciative customers.

Also, try not bring up “liberal bias” in something that has no political predilictions. Try and stay on topic.
G Says:
May 2nd, 2008 at 3:22 pm
It is not liberalism, it is the fact that if contractors do good work (aka what they are supposed to do) then they stay out of the papers. There is no news there. But when they mess-up, and it is big and noteable, then it is news. Besides the fact that this blog is about those people and companies that have messed up and are trying to fly under the radar. That is why you would be reading here, not to find the best contactor on the banks of the mississippi.
Bob Ekstam Says:
May 2nd, 2008 at 3:31 pm
This story was not one-sided and anti-contractor, and it did not imply that all contractors are dishonest. Nor is there a “liberal” bias (whatever that means when the subject is contractor ). There is no political agenda in a story like this. No wonder there is so much polarization in our society, when someone reads a story about contractor problems and turns it into a neo-conservative diatribe. Wow!
Scooter Says:
May 2nd, 2008 at 3:37 pm
It’s easy..

Become proficient at your trade, pass a test, get a license, get insurance, write good contracts, pull permits, do good work, get inspections, finish the job, provide lien waivers and get paid.
Then do it again.

Wait.. there is a little more.. I guess you have earn enough to make a living, pay taxes, health insurance, put away for retiremant and ignore the pain your body has from years of hard work.

See, really, anyone can do it..
-Scooter
El-jay Says:
May 2nd, 2008 at 3:50 pm
Had a contractor rip my partner and I off for more than $170,000 on a project two years ago. He took several of the subcontractor’s checks and forged/cashed them. After almost two years of observing our fine judicial system at work, we have not received on penny back in restitution–even though we were able to obtain signed/notarized affidavits to support every dollar stolen. The laws in this state protect the offender; these losers get all the rights, privacy, and time they need (i.e., The “Huber Law” and work release are just two examples). This state DOES NOTHING for the victim. It’s ridiculous and sickening all at the same time.