The case highlights a recurring problem: contractor fraud that exploits urgency, especially after weather emergencies.
Common Warning Signs of Contractor Fraud
The Alabama Home Builders Licensure Board identifies several red flags homeowners should watch for when hiring contractors. Unlicensed operators are a primary concern, particularly when they offer services after an emergency declaration. Pressure to pay large sums upfront in cash is another frequent tactic used by fraudulent builders. Vague or missing written estimates and contracts also signal risk, as legitimate professionals provide detailed documentation. Refusal to provide references or verifiable credentials, especially from out-of-town or unsolicited contractors, should prompt homeowners to walk away.
How Emergency Declarations Increase Scam Risks
When Gov. Kay Ivey issued an emergency proclamation ahead of Hurricane Isaias, it activated consumer protection laws in Alabama, including the Aggravated Home Repair Fraud law. This statute elevates unlicensed homebuilding from a class A misdemeanor to a class C felony when services are offered after an emergency declaration. The board notes that performing unlicensed work is normally a misdemeanor, but becomes a felony when contractors take advantage of homeowners during storm recovery. These legal changes aim to deter exploitation during vulnerable periods when residents rush to repair damage.
What Homeowners Should Verify Before Hiring
The Alabama Home Builders Licensure Board urges residents to take specific steps before hiring any contractor. Homeowners should ask if the contractor is licensed and request to see the license card. Licensure can be verified by calling 1-800-304-0853 or visiting www.hblb.alabama.gov. Checking references is essential, particularly if the builder initiated contact unsolicited or is from outside the local area. All quotes and contracts must be in writing and include the contractor’s license number, full name, address, telephone number, description of work, start and completion dates, and total cost. Licensed homebuilders are required to use such written contracts regardless of job size.
Legal Consequences for Fraudulent Contractors
In Alabama, offering unlicensed homebuilding services after an emergency declaration is a class C felony under the Aggravated Home Repair Fraud law. Normally, unlicensed work is a class A misdemeanor, but the emergency trigger increases penalties significantly. In Mississippi, fraud or embezzlement in public office — such as billing a city for private work — carries penalties of up to 10 years in prison, a fine of up to $5,000, or both under Mississippi Code Section 97-11-31. The State Auditor’s office has pursued cases like the alleged sewer line billing in Guntown, where a former alderman and his cousin were accused of charging the city $9,950 for work at a private residence. These cases show that fraud extends beyond individual homeowners to misuse of public funds.
Steps to Take if Fraud Is Suspected
Homeowners who suspect contractor fraud should document all interactions, payments, and agreements. They should report concerns to state licensing boards, local law enforcement, or consumer protection agencies. In Alabama, the Home Builders Licensure Board works with prosecutors to pursue felony charges when appropriate. The State Auditor in Mississippi recommends preventive measures like dividing financial duties, conducting monthly account reconciliations, and using sequentially numbered purchase orders to detect irregularities. Prompt action increases the chance of recovering losses and holding offenders accountable.
Why Written Contracts and Licenses Matter
Licensed homebuilders in Alabama are required to use written contracts regardless of job size, ensuring clarity and accountability for both parties. These contracts must include the contractor’s license number, full name, address, telephone number, description of work, start and completion dates, and total cost. This documentation protects homeowners by providing verifiable terms and reducing the risk of misunderstandings or fraudulent claims.
The Alabama Home Builders Licensure Board emphasizes that a state license is required when job costs exceed $10,000 for general homebuilding and $2,500 for roofing, but recommends using licensed professionals even for smaller projects. Verifying licensure through the board’s hotline or website helps homeowners confirm they are working with qualified, accountable contractors who adhere to state regulations.
Television Exposure of Contractor Fraud Through Reality TV
The reality television series Catch a Contractor, which premiered on Spike on March 9, 2014, brought public attention to fraudulent home improvement practices by featuring investigations into shoddy or incomplete work. Hosted by former carpenter Adam Carolla and licensed contractor Skip Bedell, the show used a sting-operation format where private investigator Alison Bedell tracked down contractors who had taken payment without completing agreed-upon repairs. Each episode followed a consistent pattern: the team met with homeowners, assessed unfinished or defective work, investigated the contractor’s background, and set up a confrontation using hidden cameras.
In the series, Alison Bedell — a licensed private investigator and probation officer — would lure the contractor to a rigged property under the pretense of offering a new job. Once the contractor arrived, Adam and Skip confronted them with evidence of their misconduct, presenting three options: refund the homeowner’s payment, return to complete the work properly under supervision, or refuse and face a potential civil lawsuit supported by the show. In most cases, contractors chose to return and fix the job, after which Skip’s crew would complete the repairs, often while the homeowner stayed in a hotel during the work.
The show highlighted real-world consequences of hiring unlicensed or unethical contractors, reinforcing the importance of verification and written agreements. By dramatizing the process of exposing fraud, Catch a Contractor served as a consumer education tool, illustrating how homeowners can identify red flags and seek recourse when work is not performed as promised. Its format emphasized accountability, with licensed professionals stepping in to correct substandard work when original contractors failed to comply.
Sources
- Catch a Contractor
- Alabama warns of contractor scams as Hurricane Isaias approaches
- Former Mississippi Alderman and Cousin Accused of Billing City $9,950 for Sewer Line at His Home
Photo: USACE NY (CC BY 2.0)
