St. Bernard Sheriff’s Office warns residents of potential contractor fraud
As the area continues to recover from Hurricane Ida’s impacts, Sheriff James Pohlmann would like to remind St. Bernard Parish residents to be aware of predatory individuals or companies who use natural disasters to take advantage of storm victims.
“Unfortunately, during times like these, it is common for frauds to be perpetrated by persons or entities whose main objective is to steal insurance proceeds and personal funds by performing little to no work and/or by fraudulent practices,” Sheriff Pohlmann said. “This can be done in many ways, including, but not limited to deception, perversion of the truth, false contracts or companies, failure to provide services, and misappropriation of funds.”
Louisiana defines contractor fraud under LA RS:14-202.1 as “the misappropriation or intentional taking of anything of value which belongs to another, either without the consent of the other to the misappropriation or taking, or by means of fraudulent conduct, practices, or representations by a person who has contracted to perform any home improvement or residential construction, or who has subcontracted for the performance of any home improvement or residential construction.”
The maximum sentence for anyone convicted of defrauding a citizen through contractor fraud of $25,000 or more can be 20 years in prison with hard labor, and possibly a $50,000 fine with restitution.
Sheriff Pohlmann said residents who feel they have been the victim of contractor fraud, or suspect a contractor is attempting to commit fraud, should immediately report the incident to the Sheriff’s Office by calling (504) 271-2501.
In addition to local law enforcement, the Louisiana State Licensing Board of Contractors (LSLBC) is the main authority that works to protect consumers from both fraud and substandard work.
Unlicensed contractors pose a risk to consumers and take work from qualified licensed contractors. Unlicensed activity is against the law, and the LSLBC and other partner agencies consider it a serious offense, especially in the state of an emergency.
Sheriff Pohlmann offers the following tips on how to avoid falling victim to contractor fraud:
Use local contractors when possible.
Always get at least three estimates for the repairs, as this may be required by your insurance provider.
Be sure you learn the contractor’s full name, business address and take note of their physical description.
Check their business name via the Louisiana Secretary of State website, https://www.sos.la.gov/.
Ask to see their contractor’s license.
Verify whether a contractor is licensed or registered to do construction in Louisiana before you make a down payment or sign a contract. There are three ways to check licensure through LSLBC:
Download the free “La Contractor” mobile app by visiting the LSLBC website at lacontractor.org.
Use the contractor search function located on the LSLBC website.
Call LSLBC at 1-800-256-1392. Complaints of unlicensed activity should be reported to the LSLBC Compliance Section by emailing [email protected] or calling 1-800-256-1392.
Ask them for references from previous clients, check their reviews via internet and social media.
Get the phone number and call it in their presence to ensure they are the phone account holder.
Ask them for proof of liability and workers compensation insurance.
Take note of the vehicle they are driving, record and or photograph the license plate number.
Be sure you are supplied a detailed estimate and contract, signed by the contractor in your presence, and be sure the contract has estimated dates of start and completion. Ask that each task be itemized with a cost and a total sum.
NEVER give a down payment exceeding 10 percent of the total project cost.
NEVER pay for projects not yet completed.
NEVER pay with cash or money order. Always use checks or a credit card.
NEVER give them more information than is needed for them to submit an estimate or perform the job.
Be sure all necessary permits are filed by them and the permits are present and posted on the property prior to the start of the project.
NEVER allow anyone that you do not know or trust to walk freely inside your home out of your sight, and do not allow one of multiple individuals to distract you while others walk freely, without supervision throughout the interior of your home.
Keep a detailed log of all conversations you have. Use email communication as much as possible so you have a record.
Use your smart phone’s camera to photograph or video your interaction with the contractor.
Sheriff Pohlmann urges residents to proceed with caution when hiring a contractor, and don’t make hasty decisions.
“Do not let a sense of urgency force you into making a decision that you will later regret,” the Sheriff said.
ADDITIONAL RESOURCES
Consumer Tips for Natural Disasters
https://agjefflandry.com/Files/Shared/Documents/ConsumerTipsforNaturalDisasters.pdf
Report fraud
https://legis.la.gov/legis/Law.aspx?d=508538
Tips from the State of Louisiana to avoid fraud
https://www.SOS.la.gov
Check for Louisiana business licenses
https://www.bbb.org
