Special report: Most contractors arrested after 2004 hurricanes only received probation, fines

Sept. 14--Alex Watkins' repair contracting crime spree in the aftermath of the 2004 hurricanes in St. Lucie and Indian River counties landed him in the Liberty Correctional Institute in Bristol until 2025.

Steven Carl Klix is a fugitive from justice for failing to pay $33,741 in restitution and violating his probation for his post-hurricane convictions in Martin and St. Lucie counties on grand theft, contracting fraud and unlicensed contracting during a state of emergency convictions.

Mark Terheggen recently started serving four years in prison for his contracting without a license during a state of emergency conviction and violating his probation for failing to pay nearly $70,000 in restitution to two Fort Pierce homeowners.

These men were among the worst offenders of contracting without a license during a state of emergency and taking money from homeowners whose houses needed repairs after sustaining damage during hurricanes Frances and Jeanne. They also were among the few convicted of the charge after thousands of hurricane-related complaints poured into local law enforcement agencies 10 years ago, records show.

Scripps Treasure Coast Newspapers spent months sifting through court documents spanning a decade to determine how many contractors arrested in connection to the aftermath of the duo disasters were convicted. Along with the low conviction rate, the investigation also found only a handful of those convicted were sentenced to jail or prison.

Records show 41 people were adjudicated guilty of unlicensed contracting or contracting without a license during a state of emergency across the Treasure Coast following the 2004 hurricanes. Most were only sentenced to probation and ordered to pay restitution and/or fines and court costs, the newspaper investigation found.

See all of TCPalm's investigative reports

The precise number of complaints filed by homeowners about unlicensed and/or unscrupulous contractors could not be ascertained because of the limitations of government computer systems and laws that allow some records to be purged after two years or more, the newspaper found. The number of people arrested on broader hurricane-related charges such as contractor fraud, theft and/or scheme to defraud also could not be determined because of computer system limitations.

Five years after the 2004 hurricanes, the State Attorney's Office reported handling 143 cases of contractors working without a license in the 19th Judicial Circuit, which includes St. Lucie, Martin, Indian River and Okeechobee counties. However, as a result of the state's computer system changes and the passage of time, the data is no longer available, officials said.

INVESTIGATING COMPLAINTS

Dozens of unscrupulous tradesmen from as far away as Texas swooped into the Treasure Coast in the wake of the twin hurricanes of September 2004 and ripped off hundreds of homeowners by taking down payments for repairs and leaving town without doing the work.

Florida requires licensing for contractors in a variety of construction trades, including roofing, which was the service in greatest demand following the hurricanes, state and local officials said. Contracting without a license is a misdemeanor, but becomes a third-degree felony with a maximum penalty of five years in prison when the governor declares a state of emergency.

The crime poses a financial and safety risk to homeowners, state and local officials said. The repair work may not be done properly or even compromise the structure of the house. And homeowners may have to pay for additional repairs or the entire job a second time to meet local construction codes.

The hurricanes struck with such ferocity that Treasure Coast law enforcement agencies -- already overwhelmed by their duties to respond to emergency calls, maintain public safety and coordinate with state and federal agencies -- had difficulty investigating all the homeowners' complaints.

Story: Lessons learned after '04 hurricanes better prepared local officials or onslaught of contractors

"It was kind of like the Wild West for a while," said Tom Bakkedahl, a supervisor in the State Attorney's Office for the 19th circuit. "These cases can be difficult to prosecute for many reasons, not the least of which is they're spread out so far and wide. Just the breadth of the contracting without a license can be overwhelming in the paperwork. You've got to track down the money trails."

St. Lucie County Sheriff's Sgt. Jeff Buchanan said there were hundreds of victims of unlicensed contractors and/or contracting fraud following the storms. Some suspects were the subject of hundreds of complaints.

"I had 400 open cases at one time," Buchanan said. "I had to pick and choose which ones were the better cases at that time."

It was a new phenomenon for enforcement agencies in Martin, St. Lucie and Indian River counties, which previously had not sustained a direct hurricane strike since 1948.

"They're looking to be predators. They come in at people's most desperate hour and prey on their weakness," said Martin County Sheriff William Snyder. "When you're stretched as thin as we were, that was a very unwelcome distraction."

CRIMINAL INTENTIONS

In the worst-case scenario, an out-of-state tradesman driving a pickup truck with a ladder on top would go door to door in a neighborhood where many homes had blue tarps covering holes in their roofs, law enforcement and building officials said. Some homeowners gave the tradesmen down payments -- sometimes thousands of dollars -- for roof repairs and never saw the tradesman or their money again.

Homeowners were desperate to get their homes repaired, but most of the local contractors already were overbooked. As a result, many homeowners grasped at the hope of returning to normal lives that was offered by unscrupulous tradesmen who pretended to be prepared to get to work promptly, but were really working a scam.

Not all of the problems homeowner experienced with contractors resulted from criminal intentions by unscrupulous tradesmen, law enforcement and building officials said. Some fully licensed and reputable contractors took on more jobs than they had labor or materials to complete and wound up in a bind.

"We had so much obvious fraud that people that were making mistakes ... we weren't out seeking them," said Detective Thom Raulen, of the Indian River County Sheriff's Office's economic crimes unit. "We could tell early on whether we were dealing with somebody who just overextended themselves because they would try to make things right. They would either try to refund some of the money or they would get with the complainant and work that out."

In some cases, unlicensed contractors completed the repairs, but did not go through the permitting and inspection process, law enforcement and building officials said. The homeowners eventually had to have licensed contractors check the work and bring it up to code if necessary, costing hundreds or thousands of additional dollars.

In other cases, unlicensed contractors did such poor work it had to be redone by licensed contractors and the homeowners paid twice, law enforcement and building officials said. Another problem involved workers who only did part of the job, leaving homeowners to pursue them in civil court.

Law enforcement said they believe many homeowners who fell victim to contractor fraud never reported the wrongdoing.

"I think a lot of people suffered in silence," Snyder said. "They put deposits down and lost it and just never called. Under reporting and nonreporting was probably pretty pervasive."

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PENALTIES

Three highest penalties for unlicensed contracting across the Treasure Coast after the hurricanes of 2004

INDIAN RIVER COUNTY

Name: Marion Scott Noonjin, 48, of Sebastian

Charge: Contracting without a license during a state of emergency

Penalty: 5 years probation, $1,022 fine assessed; $0 paid

Name: Ronald Echols, 47, of Port St. Lucie

Charge: Contracting without a license during a state of emergency

Penalty: 4 years probation, $2,000$1,025 fine assessed; $0 paid

Name: Douglas Lee Carter, 68, of Melbourne

Charge: Contracting without a license

Penalty: 1 year probation; $1,686 fine assessed; $1,686 paid

ST. LUCIE COUNTY

Name: Alex Watkins, 46, Delray Beach

Charges: Contracting without a license during a state of emergency; third-degree grand theft; violation of probation

Penalty: 10 years in prison; fine assessed: $8,771; amount paid: $0

Name: Michael A. Casieri, 57, Port St. Lucie

Charges: Contracting without a license during a state of emergency; third-degree grand theft

Penalty: 30 days in jail and 5 years probation; fine assessed: $6,910; amount paid: $0

Name: Mike Marcie, 46, Anderson, S.C.

Charges: Contracting without a license during a state of emergency

Penalty: 10 years probation and $2,200 restitution; fine assessed: $2,794.50; amount paid: $2,794.50

MARTIN COUNTY

Name: James John Curtiss, 54, Palm City

Charges: Contracting without a license during a state of emergency; failure to secure workers' compensation insurance

Penalty: Amount assessed: $6,832; amount paid: $637.77

Name: Steven Carl Klix, 52, Golden Gate

Charges: Contracting without a license during a state of emergency; grand theft more than $300 and less than $2,000

Penalty: Amount assessed: $6,397; amount paid: $40

Name: Keith Anthony Christensen, 44, Stuanton, Va.

Charges: Contracting without a license; grand theft more than $300 and less than $2,000

Penalty: Amount assessed: $3,332; amount paid: $1,666.45

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HOW DOES CRIME DEVELOP

- Victim responds to advertisement, flier or sees subject working on neighbor's house.

- Victim is often told suspect is licensed and insured, or is provided a business card, or contract referencing licensure, but victim does not verify through local Building Department or Florida Department of Business and Professional Regulation.

- Victim provides deposit.

- Suspect is "no show" and does not respond to phone calls.

- Victim calls law enforcement.

PREVENTION STRATEGIES

- News media, Governor's Office and others issue warnings about the dangers of unlicensed contractors at the start of hurricane season.

- Local building department and DBPR monitor news advertisements, Craigslist.

- Florida DBPR and some building departments have public websites to check by name; license number; city or county; and license type.

WHAT SHOULD POTENTIAL CUSTOMERS DO TO PROTECT THEMSELVES

- Obtain photocopy of business/contractor license (verify with DBPR or building department)

- Obtain photocopy of driver's license.

- Obtain tag numbers from vehicles.

- Don't be pressured into making quick decision or providing deposit before taking the time to check on the contractor.

- Beware of any request for a deposit over 10 percent.

- Ask for references and check them.

Source: Martin County Sheriff's Office

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DANGERS OF HIRING AN UNLICENSED CONSTRUCTION TRADES PERSON

Poor qualifications: Unlicensed people typically do not have the education, insurance or qualification required of a licensee.

Poor quality work: Unlicensed contractors typically do poor quality work or do not finish the project, leaving the homeowner on the hook to repair or finish the project.

Possible criminal background: Unlicensed people often have criminal backgrounds that may include fraud, theft, violent crime, sexual offenses and substance abuse.

Likelihood of being the victim of a scam: Unlicensed people often disappear after taking your money, and the Florida Department of Business and Professional Regulation department cannot discipline an unlicensed person, help get your money back or require the person to finish or improve the work done. Scams in the construction industry, especially home improvement, are sadly widespread. Con artists pose as contractors and often target vulnerable people and take advantage of homeowner's need for urgent post-hurricane property damage.

Limited resources for broken contracts: When you have a dispute with a licensed contractor, you call the department, which has the authority to discipline and even revoke the license. This gives the licensee more incentive to play fair: However, this type of action is not available against unlicensed contractors and homeowners often find the only answer is an expensive, and generally futile, civil suit.No insurance and liability for injuries to others: You may end up being liable for personal or financial injuries to others. An unlicensed contractor typically is uninsured and will have no way to pay you back for any property damage.

No coverage under homeowner's policy: Most homeowner policies require that work must be done by a licensed contractor and provide no coverage for work that is not.

Noncompliance with building codes: Most projects, even small ones, require permits and inspections that unlicensed contractors ignore or are unfamiliar with. If your project isn't permitted or doesn't comply with the building code, you may have to remove or repair the work at your own expense and be subject to fines by local government.

Liens being imposed on your property: You may be subject to liens placed on your property by subcontractors or supplies. Please see www.dbpr.state.fl.us/reg/Liens.html for more information about Florida lien law.

To verify contractor licenses, go to the Florida Department of Business and Professional Regulation website at www.myfloridalicense.com or call 850-488-6603.

To report an unlicensed contractor, email ULA@ myfloridalicense.com or call 866-532-1440

Source: Florida Department of Business and Professional Regulation

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REQUIREMENTS FOR GENERAL AND BUILDING CONTRACTOR LICENSES

- Pass a state certification examination

- Pay application fees

- Show four years of experience and/or college

- Provide a credit report showing a FICO credit score of 660 or higher

- Submit to a background check and fingerprinting

- Carry liability insurance and property damage insurance

- Carry workers' compensation coverage or an exemption

Source: Florida Department of Business and Professional Regulation

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