Man charged with home improvement fraud; additional victims sought

Police have charged a Middletown man with defrauding two Newark-area homeowners who hired him to do home repairs.

Both of the alleged schemes happened in the Middle Run Crossing neighborhood, according to Cpl. Michael McNasby, a spokesman for the New Castle County Police Department.

The first happened in March, when the homeowner paid Mark Perry more than $17,000 for renovations, but the work was never done and the materials were never purchased, according to McNasby.

In May, a second homeowner paid Perry $10,000 for renovations, but again, the work was never done and the materials were never purchased, McNasby said.

After a months-long investigation, police charged Perry, 52, with two felony counts of home improvement fraud. He was jailed after failing to post $5,000 cash bail.

McNasby said police are concerned that there may be additional victims who have not yet come forward. Anyone wishing to provide information pertaining to Perry or who may be victim to a similar fraud should contact M/Cpl. Paramjit K. Dhanju at [email protected] or call the NCCPD non-emergency number at 302-573-2800.

"If you think you have been the victim of a scam or fraud, please do not feel embarrassed or ashamed," McNasby said. "These scammers can be very convincing, and you are not alone."

He offered the following tips to avoid being scammed:

Do insist on seeing references. The Federal Trade Commission (FTC) recommends asking past customers detailed questions, including whether the project was completed on time and if there were unexpected costs. The FTC also suggests asking the contractor if you can visit a job currently in progress.

Do require a bid in writing and compare bids from multiple contractors before agreeing to any work.

Do check the Better Business Bureau (BBB) website to see contractors' ratings and whether any complaints have been filed against them.

Do get a written contract before you pay any money and before the work starts.

Do read the fine print. The BBB says a contract should include a detailed description of the work, material costs, start and completion dates, and warranty information.

Do verify, before you make the final payment, that all work has been completed to your satisfaction, any subcontractors or suppliers have been paid and the job site has been cleaned up.

Don't pay cash. The FTC recommends using a check or credit card or arranging to finance.

Don't put down a big deposit. The initial payment should be no more than a third of the total estimate, payable on the day the materials arrive.

Don't automatically take the lowest bid. Some contractors cut corners to come in lower than competitors, according to the BBB. The FTC recommends that if one contractor's estimate is significantly less than those of competitors, ask why.

Don't let the contractor arrange financing for you. The FTC warns that you might be tricked into signing up for a home-equity loan with hefty fees or a high-interest rate, or one in which the lender pays the contractor directly, giving him or her little incentive to finish the job or do it properly.