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Ohio Foreclosure Defense & Consumer Law > Blog > Consumer Law > Construction Company Ordered To Pay $2.4M In Consumer Fraud Case

Construction Company Ordered To Pay $2.4M In Consumer Fraud Case


The owner of an Ohio-based company was ordered to pay $625,873 to 19 customers who were defrauded by the company. The owner was also ordered to pay $1.7 million in civil penalties for 71 cases of consumer fraud, or about $25,000 per infraction. According to the Attorney General’s office, the owner of the business would take down payments for home improvement work to be performed on the customer’s property. The owner would then perform no work, shoddy work, or leave the project incomplete. He is also accused of failing to obtain permits, failing to register as a contractor, and writing unfair contracts.

A receiver was appointed to the business to oversee its procedures. The defendant repeatedly rebuffed attempts at legal oversight. The owner is currently serving a 3-year sentence on an unrelated claim involving consumer fraud.

Consumer fraud claims in Dayton, OH 

Consumer fraud claims involve a piece of legislation known as the Ohio Consumer Sales Practices Act. Violations of the act can be filed by either a private attorney or the state’s attorney general. In this case, the owner of the business was charged with failing to provide services that he had agreed to provide via contract. The business owner would take down payments on specific home improvement projects and then not follow through with the work that was ordered.

The Ohio Consumer Sales Practices Act protects consumers from certain forms of illegal business practices. Ohio consumers have various protections from unlawful business practices. The law provides legal remedies to consumers who are the victims of consumer fraud.

Protecting your rights via the Ohio Consumer Sales Practices Act 

The Ohio Consumer Sales Practices Act protects consumers from unfair, deceptive, or unconscionable business practices in the state of Ohio. The rules prohibit suppliers from committing fraud in a variety of ways. Under the law, a supplier is any company or individual that acts as a seller, lessor, assignor, franchisor, or any other person who is engaged in the business of performing work for money.

A consumer transaction includes the sale, lease, assignment, or other transfer of goods or services to a consumer.

Fraud occurs when the seller makes a material promise to a consumer and does not follow through on that promise or otherwise deceives the consumer illegally. In the case mentioned above, the contractor failed to provide services that were paid for by consumers. In this case, the Ohio’s attorney general filed a lawsuit against the business to recoup money that the consumers paid and never received services for. But you can also file a lawsuit directly against the company with the help of a Columbus consumer law attorney.

Talk to a Dayton, OH Consumer Fraud Attorney Today 

The consumer fraud attorneys at Kohl & Cook Law Firm, LLC represent the interests of consumers in consumer fraud lawsuits filed against companies. We can help you recover money you lost when contracting with a business entity that did not perform work as promised. Call our office today to schedule a free consultation and learn more about how we can help.

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