A Somers Point contractor who got more than $1.3 million in federal relief funds, and abandoned many of them, according to a complaint filed by Attorney General Christopher Porrino and the Division of Consumer Affairs.
Werks Intended LLC — which operates as McAllister Building Group —is based in Ocean City with an office in Somers Point.
The complaint alleges that the company and owners Lawrence “Tre” McAllister III and Monica McAllister took money from consumers to renovate, rebuild and/or elevate Sandy-damaged homes and then abandoned unfinished projects without returning for weeks, months or at all.
McAllister allegedly stalled customers and made excuses about when work would begin, continue and be completed, according to the complaint filed in the Atlantic County Superior Court Chancery Division.
The contracts allegedly failed to include start and completion dates or were so vague and complex that consumers could not determine when the work would start or finish.
The company would blame delays on waiting for permit approvals, but customers who checked found either that permits weren’t issued due to defects in the application, or were issued and had not been picked up, the complaint says.
One consumer allegedly had to pay a fine in court because the defendants failed to maintain dumpster permits.
They would even stop jobs claiming they needed more money and wouldn’t return until payment was made.
“It is an outrage that unprincipled, shameless contractors have taken advantage of residents whose homes were damaged by Superstorm Sandy,” Porrino said. “This office will continue to pursue those whose fraudulent behavior has victimized these people again.”
The defendants violated the New Jersey Consumer Fraud Act, the Contractors’ Registration Act, the Regulations Governing Contractor Registration, the Regulations Governing Home Elevation Contractors, the Regulations Governing Home Improvement Practices and the Regulations Governing General Advertising, the complaint alleges.
A review on the Better Business Bureau’s website calls the business “a complete nightmare.”
It says they have been raising a neighbor’s house for a year and a half, but it’s barely started.
“The poor single girl has been homeless the whole time,” says the unnamed reviewer. “They leave huge openings in walls for a month to a year. I can see the whole inside of her house. Water, rain and animals can get inside. Someone should stop these guys — they are the worst.”
The consumers identified in the complaint received money from the Reconstruction, Rehabilitation, Elevation and Mitigation Program, or RREM, and the Low-to-Moderate Income Program, or LMI. Both are administered by the New Jersey Department of Community Affairs to pay for construction work on Sandy-damaged homes. The RREM Program is the state's largest rebuilding initiative.
The McAllisters were allegedly paid more than $1.6 million in RREM and LMI funds for home elevation, demolition and renovation projects. Four of those homeowners claim the defendants took deposit money and did no work.
“The Division has made it a priority to find and confront those contractors who have committed fraud and have done substandard work following Superstorm Sandy,” said Sharon M. Joyce, acting director of the Division of Consumer Affairs. “We will continue to seek the return of federal money spent as well as restitution for consumers in these cases.”
The McAllisters also allegedly failed to pay subcontractors and other third-party vendors, such as demolition companies, dumpster companies and architects, when consumers had already paid the defendants for the applicable work.
“We thank the Division of Consumer Affairs for diligently investigating Sandy contractor fraud claims and taking legal action against contractors when warranted. This important work shows the State is rooting out deceptive contractors and helping Sandy survivors get their rebuilding projects back on track,” said Department of Community Affairs Commissioner Charles A. Richman.
The DCA is seeking restitution for any party affected by the defendants’ alleged conduct, a return of the federal funds acquired by the defendants and civil penalties for the alleged violations of the Consumer Fraud Act.
They also want to keep the company from doing construction work in the state.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint online by
clicking here or by calling 800-242-5846 or 973-504- 6200.
