Whether residents are looking to build a house or tackle roof damage following Colorado’s busy summer storms, state and local law enforcement officials are urging them to “remain vigilant” for “fly-by-night” contractors looking to make a quick buck. 

Colorado Attorney General Phil Weiser on Friday joined the 4th Judicial District, Colorado Springs Police Department, El Paso County Sheriff’s Office and local business representatives to warn residents of these contractors, who may frequently operate under different names or file bankruptcy part way through a job, and offer tips on how to spot them.

“We’ve seen some very dramatic weather patterns over the past several months, including heavy and persistent hail storms that have damaged personal property,” District Attorney Michael Allen said at the press conference Friday. “Property owners must remain vigilant when dealing with contractors who show up in the aftermath of damaging weather events.”

Weiser said contractor fraud is the second-most common category of complaint his office receives, with roughly 1,000 complaints filed by Colorado residents in 2022.

False contractors, he said, may ask for full payment up front or try to pressure a customer into making decisions immediately after a weather event. El Paso County undersheriff Jeff Kramer said consumers should avoid those who don’t offer written contracts, don’t answer phone calls or consistently cite family emergencies, car trouble or other situations to avoid completing work.

“They have one name one day, and the next day, they’re now a different name,” Weiser said. “Those are harder cases (to prove), and that’s part of why consumer education is so important… Are you an accredited, reputable contractor who’s been operating for a while, or are you someone who no one’s ever heard of with no physical presence?”

A Colorado Springs contractor appeared in court in June and is facing felony theft charges and allegations that she took at least $200,000 from prospective clients without providing the agreed-upon services.

Officials also said one should avoid paying for services in cash and only make “trackable” payments, and that contractors are obligated to provide invoices for materials before asking for payment. 

Officials offered five main strategies for “combatting” contractor fraud:

• Never pay in full, up-front to avoid “losing leverage;”

• Verify a contractor’s licenses and insurance;

• Gather multiple estimates;

• Thoroughly read online reviews and seek references; and

• Report possible scams to local law enforcement.

Allen and Joe Frabbiele, a commander with the Colorado Springs Police Department’s investigation division, addressed the frustration of some residents who were allegedly told that criminal charges cannot be pressed if a contractor has completed “some work.”

“Know that most contractor cases are not necessarily criminal in nature because we have to be able to show theft, which requires evidence that they intended to permanently deprive someone of money or property,” Allen said.

Frabbiele said that because each case is different, customers who believe they may have experienced fraud should still call law enforcement to investigate, and that each claim against a contractor can help show a history of malpractice.

“We only know what people tell us,” Frabbiele said. “If the same person or business is listed as a suspect time and time again, that establishes a pattern of behavior that our investigators will be able to see through law enforcement records.”

Under the Colorado Consumer Protection Act, however, the Attorney General’s Office has a lower threshold for proving contractor fraud and punishing them — as well as get money back to customers — through civil penalties, Weiser said.

Customers who suspect fraud should also file a complaint with the state, or use the Better Business Bureau portal to check accredited companies in the area, report a scam or look up previously-reported local scams to avoid fraudsters before any work begins.