Police say contractor fraud cases have risen since storm

St. Tammany News

Surrounded by TV cameras and microphones Wednesday at the St. Tammany Parish Sheriff's office in Slidell, Capt. Barney Tyrney and Sgt. Bobby Juge gave the details of the manhunt: Gary Holland, from Cypress, Texas, is being sought by detectives in connection with a case involving a Slidell area homeowner who paid him nearly $60,000 for work that was never completed.

In December, the Slidell homeowners hired Holland, a licensed contractor in the parish at the time, to begin repairing their Hurricane Katrina-damaged home for the agreed price of $143,000.

The contract called for payments to be made in five stages of $28,600 each. But after collecting four payments totalling $114,400 and only completing two stages of work, Holland took off.

"He told her he wasn't able to finish the job and was leaving," said Juge.

Three more people have come out complaining of contractor fraud against the 39-year-old Holland, said Juge, and cases of such crimes have steadily risen since Hurricane Katrina.

"It's increased 300 percent," Juge said.

The sheriff's department is investigating 25-30 contractor fraud cases, and new reports come in every day now, Juge said.

With the next hurricane season fast approaching and damaged homes still commonplace, people are scrambling to finish repairs, said Tyrney.

"Everybody's just impatient," he said. "A lot of these people have waited months to get back in their homes."

And that impatience can lead locals to become vulnerable to contractor fraud.

Slidell Police Department Capt. Rob Callahan agreed cases of contractor fraud are on the rise.

And as more people pay to get their homes fixed, "I think you're going to see more and more cases of contractor fraud on the Northshore," he said.

Many cases are similar to the case being investigated by the Sheriff's Office, said Callahan, where a contractor will accept payment, begin work and then leave before the job is complete.

In the weeks following the storm, the SPD investigated some cases involving contractor fraud, including a resident who was charged $13,000 for the removal of three trees.

And in other cases, inexperienced contractors put on new roofs the wrong way, said Callahan.

The police captain pointed out the cases the SPD has investigated have involved non-local contractors.

"The local contractors have to live here," he said.

In Covington, however, the majority of contractor fraud cases happened in the weeks following the storm, said Covington Police Lt. Jack West.

One case involved an elderly woman who paid an out-of-town tree cutter $5,000 for the removal of one tree.

"They took the cash and ran," said West.

The CPD gets few calls complaining of contractor fraud now, though, said West.

Slidell's increase in contractors, and contractor fraud, is due to the heavy damage the city sustained during the hurricane and the seemingly unending need for repairs, Callahan said.

Holland is thought to be driving a late model grey Chevrolet pickup with Texas plates and working for his company, All Trade Construction, according to the Sheriff's Office.

Investigators believe Holland may still be working on several other jobs locally. People with information on Holland are urged to call detective Keith Dowling, 645-2454.

The Sheriff's Office cautions citizens who are repairing their homes to be wary of individuals who call for a large sum of money before work is started. They also recommend homeowners check license and bonding certifications on potential contractors and ask for references.

The Better Business Bureau may also be consulted to check work history.

Tyrney, a captain with the Sheriff's Office, said the majority of contractors are legitimate. "But there are a select few that are preying on our citizens."