Contractor In Florida Arrested, Charged With Construction Fraud
According to a report from News 4 Jax, a contractor from North Florida has been arrested and charged with construction fraud. Michael Chad Reed—a home builder from Nassau County—is accused of absconding with customer funds without providing services. Here, our Orlando white collar defense attorney provides a more thorough explanation of the allegations and the charges.
Florida Business Owner Facing Construction Fraud Charges
Michael Chad Reed—a 39-year-old man from Nassau County—is the owner and primary operator of a company called Reed Group Elite Homes. According to allegations raised by prosecutors, Mr. Reed allegedly misused client funds that were meant for home construction. He left clients with a number of different unfinished projects between 2021 and 2023. The charges contend that Mr. Reed required a 15 percent deposit and, in turn, promised completion of the construction or renovation within one year. The company has now filed for bankruptcy protection. The company is allegedly short more than $1.3 million.
An Overview of the Criminal Charges (Construction Fraud Allegations)
As noted, Michael Chad Reed is facing charges for a construction fraud scheme. Prosecutors in Nassau County have brought a number of different criminal counts against this defendant. Indeed, News 4 Jax confirmed that Mr. Reed is facing twelve felony criminal charges, including for:
- Organized Fraud: In Florida, organized fraud charges may be filed in a construction fraud case. Broadly defined, organized fraud involves a systematic, ongoing course of conduct with the intent to defraud one or more persons or to obtain property by fraudulent means. It is a felony charge that typically applies to situations where deceit was used as part of a business or organized scheme. In the case of Mr. Reed, the prosecutors allege a pattern in which he misrepresented the status and use of funds for multiple residential construction projects.
- Misapplication of Construction Funds: Misapplication of construction funds is a criminal act that occurs when funds allocated for a construction project are intentionally used for purposes unrelated to the project without the knowledge or approval of the client. In this case, the charge is based on the alleged breach of trust where Mr. Reed purportedly diverted funds from their intended purpose—leading to unfinished projects and unpaid subcontractors.
- Grand Theft: Finally, Mr. Reed is facing a grand theft charge. In Florida, grand theft is a felony criminal offense. A person can face a felony grand theft charge—instead of a misdemeanor petit theft charge—if they are alleged to have stolen $750 or more in money, property, or assets.
Contact Our Orlando, FL Construction Fraud Defense Lawyer Today
At The Baez Law Firm, our Orlando white collar criminal defense lawyer handles all types of fraud cases. Facing a construction fraud charge or any other type of related criminal offense? We can help. Contact us today to arrange your confidential initial case review. From our Orlando office, we take on construction fraud charges throughout Central Florida.
Source:
news4jax.com/i-team/2024/09/06/a-nassau-county-homebuilder-was-arrested-for-fraud-customers-say-his-company-took-their-money-and-ran/
