Homeowners Complain Roofer Took Money & Disappeared

June 17, 2014

Aurora-based contractor accused of fraud by homeowners, says BBB

DENVER – Since the end of April, a formerly Aurora-based company, Green Star Construction, has received a rash of serious complaints alleging theft according to the Better Business Bureau of Denver/Boulder. Homeowners allege they paid the company thousands of dollars up front for storm damage repairs and roof replacements, which were either never finished or even started in several cases, and now cannot reach the company for a refund.

The company has not responded to any recent complaints or the BBB’s requests for a meeting to discuss the pattern of complaints. As a result, the BBB issued the company an F rating, the lowest rating possible.

“The allegations against this company are serious and unfortunately common following storms, so we urge anyone who needs repairs to be cautious about making up front payments and hire a company that is BBB Accredited,” said Su Hawk, president and CEO for the BBB of Denver/Boulder.

Some complaints against Green Star Construction allege the company approached homeowners at their doorstep and offered to pay insurance deductibles and file insurance claims on their behalf. These practices are red flags of a scam according to the BBB.

The company is no longer operating out of its Aurora location, its website is no longer active and the BBB does not know where the company is at this time. The BBB is, however, still processing complaints against the company and encourages anyone affected to file complaints at denver.bbb.org, as well as with the Colorado Attorney General and with the 18th Judicial District Attorney’s office at 720-874-8547.

Anyone who suffered damage from recent hail is advised the following from the BBB:

  • Check with the BBB. Get three estimates before making a decision and don't be pushed into signing a contract right away. Contact the BBB and use our free Request-A-Quote service to get bids from BBB Accredited roofers at findacompany.org.
  • Be wise when making deposits. DO NOT pay for the entire job or make a large down payment up front and do not sign your insurance check over to the roofer. This can make it very difficult to get your money back should the company not show up or do a satisfactory job. Only make a direct, portioned down payment to a reputable, established company that has provided a clear work schedule to you in writing. Schedule payments according the work schedule.
  • Know your rights. According to the State of Colorado (senate bill 12-038), a roofer cannot cash any payment until it has delivered materials to the home or has completed the majority of the work. Roofers must provide the homeowner with a detailed, written contract that includes the company's contact information, insurance, scope of work, dates of service and costs. Also, homeowners have the right to cancel their contract within three business days, (this includes Saturdays).
  • Deal with your insurance company directly. Avoid letting a roofer file a claim on your behalf. This can cause problems in your relationship with your insurance company and can possibly lead to insurance fraud.
  • Read carefully anything you sign. Anything you sign--no matter what you are told--can be considered a binding contract.
  • Beware of companies that are not local. Discuss warranties and guarantees offered by out-of-state companies. Question how the services will be honored.
  • Know who is responsible. Find out if the company uses their own workers of if they hire individual, third-party subcontractors. It is very important to know exactly who will be working on your roof and who is responsible if something goes wrong.
  • Verify applicable permits with your city and county. Make sure the permit is posted before the work begins.

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About the BBB

The BBB is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. The BBB provides objective advice, BBB Business Reviews, BBB Charity Reports and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers dispute resolution services for consumers and businesses. The first BBB was founded in 1912. Today, there are 112 local, independent BBBs across the U.S. and Canada. Please visit denver.bbb.org for more information.