From the Herald News:
Shoddy repairs raise homeowners’ concern
For roughly a decade, three men running home improvement and financing companies allegedly defrauded dozens of North Jersey homeowners who could least afford the financial hardship.
Companies associated with the three men canvassed low-income neighborhoods for homes in need of work. They pitched “affordable” repairs but did shoddy work, and saddled homeowners with mortgages at unaffordable, double-digit interest rates.
In at least one instance, after some angry homeowners filed suit, one company stopped doing work and another started up.
The men kept doing business.
“I just paid off everything. I didn’t want to deal with it anymore,” said Arnett Fraser, a hospital worker from Paterson who got a high-interest loan and poorly renovated kitchen from one of the companies. He eventually refinanced with another bank.
At best, homeowners like Fraser absorbed the financial burden and moved on. At worst, some former clients had to sell their home or lose it to foreclosure.
…
During a 12-year period, Demetris Michalaki, John Michael, and Lazaros Charalambous – alone or together – started at least three building companies, two lending firms, a titling agency, a real estate company and an appraisal firm, all connected to 383 and 544 Washington Ave. in Belleville, according to state incorporation records.The chain of companies began in 1995, when Michalaki and his wife, Margherita, incorporated D&M Financial Corp. They bought 383 Washington Ave., a large, two-story building on Belleville’s main commercial strip, to house the mortgage company, and a smaller office six blocks north at 544 Washington Ave.
A year later, Michael, who is listed as Yiannakis Michael on the state incorporation papers, established Monet Builders. The company was housed at 234 Franklin Ave. in Nutley, but Michael listed his personal address as 544 Washington Ave. – the same Belleville business office owned by Michalaki.
Monet Builders provided home-improvement services such as remodeling, driveway repair and boiler replacement. It found its clients — primarily low-income homeowners — by soliciting those with a visible need for repair. Their representatives promised affordable work and easy access to financing, through Michalakis’ D&M Financial.
The homeowners they solicited often had limited income or poor credit. They would struggle to pay outright or qualify for a traditional loan.