Hundreds of Denver and Colorado Springs residents whose houses were damaged by hail never received promised repairs from a roofing company that collected more than $1 million in insurance money for the work, Colorado Attorney General John Suthers alleged in a lawsuit filed Thursday.
Instead, owners of Claims Specialists International Inc. and a second company they formed paid themselves and their employees large salaries and bonuses, according to the suit filed in Denver District Court.
By last fall, not only had repairs not been made, but the company owed hundreds of thousands of dollars to subcontractors and suppliers, Suthers said. The company is accused of violating the state’s consumer-protection laws.
CSI was later dissolved and reformed as K2 Roofing and Construction, according to the lawsuit.
The lawsuit accuses CSI officers of engaging in deceptive trade practices starting in April 2007.
“This company used particularly aggressive door-to-door sales techniques, often targeting older homeowners,’ ” Suthers said.
The complaint alleged that the companies would go door-to-door after hailstorms and ask homeowners if they would like a free roof inspection. Then, salesmen would pressure homeowners into contracting the companies to do the repairs.
For example, according to the lawsuit, in a single week in the summer of 2008, 150 new sales contracts were signed, each worth $2,000-$3,000 in initial insurance payments.
Defendant Glenn Jessen, described as CSI’s owner and president from April 2007 to November 2008, denied that the company used high-pressure tactics or targeted seniors.
“That is absolute sensationalism,” Jessen said. “Nobody was out there trying to steal from anybody.”
Other defendants — Melissa King, CSI president after Jessen; Mark Baker and Robert Downey, both vice presidents — refused to comment or could not be reached.
The defendants face up to a $2,000 penalty per violation or a $10,000 penalty per violation for every consumer age 60 or older. At least 400 victims have been identified.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
What to consider when hiring a roofer
• Never hire a contractor who shows up unsolicited or to “check out” any part of your home or let them inside for an inspection. They may be looking for valuables to steal.
• Get at least three quotes for home improvements or repairs. Check them with your local Better Business Bureau.
• Get it in writing. The contract should include an estimate of the cost and specifically outline what’s to be done.
• Never pay in full in advance. Partial payments as work is finished are OK, but get it in writing.
• Report door-to-door scams to local authorities or the attorney general’s office: 800-222-4444 or stop .fraud@state.co.us.
Source: Colorado attorney general’s office
