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'We're out of a bunch of money, and the work isn't done.' Couple warns of home repair scam

Steve and Carolyn Lazzuri say they were cheated out of more than $32,000 for unfinished home improvement work on two homes.
Credit: Courtesy of Steve and Carolyn Lazzuri/Indianapolis Star
Steve and Carolyn Lazzuri say Paul Vaughn cheated them out of more than $32,000 for unfinished home improvement work on two Indiana homes.

When Steve and Carolyn Lazzuri purchased two homes in east central Indiana in April, they planned on fixing and flipping the properties to bolster their savings as they approached retirement.

It was the Washington state couple's first foray into home flipping, and they heard Indiana was a good place to start with affordable and available homes.

After placing an ad on Craigslist, they found a contractor, Paul Vaughn with Patriot Heating and Construction LLC, to renovate the homes, one in Upland, Grant County, and the other in Redkey, Jay County. Vaughn sounded trustworthy.

"He's got a Facebook page that shows his family. They have a fireworks business in Redkey and put on a community fireworks show each year," Steve Lazzuri said. "We were kind of impressed with that, and he seemed like a good family man."

What the Lazzuris did not know was that Vaughn contacted them while on probation and awaiting trial for alleged theft in a home improvement deal.

By June, the Lazzuris were out tens of thousands of dollars and realized the agreed-upon home repair work was not complete.

The Lazzuri's story is a cautionary tale that investigators and consumer experts say happens far too frequently and serves as an important reminder of the need to vet people hired to perform work on your home.

"Contracts are only as good as the people who sign them," said Tim Maniscalo, president and CEO of the Better Business Bureau Serving Central Indiana.

The Lazzuris and Vaughn agreed to a written contract in April that specified the scope and cost of the work and set June 15 as the completion date for work on the Upland home. Work in Redkey was to be completed by late July at the latest.

But after flying to Indiana to inspect the properties a few weeks ago, the Lazzuris discovered little work had actually been done.

The Lazzuris said they contacted Vaughn to express their disappointment and that he agreed to meet with them.

However, according to the Lazzuris, Vaughn never showed up to arranged meetings and stopped answering calls and emails.

Vaughn did not respond to calls from IndyStar seeking comment for this story.

The Lazzuris, both 63, said they had already paid Vaughn $24,000 for his work on the Upland home and more than $8,000 for work on the Redkey home.

The Lazzuris said theyagreed in their contract with Vaughn to ultimately pay $38,000 for the Upland home repairs and more than $40,000 for the Redkey home repairs.

"We're out of a bunch of money, and the work isn't done," said Steve Lazzuri, who works as a car dealership manager.

Broken promises

Vaughn started work on the Upland home April 18. The Lazzuris, who purchased the approximately 2,220 square foot property for $25,000,said theywired money to Vaughn each week after receiving invoices from him for labor and material costs and photos of each room.

They said theyalso received weekly phone calls from Vaughn with updates.

Vaughn sent photos and videos of the properties for several weeks but stopped doing so after May 7, Steve Lazzuri said.

"Then (he) began sending excuses and reasons he hadn't (sent photos) yet," Steve Lazzuri said. "The real reason was no more work had been done."

The Lazzuris sent a home inspector to take photos of the properties in mid-May and saw how the work was not progressing.

"We just started feeling like something in the conversation wasn't right, and we stopped paying (Vaughn)," Steve Lazzuri said.

After flying to Indiana to inspect the properties for the first time in June, the Lazzuris said they observed the lack of progress.

In Upland, work on the home was supposed to be complete, but only some siding, bedroom walls, flooring and bathroom appliances had been removed and not replaced, Steve Lazzuri said. Vaughn and his team of four workers had also begun the demolition of a kitchen.

In Redkey, Steve Lazzuri saidsome demolition work was done, and the yard was mowed. The couple purchased the approximately 1,800 square foot home for $16,500.

Now, they say they are left searching for new contractors and a way to recover their financial losses.

A history of deception

If Steve and Carolyn Lazzuri had looked deeper into Vaughn's past before hiring him, they would have discovered a history of legal trouble.

Vaughn, who court records show is 36, has had to pay or still owes hundreds of thousands of dollars in small claims, check fraud, theft and civil collection cases in Cass, Blackford, Marion, Jay, Randolph and Delaware counties, according to court records.

In August 2015, Vaughn was placed on probation for 7 1/2 years after pleading guilty to charges of theft and habitual offending in Randolph County.

He still owes nearly $150,000 in home detention fees, court costs and restitution in that case, court records show.

In January 2016, Vaughn was arrested in Delaware County on charges of theft of property between $750 and $50,000 in value, a Level 6 Felony punishable by up to 2 1/2 years in prison.

The case is still pending in Delaware Circuit Court, with a jury trial scheduled for October. Vaughn pleaded not guilty in the case and posted bail, said Zaki Ali, Vaughn's attorney.

"Right now, Mr. Vaughn is completely innocent of all charges, and I have personally advised my client to not talk with the press because his constitutional rights still apply," Ali said.

The case involves Vaughn's work on a Muncie home in 2015.

The owners, Jill and Dino D'Angelo, had moved to New York and wanted to make repairs to their home before selling it, according to an affidavit filed in the Delaware County case.

The affidavit states the couple agreed in a contract to pay Vaughn, doing business as "Hoosier Property Management," $21,000 for home repairs.

According to the affidavit, the D'Angelos paid Vaughn in three separate installments in September 2015.

After asking for but never receiving photos of the house from Vaughn, the D'Angelos learned in October 2015 that little work had been done, according to the affidavit.

Vaughn apologized in an email to the couple in November 2015, according to the affidavit, and said, "My crew and myself personally will be finishing this house up this week and weekend."

But Jill D'Angelo told IndyStar that Vaughn never finished the work. The couple eventually sold the home but "lost a lot of money in the end," she said.

Jill D'Angelo, a professor at Buffalo State College in Buffalo, New York, said Vaughn sent emails urging the D'Angelos to drop the complaint against him, sharing how he had children and a wife to take care of.

"I teach criminal justice," Jill D'Angelo said. "I'm all about rehabilitation, but this man hasn't learned his lesson. He doesn't seem to see that he is hurting people. The only way he is ever going to learn his lesson is by actually having to serve prison time."

Waiting on a check

Patriot Heating and Construction LLC is listed by the state of Indiana as active since January 2018 on INBiz, the Indiana Secretary of State's online business directory, with a Ridgeville, Indiana address.

The Lazzuris filed a complaint against Vaughn with the Upland Police Department and have reached out to the Jay County Sheriff's Department, Steve Lazzuri said.

They also filed a complaint June 25 against Patriot Heating and Construction with the Better Business Bureau Serving Central Indiana. Maniscalo said Vaughn has yet to respond in writing to the complaint.

However, Maniscalo said Vaughn called the Better Business Bureau July 6 and indicated he will refund the Lazzuris and respond in writing to the complaint.

In a June 29 email to the Lazzuris, Vaughn said he mailed a check to the couple for $18,756 as a refund for uncompleted work in Upland.

"This is the easiest way to resolve this issue," Vaughn wrote in the email.

But, more than three weeks later, the Lazzuris said they have yet to receive a check from Vaughn and that $18,756 would not cover all of the unfinished work.

According to the Indiana attorney general's office, one other complaint was filed against Patriot Heating and Construction in November 2017.

The Lazzuris said they hope to recover the money they gave Vaughn for unfinished work. More importantly, they want to save others from making similar mistakes.

"With (Vaughn), our first concern is that nobody else gets taken advantage of," Steve Lazzuri said. "We're going to survive this, but I know there are others who have limited incomes or could get their life savings wrapped up in it."

Avoiding Scams

According to the Indiana attorney general's office, 223 home improvement complaints have been filed in Indiana in 2018. 507 complaints were filed in 2017, and 639 complaints were filed in 2016.

The Better Business Bureau Serving Central Indiana has received 96 complaints against home improvement businesses in the past three years.

To avoid home improvement scams, the Better Business Bureau and Indiana attorney general's office advise consumers to take their time and conduct research before deciding on contractors.

Consumers should contact the attorney general office's Consumer Protection Division and the Better Business Bureau for any complaint information about contractors.

Among other recommendations:

  • Get at least three quotes from different businesses.
  • Check if the contractor is licensed and insured.
  • Get a written contract with details such as estimated start and completion dates, the contractor's name, contact information and signature.
  • Never pay for the entire project before work begins nor more than 1/3 of the total cost as a down payment.

Keep copies of warranties and all records related to the project.

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