3 plead guilty to $319,000 Hurricane Michael home repair scam targeting senior citizens
Three men have pleaded guilty to scamming Florida Panhandle homeowners recovering from Hurricane Michael out of $319,000 for repairs they promised to complete but never did.
Edward Newton, 45, of Lutz; Christopher Mayes, 29, of Tarpon Springs; and Christian Pantazonis, 31, of Largo each pleaded guilty in Tallahassee federal court Wednesday to one count of conspiracy to commit wire fraud and 15 counts of wire fraud, according to the Northern District of Florida U.S. Attorney’s Office.
Investigators say the three Tampa Bay-area men scammed homeowners out of approximately $319,000 between Dec. 1, 2018, and about June 30, 2019. Most of the victims were senior citizens.
“To anyone who endured the devastation of Hurricane Michael, it is almost inconceivable that anyone could stoop so low as to prey on the storm’s victims in such a craven way,” U.S. Attorney Lawrence Keefe said in a statement. “These men took advantage of trusting people in their time of greatest need, and I am pleased that our office has brought these thieves to justice.”
It began in November 2018, about a month after Hurricane Michael, a Category 5 storm, made landfall in the Florida Panhandle.
Newton hired Mayes and Pantazonis to acquire construction contracts in Panama City and the surrounding areas for his Newton Remodeling and Statewide Marketing companies, which were registered in the state of Florida.
Mayes and Pantazonis would travel door-to-door soliciting owners to hire Newton Remodeling for repairs and construction services including roof replacement and major interior repairs, court records show.
By December, their scheme was in motion, according to investigators.
Those who made a contract with Newton’s company paid “thousands of dollars in down payment” to secure “building materials, building permits, or to place the homeowner at the front of the line for repair and construction services,” according to the indictment.
The three men promised homeowners that the work would begin immediately. Sometimes, workers were sent to complete small projects such as removing damaged drywall or replacing shingles to convince homeowners work was being done, according to the documents.
Eventually, the homeowners began complaining that little or no work was being done. That’s when investigators say Newton told the homeowners either by phone or in writing that he would give them back their money. But he never did.
Instead, he sent them a letter in May 2019 stating “he did not intend to complete any of the contracted work and would not return any money,” according to the district attorney’s office.
Each man faces up to 20 years in prison for each individual count and a $250,000 fine, according to their plea agreements. Their sentencing is scheduled for July 2.
The Federal Bureau of Investigation, the Panama City Police Department and the Bay County Sheriff’s Office participated in the investigation, according to the U.S. Attorney’s Office.
Assistant U.S. Attorney Aine Ahmed is prosecuting the case.
This story was originally published February 28, 2020 at 4:10 PM.
