Cleaning & Restoration Breaking News

Disaster Restoration Employees Convicted of Fraud

Two executives of Disaster Restoration Inc., including the owner, have been convicted of federal fraud charges, the Justice Department announced Wednesday evening, according to a story in the Denver Business Journal.

Jurors found Michael Arthur Griggs, the owner and operator of the Denver company, guilty of one count of conspiracy and 13 counts of mail fraud. Charles "Chip" Homer Sharp was found guilty of one count of conspiracy and nine counts of mail fraud.

Sentencing for Griggs is scheduled for Dec. 3. Sharp is set to be sentenced Nov. 26.

Both men face as much as five years in prison and a $250,000 fine for the conspiracy convictions. The mail fraud convictions carry a similar fine, but a potential sentence of 20 years for each count.

The Justice Department indicted Griggs, Sharp and other employees in 2008. Disaster Restoration acted as a general contractor to repair homes and businesses damaged by water, fire or other disasters. The company relied on subcontractors to do the work and then billed the insurance companies.

The indictment alleged that from the fall of 2003 through early 2007, Disaster Restoration told many of its subcontractors to inflate their bids for a job by 20 to 30 percent. Disaster Restoration billed the insurance companies based on the inflated price and paid subcontractors based on the original bids, according to the Justice Department.

Four other employees plead guilty to a single count of conspiracy to defraud the United States.

To read the complete story, click here.

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