The Indiana Attorney General’s office has filed civil lawsuits against four contractors accused of fraud following the August 11th storms that caused widespread damage in Northwest Indiana.
All of the companies are from out-of-state and the Attorney General says there will be more.
“We are going after you,” said Attorney General Todd Rokita during a press conference. “This isn’t the end, this isn’t the culmination of a bunch of investigative time, this is the beginning.”
Rokita said some contractors are unlicensed and lying about it. Some are using high-pressure tactics to get people to sign contracts. They’re not showing people full contracts. They’re making impossible promises, telling people that FEMA or their insurance companies will cover the cost of services.
“Look guys, be skeptical,” he said. “I hate to say this. Don’t trust anybody.”
One alleged victim is an elderly woman from Munster, according to Corrine Gilchrist, the Chief of Consumer Litigation.
The woman was dealing with an employee of a company called Garrison McKinney Tree and Bridge Services. She needed two trees removed.
“When he did finally give her a price it was forty thousand dollars,” she said. “When she explained it would wipe out her retirement, he cut that price down to thirty-five thousand.”
Gilchrist said the company representative used high-pressure tactics, telling her that the trees were a safety hazard for her neighbors.
“She felt pressure to act quickly,” Gilchrist said, and she was shown a contract that did not have the language that’s required under state law.
The other companies are identified as Shade Tree Service Co, Storm Support Emergency Tree Removal and Timber Cut Tree Experts.
Storm Support is accused of operating without a license and charging more than customers expected.
The others are accused of being unlicensed.
"If you're an out-of-state company, not only do you have to be licensed locally, but you have to be registered as a foreign entity at the secretary of state's office,” Rokita said. “And if you're not that, then you can't do business in the state of Indiana.”
The focus, so far, has been on Lake County. But Rokita said others are operating in other counties, as well.
“My goal is to chase them out of the state,” Rokita said. “It is reprehensible what these people are doing.”
Anyone who feels that they’ve been a victim is encouraged to contact the Attorney General’s Consumer Protection Division.
The Attorney General’s office is also looking into a Merrillville hotel accused of dramatically raising rates following the storms and refusing to allow cancellations when guests found that it didn’t have basic items, like sheets and towels.
