When you hire a contractor, you expect the work to get done on time and within the budget you agreed to. Sometimes, though, contractors disappear with deposits, delay work for no reason, or use poor materials. Many homeowners wonder if these actions could lead to criminal charges in Texas. The short answer is yes, in certain cases, a contractor can face criminal prosecution, but it depends on the situation.
Texas has experienced a construction boom in recent years, especially in fast-growing cities. More homes mean more contractors, and unfortunately, this also opens the door for dishonest behavior. While most disputes between homeowners and contractors are civil, some cases rise to the level of criminal offenses. Knowing the difference can help you protect yourself and your property.
Understanding Contractor Fraud in Texas
Contractor fraud happens when a contractor intentionally misleads a homeowner or takes money without completing the agreed work. Homeowners often pay a deposit before any work begins, and this is where scams can happen. A dishonest contractor might take the deposit and never return, or they might charge more than promised for materials and labor.
Civil cases for contractor disputes usually involve breach of contract. A breach happens when one party pays for services or materials, but the other party does not fulfill the agreement. Delays, substandard materials, or incomplete work can count as a breach, even if the contractor did not intend to cause harm. Civil courts focus on recovering damages rather than punishing the contractor.
When Criminal Charges Apply
Not all contractor problems are criminal. Texas law does not have a specific crime called “home contractor fraud.” But certain actions can lead to criminal charges, including theft by deception, mail fraud, deceptive business practices, and false statements to obtain credit.
Theft by deception occurs when a contractor takes money or property without the intention of completing the work. Mail fraud can happen if invoices or estimates are falsified to collect money. Deceptive business practices may involve pretending to be licensed or exaggerating credentials. Lying on a construction loan or financial document can lead to charges of making false statements.
Real-Life Examples in Texas
In Tarrant County, prosecutors have pursued cases against contractors who vanished with homeowners’ deposits. One contractor stole money from elderly residents and was sentenced to three years in jail with $77,000 in restitution. Another scheme involved a contractor scamming more than 40 homeowners out of $150,000–$300,000, resulting in repayment orders and criminal penalties.
These cases show that criminal charges are possible when a contractor intentionally defrauds homeowners. They also highlight the importance of reporting suspicious activity and working with law enforcement or the district attorney’s office when fraud occurs.
Preventing Contractor Fraud
Homeowners can reduce the risk of falling victim to fraud by carefully vetting contractors before hiring them. Checking reviews, confirming licenses, and requesting references can help identify trustworthy professionals. Clear written contracts with detailed timelines, budgets, and disclaimers also protect both parties.
If disputes arise, try to resolve them calmly and professionally. Document all communications, payments, and changes to the project. Keeping records can make a difference if the case ends up in civil or criminal court.
Take Action if You Suspect Fraud
If you believe a contractor has committed fraud, you have options. You can report the issue to local police, contact the district attorney’s office, or hire a criminal defense lawyer if you are a contractor facing allegations. Acting quickly and documenting your case improves your chances of a fair outcome.
Homeowners and contractors alike benefit from understanding the law and protecting themselves with clear agreements and honest communication.
If you are dealing with a contractor dispute or possible fraud, call (214) 432-8860 to speak with a lawyer who can review your situation and explain your options.