Iowa prosecutions for fraud, forgery decline, but problems persist: How to protect yourself
Criminal prosecutions of fraud and forgery cases were on the rise in Iowa before the pandemic hit, reaching their highest number in years in 2018 with 1,786 convictions.
By the end of 2022, however, prosecutions for that broad category of crimes numbered just 614, their lowest number in years, according to Iowa’s Criminal and Juvenile Justice Planning.
That doesn’t mean fraud isn't a big problem. One example: The Iowa Attorney General’s Office received 359 home improvement-related consumer complaints in 2022, the third-leading type of complaint behind those involving auto sales and health care. Most of the complaints concerned contractors failing to complete jobs and poor workmanship.
A series of court rulings have signaled to county attorneys across the state that contractor theft or fraud cases are best handled, under current Iowa law, as civil rather than criminal matters.
Iowa's Court of Appeals and Supreme Court have held that down payments for construction are given outright by customers, and to prove theft, a prosecutor must show that the contractor intended to make off with the money.
Under state law, just about anyone can be a contractor as long as they register with Iowa Workforce Development. And even if they don't, the $500 fine is reduced to $250 if they pay within 20 days.
As a result, many contractors have taken people's money, failed to do the agreed-upon work and suffered few consequences, even after being ordered to repay customers under Iowa's Consumer Fraud Law.
But Lynn Hicks, a spokesperson for the Polk County Attorney's office, said each case needs to be considered individually to see what can be done.
Before you hire a contractor
Check references. Before you sign anything or pay any money, ask around and take time to talk with the contractor. Ask people you know and trust whom they have hired for their projects and whether they were satisfied.
Check complaints with the Attorney General's Office (email: consumer.consumer@ag.iowa.gov) and the Better Business Bureau at www.bbb.org. Be wary of any person or company not listed in the local telephone directory, and be wary of contractors who provide only a post office box and not a street address.
Go to iowacourts.state.ia.us to check court cases involving the business and the individual.
Get several written estimates or bids. Be sure the estimates include everything you want done and nothing more. Although low bids are often what people look for, they can raise red flags.
Get the contract in writing and read it before you sign it. The contract should detail terms, including the work to be done. It should state the brand and specifications of the materials to be used; the price; the party responsible for obtaining permits and scheduling inspections; that all change orders must be in writing; and the party responsible for cleanup.
Put start and completion dates in writing, as well as the remedies if the contractor fails to meet them.
Avoid paying large sums or for the entire job up front. If you need to make a partial advance payment for materials, make your check out to the supplier and the contractor. Insist on a mechanic's lien waiver in case the contractor fails to pay others for materials or labor.
Lee Rood's Reader's Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Reach her at lrood@registermedia.com, at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.
This article originally appeared on Des Moines Register: Iowa fraud, forgery cases dip; problems don't: How to protect yourself
