Pensacola contractor Matt Banks indicted for racketeering; faces up to 95 years in prison

State Attorney Ginger Bowden Madden announced Wednesday that a grand jury indicted former Pensacola contractor Matt Banks on four felony counts related to scamming clients out of money.

Banks is now charged with racketeering, aggravated white collar crime, organized fraud and tampering with evidence, according to Bowden Madden. The first three charges are first-degree felonies punishable up to 30 years in prison each, and the final charge is a third-degree felony punishable up to five years in prison.

"Today, the Defendant, in this case, has been charged and will be brought to justice for exploiting innocent victims who were trying to improve their lives for his personal gain," Bowden Madden said in a statement. "We will continue to work with our law enforcement partners to hold the defendant accountable for taking advantage of people by stealing their money and diminishing their trust in businesses."

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According to the release, the grand jury's indictment alleges that Banks "engaged in a pattern of racketeering activity, stole over $5 million in funds, materials and services from more than 150 victims" between May 15, 2019, and Dec. 1, 2022.

Assistant State Attorney Russell Edgar said the indictment also outlines that Banks allegedly stole payroll from employees and forged building permit applications.

Russell said during the press conference that Banks "conducted Banks Construction LLC in an unlawful manner by committing instances of theft of money and funds from homeowners and business owners, by committing theft of payroll monies from his employees ... forgery of building applications, workers compensation fraud and insurance fraud."

Banks has been the center of attention regarding contractor scams in the greater Escambia and Santa Rosa area for nearly a year after Gulf Breeze woman Jennifer Anderson, one of Banks' most outspoken critics, said his construction company took $40,000 for a kitchen remodel, demolished the kitchen and never returned.

Anderson's experience led her to identify over 100 people throughout Escambia and Santa Rosa counties who had hired Banks Construction for remodels but were allegedly scammed out of their money. Eventually, this led to an investigation by the Office of Agricultural Law Enforcement, an arm of the Florida Department of Agriculture and Consumer Services.

Santa Rosa County's Building Code Board of Adjustments and Appeals later revoked Banks' license to contract within the county on Aug. 10, 2022, after they unanimously found him guilty of violating two Florida statutes while working on Anderson's home.

One day later, Escambia County's Contractor Competency Board revoked Banks' contractor license and issued a $62,000 restitution order for failing to complete home repairs for customers Jennifer and Eugene Stone.

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Over the course of several months and many competency board hearings, Banks racked up a restitution bill well into the millions of dollars, which led to his declaration of bankruptcy in August. However, the Northern District of Florida bankruptcy court dismissed the case on Sept. 14, 2022, after Banks filed a voluntary dismissal of the case.

While Banks is not personally bankrupt, his company, Banks Construction LLC, is currently filed for Chapter 7 bankruptcy, according to court records.

In the midst of losing his license, accumulating a massive restitution bill and undergoing bankruptcy, the Pensacola Police Department issued a warrant for his arrest on a third-degree felony charge of a contractor failing to provide a refund. Okaloosa County Sheriff's deputies found Banks August 10, 2022, and he was released just 40 minutes after intake on $2,500 bond.

The State Attorney's Office filed the case Sept. 2, 2022, stemming from his arrest; however, Bank's charge was changed to a third-degree felony fraud charge. Russell said the original fraud charge will be absorbed into the new charges.

In conjunction with FDACS, the Escambia County Sheriff's Office, Pensacola Police Department, Florida Department of Law Enforcement and Florida Department of Financial Services, Bureau of Insurance Fraud helped investigate the case.

Banks was booked into Escambia County Jail at 12:45 p.m. Wednesday after Bowden Madden said his attorney agreed for Banks to turn himself in for the new charges, but posted his $155,000 bond just nine minutes later. The State Attorney said Banks is still under investigation.

Russell also said Banks' brother-in-law and former contractor Jesse LaCoste is under investigation for his alleged poor business dealings, but Russell said he could not comment on the investigation.

Like Banks, LaCoste had his contractor license revoked in the wake of numerous complaints he had taken payment for home remodel projects he never completed. He was arrested on larceny charges in January and released on $130,000 bond.

This article originally appeared on Pensacola News Journal: Matt Banks charged with racketeering, multiple felonies after indictment