Aug 16, 2012, 7:17am MDT

Disaster Restoration executives convicted of fraud

GO TO; http://www.janiservu.com/ for related articles and discounts!!

Advantage Cleaning Services Does Janitorial Services In Jasper, N.Y. 14855!!

.
Enlarge Photo

Thinkstock

.

Advertisement

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

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.

Jurors acquitted two defendants, Justin Shane Blackburn and Daniel John Travers, of some counts, but were hung on a decision on other counts. Prosecutors on Friday dismissed those counts. Blackburn was a lead estimator for some of the time and Travers was supervisor of the emergency services.

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.

(Page 2 of 2)

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

Jason Alan Cain of Colorado Springs, who was an estimator for the company, is scheduled to be sentenced Oct. 1.

Brett David Harding of Thornton, who also was an estimator, was given five years' probation and ordered to pay restitution of $50,211.

Peter T. Jennings of Brighton, a project manager, was given three years' probation and ordered to pay restitution of $48,238.

Garland Scott Risdon of Centennial, also a project manager, is waiting for a sentencing hearing.

Charges were dismissed against two other defendants: Mark R. Troudt of Thornton, who was lead estimator during part of the time covered by the indictment, and Matthew Kaskel of Denver, who was a project manager.