SEATTLE — Two brothers accused of posing as home repair contractors to defraud elderly homeowners were sentenced to 18 months in prison last month.
Patrick McDonagh and Matthew McDonagh were arrested in mid-June and federally charged in mid-July, according to the United States Attorney's Office. The brothers pleaded guilty to conspiracy to commit wire fraud charges in September.
The United States Attorney's Office said the brothers will likely be deported after their prison sentence. One of the brothers is facing fraud charges in Ireland.
“The defendants in this case preyed on our elderly neighbors – coming into their homes and peddling lies about repairs that seemed urgent so that the homeowner would write whatever checks were needed to preserve their homes,” said Tessa Gorman, United States Attorney. “In Washington State last year our elderly were defrauded of some $88 million. Our elder fraud prosecutors are doing all they can to hold fraudsters accountable.”
According to court records, the McDonaghs were part of a group that traveled the country scamming homeowners by saying the home needed urgent repairs. Authorities said the group targeted elderly people primarily in the scheme. One older homeowner in the Shoreline neighborhood lost about $435,000.
Investigators said the men first approached the victim in January, claiming the victim had a hole in his roof. The men offered to fix the hole and remove the moss from the roof. In a few days, investigators said the brothers pressured the victim to write them checks for their services, with amounts totaling $15,000, $20,000 and $26,000. According to court records, the men claimed the victim's foundation was cracked and they needed to repair it with a "titanium tie rod system."
Even though the roof had no hole and the foundation was not failing, investigators said the men dug trenches and poured concrete to make it appear that work was being done. Each day the brothers pressured the victim to write more checks. At one point, the men demanded an extra $20,000 for "taxes," according to court records filed in the case.
Court documents revealed the McDonaghs demanded the elderly victim wire $200,000 to a third party for building supplies. Some of the wired funds were recovered by authorities.
A Federal Bureau of Investigation (FBI) investigation connected the McDonaghs to contractor fraud complaints in Oregon and Illinois. Authorities said Patrick McDonagh told three different victims in Oregon that he was working with a legitimate construction firm when he was not. These homeowners paid him as much as $29,000 for foundation work that was never completed.
Matthew McDonagh claimed he could repave a victim's driveway and rebuild a retaining wall for $99,000 in Illinois, according to court records. After the victim paid $75,000, the work was not done properly and damaged the victim's house, authorities said.
The United States Attorney's Office said the brothers agreed to make restitution to the victims in the case, which includes $235,000 to a victim in Shoreline, more than $673,000 to a victim in Bellevue, $75,000 to a victim in Illinois, and about $50,000 to three victims in Oregon.
The FBI outlined several red flags for contractor fraud:
- The contractor knocks on your door looking for business because they are “in the area” and uses aggressive sales tactics.
- The contractor pressures you for an immediate hiring decision.
- The contractor accepts only cash as payment and demands full payment before starting any work.
- In the sales pitch, the contractor claims to have materials left over from a previous job.
Authorities recommend getting multiple estimates for any work you are considering and ensuring contractors are licensed and insured. You can look up contractors on Washington State's Department of Labor & Industries website. You can also check with the Better Business Bureau and the Federal Trade Commission to search for complaints against a contractor.
