Contractor Fraud Scheme Exposed: Couple Arrested for Defrauding Over a Dozen Homeowners in New York State

Strategic Insights -

New York Attorney General Letitia James and State Police Superintendent Steven G. James today announced the arrest and arraignment of John McClure, 44, and his wife, Sarah Chambers, 38, of Granville, New York, for allegedly operating a massive contractor fraud scheme in Washington and Warren Counties that defrauded more than a dozen upstate homeowners out of over $1.5 million. The indictment alleges that McClure and Chambers fraudulently obtained over $1.2 million in home improvement payments from over a dozen homeowners, using the funds for personal expenses, including trips to casinos, the purchase of vehicles, and child support payments.

Key Takeaways:

  • McClure and Chambers are charged with operating a contractor fraud scheme that defrauded over a dozen homeowners in Washington and Warren Counties, resulting in over $1.5 million in losses.
  • The indictment alleges that McClure and Chambers used fake advertisements on Facebook, Google, and other websites to solicit business, and then failed to deliver materials and perform work as promised.
  • McClure allegedly spent the victims' money on personal expenses, including trips to casinos, the purchase of vehicles, and child support payments, while Chambers participated in the scheme by serving as a fake reference and drafting contracts.
  • The victims of the scheme included two elderly homeowners who each paid over $80,000 toward building their retirement homes, but never received the promised work.
  • McClure and Chambers face a maximum possible sentence of up to 10 to 20 years in prison if convicted on all counts.

Statistics:

  • Over $1.5 million in losses for homeowners in Washington and Warren Counties.
  • 12-count indictment charges McClure with 6 counts of Grand Larceny in the Second Degree, 4 counts of Grand Larceny in the Third Degree, and 1 count of Scheme to Defraud in the First Degree.
  • Chambers is charged with 2 counts of Grand Larceny in the Second Degree, 2 counts of Grand Larceny in the Third Degree, 1 count of Scheme to Defraud in the First Degree, and 1 count of Criminal Possession of a Forged Instrument in the Second Degree.
  • McClure was released with electronic monitoring, while Chambers was released on her own recognizance.

Sources:

  • "New York Attorney General Letitia James and State Police Superintendent Steven G. James today announced the arrest and arraignment of John McClure, 44, and his wife, Sarah Chambers, 38, of Granville, New York..."
  • "The OAG's investigation and forensic audit revealed that instead of using homeowners' money to purchase materials or perform home improvements, McClure used the money for: Personal expenses such as large cash withdrawals; Trips to multiple casinos, including Saratoga Casino and Hotel in Saratoga Springs and Rivers Casino and Resort in Schenectady; Payments for child support and his mother's rent; Funding for his overstock and returned merchandise storefront known as MG Sales in the Aviation Mall in Glens Falls North; and Purchases of multiple vehicles for McClure, Chambers, and other family members, including a 1927 Bugatti, a 1985 Lamborghini, a Toyota Sequoia, and a refurbished monster truck."
  • Statement from Attorney General James: "When hardworking New Yorkers pay for a service, they expect that service to be carried out. John McClure and Sarah Chambers are charged with agreeing to perform home improvement services for their clients but instead pocketing the money to visit casinos, purchase vehicles, and cover other projects to further their scheme."