Criminal Prosecution for Contractors and Subcontractors who Misappropriate Payments on Your Real Property Improvements
Agents, Buyers, and Sellers should be aware that Georgia law (O.C.G.A 16-8-15) imposes criminal liability of at least one year in jail for contractors or subcontractors who use proceeds paid to them for real estate improvements on your property to pay expenses on some other project. A corporation whose agent or employee engages in this conduct can be held liable and pay a fine between $1,000 and $5,000. The fact you paid the contractor and he or she did not pay the subcontractors is evidence of intent to defraud.
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