Feb 04

Criminal Prosecution for Contractors, guest post by Justin Daniels, Atlanta Real Estate Attorney

atlantarealestatelaw

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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About Justin Daniels

Justin S. Daniels is the trusted legal quarterback providing corporate and commercial real estate advice to fast growing privately held entrepreneurial businesses. He practices law as a shareholder with the firm Wagner Johnston & Rosenthal, P.C. Justin's corporate practice consists of representing businesses and business owners in all aspects of their operations from structuring new ventures, advising on acquisitions and divestitures and reviewing and negotiating key vendor, franchise, employment and customer contracts. He has represented a variety of clients in the manufacturing, retail, professional services, consulting and technology industries.
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  • Samuel Awosolu

    This is long over due. I'm glad this is in place. To many contractors robbing Peter to pay Paul. I think I lot of contractors will be liable because they do not keep up with the law or are just plain ignorant to it.

  • http://www.maxsell.net Brad Nix

    and now Peter wants his money and the contractor/sub doesn’t have it – orange jump suits await.

  • civileng2009

    Daniels, you are absolutely right.