Criminal Prosecution and Jail Time for Contractors, Subcontractors for Unlawful Use of Payments Made to Improve Real Estate
You 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.
Justin S. Daniels, Esq., MBA
Wagner, Johnston & Rosenthal, P.C.
5855 Sandy Springs, Circle, Suite 300
Atlanta, Georgia 30328-4834
(404) 835-5260, phone
(404) 835-5160, fax
(404) 229-6847, cell
my bio: www.wjrlaw.com
my blog: http://maxsell.net/category/real-estate-law/