Homeowners who hire contractors to renovate their properties usually expect some disruption, particularly when work involves tearing down walls, removing fixtures or stripping rooms back to their foundations. But for several Colorado residents, projects that began as home improvements ended with damaged properties, unfinished work and substantial financial losses. As reported by The Office of the Attorney General, contractor Avi Schwalb has now been sentenced to 10 years in prison after being convicted of a scheme that took more than $1.4 million from homeowners across the Denver area. The case involved dozens of criminal charges, with prosecutors describing a pattern in which customers paid for renovations that were never properly completed.
Contractor abandoned Colorado homes after collecting renovation payments
The investigation centred on two affiliated businesses, Schwalb Builders and Avi’s Remodeling and Contracting, which offered general contracting and home renovation services in the Denver area. Between July 2021 and December 2024, Schwalb took on residential projects, receiving money from customers who expected their homes to be renovated according to agreed plans.However, several homeowners were left with little to show for their payments. According to The Office of the Attorney General, projects were frequently abandoned after demolition had begun or after contractors had carried out defective work. In some cases, the condition of the properties was so poor that residents were left with homes that could not be occupied.For homeowners, the consequences extended beyond losing the money paid towards construction. Demolition can leave essential parts of a property exposed or unusable, and unfinished electrical, plumbing or structural work can make it difficult to move back in or arrange for another contractor to take over.The investigation found that customers had paid substantial sums for work that was not completed. The total amount taken through the scheme exceeded $1.4 million.
Jury convicts contractor on 47 counts of theft and fraud
The criminal case reached a jury in February 2026, when Schwalb was found guilty on all 47 felony charges brought against him. The convictions covered theft, money laundering and violations of Colorado’s organised crime law.The charges followed a statewide grand jury indictment issued in December 2024. Prosecutors accused Schwalb and his business partners of approaching homeowners with renovation proposals, securing contracts and collecting deposits before failing to deliver the promised construction work. The indictment formed the basis of a wider investigation into the companies and their business activities. Although Schwalb was convicted, the case involving other defendants has not yet concluded. They are awaiting trial, and the allegations against them remain subject to the presumption of innocence. The prosecution was handled by the Colorado Attorney General’s Special Prosecutions Unit, with proceedings taking place in Denver District Court.
Denver court hands contractor 10-year prison sentence
In April 2026, a Denver District Court judge sentenced Schwalb to 10 years in the Colorado Department of Corrections. The sentence followed his conviction in February and reflected the scale of the financial losses associated with the offences.Colorado Attorney General Phil Weiser addressed, “Coloradans spend precious time and money to buy and remodel their homes. Homeowners place a lot of trust in contractors to complete the work they agreed to do on their home. In this case, the scope and impact of the defendant’s criminal acts was significant and devastating to many homeowners. The court imposed a serious sentence for his serious crimes, and I am glad we were able to bring justice for the victim homeowners.”For many customers, a renovation contract involves more than a straightforward commercial transaction. Homeowners may need to leave rooms vacant, arrange temporary accommodation or make advance payments for materials and labour. When a contractor walks away after demolition, those arrangements can become difficult to reverse.The case also involved properties left in a condition that required further attention before they could be used normally. Finding another contractor to repair incomplete or faulty work can mean additional expenses, particularly when the original renovation budget has already been spent.
How Colorado homeowners can report contractor fraud
- Residents who suspect they have been affected by contractor fraud can file a complaint directly with the Office of the Attorney General.
- Homeowners who believe a crime has occurred can also report the matter to their local police department.
- The Stop Fraud Colorado website provides guidance on identifying suspicious contractor practices and avoiding fraud.
- Homeowners can use these resources when researching contractors, reviewing renovation agreements and resolving disputes involving payments or unfinished work.
- Keeping written records throughout a renovation can help protect homeowners if a dispute arises. Important documents include:
- Signed contracts and renovation agreements.
- Payment receipts and invoices.
- Project schedules and agreed deadlines.
- Photographs documenting completed work.
- Written communications and messages exchanged with contractors.
Disclaimer: This article is based on information publicly available from the Colorado Attorney General’s Office. The details of the investigation, charges, conviction and sentencing have not been independently verified by The Times of India.
